WHAT’S THE BUZZ, TELL ME WHAT’S A HAPPENNIN’?

 

* From Russ Fox at TAXABLE TALK – “New Jersey: We Delayed Processing Your Extension Payment So We’re Going to Penalize You for Our Error”.

As Russ points out –

“This is also a reminder to you that many notices sent by tax agencies are wrong in part or in whole.  Do not blindly pay a notice!  Send it to your tax professional and have them check it for accuracy.”

In my experience, more often than not error notices from the IRS and state tax agencies are incorrect.  And especially notices from the NJ Division of Taxation.

* The NJ DIVISION OF TAXATION website discusses “One Big Beautiful Bill Act (OBBBA) and the New Jersey Gross Income Tax” (highlight is mine)–

“For Tax Years 2025 through 2028, under the One Big Beautiful Bill Act (OBBBA) there are new federal income tax deductions for senior citizens, overtime, and tips. However, the New Jersey Gross Income Tax (GIT) has defined categories of income and deductions and is not computed based on federal adjusted gross income. Therefore, federal deductions under the federal OBBBA regarding overtime, tips, and senior citizens do not affect a taxpayer's New Jersey Individual Income Tax return (Form NJ-1040, NJ-1040NR, or NJ-1041).”

And “One Big Beautiful Bill Act (OBBBA) - Changes to Charitable Contribution Deductions” (again, highlight is mine) -

“For the purposes of the New Jersey Gross Income Tax Act, there is no provision similar to the Federal Internal Revenue Code allowing charitable deductions. Therefore, there are no changes for Gross Income Tax purposes.”

* The NATP reports “IRS first-time penalty abatement: automatic in 2026” (highlight is mine) –

“The IRS administrative penalty waiver for first-time abatement (FTA) has been in existence since 2001. In the past, tax professionals and taxpayers had to write or call the IRS to request the waiver. Starting in 2026, taxpayers who qualify for FTA will automatically receive the abatement from the IRS.”

The article includes an overview of the First-Time Abatement requirements.

THE LAST WORD

Every single person who voted for convicted felon and indicted traitor Trump for President in 2024 is truly an enemy of the state and an enemy of the people, a traitor to the United States and to the Constitution, and the greatest threat facing America today.

There has NEVER been an intelligent or acceptable reason for ANYONE to vote for Trump for ANY office!

TTFN

HAPPY THANKSGIVING!

 

WHAT’S THE BUZZ, TELL ME WHAT’S A HAPPENNIN’?

 

All the BUZZ in this installment comes from the federal government.

* The IRS has released a draft of the Form 1098-VLI - Vehicle Loan Interest Statement - to be used beginning in 2026 to report the interest paid on a qualified passenger car loan that qualifies for the new BBNSBB deduction

* This just in – “Social Security Announces 2.8 Percent Benefit Increase for 2026”.

And “ . . . the maximum amount of earnings subject to the Social Security tax (taxable maximum) is slated to increase to $184,500 from $176,100.”

* Sad news.  Jory Heckman reports “IRS tells states Direct File ‘will not be available’ in 2026” at the FEDERAL NEWS NETWORK (highlight is mine) - 

“The IRS sent an email on Monday to 25 states it partnered with on Direct File, which has been running for two filing seasons, telling them that ‘Direct File will not be available in Filing Season 2026,’ and that ‘no launch date has been set for the future’.”

This was done despite -

“Former members of the Direct File team, however, claim the project largely succeeded in its goal of making it faster and easier for individuals to file their taxes.”

The corrupt Trump Administration clearly gave in to pressure from Henry and Richard and other commercial tax preparation companies.

* And the IRS has released the cost‑of‑living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2026. 

THE LAST WORD

Just so you know –

Over the past 50+ years I have voted for Democratic, Republican, and Independent candidates – depending on the election, the issues, and the candidates.

As I posted in the past –

“In 2012 I voted for Mitt.
But I’ll never vote for Trump,
‘cause he’s a worthless piece of shit.”

I have no issues with “traditional” Republicans or true conservatives.  I do, however, strongly oppose and denounce “today’s” Trump-embracing and Religious Right controlled Republican Party – and very seriously believe that it is truly the greatest enemy of and danger to America and American democracy.

TAFN

VOTE!

 

The greatest threat facing America and American democracy is today’s Trump-embracing and Religious Right controlled Republican Party.

It is truly vital for the future of America that you vote against EVERY Republican candidate in EVERY election on EVERY level today!

If Republicans win America loses.

HAPPY HALLOWEEN!

 

TRUE DAT!

 

SOME GOOD ADVICE

 

Here is some good advice.

If you receive a notice from the IRS or a state tax agency relating to a tax return you filed - send it to your tax preparer ASAP.

If you had a balance due on a federal or state income tax return, which you paid with the filing of the return, and you receive a check from the IRS or the state relating to that return – do not cash the check.

The IRS or state agency will send you a notice that should arrive within a few days after receiving the check explaining why the check was sent.  Send this notice to your tax preparer and do not cash the check unless the preparer tells you it is ok.

If you “self-prepared” the return in question - consult a tax professional before paying any balance requested on a notice or depositing any check received.

In my 50+ years of experience as a tax professional more often than not notices from the IRS and state tax agencies are wrong.

TTFN