Thursday, September 29, 2016


During Monday night’s debate when Hillary Clinton suggested that Dangerous Donald paid “0” in federal income taxes in past years Trump interrupted her to say that this means he was smart.
A friend, client, and fellow “Twiit” called for my help in responding to Trump’s interruption in a tweet.
My response to her was that there is “nothing wrong with legally using {the} Tax Code to reduce or eliminate taxes”.  I did point out that “Trump has shown his stupidity in so many other ways”.
In a subsequent tweet I said –  
If {Dangerous and Deplorable Donald} Trump legally used Tax Code to pay no tax {the} problem is with the Code. But {there is} no excuse for not releasing {his} tax returns. He is hiding something.”
While I would never say that Trump was smart about anything – he was not wrong in using whatever legal deductions, credits, and exclusions were available to him to minimize or eliminate his tax liability.  The courts have continually upheld the right of the American taxpayer to use whatever legal means available to reduce or eliminate tax liability – and that American taxpayers have absolutely no legal, moral, or ethical obligation to pay any more federal income tax than they have to within the context of the US Tax Code. 
If Trump did indeed pay no federal income tax in any years (making him one of the “infamous 47%) through the use of legal tax loopholes then the blame lies with the mucking fess that is the US Tax Code, as written by the idiots in Congress.  This is truly one of the very few, if not the only, instance where Trump is not wrong or at fault.
It is obvious that the current Tax Code needs to be totally shredded and rewritten from scratch.  The answer is not to raise tax rates on those considered to be wealthy, but to remove preferences and loopholes and the delivery of federal social welfare benefits.
Of course there is nothing to indicate that Trump prepared a complete and honest tax return, since he refuses to release his returns.  He has certainly not been honest in the use of his Foundation, and has been fined for his indiscretions here by the IRS.  There is no doubt that the information on the tax returns he refuses to release (and which he never will release) would somehow prove that he lies, as he does about everything else, when bragging about his income, his wealth, and his charity.

Wednesday, September 28, 2016


According to the Mayo Clinic -
Narcissistic personality disorder is a mental disorder in which people have an inflated sense of their own importance, a deep need for admiration and a lack of empathy for others. But behind this mask of ultra confidence lies a fragile self-esteem that's vulnerable to the slightest criticism.
A narcissistic personality disorder causes problems in many areas of life, such as relationships, work, school or financial affairs. You may be generally unhappy and disappointed when you're not given the special favors or admiration you believe you deserve. Others may not enjoy being around you, and you may find your relationships unfulfilling.
Narcissistic personality disorder is one of several types of personality disorders. Personality disorders are conditions in which people have traits that cause them to feel and behave in socially distressing ways, limiting their ability to function in relationships and other areas of their life, such as work or school.
If you have narcissistic personality disorder, you may come across as conceited, boastful or pretentious. You often monopolize conversations. You may belittle or look down on people you perceive as inferior. You may feel a sense of entitlement — and when you don't receive special treatment, you may become impatient or angry. You may insist on having "the best" of everything — for instance, the best car, athletic club or medical care.
At the same time, you have trouble handling anything that may be perceived as criticism. You may have secret feelings of insecurity, shame, vulnerability and humiliation. To feel better, you may react with rage or contempt and try to belittle the other person to make yourself appear superior. Or you may feel depressed and moody because you fall short of perfection.
Many experts use the criteria in the Diagnostic and Statistical Manual of Mental Disorders (DSM-5), published by the American Psychiatric Association, to diagnose mental conditions. This manual is also used by insurance companies to reimburse for treatment.
DSM-5 criteria for narcissistic personality disorder include these features:
Having an exaggerated sense of self-importance
•Expecting to be recognized as superior even without achievements that warrant it
•Exaggerating your achievements and talents
•Being preoccupied with fantasies about success, power, brilliance, beauty or the perfect mate
•Believing that you are superior and can only be understood by or associate with equally special people
•Requiring constant admiration
•Having a sense of entitlement
•Expecting special favors and unquestioning compliance with your expectations
•Taking advantage of others to get what you want
•Having an inability or unwillingness to recognize the needs and feelings of others
•Being envious of others and believing others envy you
Behaving in an arrogant or haughty manner
Although some features of narcissistic personality disorder may seem like having confidence, it's not the same. Narcissistic personality disorder crosses the border of healthy confidence into thinking so highly of yourself that you put yourself on a pedestal and value yourself more than you value others.”
Does this sound like any Presidential candidate you know?  Duh!
Dangerous and deplorable Donald Trump is unfit to be President because of this mental disorder!!!

Tuesday, September 27, 2016


While on my recent bus trip to Niagara Falls I overheard a conversation between two fellow travelers that included the statement “you know that 47% of Americans are unemployed”.
This is not true.  The current unemployment rate is only about 5%. 

What the two were talking about, I believe, is the infamous “47%” of Americans who either pay no federal income tax or “make a profit” from filing a tax return that was made famous by Mitt Romney in the 2012 Presidential election.
These people are not unemployed.  Many do work and actually have enough income to generate an income tax liability – but the liability is reduced to “0” or these filers receive a refund in excess of the amount withheld (therefore “making a profit” by filing a return) through the use of tax credits, some refundable.  The biggest refundable tax credit is the Earned Income Credit, and you must have “earned income” – i.e. W-2 wages or net earnings from self-employment – in order to qualify for this credit.
The reason for the “47%” – actually now, I believe, about 44% - is the erroneous practice by the idiots of Congress of distributing federal social welfare and other benefit programs via the US Tax Code.  If these benefits were distributed more appropriately – via direct payment from the budget of the applicable department – the beneficiaries that are included in the infamous 47% would be paying federal income tax with the filing of their 1040s (or 1040As), and receiving federal benefits such as welfare and college financial aid directly from the government. 
As I have said many times before the one and only purpose of the federal income tax is to raise the money necessary to run the government – and not to distribute government benefits or “redistribute” income.  As I have said in past posts - 
I am not saying that the government shouldn’t provide financial assistance to the working poor and college students, provide encouragements for purchasing health insurance, making energy-saving purchases and improvements and other ‘worthy’ actions.  What I am saying is that such assistance and encouragements should not be distributed via the Form 1040.
The benefits provided by the Earned Income Tax Credit and the refundable Child Tax Credit should be distributed via existing federal welfare programs for Aid to Families with Dependent Children. The benefits provided by the education tax credits and deduction for tuition and fees should be distributed via existing federal programs for providing direct student financial aid. The benefits provided by the Premium Tax Credit, the energy credits, and other such personal and business credits should be distributed via direct discount payments to the appropriate vendors or direct rebate programs, similar to the successful Cash for Clunkers program of a few years ago, funded by the budget of the appropriate Cabinet departments.
Distributing the benefits in this manner is much better than the current method for many reasons:
1. It would be easier for the government to verify that the recipient of the subsidy, discount or rebate actually qualified for the money, greatly reducing fraud. And tax preparers, and the IRS, would no longer need to take on the added responsibility of having to verify that a person qualifies for government benefits.
2. The qualifying individuals would get the money at the “point of purchase,” when it is really needed, and not have to go “out of pocket” up front and wait to be reimbursed when they file their tax return.
3. We would be able to calculate the true income tax burden of individuals. Many of the current “47 percent” would still be receiving government benefits, but it would not be done through the income tax system, so they would actually be paying federal income tax.
4. We could measure the true cost of education, housing, health, energy and welfare programs in the federal budget because benefit payments would be properly allocated to the appropriate departments."
I do believe that there should be a true “minimum tax” – not the “alternative” minimum tax we now have thanks to the laziness of Congress.  Every American citizen aged 19 through 64 who is not a full-time student should pay a minimum tax of, let’s say, $100 in federal income tax each year!
The bottom line - the US Tax Code must be shredded and totally rewritten from scratch!

Monday, September 26, 2016


New Jersey residents – do you want to learn how to pay the absolute least amount of NJ Gross Income Tax possible –
and experience the joy of avoiding NJ state taxes?
Click here to download a free copy of my unique newsletter
the only publication I am aware of that deals exclusively with tax planning and preparation advice, information, and resources for the NJ-1040.

I was on a bus trip to Niagara Falls for most of last week, and did not keep up with the tax BUZZ (I did not bring my lap top with me).  So this installment is a bit brief – but contains important information nonetheless.

* Russ Fox warns us of “A New Scam: Mailed 'IRS' Notices” at TAXABLE TALK.

* Kay Bell, the yellow rose of taxes, is always giving us a tax spin on current cultural and political events.  In a recent DON’T MESS WITH TAXES post she lists “6 divorce tax tips in the wake of the Brangelina split”.

* Don’t remember if I mentioned this in an earlier BUZZ installment – but here is news from the NATP weekly email update newsletter -

The IRS announced special relief intended to support leave-based donation programs to aid victims who have suffered from the extraordinary destruction caused by last month’s severe storms and flooding in Louisiana.

Under these programs, employees may forgo their vacation, sick or personal leave in exchange for cash payments the employer makes, before January 1, 2018, to charitable organizations providing relief for the victims of this disaster.

Under this special relief, the donated leave will not be included in the income or wages of the employees. Employers can deduct the cash payments as business expenses.

Details on this relief are in Notice 2016-55.”

* It appears that the idiots in Congress, being idiots, believe in that old adage “if it didn’t work in the past, keep doing it”.

In my opinion, the first thing you should know is that if you are contacted by a private debt collector – write to the agency and tell them (or if they call just tell them) that you refuse to deal with them, and will only deal directly with the IRS.  Tell them to return any and all information relating to you and your tax situation to the IRS.  If you write send a copy of the letter to the IRS. 


A rational, intelligent, and serious voter certainly has the right to question the competence, fitness, and appropriateness of Hillary Clinton for President and, based on past and present actions and statements, choose not to vote for her.

But Dangerous and Deplorable Donald Trump has by his past and present actions and statements proven beyond any doubt that he is NOT competent or fit or appropriate to be elected President of the United States.  There is no good reason why anyone should vote for Donald Trump.

You do not have to vote for Hillary Clinton – you just have to NOT vote for Donald Trump! 

Libertarian Party candidate Gary Johnson is a rational, intelligent, and appropriate alternative for real Republicans and conservatives.  It is important to put conscience and country over Party!


For all orders postmarked in September I am offering my
at a 25% discount – only $5.95 delivered as a pdf email attachment
or $7.45 in print form sent via postal mail.
Click here for more information on the special report.
Send your check or money order payable to Taxes and Accounting, Inc. – and your email address or postal address – to:

Wednesday, September 21, 2016


Oi vey!
With all the garbage and nonsense of the current Presidential campaign I actually forgot to acknowledge and celebrate a milestone anniversary this past July.
I published the first post of THE WANDERING TAX PRO on Sunday, July 22, 2001.  So this mast July I celebrated the blog’s 15th Anniversary!
I began TWTP after attending a workshop on blogging at the 2001 National Association of Tax Professionals annual conference held at the Hilton Riverside in New Orleans.
Here is the very first TWTP post –
+++ The ECONOMIC GROWTH AND TAX RELIEF RECONCILIATION ACT OF 2001, signed into law by President Bush on June 7, 2001, has made Section 529 state college savings plans (named for the section of the Internal Revenue Code) an even better way to save for your child’s education.
Earnings on money invested in Section 529 Plans grow tax-free.  Beginning in 2002, withdrawals from state-sponsored plans will be tax-free is the money is used to pay qualifying college expenses.
+++ I recently returned from the annual conference of the NATIONAL ASSOCIATION OF TAX PROFESSIONALS, held at the Hilton Riverside in New Orleans, where the keynote speaker for the opening session was IRS Commissioner Charles Rossotti.
This was the first time I travelled without having a paper airline ticket in advance.  I had no problem at check-in.
As I was walking down Bourbon Street heading for dinner at Tony Moran’s PASTA & VINO, I passed a nude bar where the hostess was offering passers-by the opportunity to “wash the girl of your choice”.  Good clean fun, “Nawlins” style!
While in the Crescent City I saw “CHERRIES JUBILEE”, a delightful comedy written by four local women, at the intimate and very company SOUTHERN REP theatre on the third level of the Shops At Canal Street upscale mall.  The show had the funniest and most innovative way to dress the set between scenes.”
I am looking forward to 15 more years of posting!

Tuesday, September 20, 2016


I am continually amazed by the Presidential campaign.
Dangerous and deplorable Donald Trump has done everything that would disqualify a normal and legitimate candidate for office or would derail a normal and legitimate campaign.  And he has done nothing that one would expect a normal and legitimate candidate to do. 
Every day he continues to spew outrageous lies and nonsense, which is repeatedly proven to be lies and nonsense via legitimate fact-checking.
Yet, like the Energizer bunny, he just keeps going on, and the race continues to appear to be close.
What does this arrogant, pompous, self-absorbed buffoon have to do before he is totally rejected by the Party and the people?
While many respected Republican leaders have publicly denounced and opposed Trump, the intelligent and rational response to his lies and nonsense, the Party itself continues to, while I expect reluctantly, support his candidacy.
There is nothing in his business or personal life, or in what he has said or done as a candidate, that would suggest he is the least bit “Presidential”.  It is the opposite that is true.  Everything he has said and done, before and during the campaign, proves that he is totally unfit to be President.
I am not a genius, and I am not a doctor.  But it is as obvious as the nose on your face to me that Donald Trump is mentally unstable, everything he says and does fueled by easily diagnosable acute Narcissistic Personality Disorder.  And this is nothing new.  I have been pointing out his obvious excessive narcissism for over a decade.
Robert Heinlein, the "dean of science fiction writers", has warned us to “Never underestimate the power of human stupidity”.  This Presidential campaign has certainly demonstrated the power of human stupidity.
It is inconceivable to believe that any rational and intelligent person would vote for Trump.  The only explanation for the fact that he continues to poll at 40+ is the sad and disturbing fact that a large percentage of the “great unwashed masses” are just plain stupid.
There are Americans who cannot support Hillary Clinton, for political and personal reasons, and cannot in good conscience vote for her.  They have a right to believe that way.  However there is no excuse for any real Republican or conservative or any other person who opposes Clinton to vote for Trump when there is an intelligent and rational alternative in the candidacy of Johnson and Weld of the Libertarian Party, two former popular and respected Republican governors, or Jill Stein of the Green Party, a credible more liberal candidate.
While many oppose Hillary, a Clinton Presidency would certainly not be the disaster, for America and the world, a Trump Presidency would be.  For these voters it really does come down to the lesser of two evils.  And if a Clinton Presidency is the inevitable outcome of this election the Republican Party is totally to blame for nominating such a heinous candidate.
My only hope for the future of America and the world is that when it really counts, when Americans are actually in the voting booth, there will be enough intelligent and rational citizens who realize that they cannot in good conscience vote for this dangerous, deplorable, and unstable reality tv clown.



Monday, September 19, 2016


Friends don’t let friends vote for Dangerous and Deplorable Donald Trump!

The Wandering Tax Pro has been once again honored to be nominated for a PLUTUS Award for Best Tax Blog” along with “IRS Hitman”, “Taxable Talk”, “Taxgirl”, and “TaxQuips”.

* Chris Johnson of CAJ TAX SOLUTIONS discusses “The Internal Revenue Service’s Share of the Sharing Economy” at his firm’s blog –

While the sharing economy has proven to be controversial and there have been buyers and sellers who have had some very bad experiences, it has become an integral part of our economic landscape and will probably continue to grow. The Internal Revenue Service has recognized this and has made it known that they want to be part of the sharing as well.”

Chris explains when and how you must report income from “sharing”. 

The post includes a fact that was unfamiliar to me, but something I always wondered about –

This exemption {taxpayers who rent out their home for less than 15 days in a year do not have to report the income – rdf} came about thanks to a Congressional representative from Georgia whose constituents collected a lot of extra money renting rooms in their homes to spectators of a major pro golf tournament every year.”

I expect that the Congressional representative from Georgia was one of those who was renting out his home to spectators.

* FYI – Kelly Phillips Erb, the FORBES.COM TaxGirl, gives us the word that “Federal Tax Receipts Hit Record High $2.9Trillion - And Counting” –
Federal tax receipts for the first 11 months of fiscal year 2016 totaled $2.909 trillion, according to the Congressional Budget Office (CBO). The CBO estimates that the government took in $26 billion – or about 1% – more than they did during the same period last year, marking a record high.”

* And now some words from our sponsor – me:

·      Click here to download the September 2016 issue of ROBERT D FLACH’S THE 1040 LETTER

·      Click here to check out my latest RAMBLINGS.

·      And click here to download the September 15, 2016 issue of ROBERT D FLACH’S THE TAX PRO LETTER.

For all orders postmarked in September I am offering my
at a 25% discount – only $5.95 delivered as a pdf email attachment
or $7.45 in print form sent via postal mail.
Click here for more information on the special report.
Send your check or money order payable to Taxes and Accounting, Inc. – and your email address or postal address – to:

* Trump’s running mate has released his tax returns.  ACCOUNTING TODAY reports “Pence's 2015 Return Shows $8,956 Tax on $113,026 in Income”.

The article tells us –

In all, the couple released 10 years’ worth of their tax records, going back to the 2006 tax year. Over the decade, they earned a total of almost $1.6 million, paid total federal taxes of $142,343 and donated $119,500 to charity.”

Of course Dangerous Donald continues to refuse to release his tax returns.  At this point who gives a damn?  Nothing that Trump, or Pence, does between now and Election Day could possibly make any intelligent and rational person even consider that “the Donald” would make a good, or even acceptable, President!

* Oops!  I missed “The 100th Anniversary Of The Federal Estate Tax”.  But TAX PROF Paul Caron didn’t.

BTW – congratulations to Paul for being included in ACCOUNTING TODAY’s list of the Top 100 Most Influential People in Accounting.

And I do believe that Paul has truly “jumped the shark”.  Enough already with the daily update on the “IRS Scandal”.


Presidential elections – any election – should be about issues and not about “personality”.

Unfortunately, when one candidate’s “personality” and temperament is to so disruptive and deplorable that it overshadows any actual policy positions, and in itself, coupled with the candidate’s obvious mental instability, makes that candidate unfit to be President, as is the case with the current Presidential election, “personality” must become the primary issue of the campaign.

It is much “more better” to have a President whose personality and temperament is appropriate for a government leader and Commander-in-Chief but with whom you disagree on the issues, than to have one with policy positions that you may find more acceptable, but whose "personality", behavior, and instability will prove a clear and present danger to the country if elected.

And if that candidate does not in reality have any real political or personal beliefs or convictions, and merely spouts whatever he thinks his audience wants to hear solely to bring himself attention and adoration, the choice is truly a clear one.


New Jersey residents – do you want to learn how to pay the absolute least amount of NJ Gross Income Tax possible –
and experience the joy of avoiding NJ state taxes?
Click here to download a free copy of my unique newsletter
the only publication I am aware of that deals exclusively with tax planning and preparation advice, information, and resources for the NJ-1040.