Wednesday, July 27, 2016

TAX PLANNING ADVICE AND INFORMATION FOR SCHEDULE C FILERS


I have created a newsletter of tax planning and preparation advice, information, and resources for self-employed sole proprietors reporting income and expenses on Schedule C, based on my 40+ years preparing Schedule Cs, to help you to pay the absolute least amount of income and self-employment tax possible for your particular situation.

The newsletter is ROBERT D FLACH’S SCHEDULE C LETTER.

This newsletter is a great resource for someone thinking about starting a sideline business as well as the veteran small businessperson. 

Published every-other month, also included in each issue will be unique forms, logs and worksheets to help document your Schedule C tax deductions and to help organize and gather the tax information needed to give to your tax professional.

Future issues of the newsletter will deal with such topics as -

* THE ONE PERSON LLC
* THE SELF-EMPLOYMENT TAX
* THE HEALTH INSURANCE DEDUCTION
* LISTED PROPERTY
* USING YOUR CAR FOR BUSINES
* HOW TO ENJOY A TAX DEDUCTIBLE VACATION
* THE HOME OFFICE DEDUCTION
* REPORTING REIMBURSED EXPENSES
* RETIREMENT PLANS FOR THE SELF-EMPLOYED
* and much, much more

Subscribers will be offered special discounts on other tax-saving reports throughout the year.

Click here to download a free copy of the premiere August 2016 issue, which discusses some of my best advice, some truly bad advice, and putting your kids on the payroll.

A 1-year, 6-issue, subscription is only $11.95 delivered as pdf email attachment. A print edition sent via postal mail is also available for $24.95.

To order your subscription send your check or money order, payable to TAXES AND ACCOUNTING, INC, for $11.95 or $24.95 and your email or postal address to –

ROBERT D FLACH’S THE SCHEDULE C LETTER
TAXES AND ACCOUNTING, INC
POST OFFICE BOX A
HAWLEY PA 18428

TTFN
 
 
 
 
 
 
 
 
 

Monday, July 25, 2016

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

* At the Tax Policy Center’s TAX VOX blog Howard Gleckman discusses “What the GOP Platform Says About Taxes”.
 
Thankfully, the GOP official party platform on taxes rejects much of Trump’s alleged policies –
 
It endorses a territorial tax system that Trump rejects. It calls for eliminating special interest tax provisions while Trump would retain most.”
 
Here is what the platform says about tax reform (highlight is mine) -
 
The current tax code is rightly the object of both anger and mockery. Its length is exceeded only by its complexity. We must start anew…. It cannot be engineered from the top down, but must have a common sense approach, and be simplified. Wherever tax rates penalize thrift or discourage investment, they must be lowered. Wherever current provisions of the code are disincentives for economic growth, they must be changed. We will not divide the American people into winners and losers. We will eliminate as many special interest provisions and loopholes as possible and curb corporate welfare, especially where their erosion of the tax base has created pressure for higher rates.”
 
Clearly the Republican policy on income taxes is the better choice.  Unfortunately the party’s Presidential candidate is the worst possible choice ever.
 
* Keep on trucking!  Did you know the IRS had a “Trucking Tax Center” web page?
 
* Proving once again that bloggers love lists, Kelly Phillips Erb, FORBES.COM’s TaxGirl, give us “Get Out Of The Tax Debt Doghouse: 9 Tips For A Fresh Tax Start”.
 
Her #9 should be #1 – “Find a great tax advisor”.
 
I can’t emphasize enough that the importance of seeking out a responsive, competent tax advisor. Even if you do your own taxes, you may need someone to help you out if you run into trouble.”
 
If you start out by using a responsive, competent tax advisor to prepare your returns in the first place, chances are you will not run into any trouble.  You can begin your search for a responsive and competent tax advisor here.
 
* Scott Greenberg of the TAX FOUNDATION takes on the task of “Reexamining the Tax Exemption of Municipal Bond Interest”.
 
THE FINAL WORD
 
At the beginning of the Presidential campaign I said that the most disturbing political development in my lifetime (I was born in 1953) was the fact that Donald Trump is being taken seriously as a Presidential candidate.
 
I now must revise that to say, as I did on Facebook
 
The most disturbing political development in my lifetime - I am 62 - is the fact that dangerous, unstable, irresponsible, and irrational realty television cartoon clown Donald Trump is the official Republican candidate for the office of President of the United States.
 
Let me also repeat what I have posted in the past –
 
I very strongly believe that all Americans who care anything about freedom, democracy, civil rights, the economy, and the future of the country and the world have an obligation to publicly denounce and aggressively oppose Donald Trump and his campaign for the Presidency.
 
For the sake of our future this dangerous narcissist must NEVER become President of the United States!
 
FYI – Click here for one example of the hundreds of thousands of people who dangerous buffoon Donald Trump screwed while lining his own pockets with millions.  Is this the man you want in the While House?
 
TTFN
 
 
 
 
 
 

Thursday, July 21, 2016

ANSWERS TO YOUR IRA QUESTIONS

I want to explain just about everything you always wanted to know about an Individual Retirement Account.
 
And I do just that in my new report POSITIVELY TAXES: JUST ABOUT EVERYTHING YOU ALWAYS WANTED TO KNOW ABOUT AN IRA.
 
And I do it for only $1.00!
 
This new report is part of my DOLLAR STORE of tax planning and preparation reports, which also includes –
 
·         POSITIVELY TAXES – A TAX-DEDUCTIBLE VACATION  
 
·         POSITIVELY TAXES – MINIMIZING REPORTED GAMBLING WINNINGS  
 
·         POSITIVELY TAXES – REDUCING ADJUSTED GROSS INCOME  
 
·         POSITIVELY TAXES – TAX ASPECTS OF DIVORCE  
 
The IRA report discusses –
 
·         IRA Basics
·         The History of the IRA
·         The Traditional IRA
·         The ROTH IRA, and
·         The Saver’s Credit
 
The reports are $1.00 each send as a pdf email attachment.  You can also get a print version sent via postal mail for $2.00 each.
 
If you have found my THE WANDERING TAX PRO to be helpful you can help support its continued life by buying one or more of my special reports.  
 
To order send your check or money order, payable to TAXES AND ACCOUNTING, INC, for $1.00 or $2.00 per report and your email or postal address to –
 
MY DOLLAR STORE
TAXES AND ACCOUNTING, INC
POST OFFICE BOX A
HAWLEY PA 18428
 
TTFN
 
 
 
 
 
 
 

Wednesday, July 20, 2016

A VERY SAD DAY



It is truly a sad day for the Republican Party, for America, and for the world.

A dangerous, unstable, irresponsible, and irrational reality television cartoon clown is the official Republican candidate for the office of President of the United States.

It is an example of the extent of the “dumbing down” of America.

Donald Trump is the “worst case scenario” of a person suffering from acute “narcissistic personality disorder”.  This disorder controls his life and makes him quite literally totally incapable of acting intelligently and rationally. 

Trump has said or done absolutely nothing since entering the campaign that would remotely suggest that he would make an acceptable President.  It is just the opposite.  Everything he says and does continues to emphasize his inappropriateness for any elected office.

He is, again quite literally, the absolute worst possible choice for President.  From the beginning of the campaign I have said I would vote for Homer Simpson for President before I would vote for Donald Trump.  Even if Hillary Clinton is really as bad as her worst critics make her out to be, she is still a far superior choice to reside at 1600 Pennsylvania Avenue.  Nothing would be worse for the country or the world than if Donald Trump were to win.

While a large percentage of the “great unwashed masses”, which make up Trump’s core followers, are not especially bright, it is inconceivable to me that the majority of Americans will elect this buffoon to the highest office in the country.

America pleasantly surprised me 8 years ago by electing a black man as President.  He turned out to be an honest and honorable, if not a particularly effective (partially because of the incompetence of the idiots in Congress), President.  While I did not agree with many of his policies, and did not vote for him, I did respect him.  I cannot believe that America has fallen so far in the past 8 years to elect this entitled and self-important racist white fool to replace him.

I truly believe that there are millions of intelligent, responsible, and caring Republicans who will not be able in good conscience to support or vote for Donald Trump.  Many have already said they will be sitting out this election – and will not vote. 

But these good men and women should not just not vote for Donald Trump when there is a legitimate viable alternative for conservative and Republican voters in the candidates of the Libertarian Party – former Republican Governors Gary Johnson and his running mate William Weld.

It is very important that in this unique election there is a strong turn-out for third-party candidates, like Johnson for Republicans and Jill Stein, presumed candidate of the Green Party, for Democrats who oppose Hillary.  We must send a loud message to the Republican and Democratic Parties.

I pray that the majority of American voters are intelligent and conscientious enough to “just say no” to dangerous, unstable, irresponsible, and irrational Donald Trump.  If not we are all in deep trouble!

TTFN




 

Monday, July 18, 2016

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

"The United States is the only country where it takes more brains to figure your taxes than to earn the money to pay it." –
former Florida Senator Edward J Gurney

* Tax pros – the July 15th issue of TAXPRO BUZZ is here!  Click here to download.

* In “Tax Expenditures and Oversight” at 21st CENTURY TAXATION  Professor Annette Nellen discusses the recent Government Accountability Office (GAO) report on “Tax Expenditures: Opportunities Exist to Use Budgeting and Agency Performance Processes to Increase Oversight” (GAO-16-622).  Click here for the highlights and here for the full report.

Annette says (highlight is mine) –

It looks at the estimated $1.23 trillion annual cost of special tax deductions, exclusions, credits and preferential rates AND how there is basically no oversight of these costs relative to discretionary budget items.”

According to the report highlights the $1.23 trillion in tax expenditures distributed via the 1040 is “an amount comparable to discretionary spending”.

This lack of oversight is one of the reasons that government welfare and other social program benefits, like the Earned Income Credit, the refundable Child Tax Credit, the various educational benefits, the residential energy credits, etc, should not be distributed via the Tax Code.


* Speaking of federal social welfare programs that don’t belong in the Tax Code - in “Illustrating the Earned Income Tax Credit’s Complexity” the TAX FOUNDATION talks about another GAO report from earlier this year (highlight is mine) –

The Government Accountability Office (GAO) published a report in May of this year. It found that the program suffers from a high improper payment rate. For the fiscal year 2015, they found that $15.6 billion of the EITC’s $68.1 billion in total payments were considered improper, meaning the filer over claimed or wasn’t eligible. That’s almost a fourth of the entire program’s payments.

The GAO says that the program’s high payment error is a result of the program’s complex eligibility requirements.”

Once again the solution – take the EITC and other federal social benefit programs out of the Tax Code!

* A trifecta - NO! NO! A million times NO!  The million and two NOs is my response to Senator Seeks to Revive First-Time Homebuyer Tax Credit” from Michael Cohn at ACCOUNTING TODAY.

This credit, being refundable, was, as refundable tax credits are, a fraud magnet when it was in effect in the past. 

As Michael explains (highlights are mine):

The original credit was fraught with erroneous claims, and Congress had to add antifraud protections to the final extension of the tax break. A report in 2012 by the Treasury Inspector General for Tax Administration found the Internal Revenue Service disallowed nearly $1.6 billion in erroneous claims but said there was likely much more fraud that could have been caught if the IRS had been given expanded math error authority from Congress.”

If the idiots in Congress want to encourage homeownership via subsidies let the subsidy be provided as a direct government payment at the closing of the qualifying home purchase.

Read my lips – NO REFUNDABLE CREDITS!  NO DISTRIBUTION OF FEDERAL SOCIAL BENEFIT PROGRAMS VIA THE 1040!

* Kay Bell tells us that “NJ looking at ending Pennsylvania tax reciprocity” at DON’T MESS WITH TAXES.

As Kay explains –

With reciprocity, the taxpayer files a return and pays the tax only in the state where they live.” 

So NJ resident taxpayers who work in PA do not pay any PA non-resident state income tax on their PA-source wages – and do not have to file a non-resident PA state tax return.  The PA employer withholds (or is at least supposed to) and remits NJ Gross Income Tax from the PA source wages.  And, of course, vice versa with PA residents working in NJ. 

While this creates some extra work for the employer, and at times some extra work for the taxpayer or tax preparer when the PA employer erroneously withholds PA state income tax instead of NJGIT, I have always liked this arrangement and hope it continues.

* At her BANKRATE.COM tax blog Kay suggests “10 midyear tax moves to make now”.

#10 is “Hire a Tax Professional”.  Begin your search To find a tax professional click here.

* Jason Dinesen continues his tour of the 1099 forms with “A Little About 1099s:Types of 1099s (1099-LTC thru 1099-SA)”.

* It seems that the infamous “47%” is not 44%.  The Tax Policy center’s TAX VOX blog gives us “A Closer Look At Those Who Pay No Income Or Payroll Taxes”.   

* Forbes.com’s TAXGIRL Kelly Phillips Erb reports that “Back To School State Sales Tax Holidays Start Soon”.  Kelly provides “a quick list of states offering taxpayers a break this year”.

* Jim Blankenship deals with the issue of taking an “RMD from an Inherited IRA” at GETTING YOUR FINANCIAL DUCKS IN A ROW -

If you have inherited an IRA you are required to begin taking distributions from the account according to a set schedule.”

* Michael Cohn from ACCOUNTING TODAY reports that a new “Group Plans to Audit the IRS” –

The Tax Revolution Institute— a Washington, D.C.-based nonprofit that says it promote ‘justice and integrity in the tax system’—has created a new website, AuditIRS.com, where it hopes to collect personal experiences from taxpayers about their encounters with the IRS.”


Democrats have suggested that Trump is trying to hide something by refusing to release his returns. Some Republicans, including 2012 Republican presidential nominee Mitt Romney, have also said that Trump should release his returns.

Trump has said that he will release his returns once the IRS is finished auditing him, but the agency has said that an audit does not prevent taxpayers from releasing their own information.”

Of course he has something to hide – he does not make as much as he says he does, and he gives next to nothing (proportionate to his income) to charity. 

* And, returning to Kay Bell’s BANKRATE.COM tax blog, we also hear that someone has offered a “$5M ‘reward’ for Trump tax return” –

An anonymous individual has offered to donate that amount to a veterans' charity if the presumptive Republican presidential nominee will release his tax returns.

The inquisitive donor, who wants to keep his identity private, reportedly will even let The Donald choose the charity.”

THE FINAL WORD

Does this sound like anyone we know?

The late Theodore Millon, one of the co-developers of the Diagnostic and Statistical Manual of Mental Disorders, devised the subtypes of personality disorders and described the attributes of the “unprincipled narcissist” disorder as: deficient conscience; unscrupulous, amoral, disloyal, fraudulent, deceptive, arrogant, exploitive; a con artist and charlatan; dominating, contemptuous, vindictive. These personality attributes shape behavior patterns which, in the unprincipled narcissist, tend toward self-absorbed egotism. Symptoms include an excessive need for admiration, disregard for others’ feelings, an inability to handle criticism, and a sense of entitlement.”

We are just a few short weeks from when Chief Birther Donald Trump, an unscrupulous, amoral, vindictive, con man, sweeps into Cleveland and becomes the scariest and most profoundly unqualified person to ever be nominated by a political party in the history of the United States.”


TTFN
 
 
 
 
 
 
 
 

Thursday, July 14, 2016

AN UPDATE ON THE NEW JERSEY PROPERTY TAX RELIEF PROGRAMS

This just in, from the summer edition of the NEW JERSEY STATE TAX NEWS (highlights are mine) -
 
The State Budget for Fiscal Year 2017 provides funding for the Property Tax Reimbursement (Senior Freeze) Program.  In mid-July, the Division of Taxation began mailing checks for the 2015 reimbursement to qualified senior and disabled homeowners who filed applications by the original filing deadline of June 1, 2016. We will issue checks as quickly as possible to homeowners who file their applications between the original June 1 deadline and the extended deadline of Oct. 17, 2016.

Only applicants whose 2015 income was not more than $70,000 are eligible, provided they met all other requirements. Residents whose income was more than $70,000 but was $87,007 or less will not receive checks for 2015. We will notify them that they are not eligible. Those residents can establish a “base year” for future reimbursements by filing an application by the deadline.”

So the cafones in Trenton once again screw seniors and disabled homeowners to balance the budget.

The newsletter also reports -

“The Division of Taxation will begin to mail 2014 homestead benefit applications in mid-September.   County Delivery Expected to Begin –

Atlantic, Bergen, Cumberland, Warren Sept. 15

Cape May, Mercer, Ocean Sept. 19

Monmouth, Somerset, Union Sept. 22

Hunterdon, Middlesex, Passaic, Sussex Sept. 24

Camden, Hudson, Morris Sept. 27

Burlington, Essex, Gloucester, Salem Sept. 29

TTFN







 

Monday, July 11, 2016

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


Paul quotes the report as saying (highlight are mine) –

Eligibility rules for refundable tax credits (RTCs) contribute to compliance burden for taxpayers and administrative costs for the Internal Revenue Service (IRS). These rules are often complex because they must address complicated family relationships and residency arrangements to determine who is a qualifying child. Compliance with the rules is also difficult for IRS to verify due to the lack of available third party data. The relatively high overclaim error rates for these credits (as shown below) are a result, in part, of this complexity. The average dollar amounts overclaimed per year for 2009 to 2011, the most recent years available, are $18.1 billion for the EITC, $6.4 billion for the CTC/ACTC, and $5.0 billion for the AOTC.”

The obvious solution to this problem – NO REFUNDABLE CREDITS!

* Hey neighbors in Northeast PA – have you seen my new blog WHAT’S THE BUZZ yet?  I provide links to what’s a happenin’ in the Lake Region and surrounding areas - theatre, entertainment, community activities, fund-raising events, and a lot more.

* Over at DINESEN TAX TIMES Jason Dinesen gave us a present for 4th of July – “From the Archives: Rare Home Office Deduction Win in Tax Court” – which discusses de minimis personal usage of office space.

* And another blast from the past from Jason – he answers a question that has never been asked of me in “From the Archives: Do Extreme Couponers Pay Tax?”.

The answer –

There are no income tax implications to using coupons, whether you use one or two coupons or you go extreme and use hundreds of coupons at one time. Coupons reduce your basis in the things you purchase.”

* Jean Murray of ABOUT.COM warns “Beware of Fake Employer ID Application Sites”.

There is absolutely no reason to pay a service to get a federal Employer Identification Number.  You can very easily do it yourself – or have your tax professional do it for you.

* Jamaal Solomon, aka Stikks of STIKKS TALKS TAXES, has been running a post series on a list of the “Top 10 Taxpayer Bill of Rights”.  He began with “#10 The Right to a Fair and Just Tax System” and has so far worked his way to “#3 The Right to Pay No More than the Correct Amount of Tax

* Pardon me while I take a break for some horn-tootin’.  Click here to check out my library of books, reports, and newsletters with federal and state tax planning and preparation advice, information, and resources.


* FYI - Beginning June 30 and running through August 30, the Alabama Department of Revenue (ADOR) is offering an amnesty program for delinquent state and state-administered local taxes for a 3-year look-back period of from January 1, 2012 through December 31, 2014.

Click here for more information. 

THE FINAL WORD

I am going to make a political prediction.

Dangerous buffoon Donald Trump will not be elected President – and I think deep down he knows this.

Trump’s ego demands that he always be a winner and never a loser.  Once he wins the Republican nomination at the convention, and unfortunately I think he will, he will be a winner.  But after that it will be all downhill and he can only end up a loser – and I expect a big loser.

To maintain his ego, and his self-perceived status as a winner, Trump will find some reason to drop out of the race after his convention win.  He will leave the race while he is a “winner” and maintain his fantasy.

And his dropping out will make all of us winners as well.

Do you think this is possible – or just wishful thinking?

Just in case the idiot does decide to run after the convention - Republicans & conservatives, there is a valid alternative!

Read this –


TTFN