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

* AccountingWeb explains "How to Lose $7 Billion in Taxpayer Money Without Really Trying". Give it to immigrants who get a job illegally using a "ITIN" (Individual Taxpayer Identification Number" instead of a Social Security number and file a tax return claiming a refundable Additional Child Tax Credit.

.

Haven't I been saying all along that refundable credits generate excessive tax fraud?

.

* Jeff Beckley, the internet's new TAX MAN, gives some good timely advice in an article in his firm's June online newsletter titled "Summer Travel Tax Deductions".

.

* William Perez correctly answers an oft-asked question in his post "Can One Spouse Claim Another Spouse as a Dependent?" at WILLIAM'S TAX PLANNING BLOG.
.

* TAX CPA Monica Lawver added her more than 2 cents worth, and cool head, to the what had become heated debate between Mr. Pappas and myself on IRS red flags and CPA misconceptions in her post "When Tax Preparers Attack".

.

I was especially interested in the following -

.

"Robert is correct that a CPA is not specifically licensed for tax preparation, rather 'a CPA is a licensed accountant, authorized to certify audits of financial statements'. Just a couple of months ago, I was pondering this exact issue. I was thinking about all the fancy credentials the AICPA offers for CPAs in other specialties - financial planning, fraud examination, business valuation - and wondering how to become a certified tax expert.

.

So I emailed the AICPA asking about it. Here's the exact wording of the response I received:

.

'We do not offer a credential in taxation. In general, our approach has been not to develop credential programs around areas for which the public already believes CPAs to 'own' {the emphasis is mine - rdf}. In addition, we do not endorse a particular tax credential."

.

So the AICPA itself admits that the general public believes that a CPA "owns" the area of taxation. That clearly substantiates my point about the public misconception that CPAs are tax experts by virtue of their initials and nothing else.

.

Monica also discusses the original tax topic that started the debate in the first place - alleged IRS "red flags" and omitting alleged red flag deductions to avoid a potential audit - in her post "Avoid IRS Audit". As with any post I mention here at WTB be sure to read all the comments.

.

Thanks to Monica for weighing in. I am still interested in hearing the opinions of other tax professionals on this topic.

.

* Speaking of Monica, I discovered a few new tax blogs in her sidebar blogroll. One, SUCCESSFUL TAX STRATEGIES, gives us "More Details About Cash for Clunkers".

.

I am always on the look out for new tax blogs. As I told Monica, even an "old dog" like me can learn some "new tricks" from younger practitioners. I just have to be careful about who I choose to debate.

.

* The Tax Foundation's TAX POLICY BLOG has two posts of interest regarding state income taxes -

.

"Top State Income Tax Rates" list, well, the top state income tax rates. NJ is number 3 (actually #2, as Hawaii and Oregon technically tie for the highest rate - I like to think of the NJ tax system as "#2" anyway).

.

"Some States Approve Last Minute Budgets" discusses what some states have done recently to balance their budgets, including, like New Jersey, continuing to nickel and dime residents to almost the breaking point.

.

* On the topic of state taxes, Joe Kristen comments on the issue in his post "Broke, Just Go Out and Make More!" at the ROTH AND COMPANY TAX UPDATES BLOG.

.

* The NJ Division of Taxation has issued an official notice of "Gross Income Tax-Related Legislative Changes."

.

TTFN - and Happy 4th!