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

* Monica Lawver adds he voice to those tax professionals who correctly believe that an “indie” does need to have a separate business checking account in the post “Banking Blunders” at THE TAX CPA.
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Thanks, Monica, for the support!
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* On the same subject, the website LLC Made Easy, which appears to be a great resource for forming and maintaining an LLC (I will have to check it out more carefully) has an article on “Why You Shouldn't Commingle Business and Personal Funds”. The author says, “But, for several reasons, you want to get your ducks in a line first and keep your business and personal accounts separate to avoid commingling of funds.”
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The article goes on to make the following points –
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“Mixing business and personal funds is sloppy.
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It's bad legally, for the reasons above, and it's simply bad business.
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It also makes accounting difficult and inaccurate. Accounting is more than just doing your taxes.”
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* Before leaving the subject - while June Walker has finally published the comments on her offending post she has not provided any response or rebuttal. It appears she is ignoring the issue and the multitude of tax professionals who disagree with her.
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If she is so wrong on this basic issue it makes you wonder about the value of advice she offers in other areas. Plus her attitude stinks. She certainly has a lot to learn on how to deal with “peers” (and I use that term generously) who disagree with her.
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She has actually provided some good advice – “Be careful. Know your source.”
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* Kay Bell tells us that some rich Americans want to pay more federal income tax in “'Tax Us More,' Say Some Rich Americans” at DON’T MESS WITH TAXES. They are passing around a petition to be signed by individuals with taxable incomes over $235,000.
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If these individuals feel strongly that they should pay more of their income to the government they are welcome to make voluntary contributions to the US Treasury. Hey, such voluntary contributions are deductible on Schedule A! According to IRS Publication 526 (Charitable Contributions), included among the five types of organizations to which you can make tax deductible contributions is (as usual, the highlight is mine) –
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“The United States or any state, the District of Columbia, a U.S. possession (including Puerto Rico), a political subdivision of a state or U.S. possession, or an Indian tribal government or any of its subdivisions that perform substantial government functions.
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Note. To be deductible, your contribution to this type of organization must be made solely for public purposes.”
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Unfortunately I am not in the income bracket of those this petition will affect, so I will not be asked to sign it.
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* Richard Hatch (the fool from SURVIVOR and not the actor from STREETS OF SAN FRANCISCO) says he was imprisoned for being gay. Joe Kristen of the ROTH AND COMPANY TAX UPDATE BLOG thinks “There Could Be Another Explanation”.
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There is, Joe. Richard Hatch was imprisoned for being an idiot!
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* Mary O’Keefe, who seeks out BED BUFFALOS IN YOUR TAX CODE, has two posts that address the issues I discussed in my post “There Has Got To Be A Better Way” – “Why The IRS Is Doing Everyone's Work” and “More On Why Is The IRS Doing Everyone's Work?”.
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Mary’s initial post on this topic was inspired by Prof Jim Maule’s “Tax Talk At The Gym” over at MAULED AGAIN>
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* And Mary ends the week at BED BEFFALOS by quoting from an article from a recent U of Chicago Journal that tells us “City Dwellers Bear Disproportionate Federal Tax Burden”.
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This concept is nothing new to a resident of New Jersey.
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* Roni Deutch, THE TAX LADY, gives an updated list of “Tax Professionals Active on Twitter”. You will find me there – rdftaxpro.
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* Another famous female tax blogger, just as much a lady, TAX GIRL Kelly Phillips Erb provides some information on next year’s Census and warns us to “Avoid Census/Tax Scams”.
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Kelly reminds us –
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“The IRS and the US Census Bureau are separate entities. An official US Census worker will not ask you about your tax returns or other confidential tax information. Additionally, the US Census does not have access to your confidential tax information – any claims made regarding taxes owed or other inconsistencies will not be raised by a US Census worker.”
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If my clients are listening – I do not fill out Census Forms for individuals. I have no more knowledge about them then you do, and, as they usually arrive during tax season, I do not have the time to waste on them.
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* Richard Close, known as the IRS HITMAN, discusses his “IRS Tax Issues: The Top 3 Tax Sins”. While I would not necessarily pick the same three in the same order as my top 3 “sins”, Richard does give some good advice.
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* NATP’s TAXPRO WEEKLY email newsletter brings us two BUZZbits -
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“Processing Delays for Forms 1040X - The IRS is experiencing higher than expected inventory levels of Forms 1040X, Amended U.S. Individual Income Tax Returns. Due to these inventory levels, the processing time frame is temporarily extended to 12 - 16 weeks (normal processing time is 8 - 12 weeks). Contacting the IRS regarding the status of the return is not necessary and the returns will be processed as soon as possible.”
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And –
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“Kentucky Disaster Relief - Following severe storms, flooding and straight-line winds in Kentucky on August 4, 2009, the President declared Jefferson County a federal disaster area qualifying for individual assistance.
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As a result, the IRS is postponing until October 5, 2009, certain deadlines for taxpayers who reside or have a business in the disaster area. The postponement applies to return filing, tax payments, and certain other time-sensitive acts otherwise due between August 4, 2009, and October 5, 2009. In addition, the IRS will waive the failure to deposit penalties for employment and excise deposits due on or after August 4, 2009, and on or before August 19, 2009, as long as the deposits were made by August 19, 2009.
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Additional information for this and other disasters is available on the IRS website.”
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* An article from Forbes.com reports that “Watchdog Growls At IRS' Audits By Mail”.
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The “watchdog” in the title is the Treasury Inspector General for Tax Administration (TIGTA). A new TIGTA report “lends support to growing complaints about the Internal Revenue Service's big audit-by-mail program”.
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While I would very much prefer getting a letter from “Sam” asking for specific documentation on a 1040 via return mail to a face-to-face, sit-down office audit, and I would expect so would any taxpayer, I do not want the extra agita and aggravation that IRS and/or postal delays could cause.
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As I have said in the past, just about every letter I send to the IRS nowadays results in a response a month or two later that the IRS has not had enough time to properly review my correspondence and needs an additional 45 days, followed 45 or so days later by basically the same letter.
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* Two new tax blogs have started up – TAX TIPS: KEEP MORE OF WHAT YOU EARN and TAX GEEK BLOG.
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*Some good information and advice from Friday’s TIP OF THE DAY from the Small Business Taxes and Management site –
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“Bank gifts taxable . . . Some banks are offering gifts or cash awards for opening new accounts. You should be aware that any such payments are taxable income and you'll receive a Form 1099-INT next January. And before running to open that account, check to see if that's the cheapest option. Getting $100 cash doesn't make much sense if you're paying an extra $8 a month or you'll get hit with high fees. That's particularly true for a personal account. The gift will be taxable, but the fees won't be deductible. Do the math. You could get lucky and find yourself in a win-win situation.”
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* And, finally, CCH reports that “Cash for Clunkers Program to End August 24, DOT Announces”.
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TTFN

PS - No BUZZ next Wednesday. You will have to wait until Saturday!