* TAX GIRL Kelly Phillips Erb discusses the tax consequences of the “Cash for Clunkers” program in “Ask the taxgirl: Tax Consequences of CARS”.
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I like how she had initially very correctly describes the “media personalities” who have “taken to the airwaves to try and stir the pot a little with respect to the CARS program”.
.
Prof Jim Maule covers the exact same subject in his post “State Tax Consequences of Cash-for-Clunkers” at MAULED AGAIN.
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* And, as promised, Kelly has launched a series of guest posts from readers and fellow bloggers on “Hey Congress, Why Don’t You . . .”. Guests answer the question “What would you tell Congress that needed to be fixed, changed or eliminated when it came to taxes?”.
.
I submitted a post to Kelly, which should appear later in the week.
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* Stacie Clifford Kitts, who writes STACIE’S MORE TAX TIPS, adds her 2+ cents to the discussion on the regulation of tax preparers in her post “Your Tax Preparer Should Prove She (or He) Has-a-Clue Before Preparing Your Tax Return”.
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Stacie tells us – “Yes, I have to say, I think it is a good idea to require tax preparers to prove their competency before they are allowed to charge a fee for the preparation of a tax return. Although I believe the proposed regulations are targeted more toward persons who are not CPA, Lawyers, or attorneys, it is obvious from what I have described that a proficiency test is needed for everyone preparing tax returns.”
.
Stacy, a CPA, and says, “I have no problem with taking a proficiency exam. If I am unable to pass it, well then I should not be preparing tax returns.”
.
* Trish McIntire brings us the next installment of her taxpayer education series with the post “Buyer Education II”. In this one she discusses tax preparation software as it concerns both the “DIYer” and the professional tax preparer.
.
Trish makes some good points, among them –
.
• “The increase in tax software has also lulled some tax prepares into a false sense of security. No matter how good the software is, there can be errors in the returns generated.
.
• Too many preparers automatically assume that what the software is giving them is right and they are too lazy or unable to check it.
.
• just because the computer came up with it does not make the return correct.
.
• I recognize that too many preparers use the software as a crutch not a tool and that the public needs to be on guard.”
.
* If anyone should have known better it is this guy! IRS HITMAN Richard Close reports on the former IRS district director who recently pleaded guilty to one count of conspiracy to defraud the IRS in his post “An Ex-IRS District Director Gets 2 Years for Defrauding the IRS”.
.
It seems that after 33 years at the IRS as a revenue agent, audit-training coordinator, large-case examination manager, assistant service center director, assistant district director and district director this idiot went to work for tax scammers Renaissance, the Tax People Inc.
.
As Rich points out - “The ‘Tax Advantage System’ offered by his company {Renaissance – rdf} was based on fraudulent claims that business owners could legally reduce their tax liability by converting their personal expenses into business deductions.”
.
Rich tells us that several other tax preparers, including another former long-time IRS employee, who were associated with Renaissance have been sentenced to prison or probation.
.
* The IRS has released a draft of the new Form 1040X for amended returns. The form is totally redesigned, going from 3 columns to 1 column (the “Corrected Amount” only) and moving the “Explanation of changes” to the top of Page 1. Apparently this new form will only be good for “open” tax years (2006-2008 and 2009).
.
I have no idea why the form was changed. I thought the 3 column concept (original amount, correction, and corrected amount) was perfect just the way it was. I would be curious to know the IRS thinking behind the change.
.
As long as they were changing the form why didn’t they add a “check-the-box” option?
.
* Eva Rosenberg, aka TAX MAMA, deals with penalty assessments on extended returns in her post (aka “quip”) “Filing on Extension”.
.
Typically one of MAMA’s readers automatically assumes that an IRS notice resulted from his/her tax preparer’s FU. The reader writes, “I received a bill and I’m not sure if it’s because my accountant did not file the extension or this is just the way it is and your accountant can cost you more by not getting your returns done in a timely manner.”
.
Eva properly responds, “The penalty does not come because your accountant didn’t prepare your tax returns in a timely manner. The penalties are for not paying your taxes by April 15th – or for not having made estimated tax payments during the year.”
.
Filing an extension extends the time to FILE THE RETURN. It does not extend the time to PAY THE TAX! The tax is due April 15th, and you will be charged interest and a small penalty from April 15th until the payment is made.
.
* Kiplinger.com’s “Ask Kim” column has a good entry on “How You Can Use 529-Plan Money”.
.
* Let’s end with some good news that has come about as a result of the current economic recession. I just heard that parents are not bringing their children to restaurants as much any more. Now that is good news! As you know I am a firm believer of the old adage, “children should be neither seen nor heard”.
.
TTFN
.
I like how she had initially very correctly describes the “media personalities” who have “taken to the airwaves to try and stir the pot a little with respect to the CARS program”.
.
Prof Jim Maule covers the exact same subject in his post “State Tax Consequences of Cash-for-Clunkers” at MAULED AGAIN.
.
* And, as promised, Kelly has launched a series of guest posts from readers and fellow bloggers on “Hey Congress, Why Don’t You . . .”. Guests answer the question “What would you tell Congress that needed to be fixed, changed or eliminated when it came to taxes?”.
.
I submitted a post to Kelly, which should appear later in the week.
.
* Stacie Clifford Kitts, who writes STACIE’S MORE TAX TIPS, adds her 2+ cents to the discussion on the regulation of tax preparers in her post “Your Tax Preparer Should Prove She (or He) Has-a-Clue Before Preparing Your Tax Return”.
.
Stacie tells us – “Yes, I have to say, I think it is a good idea to require tax preparers to prove their competency before they are allowed to charge a fee for the preparation of a tax return. Although I believe the proposed regulations are targeted more toward persons who are not CPA, Lawyers, or attorneys, it is obvious from what I have described that a proficiency test is needed for everyone preparing tax returns.”
.
Stacy, a CPA, and says, “I have no problem with taking a proficiency exam. If I am unable to pass it, well then I should not be preparing tax returns.”
.
* Trish McIntire brings us the next installment of her taxpayer education series with the post “Buyer Education II”. In this one she discusses tax preparation software as it concerns both the “DIYer” and the professional tax preparer.
.
Trish makes some good points, among them –
.
• “The increase in tax software has also lulled some tax prepares into a false sense of security. No matter how good the software is, there can be errors in the returns generated.
.
• Too many preparers automatically assume that what the software is giving them is right and they are too lazy or unable to check it.
.
• just because the computer came up with it does not make the return correct.
.
• I recognize that too many preparers use the software as a crutch not a tool and that the public needs to be on guard.”
.
* If anyone should have known better it is this guy! IRS HITMAN Richard Close reports on the former IRS district director who recently pleaded guilty to one count of conspiracy to defraud the IRS in his post “An Ex-IRS District Director Gets 2 Years for Defrauding the IRS”.
.
It seems that after 33 years at the IRS as a revenue agent, audit-training coordinator, large-case examination manager, assistant service center director, assistant district director and district director this idiot went to work for tax scammers Renaissance, the Tax People Inc.
.
As Rich points out - “The ‘Tax Advantage System’ offered by his company {Renaissance – rdf} was based on fraudulent claims that business owners could legally reduce their tax liability by converting their personal expenses into business deductions.”
.
Rich tells us that several other tax preparers, including another former long-time IRS employee, who were associated with Renaissance have been sentenced to prison or probation.
.
* The IRS has released a draft of the new Form 1040X for amended returns. The form is totally redesigned, going from 3 columns to 1 column (the “Corrected Amount” only) and moving the “Explanation of changes” to the top of Page 1. Apparently this new form will only be good for “open” tax years (2006-2008 and 2009).
.
I have no idea why the form was changed. I thought the 3 column concept (original amount, correction, and corrected amount) was perfect just the way it was. I would be curious to know the IRS thinking behind the change.
.
As long as they were changing the form why didn’t they add a “check-the-box” option?
.
* Eva Rosenberg, aka TAX MAMA, deals with penalty assessments on extended returns in her post (aka “quip”) “Filing on Extension”.
.
Typically one of MAMA’s readers automatically assumes that an IRS notice resulted from his/her tax preparer’s FU. The reader writes, “I received a bill and I’m not sure if it’s because my accountant did not file the extension or this is just the way it is and your accountant can cost you more by not getting your returns done in a timely manner.”
.
Eva properly responds, “The penalty does not come because your accountant didn’t prepare your tax returns in a timely manner. The penalties are for not paying your taxes by April 15th – or for not having made estimated tax payments during the year.”
.
Filing an extension extends the time to FILE THE RETURN. It does not extend the time to PAY THE TAX! The tax is due April 15th, and you will be charged interest and a small penalty from April 15th until the payment is made.
.
* Kiplinger.com’s “Ask Kim” column has a good entry on “How You Can Use 529-Plan Money”.
.
* Let’s end with some good news that has come about as a result of the current economic recession. I just heard that parents are not bringing their children to restaurants as much any more. Now that is good news! As you know I am a firm believer of the old adage, “children should be neither seen nor heard”.
.
TTFN
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