Saturday, July 3, 2010


* Tonya Moreno discusses “State Income Tax Rates” at ABOUT.COM: TAX PLANNING: US.

It comes as no surprise that “You'll find some of the highest rates in California, Hawaii, New Jersey, New York, and Oregon”.

* Have you been following Kay Bell’s Mid-Year Tax Move series at DON’T MESS WITH TAXES? Number 6 was “Credit For Day Camp Costs”.

* Before we leave DON’T MESS WITH TAXES, Kay reminds us that Congress loves to hand out money, whether it is a good idea or not, in an election year in her post “Homebuyer Tax Credit Extended; Closing Date Deadline is Now Sept. 30

As Kay points out (highlight is mine) – “Remember, this latest piece of legislation is only for folks who had a contract in place by April 30, but couldn't finalize the purchase by the previous June 30 due date”.

* And speaking of Mid-Year Tax Moves, Kelly Phillips Erb provides a good suggestion in her article “Use Your Vacation To Do Something Good -- and Get a Tax Write-Off” at WALLETPOP.COM.

* Joe Kristan of the ROTH AND COMPANY TAX UPDATE BLOG told us on July 1st that “Tans Are Taxable Today”.

The providers will have to pay the tax via quarterly filings on Form 720.”

* According to BNA “Baucus Offers Broad Small Business Tax Bill With Bonus Depreciation”.

This bill also further expands the requirements for 1099-MISC filings by individuals. Another example of the cafones in Congress acting foolishly and not taking a minute to consider the added burden, financial and otherwise, their actions will place on individuals.

Baucus proposed requiring that individuals who receive rental income from real property file information returns to the Internal Revenue Service and to service providers reporting payments of $600 or more during the year for rental property expenses—a provision worth $2.5 billion over 10 years. The legislation would exempt individuals renting their principal residences and active-duty members of the military.”

* Did you ever doubt it? The WASHINGTON POST says that “Money Can Buy One Form of Happiness, Massive Global Study Concludes”.

Also no surprise – “But the survey also showed that a key element of what many people consider happiness -- positive feelings -- is much more strongly affected by factors other than cold, hard cash, such as feeling respected, being in control of your life and having friends and family to rely on in a pinch.”

* The IRS wants to hear from you, or so they say in “IRS Requests Public Input on Expanded Information Reporting Requirement”.

The Service is soliciting “public comment on how to most effectively carry out a law change that, starting in 2012, will require businesses to report a wider range of payments to contractors, vendors and others, usually on Form 1099. These comments will help the IRS issue guidance that implements this provision in a manner that minimizes burden and avoids duplicate reporting.”

If you plan to give the IRS a piece of your mind please be gentle. Remember, the IRS does not make up this nonsense – the cafones in Congress do!

* NJ taxpayers may want to check out my post “No NJ Homestead Rebate Checks for 2010” at my NJ TAX PRACTICE BLOG – and tax professionals from all over the country should read the post “New Member Benefit at NATP”.

* Let me end this BUZZ with Kay Bell of DON’T MESS WITH TAXES, who has had much to contribute this edition. She brings us the word that “2010's Expiring Tax Cuts Likely To Be Dealt With By a Lameduck Congress”.

Kay says -

Well now there's word that Capitol Hill is going to shut down its legislative sausage factory, at least when it comes to some critical taxes. Democratic leaders are likely to punt on taxes, reports Alexander Bolton in The Hill newspaper, thereby pushing the task of renewing Dubya's sunsetting tax cuts until after November's midterm elections.”

The bottom line of her post is a good commentary on the current situation in Congress -

To borrow a phrase, can't we all just get along and act like adults and professionals?

What ever happened to doing what is best for the country, not just what benefits a political party?

It's so sad that apparently there are no longer any statesmen or women in Washington, D.C


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