Wednesday, August 3, 2011


Not much BUZZ this time around. I am off for a week in the Lake District of Pennsylvania, so no posts for a while. I did get one GDE in the mail before leaving – and only 2 are left in the “to be done” box for when I my return.

I wrote the August issue of LOIS – but have not had time to have it “pdf-ed” or posted to the LOIS website. Will do when I return. I can tell you that is has lots of interesting stuff!

* What an arsehole! You know who I mean (not a member of Congress this time).

* Two great quotes via “tweets” from THE MISSOURI TAX GUY Bruce -

I don't make jokes. I just watch the government and report the facts.” Will Rogers.

And –

Death is not the end. There remains the litigation over the estate.” Ambrose Bierce

* Bruce also “tweeted” about his post “How to Prepare for a Successful Retierment”, which turned out to be from last December. It is just as informative this summer as it was last winter.

* And while we are on the subject, Joe Arsenault asks “Is My Retirement Plan Qualified” at CAFETAX, providing a good overview of the various types of pension and retirement plans in the proces.

* Jean Murray “Time for Your Mid-year Business Tax Tune-up - Part 1” at ABOUT.COM BUSINESS LAW/TAXES

* William Perez “Gay Couples Can File as Married Couples in New York” at ABOUT.COM TAX PLANNING: US.

Same-gendered spouses in New York can file their state tax returns as married as a result of the Marriage Equality Act. New guidance issued on July 29, 2011, from New York's Department of Taxation and Finance explains how the state's Marriage Equality Act applies to personal income taxes, estate taxes, sales tax and withholding issues.”

But same-sex couples cannot file a federal income tax return as married, so things will be complicated. As William explains -

That means preparing (at minimum) four sets of tax returns: two unmarried federal returns, one married federal return (for NY), and one married NY return. Or if the couple will file separately for New York, then they'll prepare six sets of tax returns: two unmarried federal returns, two married-filing-separate federal returns (for NY), and two married-filing-separate NY returns.”

When William says that the couple needs to prepare married federal returns that is not for actual filing, but for “information only” for purposes of the NY state return(s). Only the initial two unmarried federal returns will actually be filed with the IRS

Peter Reilly also tackles the issue in “New York Marriage Equality Includes Taxes” at his PASSIVE ACTIVITY blog at FORBES. Be sure to see my comment.

* Gott in himmel! ACCOUNTING TODAY tells us that “Tax Preparer Defrauded IRS out of Nearly $8 Million”!

A Southern California tax preparer has pleaded guilty to tax charges, admitting that he caused a tax loss to the government of $7,982,043 for tax years 2003 to 2009 by inflating the amount of mortgage interest on his clients’ tax returns.”

Hey, I thought that the IRS matched mortgage interest reported on 1040s to the amounts reported on Form 1098, which the IRS receives copies of.



Peter Reilly said...

I haven't run scenarios for Robin and Terry (my mythical clients of unspecified gender) but I would look at it as needing to do five federal returns. Married filing joint, single, single - maybe HOH rather than single MFS MFS. The state returns are based on the federal returns. You would ultimately file two federal and either one or two state. People who are a little wild and crazy might just file one federal and one state joint return since DOMA has been declared unconstitutional and the DOJ says it is indefensible. I think that meets the reasonable basis standard.

Jane said...

taxes will always be a pain in everybody's arse. that's a fact but we should give our fair share to this dying government. no matter how bad politicians rule this place we still have to do our part.. I just hope the bigger guys give their fair share. simple thoughts of a person working for virtual accounting services

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