WHAT’S THE BUZZ? TELL ME WHAT’S A HAPPENIN’ – WEDNESDAY EDITION

+ It’s here!  Check out the October 2011 issue of LOIS.

+ And another one bites the dust.  First it was Ronnie Deutch.  And now the POST AND COURIER of Charleston SC reports that "JK Harris to File for Bankruptcy”.

David Slades tells us –

“The JK Harris company once advertised that it could resolve people's tax debts for ‘pennies on the dollar’, but now it could be the company's creditors and disgruntled former clients who will get less than they are owed.”

Unfortunately - “The bankruptcy filing is aimed at selling the business quickly while writing off debt. The company would continue operations in the meantime.”  So it appears we haven’t seen the last of JK and his fraudulent claims yet.

As I, and my fellow tax bloggers, have said many times before – nobody can guarantee to get you off the hook with Uncle Sam for “pennies on the dollar”.  If you are in trouble with the IRS you should avoid firms that so advertise like the plague.

+ Kay Bell, writing at her BANKRATE.COM blog, reminds us “1099 or No, Report Your Income”.

Kay echoes my comments to clients and readers (the highlight is mine) –

“But like all self-employed workers, I also get some payments for which I don't get a 1099. The law requires that a 1099 be issued only if the amount earned is $600 or more. Less than that, and the paying company doesn't have to mess with creating and sending out the form.

That money, however, whether it's reported on an official tax statement or not, is still taxable income.”

+ And, also at BANKRATE.COM, Key answers the question “Why We Procrastinate Filing Taxes.”

You will note that on the 2^nd page of the article Kay quotes extensively a well-known authority on GDEs (guess who?). 

+ Another trifecta for Kay, who examines “The Connection Between Filing Status and Tax Dependents” at DON’T MESS WITH TAXES.

+ A “tweet” from a fellow twit who works for the IRS brought me to the IRS page on identity theft.  At the very top of the page is an official reminder from the IRS that bears repeating (the highlight is by the IRS and not me) -

“The IRS does not initiate communication with taxpayers through e-mail.”

So if you receive an unsolicited email allegedly from the IRS it is a scam – delete it immediately, and, whatever you do, do not open any attachment or click on any link.

+Jonnelle Marte reminds us that “Time  for Roth Do-Over” at Smart Money’s THE TAX BLOG.

“Regretting your Roth IRA conversion? You have just a few days left to undo that move: The deadline to reverse — or to “recharacterize” in tax parlance — the conversion is Oct. 17.”

+ Over at the ROTH AND COMPANY TAX UPDATE BLOG Joe Kristan tells us in “Warren Buffet’s Exclusive Club” that –

“Only eight of the Forbes 400 were willing to say they want to pay higher taxes.”

+ EA Devin Martin talks about the new IRS Voluntary Worker Classification Settlement Program in "IRS Offers Relief for Certain Employers” at his CLASS 5 TAX BLOG.

TTFN