I
am here to attend the annual National Conference of the National Association of Tax Professionals (the 31st, I think) – being held at the Baltimore
Marriott Waterfront.
NATP
had informed me that I am now a 25-year member, and I have attended probably to
20 of these conferences in my 25 years as a member. It used to be an annual event – but I have
found lately that with the increased costs (and general PITA) of flying and increased
costs of lodging it is not cost effective.
Baltimore
is nearby, and accessible by train, and I found an alternative hotel that is
less than half the cost of a room at the host hotel, and so I am here.
My
other ongoing complaint about the conference – it is always held in a hot location
(I am referring to the heat from the sun) at the hottest time of the year. Why not have the conference in late September
or early October – or have it in Seattle or Portland, Maine?
In
its favor, the conference is always chock-a-block with great education on all
aspects of tax practice.
It
seems that my reputation preceded me this year.
When checking in with NATP staffers Greta and Cindy at the registration
desk yesterday (Monday) morning, before proceeding to the Annual Meeting, I was
greeted with “Robert Flach is a name we know – welcome Wandering Tax Pro!”
During
the opening ceremonies I was pleased to learn that my soon to be former home chapter,
the New Jersey chapter, was selected as Chapter of the Year (again) and its
former president Marilyn Ayers was the 2012 Chapter Person of the Year. I have been told that my blogging, and other writings
on issues of concern to tax pros, had contributed to the chapter’s winning of
the award.
The
keynote speaker was David Williams, the IRS’ tax preparer regulation czar, who
spoke on, what else, the new IRS preparer regulation regime. I discuss David’s presentation over at THE TAX PROFESSIONAL blog.
I
attended the general session discussion of “Current Developments – Individual Issues”
in the morning, and “A Choice of Options” (which was actually on puts and calls,
a topic that has always somewhat confused me over the past 40 years – although I
had initially thought it concerned the various options offered to taxpayers in
different situations) and “Tax Potpourri” in the afternoon.
There
were not many current developments for 2012, as compared to past years, because
of the procrastination by the idiots in Congress. 2012 being a presidential election year
almost guaranteed that nothing would be done in the area of taxes – or any
other area.
The
session highlighted some of the many provisions that expired at the end of 2011
and have not yet been extended for
2012 or beyond –
·
general
sales tax deduction on Schedule A,
·
above-the-line
tuition and fees deduction,
·
$250
educator expense deduction,
·
mortgage
insurance premiums as interest expense,
·
100%
bonus depreciation,
·
15-year
recovery for qualified leasehold improvements,
·
tax-free
direct distribution from IRA to qualified charitable organization,
·
personal
non-refundable tax credits allowed to offset the dreaded AMT,
·
increased
dreaded AMT exemption amounts, and
·
non-business
energy property credit.
And it looked
at some of the tax increase provisions of the recently upheld “health care
reform” bill that take effect beginning in 2013.
Such as
the .9% Hospital Insurance tax on individual wages (and self-employment earnings)
in excess of $250,000 for joint filers ($125,000 if married filing separately)
and $200,000 for single and head of household filers.
And the “Medicare
Contribution Tax” of 3.8% on the lessor of net investment income or the excess
of “modified” Adjusted Gross Income (MAGI) over, again, $250,000 for joint
returns ($125,000 for separate filers) and $200,000 for single and head of
household filers. This is the tax that
right-wing idiots have been lying about for the past couple of years – calling it
a “sales tax” on the profit from selling one’s personal residence.
My buddy
Beanna Whitlock, who once told a gathering of tax pros that I was the only person
in the room who really knew how to prepare tax returns when I raised my hand to
indicate that I still prepare 1040s by hand, had us rolling in the aisles at
her “Tax Potpourri” session.
In between
laughs she detailed an example of one of the truly egregious inequities in the
Tax Code – how $7,500 in gambling winnings (and $8,000 in documented gambling
losses) increased the taxable income of a couple with one spouse collecting Social
Security by over $13,000! The bottom
line – about $2,000 in additional federal income tax on $0 of net income.
I have the
day off today (Tuesday) - with no educational sessions. So look for the mid-week installment of the
BUZZ tomorrow.
TTFN
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