Wednesday, July 4, 2012
WHAT’S THE BUZZ? TELL ME WHAT’S A HAPPENNIN’ – WEDNESDAY EDITION
Happy 4th of July! In case you are wondering what I am doing today to celebrate – I am working on GD extensions!
* Sorry to be late with this item, but last week, according to an IRS release, the “National Taxpayer Advocate Identifies Challenges and Issues for Upcoming Year in Mid-Year Report to Congress”.
“National Taxpayer Advocate Nina E. Olson today released a report to Congress that identifies the priority issues the Taxpayer Advocate Service (TAS) will focus on during the upcoming fiscal year. The report expresses particular concern about the taxpayer impact of expired and expiring tax provisions, the rise in tax fraud and tax-related identity theft, and attempts to limit the National Taxpayer Advocate’s formal input on issues that affect taxpayer rights and taxpayer burden via ‘Taxpayer Assistance Orders’ and ‘Taxpayer Advocate Directives’.”
Addressing the impact of changes in tax law on taxpayers and the IRS the report says -
“The continual enactment of significant tax law and extender provisions late in the year has led to IRS delays in handling millions of taxpayers’ returns and caused many taxpayers to under claim benefits because they did not know what the law was. Because of the magnitude of these challenges and the uncertainty about such a large number of important provisions, the 2013 filing season is already at risk. The 2013 filing season is likely to pose problems for many (if not most) taxpayers and the IRS if Congress does not address the many provisions that have already expired or soon will.”
“Congress is likely to extend many of these and other expired provisions retroactive to January 1, 2012, but neither taxpayers nor the IRS know for certain what will happen and therefore cannot make plans. For example, a homebuyer trying to decide whether to utilize a loan package that includes mortgage insurance now lacks important information. So does a pensioner trying to decide whether to tap his IRA to make a charitable donation.”
* In case you didn’t get enough on the recent court decision, CCH has a Tax Briefing on the subject - “Supreme Court Upholds Health Care Law”.
* And, before leaving the subject, Bill Perez provides a good overview of Obamacare and the decision in “Tax Impacts of the Supreme Court's Health Care Decision” at ABOUT.COM.
To repeat – the Supreme Court decision did not create new law. It just upheld legislation passed a while ago.
Much of Obamacare does not begin to take effect until 2014, although some important 1040-related provisions begin in 2013. I expect the 2013 issues will be discussed in detail at the upcoming NATP Conference in Baltimore and the NATP year-end tax update in November. I will discuss these items in my “Year-End Tax Planning” coverage in October and November and my “What’s New for 2013” coverage either in December 2012 or January 2012.
And, always in the background, there is the possibility that the idiots in Congress will address serious tax reform in 2013 and substantially rewrite the Tax Code (as I like to say - I can dream, can’t I?).
* Be sure to check out Kay Bell’s “Tax Carnival #104: Tax Fireworks” at DON’T MESS WITH TAXES.Several good entries this edition. And I remembered to submit one myself!
* In this week’s installment of “Getting To Know You Tuesday” Kelly Phillips Erb, aka TAXGIRL, introduces us to Shayna B. Chapman, CPA CITP CGMA, of Chapman & Burris CPAs LLC in Gallipolis, Ohio.
* Have you taken advantage of my “Special Summer Savings for Tax Pros” yet?