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

“Collecting more taxes than is absolutely necessary is legalized robbery.”–Calvin Coolidge

* Check out my Tax Tip “Mistakes to Avoid When Finding a Tax Preparer” at MAINSTREET.COM.

* Jamaal Solomon, E.A. adds a “Tax Organizer for Medical Professionals” to his recent organizer offerings at TAX FACTOR.

* And guess what?  Jamaal also plugs my new special report on "My Best Tax Advice" in “Robert D Flach: My Best Tax Advice”.

Thanks, Jamaal.  I will be happy to guest post for you (after the upcoming tax season).

* And thanks to Trish McIntire for also plugging "My Best Tax Advice" at OUR TAXING TIMES in her post "Tax Book for Taxpayers"!

* Trish also provides some good warnings to taxpayers looking for a tax preparer in “Preparer Conflict of Interest”.

A good reminder –

“Bottom line is that the taxpayer is always responsible for what is on the tax return.”
 

* We go back to 2009 for a good post from Jim Blankenship of GETTING YOUR FINANCIAL DUCKS IN A ROW on “Traditional IRA v. Roth IRA – Compare & Contrast”.

* Tony Nitti of FORBES.COM correctly sets the record straight in “Dear America: Your Higher Payroll Taxes Are Not The Result Of A Tax Increase” -  

“The expiration of the payroll tax reduction is not a ‘tax hike’.

When originally enacted in December 2010, the 2% reduction was originally scheduled to last only one year, it’s finite nature evidenced by its description in the statute as a “payroll tax holiday.”

The point of the provision, as you might imagine, was to help lower and middle-class taxpayers weather the recession by putting more after-tax cash in their pockets. Specifically, the payroll tax cut replaced and expanded upon the “Making Work Pay Credit,” which during 2009 and 2010 saved individuals earning less than $75,000 up to $400 and married couples earning less than $150,000 up to $800. Because the 2% payroll tax cut reduction applied to the first $106,800 of a taxpayer’s wages, the new law could save an individual as much as $2,136, or twice that for married couples.

As 2011 drew to a close and the sun was due to set on the payroll tax cut, Congress did what it does best, agreeing to a last-minute, ill-conceived two-month extension that was not offset with any increased revenue or spending cuts. In February, they did it again, this time extending the 2% reduction through the end of 2012.”

What Tony does not say is that the Making Work Pay Credit was the gimmick that replaced Dubya’s disastrous tax rebate/credit gimmick.

* In answering a reader’s question (“Ask the Taxgirl: IRS Delayed Tax Filing Season Applies To Everybody”) another FORBES.COM blogger, TAXGIRL Kelly Phillips Erb, reminds us -

·      “. . . it’s okay to prepare your return now. But . . . while a tax preparer may be able to begin working on your return now, the IRS will not begin accepting and processing and individual federal income tax returns until January 30.”

·      “. . . you’re not getting your refund any faster from the IRS by having your return prepared now as compared to January 30.”

·      “It does not matter whether you file on paper or electronically: filing season begins on January 30, 2013.”

As I have said before – there is no delay for me and my clients, as I start the tax season on February 1^st every year.

* CPA Joe Kristan talks about my post on Choosing a Tax Preparer in his Tuesday “Tax Roundup” installment.

To be clear – I was not questioning the competency of CPAs as a group.  I merely said that the mere existence of the initials CPA after one’s name is no indication of 1040 tax knowledge, and that a CPA is NOT automatically a tax expert, as much of the public, and many journalists, falsely believe.

While I agree that the RTRP competency test has nowhere near the value of the EA exam (I would support doing away with the test altogether) – the fact that RTRP’s are required to remain current by taking minimal annual CPE in federal taxation indicates that they have proven more 1040 tax knowledge than a CPA who, while required to take CPE, is not required to take any CPE in federal taxation.

My comment is only that passing the CPA exam by itself does not imply any indication of actual knowledge in 1040 preparation.

* The Treasury Inspector General for Tax Administration has found that “Taxpayers Don’t Comply With Reporting Requirements for Noncash Charitable Contributions”.

In light of this report I will be posting the reporting requirements soon here at TWTP.

THE FINAL WORD:

I wonder if the brain-dead idiots that “star” and “compete” in steaming piles of excrement like “The Bachelor” and “The Bachelorette” realize that they were purposefully chosen by producers to be in these shows because of the very fact that they are brain-dead idiots, or if they are deluded enough to believe that it was because of their wit, charm, and talent, of which they obviously have none?

I also wonder how the hosts of legitimate news and information programs, who regularly interview kings, presidents, real-life heroes, and real actors and entertainers with actual talent feel about being forced to interview the idiots of “reality tv” garbage who have no talent or accomplishments, and have nothing of value or interest to say.  I have submitted this question to the TODAY SHOW, but have not received any response.  Matt, Al, Natalie, George, Robin, etc – are you reading this?

TTFN