Tuesday, June 17, 2014


* Jeff Stimpson once again includes a TWTP post in his “In the Blogs” highlight of some of our favorite tax-related blogs from the past week titled "Easy as ACA”.

* In the course of “googling” I came across a 3-year old post by Stephen Fishman at the OFFICIAL BLOG of the Nolo legal publishing house on “40 Years of Tax Changes” that looked at the differences between tax-year 1971 (the first return I prepared as a paid tax preparer) and tax-year 2011.

Stephen’s bottom line correctly puts the blame for the “complete mess” our Tax Code has become on the idiots in Congress, and reminds us that “the power to tax is also the poser to obtain campaign contributions”.

* THE SHLOTT REPORT identifies and explains the “3 Retirement Plan Life Expectancy Tables” for determining RMDs.

* Kay Bell, the yellow rose of taxes, celebrated the recent Friday the 13th by telling us “Don't Fall for These 13 Tax Myths on Friday the 13th or Any Day".
Let me add a 14th tax myth – “A CPA is automatically a 1040 expert”.   

* Charles Rubin tells us “Inherited IRA Exposure To Creditors – Resolution At Last” at RUBIN ON TAX –

The U.S. Supreme Court has now weighed in, and has ruled that inherited IRAs are not exempt from bankruptcy creditor claims.

* Jim Blankenship gives, as usual, great advice when he tells us to “Take Dave’s Advice With a Grain of Salt” at GETTING YOUR FINANCIAL DUCKS IN A ROW.

The “Dave” to whom he refers is Dave Ramsey - financial author, radio host, television “personality”, and motivational speaker.

Jim’s bottom line is “to understand the nature of the recommendations given {by all purveyors of financial advice to the masses}, and that your circumstances are most likely very different from the seeker of wisdom from the mount”.

I want to take Jim’s advice a bit further – do not act on the advice of any television or radio “personality”, print or broadcast journalist, tax or financial blogger, etc. without first running it by a proven trusted financial advisor and/or your tax professional.

To be honest – I would totally ignore any advice from broadcast alleged “financial gurus” like Dave Ramsey, Suze Orman, and others of their ilk.  FYI a speaker at an NATP or NSTP (I forget which) sponsored CPE event years ago told the class that Suze Orman didn’t know her arse from a hole in the ground when it came to personal finance.  And didn’t Orman take a page from H+R Block a while back and market a prepaid debit card with overly excessive service charges and fees?

* Dr Jean Murray from ABOUT.COM discusses the “Legal Forms of Business Organization”, providing good information and resources. 

* A timely "tweet" from Dan Alban of the Institute for Justice (aka @Frimp13) -  
"If a tax preparer lost 2 yrs of tax returns, he/she could face up to $25,000 in fines under 26 USC 6695(d). Just sayin'."

* Manasa Nadig provides a primer on “Gifts From Non-Citizens to US Citizens”, answering questions recently asked me by a client, at THE BUZZ ABOUT TAXES.



Chris Johnson, EA said...

You mentioned Dave Ramsey and all I could think was ugh. He either has totally useless advice, or advice that is so damn obvious, a 3rd grader could have given it. But at the end of the day, radio is for entertainment, and that's exactly what he is - the man can get the advertising spots sold out and keep people listening, myself included, I'm not so embarrassed to say. I just laugh at the idiots that call him and the idiotic (or basic) advice he always gives them. Useful to anyone? No. Entertaining? Absolutely.

I second your comment on the myth about CPAs being 1040 experts. They certainly could be but being a CPA doesn't mean they are. In the interests of some shameless self-promotion, I will say that EAs are definitely 1040 experts.

Robert D Flach said...


I have never listened to Dave Ramsey, or any others of his "ilk".

You are correct to say that Enrolled Agents are 1040 experts.