Monday, September 15, 2014
WHAT’S THE BUZZ, TELL ME WHAT’S A HAPPENNIN’ - SPECIAL MONDAY EDITION
There was no free wi-fi in the guest rooms at Bally’s in Atlantic City ($12.99 for 24 hours) - so no internet access during the NATP Forum. I had to wait until I could stop at a McDonald’s on the way home to check emails. Hence no Friday BUZZ last week and this special, albeit abbreviated, Monday edition. Posts on the NATP Tax Forum will appear tomorrow and Wednesday.
I get free in-room wi-fi at just about every motel (at every price level) I stay at – but not at a “higher class” casino hotel. Go figure.
BTW – I returned home to northeast PA early Friday afternoon, and headed out again on Saturday morning to Wellesboro, PA (2 hours west on Route 6 outside of Scranton). I will be heading back home tomorrow afternoon. Back at my desk, and the few remaining GDEs, on Wednesday.
* Jason Dinesen adds his more than 2 cents to a discussion I began in “What Is Our Legal Responsibility” in the September issue of “The Tax Professional” in his blog post “What Responsibilities Do Tax Preparers Have in Assessing ACA Penalties?”.
I thank Jason for his contribution to the discussion, and look forward to hearing what other tax pros have to say.
* The CCH week-day daily Tax Headlines email newsletter tells us “Senate Faces Abbreviated Schedule for Remainder of Session” -
“Congress returned to work on September 8 with inversion transactions, the extension of expired tax incentives, retirement security and internet access taxes all awaiting action, but little time to accomplish everything prior to the November 4 midterm elections. Congress may be in session for as little as two weeks before recessing for election campaigns, returning in early December for a very short lame-duck session.”
These idiots have done virtually nothing for the first 8 months of the year. Do you really think they will accomplish anything in two weeks?
I expect that the “tax extenders” will once again be extended in December – once again causing delays to the start of processing 2014 tax return.
* Kay Bell, the yellow rose of taxes, suggests “IRS Direct Pay One of Many Ways to Pay Estimated Taxes”, which are due today.
* CPA James Lange warns us to “Beware of the Pro Rata Rule for Roth Conversions” at his ROTH REVOLUTION BLOG.
This is something that higher-income taxpayers do not take into consideration when attempting a “back-door” ROTH contribution. They make a non-deductible traditional IRA contribution of $5,500 and turn around and convert this $5,500 contribution to a ROTH and assume that there will be no income tax on the conversion. But, as Mr Gershwin wrote, “it ain’t necessarily so”! In a not uncommon example provided by James in the post $4,750 of the conversion is taxed!
THE FINAL WORD:
Is it mere coincidence that a highly touted broadcast tv series of the new fall season, with a primo time slot, is about a female Secretary of State – just 2 years before the next Presidential election?