Friday, December 11, 2015
WHAT’S THE BUZZ, TELL ME WHAT’S A HAPPENNIN’
* New at BOBSERVATIONS - "Ain't Broadway Grand!"
* Since “IRS Private Debt Collectors Are Now Legal” Robert W Wood of FORBES.COM lists “10 Things You Should Know”.
My advice to as alleged tax delinquent who is contacted by an outside collection agency is, and always has been –
Write to, the agency, with a copy to the IRS, and tell them that you refuse to deal with a private collection agency and will only deal directly with the IRS.
Once you have done this you should promptly follow up on the issue in question with the IRS.
* Remaining on the topic of outsourcing tax collections - Kay Bell, the yellow rose of taxes, warns us “Private Tax Collection May Increase Tax Scams” at her BANKRATE.COM blog.
There is no “may” about it – it definitely will!
Kay rightly says -
“Be warned taxpayers. The recently enacted transportation funding bill lays out a clear path for new tax scams.”
“Even worse, the requirement -- that's right, the IRS no longer simply has the choice to use bill collectors; it must hire them in certain tax collection cases -- clears an on-ramp for crooks looking to participate in what the IRS says is the largest (and still growing) tax scam ever.”
* Michael Cohn reports “AICPA Opposes Legislation to Regulate Tax Preparers” at ACCOUNTING TODAY.
This is the right action – opposing required licensing of all paid tax preparers by the IRS – but for the wrong, most definitely selfish, reasons. The AICPA fears that any government, or other, program, credential or designation that identifies a person’s competence and currency in 1040 preparation will take business away from CPAs, and help to debunk the urban tax myth that CPAs are automatically 1040 experts by virtue of their initials.
At least more often than not the better choice for a tax preparer, certainly in terms of cost and value, and also from the standpoint of competence and quality, is a non-CPA – most definitely an Enrolled Agent (EA) and also frequently a “non-initialed” and “unenrolled” independent tax professional.
* Jason Dinesen continues his series on “Glossary” with a discussion of “Draws”, reviewing the difference between a sole proprietor draw and a partnership draw, at DINESEN TAX TIMES.
* Check out the comments section of my earlier TWTP post “Tax Pros Discuss the Earned Income Tax Credit”.
What do you think - is the EITC a welfare program?
* Eva Rosenberg, aka Tax Mama, suggests “What To Do if Your 1099 Should Have Been a W-2” at MARKET WATCH.
THE FINAL WORD
(1) The idiots in Congress are, and continue to be, to blame for 100% of all tax fraud, tax scams, and tax return errors – for turning the US Tax Code into a complicated and convoluted mucking fess, for misusing the Tax Code to deliver social welfare and other government benefits, often via refundable credits, and now for forcing the IRS to use outside collection agencies.
(2) Donald Trump continues to prove himself a fool every time he opens his mouth.
The extreme fundamentalist Muslims of ISIS are no more a true reflection of the spirit of the Muslim religion than the extreme fundamentalist religious right in America is a true reflection of the Christian religion.