Monday, June 13, 2016
WHAT’S THE BUZZ, TELL ME WHAT’S A HAPPENNIN’
* Have you seen the premiere issue of my new FREE monthly tax planning and preparation newsletter ROBERT D FLACH’S THE 1040 LETTER yet? What are you waiting for? You are welcome to share it with friends and family and colleagues, co-workers, and clients.
* Arielle O'Shea explains “How to Roll Over a 401(k) to an IRA” at NERDWALLET (highlight is mine) -
“When it comes to a 401(k), you can take it with you.
In fact, you probably should, in the form of a 401(k) rollover. But making the most of the money you’ve built up means performing the rollover correctly. Here’s the four-step process for how to roll over a 401(k) to an IRA. As with any big decision, it’s always good to know your options before you go all in, so let’s start there.”
* A good lesson about how to properly conduct business as an LLC from Paul Neiffer at FARM CPA TODAY - “LLC Does Not Provide Legal Protection (if you mess up)”.
While Paul discusses it from a farm perspective his advice applies to all LLC activities.
Paul lists what a court would look at to determine where liability exists if there is an accident, the first being –
“Does the LLC have a bank account? If not, the court will likely assume that there is no business since a business need a checking account.”
Paul is correct when he concludes – “For me, the most fatal flaw is not having a checking account”. It is vitally important that you maintain a separate checking account for the LLC or any self-employed business activity.
Years ago a fellow blogger condemned me for giving bad advice when I said that every self-employed business activity must have a separate banking account. Time, and every other reputable blogger and business advisor as well as the courts, have proven me to be right.
* The TAX FOUNDATION has released “Options for Reforming America's Tax Code”. I haven’t had a chance to read it yet – but may post about it when I do.
* Hey, if you haven’t already done so do me a favor and download the free sample issue of my other new monthly newsletter BOBSERVATIONS and let me know what you think.
* FYI from CCH TAX NEWS HEADLINES – “IRS Announces Interest Rates Unchanged for Calendar Quarter Beginning July 1, 2016 (IR-2016-84; Rev. Rul. 2016-12)”.
* Fellow tax professionals – join me in the campaign to reform the mucking fess that is the US Tax Code by joining TAX PROFESSIONALS FOR TAX REFORM.
* TaxGirl Kelly Phillips Erb tells us the “IRS Taxpayer Transcript Service Back Online” at FORBES.COM –
“The Internal Revenue Service (IRS) has announced that the ‘Get Transcript’ tool is back online and it has a more rigorous e-authentication process. The process, according to IRS, will significantly increase protection against identity thieves impersonating taxpayers to access tax return information through the website.”
* Over at DINESEN TAX TIMES Jason Dinesen begins a discussion of “501(c)(3) vs. 501(c)(4) vs. 501(c)(7)” with “Part 1”.
The discussion concerns the different types of tax-exempt non-profit organizations.
* And Jason adds “Net Operating Loss” to his Glossary post series.
* Another FYI - news from the NYS Department of Taxation and Finance – “New ‘One-Stop Shop’ Webpage Highlights Variety of Tax Credits and Incentives Available to Business Owners”
* Russ Fox of TAXABLE TALK reports on a major state tax agency FU in “Withholding Notice Snafu in California” –
“The Franchise Tax Board, California’s income tax agency, apparently issued a boatload of withholding mismatch notices. Some (but not all) of those notices appear to be in error; additionally, the FTB’s phone and chat lines have been swamped.”
Some good tax advice worth constant repeating – NEVER assume a balance due notice you receive from the IRS or a state tax agency is correct. If you receive correspondence from the IRS or a state tax agency send it to your tax professional immediately.
* Not to be outdone by the west coast, the east coast also FUs on tax notices. Kay Bell gives us the word that “CT DMV computer mess messes up 50,000 auto tax bills” at DON’T MESS WITH TAXES.
THE FINAL WORD
Right on brother Josh Barro at BUSINESS INSIDER!
In “Hoping Donald Trump will change his entire personality is not a strategy” Josh correctly observes –
“They say there are five stages of grief: denial, anger, bargaining, depression, and acceptance.
Establishment Republicans went through all of them with regard to Donald Trump, and now have come all the way back around to denial.
They're not in denial that he will be their nominee, like they were last fall and winter. They're in denial about who he is. They believe, if he is handed immense power, he might turn into a reasonable person.
Here's a news flash for anyone who is thinking this way: Donald Trump was an impetuous child yesterday, he is one today, and he will be one tomorrow.”
And (highlight it mine) -
“Trump loves arbitrary exercises of power. Given the power of the presidency, who is to say he won't become even more unstable and dangerous? Why would anybody assume that handing him massive power would make him more responsible rather than less?
The only defensible thing is to look at this man and say he cannot possibly be made president. Anyone who supports him on the basis that he might change for the better is engaging in pathetic self-deception — and proposing to risk the country's entire future on a foolish bet.”
And one more development about Trump just released – from USA TODAY “Hundreds allege Donald Trump doesn’t pay his bills”.
Republican leaders need to grow some balls – call a spade a shovel – and just say NO to dangerous buffoon Donald Trump!