Monday, January 29, 2018

WHAT’S THE BUZZ, TELL ME WHAT’S A HAPPENNIN’?

This will be the last BUZZ installment until after the end of my tax-season hiatus.  I will return with more BUZZ after April 17.

* The word from Michael Cohn at ACCOUNTING TODAY – “IRS to openfiling season Monday {today – rdf} with some extra warnings”.

The IRS may begin tax season today, but I do not begin my tax season until February 1st.  Don’t forget to return here on February 1st for the annual posting of THE TWELVE DAYS OF TAX SEASON!


The IRS extended impacted taxpayers’ deadlines that fell (or will fall) between December 4, 2017 and April 29, 2018 to April 30, 2018. This includes the Form 1040 deadline of April 17th (it will be April 30th for impacted taxpayers). This impacts individuals and businesses who are in Los Angeles, San Diego, Santa Barbara, and Ventura Counties who were impacted by the disasters.”

* If you haven’t already found a tax professional to prepare your 2017 returns yet you can begin your search at my website FIND A TAX PROFESSIONAL.

* More proof that politicians are idiots in “More States Considering Dubious SALT Charitable Contribution Workaround” from Jared Walczak of the TAX FOUNDATION.

Jared correctly points out “what you really need to know” - 

·         Charitable contributions to government are only deductible, per IRS guidance, if the contribution “is solely for public purposes (for example, a gift to reduce the public debt or maintain a public park).” By contrast, these contributions primarily serve a private purpose (reducing federal tax liability through recharacterization), as they do not yield any increased revenue for the state.

·         When claiming the charitable deduction, the taxpayer must exclude contributions from which one benefits. For instance, if one purchases a $250 ticket to a benefit dinner, and the fair market value of the dinner is $50, then $200 can be deducted—not $250. In this instance, the taxpayer receives a benefit equal to the entire value of the contribution in lieu of taxes (the corresponding tax credit), wiping out any deductible share.

·         Case law and IRS regulations generally require charitable intent for a contribution to be deductible, meaning that the individual does not receive a substantial benefit from the contribution. The sole purpose of the proposed contributions in lieu of taxes proposal is financial gain. (the U.S. v. American Bar Endowment, Hernandez v. Commissioner, Singer Co. v. U.S.)

·         The IRS has broad authority to classify a payment or charge as a tax based upon its real nature. If it looks like a tax and acts like a tax, the IRS and the courts could simply say that it is a tax.”

* Before I begin my tax filing season blog post hiatus at THE TAX PROFESSIONAL I do a bit of “Horn Tootin’”.   

THE FINAL WORD

What is the true “State of the Union”?

A dangerous, deplorable and despicable ignorant and incompetent mentally unstable malignant narcissist, who continues to destroy the credibility, integrity and stature of the White House domestically and internationally on a daily basis, is the President.

America will NEVER be great again until Donald T Rump, and all Republicans who publicly support and defend him, are removed from office.


TTFN










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