Saturday, December 18, 2010


As I reported yesterday, the tax extenders bill, which includes the AMT “patch”, has been passed – which was discussed by just about every tax blog and news outlet. Because of the extensive coverage given the extenders bill there is less BUZZ than usual this Saturday.

FYI, I discuss the provisions of the 2010 Act that affect 1040 filers in Monday’s post here at TWTP.

* Joe Kristan quotes my comment on murderous CPAs from Wednesday’s BUZZ in his post “Pain Relief” at THE ROTH AND COMPANY TAX UPDATE BLOG, which also links to a January 2009 item by Joe at GOING CONCERN about a tax preparer who killed and dismembered a client.

As I commented to Joe, there have been times over the past 39 tax seasons that I have considered dismembering a client, but I have always suppressed the urge. I dared Joe to say that the thought never crossed his mind.

I wonder if the life of the tax client victim in Joe’s GC item would have been spared if the killer had attended 2 hours of ethics CPE each year.

* TAX PROF Paul Caron makes a good suggestion if you are thinking of giving your tax professional a Christmas gift in his post “Christmas Gifts for that Special Tax Person”.

This gift is especially appropriate when one considers the large percentage of our tax dollars that the idiots in Congress flush town the toilet each year.

* As we approach the end of the year the “. . .est of 2010” lists are beginning to appear. Here is one with a tax theme – “Weirdest Tax Laws of 2010” – from ACCOUNTING TODAY.

* The NATP weekly email newsletter reported on something about which I had not heard before -

President Signs Claims Resolution Act

On December 8, President Obama signed the Claims Resolution Act of 2010 [HR 4783]. Primarily, the new law deals with restitution payments relating to various claims by American Indians, and final settlement of claims from certain African American farmers' discrimination litigation. Such payments are not included in income and not treated as tax-exempt income that must be considered under other code provisions (i.e., determining taxable social security benefits, etc.).

The Act also makes §6402(f) permanent which allows the IRS to offset an individual's federal refund and pay it over to the state where there has been erroneously paid unemployment compensation or a failure to contribute to a state's unemployment fund

The TAXPRO Weekly email newsletter is just one of the many benefits of membership in the National Association of Tax Professionals. If you are a tax preparer and are not a member of NATP you should be – especially now with the new regulation regime. If you are interested in more info on membership please email me at with “NATP membership” in the Subject Line.

* For years I have been saying that, for tax purposes, you should get married early in the year and have children late in the year. Children born before midnight on December 31, 2010 can be claimed as dependents on the 2010 Form 1040 (or 1040A) and the parent(s) will receive the same tax benefit that the parent(s) of a child born on January 1, 2010 would receive.

Professor Mary O’Keefe investigates in depth “How Much Are Those New Year's Eve babies Worth?” at BED BUFFALOES IN YOUR TAX CODE.

* Don’t forget to check out Bruce McFarland’s “Week In Perspective” at THE MISSOURI TAX GUY tomorrow (Sunday) morning.


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