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

* Over at the MainStreet.com TAX CENTER I talk about “What's New on the 2013 Form 1040?”. 

* MISSOURI TAXGUY Bruce McFarland suggests “Let’s Talk About Tax Software”.

Bruce is spot on when he says -

“when it comes to software, the software is only as smart as the person using {it}”.

Bruce makes a lot of good points – including verifying that even tax preparation software for the tax professional is flawed.

The takeaway for taxpayers is what I have been saying for years – no software package is a substitute for knowledge of the Tax Code, and no tax software package is a substitute for a competent, experienced tax professional.

* And Bruce’s TAX TALK TUESDAY covers “Afffordable Care Act: Now it is Personal”.

* Isaac M. O'Bannon lists the “Top Tax Credits & Benefits for Members of the Military” at CPA PRACTICE ADVISOR.

* Here is an odd post from ACCOUNTING TODAY whose title caught my attention – “Bronx Laundromat Offers Tax Prep Services”.

It reminded me of the following anecdote I have often used to illustrate that any Tom, Dick, or Harriet can hang out a shingle as a tax preparer –

One morning, not too long ago, while walking on Central Avenue in my former home town of Jersey City I saw a sign in the window of a barber shop that read “tax returns prepared here”. You could apparently get a haircut and a manicure and have your 1040 prepared all in one sitting! Many years ago, before I had my own office, I had considered renting a desk in an insurance or real estate office – it never occurred to me to rent a chair at a barbershop.

While the tax preparers working at the laundromat are supposedly legitimate, one statement in the article is truly suspicious -

“The company said customers’ taxes will take between 30 to 45 minutes to prepare, about the time of a wash or dry cycle, provided customers bring the proper identification and the necessary paperwork.”

It is only the simplest 1040A that could be prepared in 30-45 minutes, especially for a client about whom you have no prior knowledge.  The actual client interview and review of the prior return would take almost 30 minutes.

* REUTERS contributor warns “As More U.S. Workers Go Independent, a Retirement Time Bomb is Ticking” –

“New data from TD Ameritrade Holding Corp reveals the worrisome state of the retirement savings of independent workers. The brokerage company's Self-Employment and Retirement Survey found that 28 percent of the self-employed were not saving anything at all, and another 40 percent were only saving occasionally, when they said they were able.”

* Susan B Weiner has a “Blogging Q&A with Jim Blankenship” (of “Getting Your Financial Ducks in a Row” fame) at her INVESTMENT WRITING blog.

 

* Trish McIntire is posting again at OUR TAXING TIMES.  She offers some advice on “Choosing A Tax Pro”.

* Kay Bell, the yellow rose of taxes, tells us “California Has $16 million in Undeliverable 2012 Tax Refunds” –

“Were you due a refund last year from the Golden State's tax collector? Did you get it?

Nearly 48,000 Californians didn't. The state is holding around $16 million in snail mailed refund checks that were returned as undeliverable.

The returned refund checks range from $1 to $54,000. However, Most of the returned tax refunds (nearly 45,000) are for $1,000 or less.”

* Jason Dinesen asks “Got 1099s to Issue?” at DINESEN TAX TIMES.

* ACCOUNTING TODAY reports “Court Rules in Favor of IRS on Obamacare Tax Credits”.

TTFN