Only one GD extension left! But I cannot
complete it until the taxpayer returns from a business conference in Florida
next week. Refunds anticipated from all “uncles”
– so not an issue. I anticipate
returning to regular posts next week.
* Russ Fox deals with the ultimate
procrastinator in “It’s October 13th and I’m Still Not Ready to File my Taxes; What Should I Do?”.
In the post Russ takes issue with my
opposition to taxpayers with no tax knowledge using a “box” to prepare their
return.
“I
disagree with fellow tax professional Robert Flach on his description that all
tax software is fatally flawed. For individuals in simple situation it works
perfectly. It doesn’t make math mistakes. And it usually allows for seamless
electronic filing. I agree with Robert that the ability to look at a return and
evaluate what’s on it (does it pass the smell test) is vital but when you’re up
against a deadline, you don’t have a choice.”
I do not believe that all tax software is “fatally flawed”. But it is flawed. I do believe that the basic taxpayer with no
training or experience in tax returns is fatally flawed. The basic rule of “garbage-in, garbage-out”
certainly applies.
What I have always said is –
“No
software package, or online filing service, is a substitute for knowledge of
the Tax Code. And no tax software
package, or online filing service, is a substitute for a competent, experienced
tax professional.”
I doubt that Russ would disagree with that.
When I talk about tax software being
“flawed” it is in my reasons for not using it myself in my practice. I refer to tax preparation software as
“flawed and expensive” – not “fatally flawed”.
Again, I doubt that Russ would disagree with that. I am constantly hearing tax pros recount
stories of how they have to “force” their software to accept a correct answer
at CPE events.
Joe Kristan adds his more than 2 cents to
the discussion at “Tax Roundup, 10/13/15: Thoughts for those facing the due date. And: Ex-Iowa revenue director backs sales tax rule” -
“While
I am in awe of Robert’s practice of doing his returns by hand, I don’t recommend
it for anyone else. While software, like any human endeavor, is ‘flawed’, it’s
much less flawed than a do-it-yourself tax filer without software. Tax software prevents a lot more mistakes
than it causes.”
The obvious solution to the issue is –
don’t wait until the last minute to file your tax return.
What do you think?
* Gary Altman, J.D., L.L.M., CFP of the
FINANCIAL PLANNING ASSOCIATION reminds us “Don’t Forget to Audit Your Beneficiary Designations”.
* Oi vey! Jim Blankenship explains “The 52% Medicare Premium Increase by the Numbers” at GETTING YOUR FINANCIAL DUCKS IN A
ROW.
The good news (highlight is mine) –
“Anyone
who is currently receiving Social Security and having the Part B premium
deducted from their check will have the
same premium for 2016 as they have in 2015, since there is no COLA
projected.”
I do believe that is all of my applicable
clients – so, thankfully, no changes for them.
* And the beat goes on. Another reality show “celebrity” in
trouble. Over at FORBES.COM Kelly Phillips
Erb tells us “'Dance Moms' Star Abby Lee Miller Accused Of Hiding Income, Indicted On Fraud Charges” -
“Abby
Lee Miller, the star of the reality TV {excrement – rdf} ‘Dance Moms’ has been indicted by a federal
grand jury in Pittsburgh, Pennsylvania, on charges of bankruptcy fraud,
concealment of bankruptcy assets, and false bankruptcy declarations.”
Hey, the fact that they appear on reality
tv in itself is proof that they are not very bright.
TTFN
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