Monday, August 8, 2016


The AICPA continues to oppose any program that identifies individuals who have proven competency and currency in preparing 1040s.  They feel CPA’s “own” the tax preparation industry and continue to try to maintain the bogus “urban tax myth” that CPAs are 1040 experts.

The AICPA claimed its members were injured parties because they could lose business to the voluntarily registered preparers.  Of course CPAs will lose business if there is a way to properly identify tax preparers who remain current in 1040 tax law – and they should!

See my article “Don’t Assume”.

* ACCOUNTING TODAY gives us a slide show on “Back-to-School Tax Tips”.  It covers what is and is not deductible.

* Sole proprietors – do me a favor and check out the premiere issue of my subscription newsletter ROBERT D FLACH’S THE SCHEDULE C LETTER.  Click here to download

* As #15 in the CPA ADVISOR “2016 Fringe Benefits Tax Series” Ken Berry (not the actor) discusses “Tax-Free Commuting Expenses”.

For links to the first 14 entries in the series go here.  

* From FORBES.COM’s TaxGirl Kelly Phillips Erb – “IRS Announces New Changes, Including Rolling Renewals, To ITIN Procedures”.

* More of an FYI than tax BUZZ – the latest TAX FOUNDATION map shows “The Real Value of $100 in Each State”.

My move from NJ to PA continues to pay off - $100 is only worth $87.34 in NJ, but $101.83 in PA!  It looks like NJ is fourth from the bottom on the list – ahead of only NY, Hawaii, and Washington, DC.   It looks like you get the most bang for your buck in Mississippi.  

* Here is a timely tax topic.  Over at her BANKRATE.COM tax blog Kay Bell tells us “Senate OKs tax break for Olympic medalists” -

With the 2016 Summer Olympics starting this week in Rio de Janeiro, members of Congress are again doing their version of the ‘USA, USA’ chant. They've introduced legislation that would make the money won by U.S. Olympic medalists tax-free.”  

* Staying on this topic, Kyle Pomerleau asks the question “Should Olympic Prize Money Be Taxed?” at the Tax Foundation’s TAX POLICY BLOG.  Here is Kyle’s answer, which I tend to agree with –

It makes sense for the IRS to tax this prize money. Olympic athletes, just as most athletes, earn part of their income competing in events and earning prize money. For example, tennis players who will participate in the 2016 U.S. Open will compete for a total prize pool of $46 million. The winner of the men's and women's singles will each get $3.5 million. This prize money is income just as a teacher’s salary is income and is taxed as such. It does not make sense to exempt a specific source of income earned by a specific profession from the income tax, but tax all the income earned by everyone else.”

What do you think?

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Does this remind you of anyone?

Narcissistic Personality Disorder DSM IV Criteria:

Definition: A pervasive pattern of grandiosity (in fantasy or behavior), need for admiration, and lack of empathy, beginning by early adulthood and present in a variety of contexts, as indicated by five (or more) of the following:

(1)  Has a grandiose sense of self-importance (e.g., exaggerates achievements and talents, expects to be recognized as superior without commensurate achievements);

(2)  Is preoccupied with fantasies of unlimited success, power, brilliance, beauty, or ideal love;

(3)  Believes that he or she is "special" and unique and can only be understood by, or should associate with, other special or high-status people (or institutions);

(4)  Requires excessive admiration;

(5)  Has a sense of entitlement, i.e., unreasonable expectations of especially favorable treatment or automatic compliance with his or her expectations;

(6)  Is interpersonally exploitative, i.e., takes advantage of others to achieve his or her own ends;

(7)  Lacks empathy:  is unwilling to recognize or identify with the feelings and needs of others;

(8)  Is often envious of others or believes that others are envious of him or her;

(9)  Shows arrogant, haughty behaviors or attitudes.

Is this the man you want as President?


Do you want to learn how to pay the absolute least amount of federal and state income tax possible – and experience the joy of avoiding taxes?  Click here to check out my library of tax planning and preparation books, guides, reports, and newsletters.

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