A “meaty” BUZZ as we
approach the end of 2018.
* I hope you are
up-to-date on all the breaking tax news I reported here last week - here, here
and here.
* Did you see it yet? The latest “issue” of THE LAKE REGION SOMETHING that is. Last "issue" of 2018.
* I missed this last
month. Once again, the TAX FOUNDATION
dispels the myth that the wealthy do not pay their fair share of income tax in
its “Summary of the Latest Federal Income Tax Data, 2018 Update”.
Some of the
highlights (highlight is mine) -
ü
In 2016, 140.9 million taxpayers reported earning $10.2 trillion
in adjusted gross income and paid $1.4 trillion in individual income taxes.
ü
The share of reported income earned by the top 1 percent of taxpayers
fell slightly to 19.7 percent in 2016. Their share of federal individual income
taxes fell slightly, to 37.3 percent.
ü
In 2016, the top 50
percent of all taxpayers paid 97 percent of all individual income taxes,
while the bottom 50 percent paid the remaining 3 percent.
ü
The top 1 percent paid a
greater share of individual income taxes (37.3 percent) than the bottom 90
percent combined (30.5 percent).
ü
The top 1 percent of taxpayers paid a 26.9 percent individual
income tax rate, which is more than seven times higher than taxpayers in the
bottom 50 percent (3.7 percent).
* A client suggested that I share “The Secret Way Seniors CanKeep Deducting Gifts to Charity” from the WALL STREET JOURNAL with BUZZ
readers.
I posted about this “secret” in “Wunnerful, Wunnerful”.
* Kelly Phillips Erb,
FORBES.COM’s TaxGirl, lists “14 Tips For Making Your Charitable Gift Tax-Deductible In 2018”.
* And KPE’s annual “12
Days Of Charitable Giving” has gotten underway with “The Women's Tax Resolution Center, Inc.”, “America's Vet Dogs”, and “First Book”.
* Jason Dinesen
confesses “Sometimes I Wonder What I’m Missing” at DINESEN TAX TIMES.
Like Jason, over the
years I have seen lots of incorrect returns prepared, purposefully or through
incompetence and ignorance, by other tax preparers, often CPAs, that went
unaudited and uncaught.
Thankfully most of
the preparers I come in contact with, via blogs and my association with NATP
and NJ-NATP, are, like Jason, are honest and ethical.
Unfortunately, we
honest and ethical preparers are forced to waste (and pay for) at least 2 hours
per year sitting through redundant ethics preaching. As I have said for years now – if after 45+
years in the business I am not ethical 2 hours of preaching ain’t going to
change anything. The fraudulent and incompetent
preparers, who need to be schooled on ethics, do not find “revelation” from
having to sit through this ethics preaching.
* At TAXBUZZ (I like
the name – wonder where they got it) Lee Reams provides a handy “infographic”
of the “Tax deadlines for filing 1099-Misc, 1099-DIV, 1099-INT and 1099-R”.
* Always good advice
from Russ Fox at TAXABLE TALK – “Hug Your Tax Professional” (alternative title
is “The Upcoming Horrible, Miserable, Rotten, and Delayed Tax Season”).
For me the upcoming
tax filing season will NOT be horrible, miserable, rotten, or delayed. Many taxpayers will no longer be able to
itemize and I expect none of my clients will be victims of the dreaded AMT – so
returns should be easier and smoother. With
perhaps 3 simple exceptions (all taxpayers under the income threshold for complication)
I will not be dealing with the ridiculous new Section 199a deduction. And for me the tax season will begin, as it
has begun for the past 40+ years, on February 1st.
* Enough is
enough. This nonsense is getting out of
hand. Annette Nellen explains “TCJA Expanded Preparer Due Diligence Beyond What Congress and IRS Highlight” at 21st
CENTURY TAXATION.
Tax preparers should
not be forced to become Social Workers.
As I have said before, soon we will be required to do random night time bed
checks of client dependents during the year.
For years I have been
saying that the tax preparation industry needs a vocal lobby in Washington to
fight against nonsense like this.
* A timely post from
Robert W Wood at FORBES.COM – “Universal Tax Lessons (Even for President Trump)In Michael Cohen Guilty Plea”.
Of course, we all
know that moron Donald T Rump never learns any lessons. He thinks he knows everything already.
---------------------------------------------------------
Obviously, there will
be no BUZZ installments on the next two Tuesdays. I will post any tax-related “breaking tax
news” – but other than that no more BUZZ till 2019.
TTFN
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