Monday, August 10, 2020

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

Obviously, I am not a fan of flawed and expensive tax preparation software.  But I do find that the Turbo Tax blog often provides good information.  However, its slogan – “It’s all about the refund” – is WRONG.  What too many taxpayers do not understand is it should NOT be all about the refund – it should be all about the tax liability!

* Have you subscribed to my free monthly e-mail tax newsletter yet?  Click here to see the August issue. 

 

You can subscribe to this free monthly e-letter by sending an email to rdftaxpro@yahoo.com with ROBERT D FLACH’S 1010 EMAIL LETTER in the subject line.

 

* A Facebook tax pro group member posted some information from a CSEA (California Society of Enrolled Agents) IRS Panel Discussion.  The first three -

“1) New audits being opened again

2) Most will be remote audits

3) IRS was receiving 1M pieces of mail per week during shutdown.  Will take a while to catch up.  Opening 5M pieces a week but still receiving mail.”

 

* Brett Hersh, the OVERNIGHT ACCOUNTANT, new to me, provided a detailed primer on “Deducting Business Meals, Real Estate Agents and Sole Proprietors” 2 weeks ago (just discovered this thanks to Joe Kristan).

 

The rules are confusing and accompanied by a great deal of rumor and misinformation.”

 

* We begin a trifecta from the FORBES.COM TaxGirl Kelly Phillips Erb with “Despite Questions, President Trump Issues Executive Order To Create Temporary Payroll Tax Cut”.

 

This is currently a deferral of, I believe, 4th Quarter 2020 federal payroll taxes – Social Security and Medicare taxes.  And it is clearly an act by Trump to try to make himself look good when Congress failed to act on additional stimulus legislation (if you ask me the breakdown of the talks was purposely orchestrated by Republican leaders so Trump could make this move).  We all know that Trump could care less about the plight of the American people – and his only interest is in staying in the White House.

 

As Kelly says (highlight is hers) - “There’s a lot to unpack here, so stay tuned: more is sure to come.”

 

* A good reminder from KPE in “Working From Home? You May Not Be Able To Claim The Home Office Tax Deduction” (high light is KPE’s)-

 

As a result of the Tax Cuts and Jobs Act (TCJA), for the tax years 2018 through 2025, you cannot deduct home office expenses if you are an employee.”

 

I weighed in on the subject of a home office deduction for employees forced to work at home during the pandemic in “Don’t Expect a Home Office Deduction for Employees on the 2020Form 1040


* And KPE explains “Even COVID-19 Can’t Stop Sales Tax-Free Shopping” and provides “a look at states offering taxpayers a break on sales tax for back-to-school items this year”.

 

BTW – congratulations to KPE for being named the National Association of Enrolled Agents’ “2020 Outstanding Supporter of Enrolled Agents”!

 

THE LAST WORD

 

The 2020 election truly is a referendum on Trump.

 

You are either for Trump, or

 

You have a brain and a conscience.

 

TTFN


























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