Monday, November 30, 2020

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


 * Russ Fox explains that taxpayers need to have patience regarding IRS filings and correspondence in “When 5 ½ Months Seems Fast” at TAXABLE TALK -

On February 4th clients of mine mailed their 2018 tax return to the IRS. This particular return could not be electronically filed. They mailed it certified mail. It took nearly a full month to get from Las Vegas to Ogden, Utah. On March 1st it was received.

 

And then nothing…until today.

 

The IRS shows the return was processed today, November 23rd.”

 

The current situation -

 

Per IRS Commissioner Rettig, there are 1 million unprocessed tax returns, 6.8 million returns “in process,” and 3 million pieces of unopened mail. Or a child could be conceived and born faster than whatever it is you’re sending to the IRS is responded to.”

 

Taxpayers have always needed patience when dealing with IRS correspondence.  As I have been explaining to clients for some time now –

 

Within 45, 60 or 90 days of sending a letter to the IRS you will receive an acknowledgement of receipt from the Service telling you they need 45, 60 or 90 days to property review and respond to the letter.  After 45, 60 or 90 days you get a second letter telling you they need an additional 45, 60 or 90 days.

 

* As giving season begins “Here’s how taxpayers can check if their charitable donation is tax deductible”.

 

* Check out last Friday's post from FRIENDS OF THEATRE AND ART.

 

* Kay Bell tells us about a new IRS form in “Use Form 8915-E to report, repay COVID-related retirement account distributions” at DON’T MESS WITH TAXES.

 

* And Kelly Phillips Erb wants you to “Share Your Favorite Charity for the 12 Days of Charitable Giving” at her TAXGIRL blog.

 

* William Perez discusses how the IRS chooses a return for audit or for review and what to do to minimize your chances of being audited or questioned in “Preparing Your Tax Return to Avoid Getting an IRS Review Letter” at THE BALANCE.

 

The most important tip Bill provides -  

Using a tax professional is probably the most effective safeguard against receiving an IRS notice.”

THE LAST WORD

 

After Trump leaves the White House in January, hopefully voluntarily, he MUST be investigated on all levels for his multitude of illegal acts and indicted, prosecuted, convicted, and incarcerated.

 

He MUST be held accountable and punished as a warning to potential future “Trumps”.  

 

TTFN














 

Friday, November 27, 2020

A TRULY PRACTICAL CHRISTMAS GIFT – MY 2021 TAX RETURN ORGANIZER

 

It is time to begin Christmas shopping.  Here is a truly practical gift suggestion – for family and friends, or for yourself.

Taxpayers are required to keep good, contemporaneous records of all items of income and deduction in the manner prescribed by the IRS and the Tax Code.  For many years now I have been wanting to create a comprehensive Tax Return Organizer for my clients, readers and the general public.  Being stuck at home I have finally done it!

My 2021 INCOME TAX ORGANIZER, created for the federal income tax return (Form 1040 or Form 1040-SR), will help you keep track of all your income and deductions, and gather and organize the information you will need to provide to your professional tax preparer in 2022. 

The Organizer, which comes in an expandable binder, contains -

* detailed text covering what is taxable and deductible and what information and documentation you will need to properly prepared your 2021 tax return,

* forms, schedules and worksheets for compiling and identifying the needed information, and

* pockets for you to keep statements, bills, receipts, and other documentation during the year by category.   

The text (current as of November 2020) covers –

  • MY BEST TAX ADVICE·       
  • WHAT TO GIVE YOUR PREPARER
  • WHO MUST FILE A 2021 TAX RETURN
  • FILING STATUS
  • DEPENDENTS AND EXEMPTIONS
  • INFORMATION RETURNS
  • INVESTMENT SALES
  • 2021 CONTRIBUTION LIMITS FOR TAX-DEFERRED RETIREMENT PLANS
  • REPORTING GAMBLING INCOME
  •  ADJUSTMENTS TO INCOME
  • ITEMIZED DEDUCTIONS (with specific details for each category)
  •   DEDUCTIBLE RENTAL EXPENSES
  •  CHILD CARE EXPENSES
  •  ESTIMATED TAXES
  • HOW LONG MUST I KEEP MY TAX RECORDS
  • YEAR-END TAX PLANNING

The cost of the Organizer material is only $44.95 (includes shipping via Priority Mail).

Send your check or money order for $44.95, payable to Taxes and Accounting, Inc, and your postal mailing address to -

TAXES AND ACCOUNTING, INC
2021 TAX RETURN ORGANIZER
POST OFFICE BOX A
HAWLEY PA 18428 

TTFN









Thursday, November 26, 2020

HAPPY THANKSGIVING!

 



IN THESE DIFFICULT TIMES LET US REMEMBER 
WHAT WE HAVE TO BE THANKFUL FOR.

HIGH ON THE LIST IS, OF COURSE, THE CRUSHING DEFEAT OF DELUSIONAL, DEPLORABLE, DESPICABLE, AND DANGEROUS DONALD TRUMP IN THE PRESIDENTIAL ELECTION.










Tuesday, November 24, 2020

NO LONGER GRAND

 


It is impossible for any intelligent and patriotic American with a conscience to support the current Republican Party.

The once “Grand Old Party” no longer exists.  Today’s Republican Party is certainly not the Party of Lincoln any more, and not the Party of Eisenhower, Reagan, Dole, the Bushes, or John McCain.  It has truly become the Party of Trump.

The GOP is now truly the HOP – the Hypocritical Old Party.  Or the DOP – the Despicable Old Party. 

By continuing to embrace, support, defend, and enable Trump the Republican Party has totally abandoned all integrity, credibility and honor and totally abandoned traditional Republican and true conservative policies and philosophy.  

Traditional Republicans need to either actively work to remove the current Party leadership, including the current leadership in Congress, and, going forward, aggressively support only candidates who vocally disavow and denounce Trump and everything he is and he stands for – 

OR -

Form a new Party that actually promotes traditional Republican and true conservative values like fiscal responsibility, protection and maximization of individual rights, honest and limited government, and support and defense of the Rule of Law and the Constitutional separation of powers.  The “Lincoln Project” must become the Lincoln Party.   

TTFN









Monday, November 23, 2020

LAST CHANGE FOR A RESIDENTIAL ENERGY CREDIT

 

One of the famous, or perhaps infamous, tax "exenders" that will expire on December 31, 2020 is the $500 lifetime credit for energy-efficient purchases for your primary home.

If you purchased any of the following items in 2020 for your primary personal residence, you may be able to claim the energy credit –

* Air Source Heat Pump
* Central Air Conditioning
* Gas, Propane, or Oil Hot Water Boiler
* Gas, Propane or Oil Furnaces and Fans
* Water Heaters (non-solar)
* Advanced Main Air Circulating Fan
* Biomass Stoves
* Insulation
* Roofs (Metal & Asphalt)
* Windows, Doors & Skylights

Be sure to save and give to your tax pro a copy of the invoice, any energy efficiency statements, and any Manufacturer’s Certification statement or other documentation that the purchase qualifies for the credit.  It is your responsibility to determine if the purchase qualifies – and NOT your tax preparer’s – and your responsibility to maintain proof in case the credit is questioned by the IRS.

Remember the lifetime $500 maximum.  If you claimed an energy credit for any of the above purchases in 2006, 2007, or 2009 through 2019 your 2020 credit will be reduced or eliminated.

You can find information on exactly what purchases will qualify for the credit here.

TTFN









 

 

 

Sunday, November 22, 2020

NEVER IN OUR HISTORY

In the history of the United States –

There has never been a more ignorant President than Trump – incapable of intelligent thought.

There has never been a more incompetent President than Trump – unwilling to learn anything about anything. 

There has never been a more self-absorbed President than Trump – the ultimate textbook malignant narcissist. 

There has never been a more corrupt President than Trump – every move guided solely by personal self-interest.

There has never been a more mentally unstable President than Trump – delusional and unable to deal with reality.

There has never been a worse human being as President than Trump – totally devoid of humanity.

Let us pray that someone like Trump is never again put in the White House.

TTFN

Wednesday, November 18, 2020

MY 1040 CLIENT HANDBOOK – REPRINT RIGHTS

This post is for my fellow tax pros. 

Over a dozen years ago I sat down and compiled a “handbook” or “manual” for my 1040 clients.  It provided details on the polices and practices of my firm, identified my responsibilities and the responsibilities of the client, listed what I would need each year to properly prepare the client’s tax returns, and explained how long the client should save the return and supporting records.  I sent a copy to all my existing clients at the time and gave it to each new client going forward at the beginning of the “engagement”. 

I recently revised and updated this handbook and offer “reprint rights” of it to you, my fellow tax professionals, for use in your practice. 

You can use the 28 pages of text as intended – a free client handbook for current and new clients – or you can use various components of the text separately in free client newsletters or as free client handouts.   None of the contents and components of the handbook may be used in any product or publication for sale to clients or the public for a fee without written permission from me.

The handbook includes -

·         ABOUT ME

·         MY SERVICES AND RESPONSIBILITIES

·         MY FEES

·         YOUR RESPONSIBILITIES

·         WHAT I DO NOT DO

·         TAX RETURN COPIES

·         WHEN TO CONTACT ME

·         MY PRIVACY POLICY

·         WHAT I NEED TO PREPARE YOUR TAX RETURNS

·         RECORDKEEPING

·         DEDUCTIONS

·         HOW LONG SHOULD I KEEP COPIES OF MY TAX RETURNS

·         APPENDIX A – KEEPING TRACK OF INVESTMENT COST BASIS

·         APPENDIX B – KEEPING TRACK OF GAMBLING ACTIVITY

·         APPENDIX C – THE NEW MORTGAGE INTEREST DEDUCTION

The DEDUCTION section contains charts of Adjustments to Income, Itemized Deductions, Rental Expenses, Business Expenses.  And THE NEW MORTGAGE INTEREST DEDUCTION appendix includes worksheets for keeping separate track of acquisition debt and home equity debt with a detailed example.

The text is sent as a word doc email attachment so you can customize part – such as composing the section that identifies you, your firm and any other preparers in the firm and customizing the explanation of services, practices and policies to your individual tax practice.  It is written as a one-person practice, so the “I” and “me” can be changed to “we” and “us” as applicable.  And it is written as a NJ tax preparer, so you can add your applicable state tax requirements under WHAT I NEED TO PREPARE YOUR TAX RETURNS. 

A signed reprint rights license agreement will be sent via postal mail.

BTW – a thank you to Marc Standig EA, my former editor at “NJ Taxing Times” and long-time Board member and volunteer with the NJ chapter of NATP for his help in reviewing and “proofing” this handbook. 

The cost of the reprint rights license for this handbook is only $49.95.  Members of the National Association of Tax Professionals receive a 20% - or $10.00 – discount.  Please provide your membership number when ordering. 

Send your check or money order for $49.95 or $39.95, payable to “Taxes and Accounting, Inc”, and your email address and postal address to –

TAXES AND ACCOUNTING, INC
1040 CLIENT HANDBOOK
POST OFFICE BOX A
HAWLEY PA 18428

TTFN

















Monday, November 16, 2020

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

 

* I missed this when it first appeared.  S. Joseph DiSalvo and Marie L. Madarasz explain "Inheriting an IRS as a Non-Spouse Benefitiary is Now More Complicated" at THE STREET.


* Kay Bell provides help for “Getting the tax info needed to complete FAFSA” at DON’T MESS WITH TAXES.

 

For some reason clients seem to think if a person is experienced in preparing one government form – i.e. the 1040 – he/she must know how to prepare all government forms.  Do not expect your tax pro to prepare the FAFSA for you (if you do expect to pay him or her).  You can, however, ask him or her to provide you with specific tax return numbers.

 

* Check out last Friday's post at FRIENDS OF THEATRE AND ART.    

 

* Some good news for military personnel living in NJ (click here) –

 

For Tax Year 2021 and forward, combat pay is not taxable in New Jersey.”

 

* The INVESTED WALLET gives us a primer on “The Types of Retirement Accounts [Which Is Best For You?].

 

*  Have you ordered your copy of “What’s New for 2021” yet?  Why not?

  

THE LAST WORD

 

Absolutely nothing Trump has even done or said in his entire adult life would cause any intelligent person to respect or admire him.

 

Trump has proven himself to be completely devoid of humanity, integrity and credibility and incapable of intelligent thought.

 

Trump does not possess a single redeeming positive human quality.  He has never performed a single totally unselfish positive act in his adult life.

 

The fact that this delusional, mentally unstable and totally self-absorbed moron got 71 Million votes is a sad commentary on the intelligence, integrity and character of too many Americans.

 

TTFN














Monday, November 9, 2020

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

I am still celebrating America’s victory!

* A blog says “So Long,Farewell, Auf Wiedersehen, Goodbye”.  

 

* Professor Jim Maule exposes “Tax Lies and Misleading Tax Claims” at MAULED AGAIN –

 

When truth doesn’t work to their advantage, some people turn to lies.”

 

Specifically, Donald Trump, his campaign and his Republican Party.

 

The professor correctly observes –

 

Of course, if Americans were sufficiently educated about everything that matters, took the time to do research, made the effort to think critically, and troubled themselves to engage in critical analysis, the lies and misleading statements would have no effect.”  

 

But sadly, as the election has proven, too many Americans are incapable of this.

 

BTW – you may have to scroll down Jim’s blog to get to this post.

 

* Check out last Friday's post at FRIENDS OF THEATRE AND ART.

 

*  Kelly Phiilips Erb reports “IRS Warns On New Scam Related To Stimulus Checks

 

* Also from KPE - “IRS To College Students: It’s Not Too Late To Register For A Stimulus Check”.

 

* Kay Bell, the yellow rose of taxes, discusses the “Tax ballot issues 2020 results” at DON’T MESS WITH TAXES.

  

THE LAST WORD

 

I hope after Trump leaves the White House in January the GSA does a detailed inventory of the silver and other valuables.

 

TTFN















Saturday, November 7, 2020

OH HAPPY DAY!

 

We did it – intelligence and patriotism won out over ignorance and hate!

Our national nightmare – the danger and damage that was despicable and deplorable demagogue Donald Trump - is almost over.  I say almost because we still do need to worry about what damage Trump will do between now and the January inauguration.

Biden’s, and America’s, victory is the first defeat of an incumbent president in 28 years.  Trump didn’t deserve a first term, and certainly not a second one.  Trump is the first President in history to lose the popular vote in consecutive elections (remember, Trump lost the 2016 election by almost 3 Million votes – and was placed in the White House by the archaic outdated Electoral College).

More Americans voted for Biden for president than any other candidate in U.S. election history.  The prior record was Barack Obama's 2008 numbers.

As of this writing Biden has received over 4 Million more votes than Trump.  But that means that about 71 Million Americans voted for a candidate who has proven with every word, deed and tweet over the last 4 years to be ignorant, incompetent, racist, delusional, totally self-absorbed, completely devoid of humanity, and totally unfit, practically and mentally, to hold any office of power at any level.  That is both sad and disturbing.  It tells us that nearly 48% of American voters are either ignorant, racist, or without a conscience - or all three.

History will surely identify Trump as the worst President in US history and the worst human being to ever occupy the White House, and rightfully condemn his supporters, defenders and enablers. 

As I said in an earlier post, every bad thing that has happened in America in the past 4 years is the direct or indirect result, or was exacerbated by, the words and deeds of Trump.  No one individual in our history has done as much damage to America, American democracy and values and the American people as Trump.  There is no other way to put it - Trump truly is, has always been, and will always be a totally worthless piece of excrement.

What Joe Biden needs to do upon taking office is begin to undo the damage done by Trump and his Administration, address the problems created or exacerbated by Trump and his Administration, and begin to restore America’s reputation, credibility and standing on the world stage.

Congress is still divided – the Democrats still control the House and, as of this writing, the Republicans still control the Senate.  And deplorable, despicable and unconscionable McConnell has been re-elected and likely will remain the Majority Leader.  So, it will continue to be difficult to pass any legislation of substance for at least 2 years.

Going forward, the Republican Party needs to officially, vocally and consistently disavow and denounce Trump, Trumpism and the Trump Administration.   All of the current leaders of the Party, including the leadership in Congress, must be replaced.  The only alternative is for true traditional Republicans, led by those who publicly opposed and denounced Trump and his re-election, to form a new political party rooted in real conservative and traditional Republican policies and values.  Basically, the Lincoln Project would become the Lincoln Party.

And various justice departments need to investigate, indict and prosecute Trump and his family for their crimes.  I look forward to Trump’s first day in the communal prison shower.

I am glad this election is finally over – for many reasons.  One in particular – I will no longer need to delete unread 100+ emails each day allegedly from Donald Trump and children, Mitch McConnell, Joe Biden, Barack and Michelle Obama, Kamala Harris, Elizabeth Warren, Pete Buttigieg, Tom Steyer, Bette Midler, and a variety of other celebrities and politicians on both sides.

TTFN













Thursday, November 5, 2020

WHAT'S NEW FOR 2021?

 

While we are waiting for the final results . . . . 

At the end of October, the Internal Revenue Service and the Social Security Administration announced most of the inflation-adjusted and COLA-adjusted numbers for calendar year 2021.  The only thing missing at this point is the 2021 Standard Mileage Allowance amounts.

Each year I compile a “What’s New For . . .” report that in provides in detail all these numbers to help with tax planning for and preparation of Form 1040 (and 1040-SR).  I have just finished compiling my “What’s New For 2021”. 

The cost of “What’s New For 2021” is only $1.00, delivered as a pdf email attachment.  A print version, sent by postal mail, is also be available for $2.00.  I will email those who order this compilation the 2021 Standard Mileage Allowance numbers when they are available.

To order this report send your check or money order for $1.00 or $2.00, payable to Taxes and Accounting, Inc, and your email or postal address (if ordering the print version include both postal and email addresses) to – 

TAXES AND ACCOUNTING, INC
WHAT'S NEW FOR 2021
POST OFFICE BOX A
HAWLEY PA 18428 
                                             
TTFN









 













Wednesday, November 4, 2020

THE SAD TRUTH

The day after the election in 2016, when I learned the Electoral College made deplorable and despicable Trump President, I emailed a friend and client and stated that for the first time in my life I was ashamed to be an American.

Today, regardless of the eventual final outcome of the election, which I hope will be positive and put Biden in the White House, I am again ashamed to be an American – more so than in 2016

The fact that after 4 years of the disaster that is Trump the election is so close is a truly sad commentary on the state of America.





















Tuesday, November 3, 2020

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

If you haven’t done so yet be sure to vote today.  But whatever you do DO NOT vote for Trump!  The future of America, the American people and the world depends on Trump being voted out office today. 

 

* Speaking of voting, the TAX FOUNDATION identifies “State and Local Tax Ballot Measures to Watch on Election Day 2020".

 

* Check out last Friday's post from FRIENDS OF THEATRE AND ART.

 

* To celebrate Halloween, Andy Ives gave us an “IRA Trick-or-Treat” at THE SLOTT REPORT – “a big Halloween candy bowl of random #IRA facts, ideas and considerations”.

 

* And Kay Bell began the new month with a list of “12 year-end tax moves to make, or at least look into, in November 2020”.

 

* Kelly Phillips Erb, the FORBES.COM “TaxGirl”, reports “IRS Will Expand Resolution Options To Help With Tax Bills During Covid” -

 

The Internal Revenue Service (IRS) has announced some changes to its collections processes to assist taxpayers who have been impacted by COVID-19. Specifically, the IRS says it is expanding taxpayer options for making payments and alternatives to resolve balances owed.”

 

TTFN

















 

Monday, November 2, 2020

VOTE LIKE YOUR LIFE DEPENDS ON IT!

 

The 2020 Presidential election truly is the most important election in our lifetime.  

It is vitally important that you vote.  And you must vote as if your life depends on it – because it does.

In no other election in our history, or at least in my lifetime, has the choice for President been clearer and more obvious.

There is absolutely, positively, without any doubt no intelligent, legitimate, rational, or acceptable reason for any American with a conscience who cares anything about America and the American people and the future of American values and democracy, regardless of political beliefs and philosophy, to vote for Trump.  Supporting and voting for Trump’s re-election is truly indefensible.

The reasons Trump must not be re-elected are endless – and most have absolutely nothing to do with political policy or philosophy.  The main reason no American should vote for Trump has to do with Trump’s character, or lack of it.  Trump the man has proven himself to be totally worthless and completely devoid of humanity, integrity and honor.  He does not possess a single redeeming positive human quality.   

Trump is ignorant, incompetent, racist, and totally self-absorbed.  This is confirmed every single day by his every word, tweet and deed.

This election is not about Democrat vs Republican or liberal vs conservative – it is truly about right vs wrong and good vs evil.

I very seriously and sincerely believe that if Trump is re-elected it will be the beginning of the end of American democracy as we know it, and it will result in the total destruction of American values that began the day Trump took office in 2017.

In the history of our country no one individual has done as much damage to America, American democracy and the American people as Trump. 

What has Trump accomplished in his 4 years in office?  He has encouraged, emboldened and “legitimized” racism, bigotry and white supremacy.  He has insulted and alienated our allies and severely damaged and diminished America’s standing and credibility on the world stage.  And he has caused the unnecessary death of tens of thousands of Americans by his selfishness and incompetent handling of the pandemic.

Trump’s total disregard for necessary health and safety precautions, and his total disregard for how his actions affect the health and safety of others, continued even after he became infected with the virus as a result of his recklessness.  This is inexcusable and indefensible. 

Every bad thing that has happened in America in the past 4 years is the direct or indirect result, or was exacerbated by, the words and deeds of Trump.  But the theme of Trump and of the Trump Administration is “I don't take responsibility at all”.

Trump has never been and will never be “the lessor of two evils”.  In any comparison with anyone Trump is ALWAYS the most evil choice.

It is vitally important to not only vote Trump out of office but to also vote out of office every current member of the Trump Party (the Party formerly known as the Republican Party) in Congress running for re-election and to vote against every Republican candidate for any office at any level who does not vocally oppose, denounce and disavow Trump.  We must not only rid America of Trump but of those who supported and enabled Trump.   

The Republican Party has totally abandoned all integrity and credibility and true conservative and traditional Republican values and beliefs by embracing and enabling Trump.  Traditional Republicans and true conservatives MUST abandon the Republican Party in the 2020 election – on all levels.

I not a religious person – but I pray to God that when I wake up on November 4th it is to the good news that Biden has won and our national nightmare has finally come to an end.