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

 

The House did pass the Build Back Better bill, with many tax components.  But it is my policy not to report on federal or state tax legislation until it is actually passed by and signed into law.  I don’t want to confuse you by telling you what could be new tax law – only what actually is new law.

* Some good year-end tax planning advice from Kay Bell at DON’T MESS WITH TAXES – “Bunching your expenses to make tax itemizing worthwhile”.

* More good advice, this time from the NATP BLOG – “Don’t throw this important tax notice away!”.

Written for tax pros, it has a message for taxpayers -

“Remember back when your clients were getting their letters stating how much each of their economic impact payments were going to be (Notice 1444)? Do you remember how most of them threw it away?

If they qualified for the child tax credit this year, they’ll be receiving another letter soon (Letter 6419), stating how much of the credit they received already. Now’s the time to alert them to look for this letter in the mail and to save it with the rest of their tax documents. It’ll save you and your clients hours of work and headaches!”

Perhaps the biggest PITA and time-consumer of the past tax filing season was getting the amount of stimulus payments received in 2020 from clients. 

* Professor Annette Nellen provides a history lesson to celebrate “November 23 - 100th Anniversary of a Capital Gains Preference” at 21^ST CENTURY TAXATION.

When I began my long career as a tax preparer in the early 1970s long-term capital gains were not taxed at a separate lower rate, as is the case today.  Originally 50% of long-term capital gains were deducted from gross taxable income on Schedule D – so 50% of long-term capital gains were not included in AGI.

* More from Kay Bell at DON’T MESS WITH TAXES – “All Mississippi, some California filers get new Jan. 3, 2022, tax deadline”. 

This new deadline despite the fact that the October 15^th extended filing deadline has come and gone.  

TTFN