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

 

I am late with the BUZZ again this week because I was attending the annual National Association of Tax Professionals year-end tax update class in Atlantic City NJ – my first “in-person” CPE offering in well over a year.  I will report on anything new I think you should know in a future post.

Even though I have officially retired, I still prepare a handful of returns for family and long-time personal friends and continue to write about taxes, so I need to keep current on federal and NJ state individual income taxes.

* Russ Fox tells it like it is when it comes to the IRS in “The IRS Can’t Figure Out Where to Apply an Electronic Payment…Where the IRS Was Told Where to Apply It” at TAXABLE TALK (highlights are mine) -

“This is another IRS issue caused by the IRS’s response to the pandemic.  Yes, the IRS was not at fault for the pandemic, but the ongoing response (did you know that IRS employees are still not completely back at IRS Service Centers?) is a cause of this issue (and many others).  This is costing taxpayers time and money.  It’s also costing the IRS time and money (which means taxpayers) because (a) someone must read the response I sent and (b) my client can–and will be able to–get some penalties and interest abated once this amended return is processed (given that the IRS is at fault for the slow processing time).  This episode also makes the IRS look stupid.  My client told the IRS exactly where the payment should be applied…and the IRS still couldn’t figure it out.”

Russ also points out (highlight is his) – “Yes, the IRS is more than one year behind in processing paper-filed amended returns.”

* Dan Mitchell has shared “Ranking State Income Taxes” – “a five-column ranking of state personal income tax systems in 2018” - at his INTERNATIONAL LIBERTY blog

Nine states have no income tax and nine have a flat tax.

* Kay Bell reminds parents and grandparents not only DON’T MESS WITH TAXES but also “Don't miss the year-end 529 plan contribution deadline” -

“ . . . in many states, to get that tax-saving state benefit, you need to put money into a 529 by Dec. 31.”

* And Kay lists “7 ways to spend your end-of-year FSA funds” if you still have an unused balance left in your account.

* Here is another tax-related blog list from late November from KIPLINGER.COM – “Traditional IRA Basics: 10 Things You Must Know”.

TTFN