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

 BUZZ, BUZZ.  The BUZZ is back!

* The National Society of Tax Professionals (NSTP) lists “Seven Common Myths About Tax Refunds”.

 

It is very important that you pay attention to Myth 6 (highlight is mine)–

 

“Myth 6: Calling a tax professional will provide a better refund date:

 

Contacting a tax professional will not speed up a refund. Tax professionals cannot move up a refund date nor do they have access to any "special" information that will provide a more accurate refund date.”

 

* Another return to normalcy in the White House – a President releases his tax return to the public, as reported by Kay Bell in “Tax tradition return redux: Biden and Harris again release their tax returns” at DON’T MESS WITH TAXES.

 

* Russ Fox begins a 4-part series on “2022 Tax Season: The Tax Season From Hell” at TAXABLE TALK.

It looks like I picked a good time to retire.

 

Part 1 deals with IRS and government issues.

 

* Attention fellow tax pros - the IRS has announced “The 2022 IRS Nationwide Tax Forum Will Be Held Virtually”.

 

TTFN

FYI

 

VERY VERY VERY IMPORTANT!

If you haven’t prepared or submitted your 2021 federal tax return yet and think, or know, you will owe your Uncle Sam IT IS VITALLY IMPORTANT THAT YOU GET A FORM 4868 EXTENSION REQUEST IN THE MAIL BEFORE MONDAY – EVEN IF YOU CANNOT PAY ANYTHING WITH THE EXTENSION.

The penalty for late payment of tax is .5% (1/2 of 1%) of what you owe per month.  The penalty for late filing – which is what you are doing without having submitted a Form 4868 – is 5% of what you owe per month.

TTFN

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

 

Long time no BUZZ.

* A timely tip for clients of tax pros from a “tweet” by Jan Roberg (@RobergTax)

“Tax Tip for Investors:  if you have an investment account and you receive a tax document, you need to send your accountant ALL of the pages.  As annoying as it seems, and some of them are really long, I get it, but we need to see the whole thing.” 

FYI - Fidelity does not mail clients the entire statement.  The dividend income detail and other important information is missing.  You must go online and print out the complete statement.

And, of course, tax pros need the separate statements of USGO percentages for mutual fund dividends and the state breakdown for tax-exempt mutual fund dividends - which are not part of the "official" Consolidated 1099 Year-End Statement.

* Chris Gaetano reports on a study in the American Accounting Association’s “Accounting Horizons” journal finds that showed what motivates taxpayers to use either DIY tax software or a paid prepare in “DIY vs. tax pro: How taxpayers choose” at ACCOUNTING TODAY (highlight is mine) -

“While both factors were cited as very important by study participants, those who prefer using DIY software found minimizing costs more valuable, while those who prefer a paid preparer said accuracy was their main priority.”

The moral – if you want a cheap return buy software, but if you want an accurate return use a tax professional.

* Some good advice from Kay Bell, the yellow rose of taxes, at DON’T MESS WITH TAXES – “Owe the IRS? Got a big refund? Adjust your withholding”.

* And Kay warns us “Don't fall for these 10 tax myths on April Fools' (or any) day”.

Pay attention to #10 -

“My tax preparer is liable for any errors.

Sorry, but you are still ultimately responsible for any mistakes on your tax return. If it's a joint filing, both spouses are jointly and severally liable, which is legalese for the IRS will come after you both for any due taxes. You should have paid better attention to the statement on your Form 1040 just above the line for your signature. The one that talks about ‘under penalties of perjury’”

TTFN