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