Friday, May 19, 2023

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

 
*  Some good news from Michael Cohn at ACCOUNTING TODAY – “IRS to pilot free tax prep system in January” -
 
The Internal Revenue Service is reportedly planning to try out its own direct-file tax software with a limited group of taxpayers by next tax season.”
 
And –
 
The IRS is expected to release a report this week on the viability of offering its own direct-file free tax prep system in accordance with a provision of the Inflation Reduction Act requiring such a report.”
 
I have called for the direct free-filing of tax returns electronically via the IRS website (without the involvement of commercial preparation chains) – similar to New Jersey’s system for direct electronic filing of state income tax returns – for years.  Such a system would only hurt the fast-food commercial tax preparation chains, like Henry and Richard, who overcharge taxpayers for preparing simpler returns.  Before I retired, I never used flawed and expense tax preparation software to prepare federal tax returns, so I could never electronically submit client returns.  Such a truly free federal system would have allowed me to submit client returns electronically.
 
* Over at the NATP BLOG James Alexander and Ed Meek share “The best-kept retirement secret for high-income earners”.
 
It was no secret to me.  I was using this for a client back in the 1980s.
 
* In case you were wondering where you state stands THE TAX FOUNDATION discusses “Ranking Individual Income Taxes on the 2023 State Business Tax Climate Index”.
 
FYI – NJ is #48 and NY is #50
 
* THE TAX FOUNDATION also gives us “Ranking Sales Taxes on the 2023 State BusinessTax Climate Index”.  Here NJ is #42
 
* At the WASHINGTON POST Michelle Singletary explains “What parents need to know about 529 college savings plans” and tells us “Here’s how I sent all three of my children to college debt-free.”
 
TTFN  













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