THE NEW JERSEY NATP CHAPTER'S FAMOUS STATE TAX SEMINAR

 

This past Saturday I was where I have usually been for most of the past 20+ years – in Iselin NJ at the APA Hotel (formerly Woodbridge Hilton) attending the NJ chapter of the National Association of Tax Professionals’ “Famous State Tax Seminar”. 

This annual seminar is a “must attend” for any tax professional who prepares New Jersey state income, sales or payroll tax returns.

While I am retired, I still prepare returns for a few family members and long-time personal friends, and I do write a newsletter of tax planning and preparation advice, information and resources for NJ taxpayers and continue to occasionally post about NJ and NY state taxes here at THE WANDERING TAX PRO – so attending this seminar still has value for me.

Saturday was the first “in-person” presentation of this seminar since before the COVID pandemic.  I was truly glad to get “back to normal”.  I have always preferred in-person CPE to online webinars for a variety of reasons, and enjoyed seeing old friends from the NJ-NATP chapter administration (and, of course, Dave Steiner).

Following the traditional schedule for this offering, after a buffet breakfast (unfortunately truly very “skimpy” this year – in the past the breakfast buffets were much more “meaty”) and introductory remarks by NJ-NATP, a “keynote” speech is presented by the current head of the NJ Division of Taxation, this year again (still) Acting Director John Ficara, followed by presentations on New Jersey individual and business tax and state property tax relief program updates and occasionally other relevant state topics by NJDOT’s “Taxation University” and NY state tax updates and a review of federal tax changes by Kathryn Keane, with a buffet lunch provided at the appropriate hour (thankfully, unlike the breakfast offering, this year’s lunch buffet was  excellent).

As I say each year in my review of this event, “While I appreciate Mr. Ficara’s support of NJ-NATP and his willingness to participate in the seminar, this presentation . . . is usually of little value” (to quote my review of last year’s virtual event).  Again, no real value this year, although Mr. Ficaro did tell us that there will soon be substantive improvements to online access of taxpayer information – which is good news.

The “Taxation University” presenters were familiar faces, with one new addition.  In addition to the usual updates, the NJ topics presented included “Helping Delinquent Taxpayers”, “Changing the Tax Treatment of LLCs” and “Making and Changing S-Corp Elections”.

Several of the items discussed by the NJ Taxation University speakers – mostly concerning business return issues and the state “BAIT and switch” scam – were of no personal value to me, so I paid little attention.  But these topics were informative and relevant and certainly worth including in the seminar.

Here are some “take-aways” from the NJ update presentations –

* The new up to $10,000 deduction for a contribution to a NJBEST 529 account is available to any person who actually makes a contribution.  You do not have to be the “owner” of the account, and the beneficiary of the account to which a contribution is made does not have to be a dependent.  A grandparent who contributes $5,000 to a NJBEST account for a grandchild, who is not a dependent, can claim a $5,000 deduction on the 2022 NJ-1040.

* The $200,000 NJ Gross Income threshold for claiming any of the three new “New Jersey College Affordability” deductions, which includes the NJBEST contribution deduction, applies to each NJ-1040, regardless of the filing status claimed on the return.  It is the same for Single, Head of Household, Married filing Joint, and Married filing Separate taxpayers.  This provides a tax-saving opportunity for married couples who file separately, and could in itself be a reason for filing separate returns (this is my observation and was not mentioned in the presentation).   

* Beginning in 2023 a valid federal election by a corporation to be considered a “sub-chapter S” entity automatically applies to NJ state filing.  Corporations who want to be taxed as “sub-S” entities no longer have to submit a separate NJ state election.

* As usual, refunds on 2022 NJ-1040 returns will not be mailed out until March, regardless of how early the returns is submitted.

* The 2022 Property Tax Reimbursement (aka “Senior Freeze”) PTR-1 and PTR-2 applications will be mailed out, as usual, in late February.  Reimbursement checks will begin to be mailed out on July 15^th.  The Income Limits for the 2022 applications are 2022 income = $99,735 and 2021 income = $94,178.  There is, so far, no budget-balancing reduction of either year’s amount to $70,000, as had been common in the past.  Qualified NJ homeowners will be able to submit 2022 PTR-1 and PTR-2 applications online via the NJDOT website, although the system for doing so has not been set up yet.

* All of the new ANCHOR program benefits (ANCHOR replaces the former NJ Homestead Benefit, which had replaced the former NJ Homestead Rebate) will be paid by a check mailed to qualifying applicants.  The benefit amount will no longer be sent to the applicable municipalities and applied as a direct credit to a quarterly property tax payment.  In my opinion this is not good, and in some cases could result in a federal tax issue.

* The current ANCHOR benefit applies to a NJ resident’s status on October 1, 2019, and the income threshold is based on the NJ Gross Income reported on the 2019 NJ-1040.  Several past clients had emailed me to ask what their 2019 NJ Gross Income was, as this number was asked for on the application form.  We were told at the seminar that it really does not matter what number you enter on the application for your 2019 NJ Gross Income as long as you actually filed a 2019 NJ-1040.  If you did the state already knows your 2019 NJ Gross Income.  You can enter an estimated number, or pull a number out of your hat, and the application will not be rejected or delayed.

There was really nothing new of any consequence for the basic or average 2022 IT-201 and IT-203.  And most of us were already familiar with the federal tax changes for 2022 from other CPE offerings or online reporting.  But Kathryn did tell us an amazing story from the 2022 NATP in-person national conference that shows the inefficiency of IRS processing of amended returns – and why it could take almost 2 years to get a refund, even if the amended return was filed electronically (thankfully the IRS pays interest).

One thing from all past in-person offerings was missing this year.  There were no vendor tables.  And, one more thing.  The items raffled off by the chapter after lunch really had no substantive value – in the past the “prizes” were worthwhile (like free registrations to chapter or national events and tax books).

As I always say, the value of this type of seminar for a tax professional depends on the amount of relevant tax law and regulation changes that apply to current or potential clients.  There were really not too many changes for 2022 returns.

But, also as always, NJ-NATP did a good job and the chapter Board and volunteers certainly deserve the usual “kudos”.

Fellow attendees – did I miss anything important?

TTFN

A CAPITOL IDEA – THE 2017 NATP NATIONAL CONFERENCE – PART 2

Let me return to the 36th annual National Conference of the National Association of Tax Professionals at the Marriott Wardman Park in Washington DC, which I attended along with about 1000 colleagues (attendance was down from past NATP conferences I have been to) last week. 

As I said in Part 1, several of the sessions identified in the conference material caught my eye -

ü  Unusual Income Items

ü  Is It Above the Line, Below the Line or Not Deductible?

ü  Tax Stuff You Thought You Knew

ü  Special Occupations

ü  Every Choice Has a Consequence for Your Clients

ü  Panel Discussion

In addition to the above sessions I also attended classes on “Business use of Automobiles”, “Dealing With Divorce” (I had written on the tax issues of divorce in the latest issue of NATP’s TaxPro Journal and wanted to make sure I got it right), and “Casualty Losses and NOLs” (a topic that applied to a specific client’s 2016 situation).

I have been asking for a “Special Occupations” session on my conference evaluation forms for decades.  But just not necessarily the occupations this session addressed.  Discussed here were clergy, gamblers, teachers, and truck drivers.  I am more interested in police officers, firefighters, actors, and artists.  However I did attend this session.

NATP has not had a “panel discussion” session at a conference I have attended in many, many years.  I think the last time it was offered it was called “Ask the Experts”.  This conference session had 4 NATP instructors answering questions from the floor.  I would have preferred a more structured session – with maybe 1 or 2 more panel members and having questions submitted beforehand, either online prior to the conference or handed in at the Registration Desk during the conference (the panel discussion was the last session on the last day).  Questions from the floor could have been taken if there was time left after the previously submitted issues had been dealt with.

For those of you who also attended this session - my thoughts on the last question discussed were posted in “Silence is Golden” here at TWTP back in February.

One of the problems I have with the conference schedule – similar to my issue with the sessions at both the IRS and NATP Forums – is that each session was limited to 100 minutes, or 2 CPE hours.  This is not always enough time to properly cover a more involved topic.  I would prefer some extended sessions, similar to the schedule at the California Society of Enrolled Agents “Super Seminar” held each year in Vegas where there are some half-day sessions.  And some topics could be perhaps 75 minutes.

I did go to the annual “Tax Update” session, held in “general session” for all to attend at the same time (which I like, since almost everyone usually does attend).  However it was of no real value this year.  With no new tax laws and only minimal developments they had to really stretch to cover the 100 minutes.  The “tag team” of instructors filled some time by discussing “proposed” legislation.  I do not like this inclusion – I only want to hear about actual passed and signed tax law at this session so as not to cause confusion.  Perhaps there could be a separate session (here the shorter time frame would work) to discuss the various tax proposals with audience feed-back.

The keynote speaker at the conference this year was IRS Commissioner John Koskinen – appropriate since we were in Washington DC.  He opened his remarks by saying, “I’m going to read the fine print of the contract next time around to see what I am getting myself into.”

Koskinen was a good and humorous speaker.  He told us the recent 2017 tax filing season was the smoothest filing season in his tenure.  And he explained, as expected, that most of the IRS problems and deficiencies were due to underfunding by Congress and the continued adding of “unfunded” responsibilities related to the administration of government social benefit programs like the Affordable Care Act.  See the CCH news item “Koskinen Discusses Taxpayer Service, Return Preparers at NATP Event” for more on what he said in his prepared remarks.

He spoke for half of the 100 minutes and then opened the floor up for questions – telling us we could “ask anything and complain about anything”.

To be perfectly honest – I had a better opinion of the Commissioner after hearing him speak than I did before the session.

As is the case at most CPE events, most of what is discussed is basically a review and reminder of what I already knew, but I always learn some new things. 
 
I found one of the statements made by an instructor, new to me, to be verrrrry interesting (sorry – showing my age).  He said (in effect – I didn’t write down the exact quote) that if an answer to a tax question seems logical and reasonable and sounds right it is probably wrong.  Obviously our current Tax Code is rarely logical or reasonable.
 
As usual NATP did a good job of putting together an informative and entertaining conference, with excellent and knowledgeable instructors (many of whom were familiar to me) – and deserves kudos.  I was glad I attended.  I do believe I earned 22 CPE credits for the 4 days of classes.

I will not be attending next year’s conference in Anaheim – too hot, already been to Anaheim, not interested in Disney, overall will cost more than the value of the education received, and I don’t want to fly.  But I will be returning to Chicago for the 2019 conference.

TTFN

 

 

 

 

 

A CAPITOL IDEA – THE 2017 NATP NATIONAL CONFERENCE – PART 1

Last week I attended the 36th annual National Conference of the National Association of Tax Professionals at the Marriott Wardman Park in Washington DC.  This was my 19th NATP conference.  My first was the 1988 conference in Orlando, Florida.  I had registered for the 2015 conference in New Orleans, which would have made this year my 20^th, but a health emergency kept me from attending.

I now choose which conferences to attend based on (1) the location and (2) the value of the education provided.  While there are many locations to which I would gladly return, with some one visit was sufficient – and I really no longer want to fly if I can help it.  No fear of flying – it has just become too much of a PITA. 

In a year when there is a lot of tax law changes and developments there is much more value.  There was no new tax law or developments this year – but I was intrigued by the titles and descriptions of some of the new educational sessions. 

I have been going to tax conferences, conventions, forums, and events for 30 years and at this point many of the educational sessions are truly redundant.  Or not relevant. 

I am in a unique situation.  I am winding down my practice and do not accept any new 1040 clients (or any new clients for that matter).  So I have no interest in tax law that does not apply to my current clients, except occasionally as a writer on tax planning and preparation issues.  While in the few years left before my official retirement clients may have new, different, or unique situations with which I have no experience and about which I have minimal if any knowledge.  In such a situation whether or not I would continue to prepare the return depends on the client – and if I did continue I would research the new issue or seek help from a colleague when it arose.

The location this year, unlike past CPE events I have attended in DC, was not in the downtown area – near the government buildings and monuments and the theatres.  It was on the outskirts of the Adams-Morgan section, and a couple of blocks from the Zoo.  I had never been to this part of DC before, and have no complaints about the location.  I am, however, curious to learn from my NATP Board friends if the choice was purposeful, or if downtown hotels like the JW Marriott were much more expensive or not available. 

I travelled to DC via Amtrak, driving to Jersey City from PA and taking the PATH to Newark.  The train going down to DC was “chock-a-block” and I was actually assigned a specific seat for the trip.  When I went to my gate at Washington’s Union Station for the return trip I found a very long queue.  However, I was pleased that, when it came time to actually board, a conductor came along the line looking for seniors, which apparently applied to me at age 63, and I was moved to the much shorter “priority” queue.  The train home was less crowded and seating was not assigned.

As has been my custom lately, I did not stay at the host hotel.  I selected the Windsor Park Hotel, just off Connecticut Avenue about ¾ of a mile from the Marriott across the bridge over the Potomac.  The room rate was a bit less than the Marriott and it provided free breakfast (adequate for my diabetic limitations – cereal but no fruit).  So I figured I saved about $200 in total, plus the side benefit of the exercise provided by the walk back and forth each day.

My room was clean and comfortable, if not luxurious.  The only issue was that I couldn’t get the tv to work (confusing directions), but this really wasn’t bad.  There was nothing much on tv anyway, and I watched new episodes of the BBC series VERA on my laptop via Acorn.com in the evenings, and listened to CNN being streamed live on Tunein.com in the mornings.

There were no restaurants either in or near my hotel – but there were several choices near the Marriott, on Connecticut Avenue and Calvert Street.  I had two dinners and a lunch at the Woodley Café, on Connecticut, and dinner at Sorriso Bistro and a restaurant named for me (not really – I was told Robert’s Restaurant was named for the son of the hotel’s owner) at the Omni Shoreham, both on Calvert Street.  I had one dinner, at Harry’s Pub, and three lunches, one at Stone’s Throw the others from The Pantry, in the Marriott.     

I had hoped to be able to see Washington’s resident comedy troupe CAPITOL STEPS while in DC – I especially wanted to see their take on the current political situation (in the troupe’s unique “pig latin” Donald Trump is, appropriately, Tronald Dump) - but they were not performing at their home venue while I was there.  They will be in Red Bank NJ in the fall, so I will have to wait until then.  I could not find any theatre or entertainment venues in the nearby area, and there was no evening entertainment at the Marriott.  What I miss at high-end chain hotels is a piano bar – like Bobby Short at Café Carlyle in NYC’s Carlyle Hotel.

On Wednesday, here at TWTP, I will discuss the content of the various educational sessions of the NATP National Conference in Washington, and provide some tax information of interest from the sessions.

TTFN

 

 

 

 

BACK TO THE BOARDWALK

Once again I celebrated my natel day in Atlantic City while attending the National Association of Tax Professionals’ year-end tax update workshops.  I travelled to Bally’s Hotel and Casino in Atlantic City, where I had been earlier this year for the NATP Forum, for 2 days of the 3-day “Taxpro Symposium”. 

We were supposed to be at the Showboat, but that hotel and casino had closed its doors.  I paid the same rate at Bally’s that I had booked for the Showboat.  Once again I got a lower rate by booking independently online without using the NATP code.  What good is having a special conference rate if it is not cheaper than the “off the street” internet rate?  I expect this only happens with casino hotels.

One complaint about Bally’s (in addition to the $12.99 per day charge for wifi, which I passed on again) is there was not a chair in sight – not even in the hotel lobby, or on the restaurant/conference room floor (although you could sit in one of the few chairs a small enclosed smoking “closet”).  If you wanted, or needed, to sit down you had to do so at a slot machine in the casino.  I mentioned this in passing to one of the floor guards as I was heading to the elevator of my tower and he gave me directions to the one out of the way lounge area.  By the time I arrived at the lounge I really needed to sit down!

Sitting on the Boardwalk one morning I noticed that the arrogant and annoying Chef Tantrum (aka Gordon Ramsey) is opening a Pub and Grill in Caesar’s.  If I return here in the future that is one place I will avoid – I certainly do not want to put any money in that idiot’s pocket.

For Tuesday, my 61^st birthday, the topic was “The Essential 1040”, which covered the “standard features of the inflation-indexed updates for preparing individuals’ 1040 tax returns, new tax laws applicable to 2014 and recent developments”.  And, of course, included the obligatory 2-hours of redundant ethics preaching.

To be honest, for someone like me, who has written frequently over the past year about the 2014 inflation-indexed numbers, and recently about the 2015 numbers, the basic update component is boring.  And, with one exception, there was really nothing of consequence in new developments (IRS rulings and regulations, court cases, etc.).  Any real value was in the discussion of the new capital vs repair regulations, a complicated issue that basically comes down to capitalize just about everything, and, of course, the new Affordable Care Act (aka Obamacare) individual shared responsibility and premium tax credit rules.

During the inflation updates the workshop leader did make a good point about the dreaded Alternative Minimum Tax.  It is not all bad – especially when it comes to year-end tax planning.  It can be looked at like a “bell curve”.  From the point where your situation causes you to enter “AMTland” up till the point that your applicable AMT exemption is fully phased out it is bad.  But from that point on, as long as you are still subject to AMT, it is good – because additional income is taxed at a maximum of 28% and not 33% to 39.6%.

One thing that I did learn on Tuesday is that if a taxpayer does not self-assess the Obamacare penalty where applicable, or if a taxpayer does self-assess the penalty but does not pay it, the only way the IRS can collect the amount of penalty due is by “garnishing” a future income tax refund.   

One item I use to judge the workshop location is the continental breakfast provided by the venue.  Bally’s offering was certainly not the best I have ever seen (there have been two or three hotels over the years that have laid out a true banquet), but it was also certainly not the worst.

I had originally planned an expensive meal at the high-end restaurant in nearby Caesar’s for my birthday dinner - but thought hey, why not celebrate by having what I really enjoy (and at a closer venue).  So I had a greasy cheeseburger, fries, and a banana shake at “Johnny Rocket’s”, home of the singing and dancing waiters.

Wednesday’s “Beyond the 1040” was more beneficial, at least to me, as it covered specific ongoing tax issues.  The topics included divorce, estimated taxes, foreign investment income (the foreign tax credit on Form 1116 and FATCA/FBAR – not to be confused with FUBAR, which is a technical term for the entire Tax Code), and the “Cohan rule” and documentation of travel, home office, and charitable contribution deductions.

Here are some items of interest from Wednesday’s workshop –

* This was not discussed during the workshop – but it is important to point out that there are many potential short-term, long-term, and future tax consequences of actions, payments, and property distributions set forth in a divorce degree about which neither spouse, nor many divorce lawyers, have no clue - so it is important to discuss them with, or have the decree reviewed by, a competent tax professional.  I realize I am showing my age - but while you would certainly want Arnie Becker as your divorce attorney, you should have the divorce agreement reviewed and approved by Stuart Markowitz before signing it.

* Your filing status for the tax year is determined by your marital status on the last day of the year.  If you are legally married on December 31^st you are married for the entire year.  If you are legally divorced on December 31^st you are unmarried for the entire year.  But under an “annulment” the marriage is treated as never having occurred.  If your marriage is annulled you have never been married – and you can amend any prior years’ returns that you filed as married, either joint or separate, to recalculate each individual “spouse’s” tax as unmarried (Single or Head of Household) and therefore void the marriage tax penalty.

* It is interesting that, when it comes to preparing a 1040, in one situation the divorce degree means absolutely nothing (claiming a dependency deduction) while in another what is stated in the document is very important (deducting/reporting alimony).

* While, for purposes of calculating any penalty for underpayment of estimated tax, income tax withholding is generally considered to have been paid evenly throughout the year, regardless of when actually withheld, you can, using Form 2210, elect to treat withholding as being withheld when actually withheld to avoid or reduce a penalty.

* At one point during the discussion of withholding the question “why is there a marriage tax penalty?” was posed.  The answer (my answer) is that the concept of filing status and the differing tax tables were created at a time in history, many years ago, when the husband worked and the wife stayed home and “kept house”.

Another set of well-done year-end sessions from NATP.  Next fall if they are offered again in Lancaster PA, as they were this year, I will not be returning to Atlantic City.

TTFN

THE NATP TAX FORUM IN ATLANTIC CITY

Last week I attended the National Association of Tax Professionals Tax Forum in Atlantic City.

The NATP Tax Forums are formatted the exact same way as the IRS Nationwide Forums (except that the IRS Forum is 3 days while this event was on 2), copying both what was good and what was bad.  My main complaints with the IRS Forums was the fact that the individual educational topics were limited to a single “50-minute hour” presentation (often not enough time to properly cover a topic and take questions from the “audience”), there were no tables set up in the “classrooms” (forcing us to take notes on our knees), and the overcrowding in the popular classes, and these complaints also applied to NATP’s offering. 

The locations of the two Forum offerings by NATP, Atlantic City and Las Vegas (Sept 23 and 24), were chosen to take the place of the IRS Forums that had in past years been held in these cities, with New York City alternating with AC (the northeast location is now National Harbor, MD and the west coast location is San Diego).  The AC or NYC and Las Vegas IRS Forums were usually the best attended of the 5 offerings.

The one thing unique to the IRS Forums that NATP could not provide was hearing the IRS voice on various issues.  While the Forums included presentations from NATP, NAEA, NSA, NSTP, and other organization’s instructors, many were given by IRS personnel. 

Each day’s sessions in AC, 7 “50-minute hour” classes with a selection of 6 topics per “hour” (each topic was offered twice during the two days), began at 8AM and ended at just after 6 PM, with 11AM - 2PM off for lunch and strolling on the Boardwalk and through the vendor booths in the “Expo” area.  Of course the list of session topics included the obligatory 2 hours (100 minutes) of repetitive ethics preaching.  I passed on the first class of each day, allowing for an extra hour of sleep, and the last class of the first day and the last two of the second day, and, of course, the ethics preaching, attending a total of 9 sessions and earning 9 CPE.

I am always hearing about “blue-haired ladies”.  There actually was one (a very bright blue) at a session I attended on Thursday.

I was not given an all-inclusive workbook at check-in (at the Annual Conference we get a loose-leaf binder of all of the session workbooks at check-in, and at the IRS Forums, at least in the past, we received a workbook containing sections for all of the educational offerings).  I discovered at the first session that we had to download and print it ourselves.  Apparently an email had been sent to registrants a while ago explaining this.  I seem to recall getting some kind of reminder email from NATP, but I guess I misunderstood or did not completely read it.  When I get back home to internet access I will download a copy to my word file.

In my opinion, having to print-out a workbook of such size “in-house” takes up too much of my time and is too expensive in terms of wasted paper and ink.  I would prefer to pay $5.00 or so more in the registration fee to have NATP print the workbook in bulk and hand it out upon check-in.     

As usual, the NATP instructors were excellent and well informed on their individual topics of presentation.  Only one was new to me.

Since I will be attending the NATP National Conference in New Orleans next summer, and will be in Atlantic City as usual at year end for the NATP Tax Symposium, I will not be registering for the NATP Tax Forum if it is offered again next year.  And, judging by this year’s attendance, I expect it will be.

Tomorrow I will continue with items of interest from the educational sessions I attended.

TTFN

IT'S BACK!

The New Jersey chapter of the National Association of Tax Professionals’ annual 2014 “Famous State Tax Seminar” will be held once again at the Hilton Woodbridge in Iselin NJ on Saturday, January 11^th. 

 

This seminar is a must-attend for all tax professionals who prepare NJ state income tax returns.

 

Scheduled to speak at the seminar are returning favorites attorney Michael Feinberg, with another presentation on the NJ Inheritance Tax, and EA Kathryn Keane, who will provide NY state tax updates.  Susan Feeney will discuss NJ Sales and Use Tax and Alexis DeRosa from the NJ Division of Taxation will cover NJ state tax updates.

 

I miss the “Jim and Jake” show NJDOT updates from past years.  They were a hard act to follow.

 

The keynote speaker is once again Michael Bryan, Director of the NJ Division of Taxation.  As a personal aside, there were high hopes when Mr Bryan took over as Director.  However there has been no noticeable change to the Division, which still, unlike the IRS, unethically keeps silent on taxpayer overpayments hoping to keep the money for the state’s legislators to waste on pork and entitlements.

 

Thankfully this is one of the few tax CPE offerings that does not waste our time with 2 hours of ethics preaching.  The entire day is full of useful information.

 

Registration begins at 7:30 AM and the seminar runs from 8:00 AM to 4:25 PM.  Continental breakfast, lunch, and afternoon dessert is included.  The program qualifies for 8 hours of CPE.

 

The cost of the seminar is $200 for NATP members and $250 for non-members.  Click here to download the registration form.

 

I hope to see you there!

 

TTFN

YEAR-END UPDATE CPE FOR NJ TAX PROS

Here are some upcoming tax seminars being held in New Jersey.

+ The 2013 Tax Practitioner Institute, sponsored by the NJ Association of Public Accountants, the IRS Stakeholder Liason, and the NJ Division of Taxation Outreach Department, will be held on November 7^th.  The Institute will provide federal and NJ state updates for 2013 and 2014.

The actual seminar will be held at Mercer County College, but will also be “broadcast” at several “remote” college locations.

Click here for more information on the Tax Practitioner Institute.

+ The NJ chapter of the National Association of Tax Professionals has scheduled the following opportunities -

•  October 3, 2013 NJNATP Annual Conference – 8 CEs

A full day with Kathryn Keane, EA

Home Taxable Home: the many tax impacts of home ownership.

Education Tax Benefits: the tax benefits available and qualifications for each.

Ethics for the Real World: ethical situations tax professionals face every day.

Hilton Woodbridge, Iselin, NJ

•  October 24, 2013 NJNATP Full day Seminar – 8 CEs

Schedule D/Basics of Basis

Woodbridge Hilton, Iselin, NJ   

•  November 7, 2013 NJNATP Half day Seminar – 4 CEs

K-1 Reconciliation for 1041/1065

Woodbridge Hilton, Iselin, NJ   

·      December 12, 2013 NJNATP Full day Seminar – 8 CEs

Schedule C

Woodbridge Hilton, Iselin, NJ

·      January 11, 2014 NJ State Tax Seminar - 8 CEs

Updates on NJ and NY state taxes

Woodbridge Hilton, Iselin, NJ

Click here for more info on NJNATP offerings.

FYI - the NJNATP newsletter is out.  Click here to download.

+ The National Association of Tax Professional’s TAXPRO Symposium will be held at Resorts Casino Hotel in Atlantic City on November 18-20.

The 3-day event will include (one day each) -

·      The Tax Professional’s Guide to Starting and Liquidating a Business

·      The Essential 1040 annual update

·      Beyond the 1040 – delinquent taxpayers, Schedule C issues, casualty and disaster losses

Click here for more information on the TAXPRO Symposium.  See you there!

+ The National Society of Tax Professionals will offer its 2013 Federal Tax Update & Review Seminar at various dates and locations in New Jersey, including, the Tropicana Casino and Resort in Atlantic City on Dec 13^th.

In addition to 2013 updates the seminar will also cover -

·      Understanding the Importance of Focusing on AGI

·      Preferential Capital Gain Rate Issues: The Zero Rate Still Alive for most taxpayers

·      Review of the Basic Rules reporting on Covered Securities and Form 8949

·      Overview of Methods Needed to Calculate Basis

·      Schedule E reporting Issues

·      Understanding IRS Notices

Click here for more information on the Federal Tax Update & Review Seminar.

+ The 12th Annual Northern New Jersey Working Together Conference will be held on January 7, 2014.  No other information is available yet.

TTFN

GREETINGS FROM BALTIMORE!

I am here to attend the annual National Conference of the National Association of Tax Professionals (the 31^st, I think) – being held at the Baltimore Marriott Waterfront. 

NATP had informed me that I am now a 25-year member, and I have attended probably to 20 of these conferences in my 25 years as a member.  It used to be an annual event – but I have found lately that with the increased costs (and general PITA) of flying and increased costs of lodging it is not cost effective.

Baltimore is nearby, and accessible by train, and I found an alternative hotel that is less than half the cost of a room at the host hotel, and so I am here.

My other ongoing complaint about the conference – it is always held in a hot location (I am referring to the heat from the sun) at the hottest time of the year.  Why not have the conference in late September or early October – or have it in Seattle or Portland, Maine?

In its favor, the conference is always chock-a-block with great education on all aspects of tax practice.

It seems that my reputation preceded me this year.  When checking in with NATP staffers Greta and Cindy at the registration desk yesterday (Monday) morning, before proceeding to the Annual Meeting, I was greeted with “Robert Flach is a name we know – welcome Wandering Tax Pro!”

During the opening ceremonies I was pleased to learn that my soon to be former home chapter, the New Jersey chapter, was selected as Chapter of the Year (again) and its former president Marilyn Ayers was the 2012 Chapter Person of the Year.  I have been told that my blogging, and other writings on issues of concern to tax pros, had contributed to the chapter’s winning of the award.

The keynote speaker was David Williams, the IRS’ tax preparer regulation czar, who spoke on, what else, the new IRS preparer regulation regime.  I discuss David’s presentation over at THE TAX PROFESSIONAL blog.

I attended the general session discussion of “Current Developments – Individual Issues” in the morning, and “A Choice of Options” (which was actually on puts and calls, a topic that has always somewhat confused me over the past 40 years – although I had initially thought it concerned the various options offered to taxpayers in different situations) and “Tax Potpourri” in the afternoon.

There were not many current developments for 2012, as compared to past years, because of the procrastination by the idiots in Congress.  2012 being a presidential election year almost guaranteed that nothing would be done in the area of taxes – or any other area.   

The session highlighted some of the many provisions that expired at the end of 2011 and have not yet been extended for 2012 or beyond –

·      general sales tax deduction on Schedule A,

·      above-the-line tuition and fees deduction,

·      $250 educator expense deduction,

·      mortgage insurance premiums as interest expense,

·      100% bonus depreciation,

·      15-year recovery for qualified leasehold improvements,

·      tax-free direct distribution from IRA to qualified charitable organization,

·      personal non-refundable tax credits allowed to offset the dreaded AMT,

·      increased dreaded AMT exemption amounts, and

·      non-business energy property credit.

And it looked at some of the tax increase provisions of the recently upheld “health care reform” bill that take effect beginning in 2013.

Such as the .9% Hospital Insurance tax on individual wages (and self-employment earnings) in excess of $250,000 for joint filers ($125,000 if married filing separately) and $200,000 for single and head of household filers.

And the “Medicare Contribution Tax” of 3.8% on the lessor of net investment income or the excess of “modified” Adjusted Gross Income (MAGI) over, again, $250,000 for joint returns ($125,000 for separate filers) and $200,000 for single and head of household filers.  This is the tax that right-wing idiots have been lying about for the past couple of years – calling it a “sales tax” on the profit from selling one’s personal residence.

My buddy Beanna Whitlock, who once told a gathering of tax pros that I was the only person in the room who really knew how to prepare tax returns when I raised my hand to indicate that I still prepare 1040s by hand, had us rolling in the aisles at her “Tax Potpourri” session.

In between laughs she detailed an example of one of the truly egregious inequities in the Tax Code – how $7,500 in gambling winnings (and $8,000 in documented gambling losses) increased the taxable income of a couple with one spouse collecting Social Security by over $13,000!  The bottom line – about $2,000 in additional federal income tax on $0 of net income.

I have the day off today (Tuesday) - with no educational sessions.  So look for the mid-week installment of the BUZZ tomorrow.

TTFN