TAX BLOGOSPHERE BUDDIES – JIM BLANKENSHIP

Today we meet Jim Blankenship CFP®, EA of Blankenship Financial Planning, Ltd. (“Excellent Financial Advice for Everyone”) located in New Berlin, Illinois.  Jim writes the interestingly titled blog “Getting Your Financial Ducks In A Row” (something we all should do), which provides “advice on IRA, Social Security, income tax, and all things financial”.

I have found Jim’s advice and information on Social Security topics especially helpful.  He has written two books – “A Social Security Owner's Manual” and “An IRA Owner's Manual” which I recently ordered and look forward to reading.

(1) How did you become interested/involved in preparing tax returns? 

I had started doing my own tax returns in college and then helped others with their returns.  I had a “head” for the work and enjoyed helping others, so I sought training and started taking on other folks’ returns.

(2) How were you educated/trained in preparing tax returns? 

In 1987 I took a correspondence course in tax prep from the National Tax Training School.  Since then my studies to become a CFP® practitioner expanded on that knowledge.

(3)  When and why did you decide to write a blog on tax issues? 

I started blogging about financial issues back in 2004, as a way to communicate with the world about the services that I offer.  Tax issues became a regular part of my blog posts since taxes are a huge, often misunderstood part of everyone’s financial lives.

(4)  How has blogging helped your business?

I think it serves as public education, as well as an attraction to find my blog and website. It gives readers an opportunity to find out more about my business without having to actually meet in person.  I have found that most all of my new clients in the past couple of years have read my blog (or articles from it) before calling for an appointment.

(5) What do you consider the “best tax advice” you can give anyone?

That’s a tough one because everyone has a different set of circumstances.  I guess the one thing that could have helped folks out of big problems is: Don’t ignore the IRS when they send you notices.  They won’t go away – you’re much better off to address the situation, however ugly it is, head on.  Ignoring it will only make it worse.

(6) Do you support the decision in Loving v IRS, or do you support mandatory regulation?

I believe tax preparers need to be regulated.  Taxpayers should know that they have a conscientious professional working for them when preparing their taxes.  It’s a cold enough world out there having to deal with all of the rules and onerous taxes, as a taxpayer you should at least expect the preparer to have your best interests at heart by being fully-trained and subject to a code of ethics.

7)  How would you reform/rewrite the Tax Code?  Under the “clean slate” method of tax reform what tax expenditures (deductions, credits, exclusions) would you keep and why?

I honestly haven’t given this much thought.  I suppose on the one hand a flat tax with no deductions or exclusions seems to be the fair way to go – but the tax code has always been a method to at least try to spur certain types of activities.  If it were a flat tax some activities (such as charitable donations) might suffer. In addition, a lot of preparers would be out of business, but I’m not sure that’s such a bad thing either – we’re a necessary evil in the present course.

(8) Do you think the Tax Code should be used to deliver social welfare benefits?

I don’t think adding more complexity to the Tax Code (beyond the parts that are already in there) to deliver social benefits would help matters, and it likely would introduce additional delays and problems.

(9)  What is your favorite Broadway musical – and why?

This is an area that I know very little about, as I have never seen a musical other than adaptations to movies.  If I had to choose something I’d say either Spamalot (because, you know, Monty Python!), or Mamma Mia! (because, you know, ABBA!).

I, too, took the National Tax Training School correspondence course on 1040s back in the mid-1970s so I could have some kind of tax credential/diploma.

Regarding the need to regulate tax preparers – as you know I believe there is a need to provide a universally accepted non-EA credential for tax preparers to identify to the taxpayer public those who are competent and current in 1040 preparation, but I do not believe in mandatory government regulation other than that which is already in place via preparer penalties.  The credential should be a voluntary program.

I do not agree that a flatter and simpler tax system would put a lot of tax preparers out of business.  At least not me.  As I have often said, if I did nothing but 1040As all day during the tax season I would make more money, experience less agita, and substantially reduce the number of extensions.  And even with a flat tax there will always be the need to calculate business, investment sale, rental, and farming gains and losses on Schedules C, D, E and F and Form 4797.

 

A flatter and simpler tax system would put unethical tax preparers out of business - there would be less opportunity for fraud (i.e. no refundable tax credits).

 

Never seen a musical?!?  Jim, get thee to a local regional equity theatre ASAP!  As for his choices – I recently saw SPAMALOT at a regional equity theatre and found it entertaining (I have always enjoyed the songs) and, although it is still running on Broadway, I have never seen the live version of MAMA MIA!, although I did like the movie.

Jim, of the movie adaptations of Broadway musicals you have seen which is your favorite?

TTFN 

TAX BLOGOSPHERE BUDDIES – TRACY SHANNON LEVEY

Today’s tax person is more of a “Twitter Buddy” than a “Tax Blogosphere Buddy”.  I first came across Tracy Shannon Levey of Parker Tax Publishing located in Bethesda MD when she began to follow and “RT” me on Twitter. 

Tracy’s Twitter “handle” is “TaxAddict.  I erroneously thought her to be a tax professional – but was corrected after sending her my interview questionnaire.  And Parker Tax Publishing does not actually “blog”, although they do publish regular articles, often in depth, on tax issues online.

I have adjusted my standard questionnaire slightly to accommodate Tracy's situation.

(1) How did you become interested/involved in the world of taxes?

I became involved in the tax world through my husband James Levey. He originally founded Kleinrock Publishing which eventually was acquired by CCH and was folded into their “Taxwise” product. We launched a new company in 2011 “Parker Tax Publishing.” Parker Tax Pro Library is a tax research product for tax practitioners that is comprehensive, easy to use and highly affordable. I am the co-founder and the VP of Communications. A big part of my job consists of posting our articles, client letters and bulletins across as many social platforms as possible. They include LinkedIn, FaceBook, Twitter, Slideshare, Tumblr, and Google+. Another important part of my job is the acquisition of authors/writers for our product.

Since starting Parker, I have interacted with many tax professionals through discussion groups, phone calls and meetings. Including our staff of editors and writers. I also network with others that provide services to the accounting profession.

Posting and interacting with tax professionals is very rewarding. They are dedicated and I am very impressed with the vast amount of knowledge that tax professionals have and their ability to keep up with the constant changes. They are always thankful for “free” information and so many love to discuss the issues/changes on a daily basis.

I am not completely without writing/editing experience in regards to our articles that we offer to the public. I give ideas as to what is hot, I read and help edit many article to enhance their readability.

(2) What is your educational background? 

My background is in social services (MA in Nonprofit Management from The Sawyer School of Business) I am also a Certified Web Developer/Designer.

(3) How has posting articles helped your business?

Posting has helped build our brand recognition in so many ways. Potential customers are able to read valuable content and it helps them get to know Parker and the quality of our product. So many potential customers call and refer to an article they have read and want to know more about us. They also have a face and name that they recognize (me.) Our best social media avenues thus far are LinkedIn and Twitter.

 

(4)   What do you consider the “best tax advice” you can give anyone?

My lay advice would be to keep great records.

(5)  Do you support the decision in Loving v IRS, or do you support mandatory regulation?

I personally support mandatory regulation of tax preparers. I feel the public is unaware of the difference and doesn’t understand that the preparer must sign their tax forms. Many “lay” individuals are using tax software meant for individual use (TurboTax for example.) This leaves many vulnerable to IRS penalties. I do know that there is a cost element for licensure, however I believe it is well below $500. CPAs, Enrolled Agents, etc. also pay fees (for example: CPE requirements.) To protect the public, I feel it is necessary.

 

(6) How would you reform/rewrite the Tax Code?  Under the “clean slate” method of tax reform what tax expenditures (deductions, credits, exclusions) would you keep and why?

My undergrad degree is in political science so I have strong feelings about the way our government spends internationally. I think we need to rethink our expenditures in the military and in military aid to countries that don’t really need it. I feel we need to add even more money into job programs such as the rebuilding of our infrastructure and educating/reeducating those who are out of work. I believe in a strong military, however, the overall system is too intertwined with lobbyists, bureaucrats trying to hold on to their territory and politician trying to keep the pork barrel wheeling in.

As my background is in social services, you can probably figure out that I feel our tax system should be used in a way that redistributes wealth from the extreme haves to the have nots. I would also keep the child tax credit, “green” credits for homeowners and businesses, and especially the ability to write off donations to charity. I think our tax system should reward those that are helping our environment, our vulnerable and our families.

I have recently been studying estate issues and tax haven issues. I do not feel well read enough to write with authority. But in general, I am all for finding those who abuse tax havens. And, given the huge amount of wealth transfer that is occurring from one generation to the next, I do believe a substantial amount of the top 5% wealth should be taxed to help our current economic situation.

(7) Do you think the Tax Code should be used to deliver social welfare benefits?

I absolutely do think that our tax code should be used to redistribute wealth. I am aware that there are those that “abuse” social benefits, but I think is our moral duty of our nation to take care of those who are in need. I support programs that help those who are unable to work for health (mental or physical) reasons. Training programs to help put others to work is a win – win situation.

(8) What is your favorite Broadway musical – and why?

This is a hard question! I have 5 favorites. I pick Man of La Mancha. Its glorious. The music, the songs, the hope, the love! “To dream the impossible dream.” Words to live by.

A good choice for musical.  As I mentioned to Tracy when hearing her choice I, too, dream an impossible dream – that the idiots in Congress pass substantive tax reform this year.

Unfortunately it appears Tracy and I disagree on the issues addressed in the interview – required government regulation of tax preparers and using the 1040 to redistribute wealth and deliver social benefits.

While the various social benefits Tracy refers to in her answer to #7 may be legitimate and necessary – I truly believe that they do not belong in the Tax Code.  If the government wants to provide these benefits it should be done in a more conventional manner through the various budgets of the appropriate cabinet departments.

Thanks to Tracy for participating.

TTFN

TAX BLOGOSPHERE BUDDIES – MANASA NADIG

The “Tax Blogosphere Buddies” series is back with some new (at least to me) tax bloggers.

First up is Manasa Nadig EA of MN Tax Solutions, LLC in Canton, Michigan.  Manasa writes the blog THE BUZZ ABOUT TAXES (I like the title).  She has been in the business of Tax Preparation & Tax Planning since 1999. 

(1) How did you become interested/involved in preparing tax returns?

A Bachelor’s degree in Accounting and Commerce and a head for numbers really narrowed my choices for a career, it would have to be Accounting & Taxes or Auditing, and I chose the former!

(2) How were you educated/trained in preparing tax returns?

I first took the H & R Block Tax Course and then the Enrolled Agent Exam. I have also worked with several CPA’s with a broad range of clients. So my education and training helps me tackle many different types of tax returns.

 

(3) When and why did you decide to write a blog on tax issues? 

I decided to start off my own practice in 2012. While setting up & writing various newsworthy articles/“resource” pages for my website (that I designed myself), I thought that writing a blog on tax issues & sharing it on my website would be a good way to get two birds with one stone. So I have been writing and sharing since early this year.

Also, writing on tax issues compels me to do a lot of research on ideas and I have found that has helped me really keep abreast of the latest news & changes in the tax world.   

 

(4) How has blogging helped your business?

I think blogging has helped me reach a wider audience than I imagined I could. I have had people email me or call me with questions. My blog is still too new for me to measure its impact on my business in a realistic way, but I am hoping that those who get to my blog or website find the answers they want & engage my services if needed.   

 

(5) What do you consider the “best tax advice” you can give anyone?

Open your mail, file on time, maintain records, get professional help and don’t lie to your tax professional.

(6) Do you support the decision in Loving v IRS, or do you support mandatory regulation?

No, I do not support the Loving v IRS case; I really think that there should be oversight & regulation of tax preparers.   

 

(7) How would you reform/rewrite the Tax Code?  Under the “clean slate” method of tax reform what tax expenditures (deductions, credits, exclusions) would you keep and why?

If I got a chance to reform the tax code, on the individual side, my biggest change would be to get rid of all the different Filing Status, each individual would file taxes if they were over 25 years of age and had a designated threshold of income. There should be progressive tax rates based on individual income. The corporate tax should be lowered to make US companies more competitive with the companies that operate in countries with lower rates.

Under the “Clean Slate” method, I would keep the standard deduction (including the mark up based on age) and the personal exemption. I would also keep the 1040 Page 1 adjustments to income and include the mortgage interest deduction and property taxes here. In my opinion, these credits would be the only ones that would support the reform above. I would keep the research credit for companies to promote R & D; the Veteran Hiring Credit to promote hiring of veterans.

(8) Do you think the Tax Code should be used to deliver social welfare benefits?

No, it should not be.

(9) What is your favorite Broadway musical – and why?

I haven’t seen any Broadway musicals yet!

Good advice in #5.  Especially “don’t lie to your tax professional”. 

 

While, as I have said in the past, the actual tax preparation services of Henry and Richard leave very much to be desired, I hear the H+R Block tax course is, or at least was, very good.

And I agree that “writing on tax issues compels me to do a lot of research on ideas and I have found that has helped me really keep abreast of the latest news & changes in the tax world”.

Manasa – no Broadway musicals?  You don’t know what you are missing!  I have given her some suggestions.

TTFN

TAX BLOGOSPHERE BUDDIES - JASON DINESEN

Today’s buddy is Jason Dinesen, EA, of Dinesen Tax, Inc. in Indianola, Iowa, author of the DINESEN TAX TIMES.

Jason is a vocal defender of the EA designation, as I am a vocal defender of the previously unenrolled.  We recently debated the issue of exempting CPAs and attorneys from the RTRP exam, which he touches on below, at his blog and my TAX PROFESSIONAL blog (click here and here).  As with Joe Kristan, when Jason and I disagree we do so respectfully (unlike at least one fellow blogger whom I will not name).

I especially like the “disclaimer” he includes on his blog page –

“Before contacting me with questions about how a blog post relates to your situation, please be aware that I cannot and do not give free tax advice to non-clients by e-mail or by phone.”

This statement, I expect, applies to all tax bloggers.  It certainly applies to me.

How did you become interested/involved in preparing tax returns?

This will be a really long answer!

I have always been a “numbers geek.” In 5th grade, my teacher told my parents that I would grow up to be a statistician. She was right (taxes are statistics of sorts) - but it took me awhile to figure it out for myself.

From 7th grade til about age 23 or 24, I wanted to be a sports play-by-play announcer. I went to college for communications (though I did minor in business management) and then went into radio as a news director. After a couple of years, I realized I should have taken the advice of my 5th grade teacher and gotten into numbers.

After reaching this realization, I still lingered in the radio world for a few more years before finally getting out at age 28. I went back to school for accounting, where I realized that taxes were my true love. For whatever reason, my mind “gets” the tax code and regulations.

I found employment at a third-party administrator of retirement plans, where I did all sorts of things relating to compliance issues of 401(k) and defined benefit plans. I eventually worked my way up to a position where I was in charge of all IRS filings related to plan terminations.

The TPA work was fascinating, but taxes were my true love. I prepared 3 tax returns, for family and friends, in 2009, and realized it was what I wanted to do with my life. I passed all 3 parts of the Special Enrollment Exam later in 2009 and got my enrolled agent designation.

By August 2011 I had built up enough clients to leave the TPA world and run my business full-time.

How were you educated/trained in preparing tax returns?

Various ways.

College coursework was where the light bulb switched on. Preparing for the EA exams helped a lot. Taking in-depth continuing education (not just settling for year-end updates). A lot of learning on the job -- but never at the expense of the client. Meaning, I have always been careful not to take on something I am not capable of handling. And I maintain an active list of contacts and professional friends that I can turn to when I have questions.

When and why did you decide to write a blog on tax issues? 

The Dinesen Tax Times started in 2009 as a printed newsletter for clients (all 3 of them!). Around that same time, I created a horrible, just awful, free Google website. In 2010, I started a blog, and last fall I got a “real” website and integrated the blog into the website.

I have always been a creative thinker, and the blog is a good outlet for me. Long-time readers of my blog know that my blog can be a strange place, where I often mix in baseball references, references to my family and pets, etc. in my posts about taxes. I use a lot of personal anecdotes, and I use a lot of parenthetical references and as you can tell from my responses to this questionnaire, I tend to take a lot of side roads on the way to reaching my ultimate point.

How has blogging helped your business?

I’ve gotten a few clients from having a web presence, but the biggest way blogging has helped my business is with the connections I have made with other professionals. It’s impossible to place a value on those connections.

What do you consider the “best tax advice” you can give anyone?

Contrary to what H&R Block and TurboTax want you to believe, it’s not all about getting a massive refund. Contrary to what H&R Block and TurboTax want you to believe, there are no tax miracles. Your preparer can’t magically conjure up extra deductions or credits to get you a bigger refund. (Well, I guess they CAN, but good luck to you and the preparer when the scheme blows up, which it inevitably will.)

Do you think the regulation of tax return preparers is a good thing?

Yes and no. As you know, I am highly skeptical of the whole RTRP thing. I do think there needs to be oversight, though. The Jason Dinesen proposal is: monitor people’s PTINs. Because we all have to have PTINs now, the IRS has a mechanism to track who is preparing tax returns. If a preparer is incompetent or prepares fraudulent tax returns, the IRS can revoke the preparer’s PTIN. That’s how I would handle preparer regulation.

Do you think CPAs and attorneys should be exempt from testing and required CPEs in taxation?

Yes, from testing. CPAs and attorneys already have to pass difficult and comprehensive exams. Granted, those exams aren’t tax-related. But it’s insulting to tell them they need to take a basic, open-book exam RTRP exam just so they can prepare tax returns.

However, I do think CPAs and attorneys should be required to demonstrate taxation CPE if they want to prepare tax returns.

Do you think experienced tax preparers should be exempt from the initial RTRP competency test under “grandfathering”?

Yes, I am open to that as long as there can be clear and consistent standards put in place.

How would you reform/rewrite the Tax Code?

Good question. I don’t think we’ll ever see true tax simplification, like a flat tax or a nationwide sales tax. But we could have a tax system that includes a huge standard deduction and/or personal exemption amount that would make it so lower-income people wouldn’t even have to mess with filing a tax return. That’s how it was back in 1913 when the income tax first came about. The personal exemption amount was equal to nearly $68,000 in modern-day dollars, so the vast majority of Americans weren’t even impacted by taxes. Of course, this would mean eliminating things like the earned income credit and such, which probably wouldn’t go over well.

What is your favorite Broadway musical – and why?

I’ve never seen a Broadway musical. I did see a performance of “On Golden Pond” at the somewhat-famous Flat Rock Playhouse in Flat Rock, North Carolina one time, if that counts for anything!

 

On GOLDEN POND really doesn’t count.  As an accountant Jason should at least try to catch a production of THE PRODUCERS (re: Leo Bloom).

TTFN

TAX BLOGOSPHERE BUDDIES - DAN MEYER

 

Today we meet Dan Meyer, a Professor of Accounting at Austin Peay State University in Clarksville, TN, and author of the blog TICK MARKS, which I love to say has nothing to do with lyme disease (you see lyme disease is transmitted by ticks, who leave a distinctive mark when they bite you).  In this case “tick marks” refer to the mark an accountant makes when footing and cross-footing columns of numbers.

While primarily an accounting blog, Dan often discusses tax issues.

Dan used to list “The Twelve Blogs of Christmas” each year, and TWTP made the list in the tax category back in 2007.

How did you become interested/involved in preparing tax returns?

As I was settling on an accounting major in my sophomore year of college; I took an H&R Block self-study tax training class.

How were you educated/trained in preparing tax returns?

In addition to the class above; I took a tax course as an undergraduate at “Ole Miss” and several tax theory classes during my doctorate at the University of Missouri.  In addition, I got “on-the-job” training in tax preparation while working for CPA firms in Memphis, TN and Corinth, MS

When and why did you decide to write a blog on tax issues?

In 2005, there were not a lot of accounting and tax blogs in existence and I believed that starting a blog would help in my academic career at Austin Peay State University.

How has blogging helped your business?

I do not have a business, but it has helped me as a college teacher by helping me keep up on developments in the profession (and at closer to “real time” than I would get simply by taking CPE courses as a CPA), by enabling me to get a journal publication (New Accountant, 2007, Issue 723?) and I have assigned students to do a simulated blog in one of my undergraduate courses.

What do you consider the “best tax advice” you can give anyone?

Take legitimate deductions and credits to be sure, but after that, PAY your taxes.

Do you think the regulation of tax return preparers is a good thing?

From a purely ideological point of view, no; the present American economy is badly overregulated and that is an important contributor to the present high unemployment rate.  However, the tax return preparer legislation has a saving grace—accounting students with marginal GPAs can and should take the RTRP exam and have a saleable skill along with their diploma.

Do you think CPAs and attorneys should be exempt from testing and required CPEs in taxation?

In general, yes since tax is tested on the CPA and bar exam. I do agree, however, that if subsequent research by the IRS shows that CPAs and attorneys have an error rate comparable to non-EAs/CPAs/attorneys, that this exemption should be pulled (note: EAs should have an unconditional exemption).  An additional tweak that I could accept (though not support for selfish reasons) would be to pull this exemption if the CPA/attorney had prepared less than 20 returns in the past five years or if the CPA/attorney had received ethical or criminal sanction at the state or federal level in the last five years.

Do you think experienced tax preparers should be exempt from the initial RTRP competency test under “grandfathering”?

Mixed answer here since I can see good arguments for both sides—thus somewhat similar to the immigration debate in Washington.  At most, I could support something like a refund of competency test fee if the experienced preparer passed on the first try or a one-year deferral on the due date for the competency exam for preparers with over 10 years experience AND no ethical or criminal sanctions during the last 10 years.

How would you reform/rewrite the Tax Code?

Since I am in my mid-50s, I doubt that I could live long enough (even if I had the interest to do so) to read the code, regulations and court cases needed to fully understand what is in the present U. S. Internal Code of 1986, amended.  Having said that, a few superficial adjustments:

[1] Raise the capital gains and dividend rate to the lower of actual marginal rate or 25% except for sales of principal residence,

[2] eliminate the 85% provision on taxation of income for Social Security recipients and raise the floor to 50K MFJ/ 35K single/ 20K MFS,

[3] allow the first $1000 of charitable contributions and medical insurance to be deducted toward AGI,

[4] eliminate Subchapter C taxation of corporations (making virtually all business income pass-through) UNLESS they directly or constructively have taxable income in excess of $100,000,000; then a single tax rate of 25%,

[5] eliminate the estate tax on estates with net worth of less than $5 million;

[6] eliminate or drastically rework the credit for the elderly—at present, it is more hassle than it is worth.  In my blog last year, I have separately proposed several changes to extend the projected life of Social Security.

What is your favorite Broadway musical – and why?

I have never seen a musical on Broadway—I did see an off-Broadway presentation of “1776” in the Elliott Hall of Music at Purdue University in West Lafayette, IN as an adolescent and was quite impressed.

While Dan and I disagree on the basic concept of exempting CPAs from taking the RTRP exam, if we are indeed stuck with the blanket exemption I do like his suggestion of removing the exemption of CPAs who have prepared less than 20 returns in the past 5 years.  Although I would make it at least 10 Form 1040s per year in the past 5 years.

If he had to see only one Broadway musical he chose a good one.

TTFN

TAX BLOGOSPHERE BUDDY - JAMAAL SOLOMON, EA

(1)                                                                                                                                                I have decided to revive my series of interviews with TAX BLOGOSPHERE BUDDIES as a regular Friday feature for the next several weeks.

First up in this new series is Enrolled Agent Jamaal Soloman, owner and CEO of the Brooklyn NY based J.S. Tax Corporation, and author of THE TAX FACTOR blog.

I first learned of Jamaal in a post by Trish McIntire of OUR TAXING TIMES, who was interviewed in the first TBB series (click here).

Each post at THE TAX FACTOR begins with a music video appropriate to the topic of discussion.

I was especially interested in Jamaal’s comments about his classes at “a tax franchise”.

(2)                                                                                                                   

(3)                                                                                                                                                    How did you become interested/involved in preparing tax returns?

I graduated from college with BS in Business Management, a semester after 9/11, so the job market was horrible for new graduates. My original plan was getting a job to become a store manager. Doing taxes was the last thing on my mind. However, two years after graduation I found myself taking classes at a tax franchise about how to prepare taxes. I felt that the company was only teaching us how to type our clients’ response in their program. You didn’t need to know about taxes because the computer program told you everything. I felt that the computer program was a disservice to their clients. I never worked for the company but I became fascinated with taxes. Half way through the lessons, I got a job with a small accounting firm. The firm allowed me to continue the class.

How were you educated/trained in preparing tax returns?

I started my tax career with a small accounting firm with only one owner/accountant. The owner taught me everything he knew about taxes. I learned how to complete Forms 1040, 1120, 1065, 990, 1041, 1023, 990 and payroll taxes. Plus, I learned how to communicate with clients and the IRS. I would have never received this direct experience with a large corporation. This experience encouraged me to obtain a Master’s degree in Taxation from CUNY Baruch College and get licensed as an Enrolled Agent.

Currently, I own an accounting company called J.S. Tax Corporation. I’m small now but watch out for my company in five years!

When and why did you decide to write a blog on tax issues? 

The idea popped in my head after I obtained my Master’s in 2009. The only thing I learned from my Master’s program was how to save millionaires and billionaires money on their taxes. I wanted to write posts for the average American taxpayer. However after about four posts, I became bored with the blog and decided to stop.

Fast forward three years later; I felt the need to write tax blog posts again. Too much people in my community are scared to talk about taxes. However, this time around to keep myself motivated I decided to make it a different tax blog. I decided to make it unique by adding music to most of my posts. I absolutely love music and can’t write creatively without it. On my posts, you could find songs from artists like Johnny Cash, the Beatles, Jay-Z, James Brown, etc.

How has blogging helped your business?

My blog is still new so I haven’t seen any benefits to my business. However, a lot of people have told me that they enjoy reading my posts.

What do you consider the “best tax advice” you can give anyone?

"Don't Let The Joneses Get You Down" by The Temptations

 “Ow, people gather round me, it's whom it may concern.

 I'm not trying to run your life.

 But you're never too old to learn, huh.

 Stop worrying about your neighbors and the fancy things they got.

 'Cause if you do you'll find it sure, you're gonna wind up on the spot.

Don't let the Jones

Don't let the Jones

Don't let the Joneses

Get you down, oh down.”

In other words, don’t worry about what tax refund other people received. Everybody situation is unique when it comes to tax returns.  Seeking huge tax refunds tend to get people in trouble.

Do you think the regulation of tax return preparers is a good thing?

Yes, because I believe there are too many fraudulent tax preparers taking advantage of their clients. I tell my clients all the time that “I’m too skinny to go to jail.” Some of these clients are used to tax preparers making magical numbers so they can get a refund.

Do you think CPAs and attorneys should be exempt from testing and required CPEs in taxation?

Just because someone is a CPA or attorney doesn’t mean that they know about taxes. People need to respect how difficult it is to be a good tax return preparer. It is not all about entering a W-2. A lot of people think all CPAs are tax experts. However, some CPAs only dealt with taxes when they studied for their CPA exam. At minimum, CPAs and attorneys should be required to take annual CPEs in taxation.

Do you think experienced tax preparers should be exempt from the initial RTRP competency test under “grandfathering”?

No, because if you are an experienced tax preparer then the exam should be a piece of cake. Some so-called experienced tax preparers don’t know what they are doing. It is time to prove that you can correctly prepare a tax return. I don’t want to hear about the “new technology” excuse. Paper tax returns will be extinct in about five years. I don’t want to seem harsh but I have seen may people get hurt by corrupt or incapable tax preparers. This is one of the reasons why every week I create a “Tax Preparers’ Hall of Shame” post on my blog.

How would you reform/rewrite the Tax Code?

Life is too short for me to think about ways to improve the Tax Code. The Tax Code is so complex, long, corrupt and unfair. Politicians and lobbyists make the Tax Code unbearable for the little guys. Most people direct their angry towards the IRS. However, it is Congress that makes the tax laws. To change the Tax Code, voters must stand up to their elected officials. If voters don’t stand up then thinking about how to improve the code is useless.

What is your favorite Broadway musical – and why?

It is crazy that I love all types of music expect musical movies and plays. Broadway musicals are too long for me. My mind starts wandering and next thing you know I’m thinking about taxes in the middle of the play.

TTFN

TAX BLOGOSPHERE BUDDIES- STACIE CLIFFORD KITTS

Let me introduce you to Stacie Clifford Kitts.

Stacie is a partner at Katherman Kitts & Co. LLP of Irvine California, where she provides a variety of services including tax planning, tax consulting, tax compliance, pension audits, compiled financial statements, and business consulting. She writes the blog STACY’S MORE TAX TIPS.

Stacie has been a supporter of this Wandering Tax Pro in some of my occasional battles with offending bloggers (who think their word is gospel and that lawyers and CPAs walk on water).

(1) How did you become interested/involved in preparing tax returns or teaching taxes?

I started working in accounting as a teenager doing work for my parents business. I simply stumbled into the profession and realized that I like it - and I was also good at it. Taxes were a natural progression working in small CPA firms. Because they are small, you get to work on different types of engagements. Again, I fell into the tax area when I found that I was good at it and liked it.

(2) How were you educated/trained in preparing tax returns?

Training was on the job, and in school – I took classes in college that were tax and accounting related. And of course we keep up with continuing professional education.

(3) When and why did you decide to write a blog on tax issues?

When I decided to start my own practice and became a stay home tax preparer I needed a cost effective way to get my name into cyber space. Because the web is one of the first places people go to research service providers, I wanted there to be information on the web that branded me as a tax professional.

(4) How has blogging helped your business?

I’d say that the branding element has worked. It helps people to remember who I am and that I am a tax professional. People I meet often mention that they read the blog.

(5) What do you consider the “best tax advice” you can give anyone?

To hire a professional to guide you through your personal and business financial decisions so that you are not surprised by the tax consequences.

(5) Do you think the regulation of tax return preparers is a good thing?

I think regulation can provide a false sense of security. However, I think it’s a good thing when bad preparers are prosecuted. If regulation can help to get the bad guys off the market, then I think it could be a good thing. However, the jury is still out on that one.

(7) Do you think CPAs and attorneys should be exempt from testing and required CPEs in taxation?

I think that tax professionals should be required to take CPE in the area they practice. I think CPA’s and attorneys prove some level of competency in their ability to pass their licensing exam. There is a tax section of the exam for CPA’s so that at least is a start. I’m not opposed to taking an exam to prove I have some idea about what I’m doing. However, I don’t believe the problem is with uneducated tax preparers. I think regulation will do nothing to stop the unscrupulous preparers that choose to help their clients evade taxes by preparing tax returns that are works of fiction or that do not apply the rules.

(8) What is your favorite Broadway musical – and why?

Recently, WICKED - because it’s fun, full on energy, and a great slant on a popular story. I wish I was that creative!

While I agree that regulation of tax preparers will do nothing (or very, very little) “to stop the unscrupulous preparers that choose to help their clients evade taxes by preparing tax returns that are works of fiction or that do not apply the rules”, I do believe that uneducated tax preparers are a problem (although not “the” problem).

I have never seen WICKED, although I have heard much of the score. I believe it is still running on Broadway, so maybe I will get to it someday (via TDF). I would have liked to have seen it with its two original witches.

TTFN

TAX BLOGOSPHERE BUDDIES: JOSEPH ARSENAULT

The return of this popular series begins with CPA Joseph Arsenault from Tempe, Arizona. Joe works for Shurwest Financial Group, a financial marketing firm, as an expert in retirement taxation with a focus on pension and estate law.

Joe writes the CAFÉ TAX blog (“Business Java in Today’s World”), which features a regular BUZZ-like series called “BlogRoll Beans”, which often recognizes TWTP posts.

1) How did you become interested/involved in preparing tax returns or teaching taxes?

Actually, I became interested and involved in tax preparation on accident. I thought I was bound for the financial accounting world as an auditor. I decided that I did not want to move to LA or NY to work as an auditor, so I stayed with a local/regional firm that prepared taxes and performed audit engagements. I got cornered into preparing taxes and the rest is history. I never thought I would enjoy taxes the way I do.

2) How were you educated/trained in preparing tax returns?

How do you say it - "trial by fire"? I had little training. Tax returns were dumped on my desk and I prepared them. They were always returned with notes and I learned by making mistakes. I actually learned more after I left and started working in a consulting role, as well as preparing taxes on my own and with other individual CPAs. Once I was out of the public accounting firm, my accountability increased and it forced me to really learn how to discern tax issues, not just prepare taxes. Understanding how to get answers and make determinations; accurate ones, is more valuable then the preparation part.

3) When and why did you decide to write a blog on tax issues?

I decided to start writing a blog about a year ago. I love being creative, even if I am not always so good at it. I created some literature and material for the organization I consult with and realized I was capable of helping others understand taxes. Blogging is a new addiction. I have also started writing my first book, and sometimes I feel like I am drowning in the difficulty, but I don't mind.

4) How has blogging helped your business?

Blogging helps me network more than anything. Many clients visit the blog regularly and I try to be as helpful as possible. I have met CPAs, EAs, attorneys and other tax professionals all over the country through my blog. It also forces me to stay current on issues I write about, which adds to my competency in dealing with applicable tax issues.

5) What do you consider the “best tax advice” you can give anyone?

The best tax advice I can give someone? That is like asking someone what the most important part on a car is. Can a car run with a missing part? If I could give one piece of advice, it would be to maintain a high level of proactive behavior with their tax preparer and everything in-between. The more proactive someone is relative to tax matters, the more likely they are to achieve favorable, efficient tax results year after year. Tax law changes frequently, it is one of the most convoluted legal systems that exists, and there are few absolutes (until you end up in court).

6) Do you think the regulation of tax return preparers is a good thing?

I do think regulation of tax preparers is a good thing. I am not sure what level of regulation is effective without costing the consumer more money (I feel ultimate value is the end goal). That is my main concern. For example, attorneys, EAs and CPAs are all exempt from the new tax preparer requirements (except the PTIN requirement). The reality is that not all of these professionals have performed tax work or have a background in taxation. Does this regulate "tax preparers" or just the non-designated professionals? I am in favor of taxpayer regulation. I would like to think anyone preparing taxes should be required to have a proper level of aptitude and experience so customers and clients are not deceived. My only problem, I don't have a concrete opinion or argument on how to really achieve proper tax preparer regulation.

7) Do you think CPAs and attorneys should be exempt from testing and required CPEs in taxation?

I guess I touched on this question in the last question. I think CPAs and attorneys should only be exempt if they can prove that they operate as a tax professional prior to regulation. For example, if you already have a PTIN and sign tax returns, or have an interest in a registered firm, you are "more likely than not" to be qualified. As far as timing, if someone becoming a CPA or attorney works under a registered tax preparer who signs the returns, this would give them the experience they need when they become a CPA or attorney, effectively allowing that exempt status. Otherwise, how do you know a CPA or attorney actually knows how to prepare a tax return?

8) What is your favorite Broadway musical – and why?

Can I plead the fifth here? I don't have one. Perhaps I am too young to appreciate the art in Broadway musicals?

Trial by fire is a great way to learn taxes.

And Joe, you are never too young! I saw my first Broadway musical (THE MUSIC MAN with Robert Preston), and learned to appreciate the art, at age 5.

TTFN