WHAT’S THE BUZZ, TELL ME WHAT’S A HAPPENNIN’ - TUESDAY EDITION

The latest on the saga of my enrollment in Obamacare.  I received a letter from my new provider stating – “This letter is to confirm your enrollment effective 01/01/2014” and “Your identification card(s) will be mailed to you separately within the next 7-10 business days”.  Yesterday I received my insurance card.  Finally!

                                               

* My Tax Tip series continues at MAINSTREET.COM with “Same Sex Marriage and 2013 Tax Returns”.

* The MainStreet.com TAX CENTER also tells us that the “Top 1% Pay More in Federal Income Taxes than Bottom 90%”.

“A recent report by the non-partisan research group reveals that in 1980, the bottom 90% of taxpayers paid a little more than half (50.72%) of all income taxes. In 2011 (the most recent year the data are available), the bottom 90% paid just under a third (31.74%) of taxes. In contrast, the top 1% paid 19% of taxes in 1980 and now pays just over 35% of federal income taxes.

‘An interesting piece of information is that after the [2003] Bush tax cuts, often claimed to be a tax cut for the rich, the tax burden of the top 1% actually increased significantly,’ the Tax Foundation says. ‘One reason for the decline in the bottom 90%'s tax share is likely the proliferation of tax credits. In the last 30 years, the number of tax credits has increased -- specifically refundable tax credits. The combined cost of refundable and standard tax credits has gone from around $20 billion in 1990 to $176 billion in 2010, with refundable credits accounting for about $100 billion of that growth’."

* ACCOUNTING TODAY gives us the good news (from our point of view) that “IRS Tax Audits of Individuals Hit Lowest Rate Since 2005” -

“The Internal Revenue Service audited 0.96 percent of individual tax returns in fiscal 2013, declining for the second straight year and reaching the lowest rate since 2005.”

* And ACCOUNTING TODAY reports on the Taxpayer Advocate’s recently released 2013 Report to Congress in “Taxpayer Advocate Calls for Taxpayer Bill of Rights”.

FYI, Nina Olsen continues to call for the death of the dreaded Alternative Minimum Tax

* TaxGirl Kelly Phillips Erb talks about Nina’s report in “Report To Congress: IRS Is Increasingly Unable To Meet Taxpayer Needs”.

* William Perez reminds us that the “Fourth Estimated Tax Payment for 2013 Due on January 15”.

* Jamaal Solomon of THE TAX FACTOR has a new YouTube tax video on “Phase-Outs”.

* Andrea of TAKE A SMART STEP provides a lesson in “How to Keep Your Tax Money Information Organized”, telling us what she does.

* At the YAHOO FINANCE CENTER Kay Bell warns us to “Beware These 5 Terrible Tax Surprises”.

Kay identifies “five terrible tax surprises that you might encounter during tax season and how to deal with the consequences”.

* Jean Murray’s “The Absolute Best Way to Save Money on Business Tax Preparation” at ABOUT.COM also applies to 1040 preparation -  Start early and be prepared.

TTFN

THE ANNUAL NJ-NATP FAMOUS STATE TAX SEMINAR

This past Saturday I attended the NJ chapter of NATP’s annual “Famous State Tax Seminar” at the Woodbridge Hilton in Iselin.  I try to get to this seminar every year, and have only missed a handful in it’s, I expect, 20+ year history.

The day’s schedule is limited to state tax updates – New Jersey, New York, and sometimes Pennsylvania.  As I was sitting there on Saturday it occurred to me that one of the reasons it is so consistently good is that we are not forced to sit through yet another 2 hours of redundant and unnecessary Ethics preaching.  

As has been a custom, the first presentation of the morning was the “keynote” address by the Director of the NJ Division of Taxation.  The current Director is Michael Bryan.  This year’s all-too-brief “keynote” presentation was a total waste of time.

While I do like the fact that the Director is on the agenda, I wish he would say something of value and not just quote uninteresting economic statistics and merely touch on some items that are presented more thoroughly and effectively later in the day by one of his DOT employees.  I want him to address real issues, or take serious questions from the floor on systemic and other problems we tax pros face in dealing with the often incompetent DOT.

The only NJDOT Director that has ever given a presentation of value has been Bobby Thompson years ago (I believe he left office under a cloud concerning, again I believe, having received too many “gifts” from DOT vendors).  The head of the Division of Revenue also gave a good and insightful presentation several years ago, but has never returned.

Here’s a thought - a “Q+A” instead of a formal presentation.  Expand the Director’s allotted time.  Give those who sign up for the seminar the opportunity to email the Education Committee a question they would like the Director to answer or an issue they would like him to address.  The Committee would review the submissions and select what to put to the Director.  Members of the audience would be allowed to comment or ask for clarification on the Director’s responses.

The rest of the morning was taken up by an excellent presentation on the NJ Estate and Inheritance Tax by the best actual “presenter” of the day – attorney Michael Feinberg, who has appeared on the “bill” before (his presentation style is perfect, and he was certainly intimately knowledgeable on his topic; while I do not, and do not want to, prepare estate or inheritance returns, I found the talk interesting as a potential beneficiary and Executor, and close friend of potential beneficiaries and Executors), and a workmanlike presentation on NJ Sales and Use Tax issues and updates by another attorney (and returning speaker), Susan Feeney, who was also very knowledgeable on her topic.

After a buffet lunch, this time in a private room (it is usually in one of the hotel’s restaurants), we returned for the real meat of the day – New Jersey and New York state tax updates.  

Alexis DeRosa from the NJDOT is a fine successor to the wonderful “Jim and Jake Show” NJ updates of the past, which were always the highlight of the day.  And witty EA Katherine Keane has become a fixture of the event providing New York State income tax updates.

As a point of information, Michael Feinberg was the only speaker who definitively addressed the issue of same-sex marriage and NJ taxes.

Here are some of the items of interest from the day’s presentations –

* The NJDOT will begin to actively enforce the tax preparer e-file mandate in the future.  Since I do not use flawed and expensive tax preparation software, and never will, I cannot e-file NJ returns the traditional way.  I use NJWebFile whenever I can, and the client permits, but it has too many restrictions, and I am forced to file a paper return.

* To be able to take advantage of the “portability” of the federal estate tax exemption available to married couples the estate of the first spouse MUST file a federal estate tax return (Form 706) regardless of the amount of the gross or taxable estate.  There is no “portability” for the NJ estate tax.

* There is NEVER an income tax consequence for the recipient of a gift.

* The however legitimate attempts by NJDOT to verify NJ Earned Income Tax Credit eligibility often make the NJ-EITC more of a PITA for tax preparers than the federal due diligence requirements.  All the more reason why the EITC does not belong on any tax return.

Once again kudos to NJ-NATP for a great seminar.

TTFN

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

I was without a computer from last Friday through Monday afternoon.  Like a NJ politician, my Windows program was “corrupted”.  Hence the lateness of this BUZZ installment.  My web “wanderings” were also limited – so I might have missed some good “stuff”.

FYI, my check for January health insurance coverage under Obamacare has been cashed, but I have not received any insurance card or other coverage information from the provider. 

* My tax season Tax Tips series has begun at the TAX CENTER over at MainStreet.com.  So far my tips have included –

       ·         Your Small Assignment for Today

·         Starting the Year Off Right

·         Who Should Prepare Your 2013 Tax Return

* It appears that John Koskinen actually read my letter!  ACCOUNTING TODAY reports that “IRS’s New Commissioner Favors Voluntary Tax Preparer Certification” -

“The newly approved commissioner of the Internal Revenue Service, John Koskinen, said Monday that he would support voluntary certification for tax preparers if the Internal Revenue Service fails to win an appeal of a judge’s decision striking down the IRS’s Registered Tax Return Preparer regulatory regime.”

It is more likely “when” the IRS fails to win an appeal.

I first suggested this in my editorial “What the IRS Should Do About the RTRP” at TAXPRO TODAY.  I also sent a letter to Mr Koskinen recommending this once his appointment was approved.

I am curious to see if he just makes the previous RTRP requirements voluntary, or creates the 2-tiered program that encompasses the EA designation as I proposed.

* Kay Bell brings us “Tax Carnival #124: Happy New Tax Year 2014” at DON’T MESS WITH TAXES.

* William Perez of ABOUT.COM provides links to “Resources for Preparing and Filing Form W-2 for Small Businesses”.

* And Russ Fox reminds us that it is “1099 Time” at TAXABLE TALK.

* Over at EQUIFAX Tax Mama Eva Rosenberg reviews “What You Need to Know About the Child Tax Credit”.

 

* Jim Blankenship explains the “Types of Annuities” at GETTING YOUR FINANCIAL DUCKS IN A ROW.

* CCH has published a Tax Briefing on “2013 Tax Year In Review”.  Click here to download.

* Jeffrey Levine and Jared Trexler list “3 Tips for Tax Time Preparation” at THE SLOTT REPORT.  And 3 excellent tips they are!

THE FINAL WORD-

The donkey, or “ass”, should not be the “mascot” of only one of the political parties.  Our elected officials of both parties, at least in Washington, are truly all asses.

However I prefer to use a very different definition of the word “ass” in describing the Congresscritters, considering the multitude of excrement they spew regularly.

And, after thinking about it, the donkey and elephant are really not appropriate “mascots” for the members of Congress.  Historically the donkey and the elephant have been very hard working animals – true beasts of burden.  One can hardly “accuse” the members of Congress of doing any real work.  And it is the American citizen/taxpayer who must suffer the burden of their inaction and incompetence.

TTFN

SPECIAL OFFER FOR TAX PROS!

As you know, I have been preparing 1040s since 1972. Over the years I have developed a collection of forms, schedules and worksheets that have proven very helpful in my practice.  I usually offer this compilation to you for $6.00 – but if your order is postmarked in January 2014 you can have this compilation for only $3.00 – 50% off!

Some of my “homemade” forms are given to clients to help them provide me with the information I need to properly prepare their returns. Some are used as “memos” to the client’s copy and my office file copy to back-up items reported on the returns. Others are used as attachments to the returns.

Please be aware that this is copyrighted material and is for your internal use only.

The package will be sent as a “word document” email attachment, so you may edit and revise them as you see fit to personalize them to your firm, customize them be more relevant to your particular practice or clients or specific professions, or update information for annual COLAs or tax law changes.

Here is a partial listing of what is included in the package.

1.  Supplement to Schedule A
2.  Medical Expense Worksheet
3.  Medical Expenses – Out of Pocket Analysis
4.  Charitable Contribution Listing – for non-cash contributions
5.  Charitable Contribution Record – for cash contributions (2 pages)
6.  Charitable Mileage Record
7.  Contribution Worksheet
8.  Employee Business Expenses – generic format, can be customized
9.  Employee Business Expenses – Police Officer – example of customized
10.  Conventions, Conference and Education
11.  Miscellaneous Expenses #1
12.  Miscellaneous Expenses #2
13.  Statement of Dividend Income
14.  Allocation of Expenses
15.  Automobile Expense Worksheet
16.  Auto Mileage Log
17.  Business Expenses of a Freelance Writer
18.  Business Travel Record
19.  Computer Use Log
20.  Election to Deduct Organization Expenses
21.  Employee Expense Report
22.  Employee Time Card
23.  Home Office Deduction Worksheet
24.  Cell Phone Log
25.  Cost Basis Worksheet
26.  Owner-Occupied Multi-Unit Rental Property Expense
27.  Statement of Rental Income and Expense
28.  Statement of Rental Income and Expenses – Vacation Property
29.  Multi Family Building
30.  Alternative Minimum Tax Worksheet
31.  Does Not Have To File
32.  Statement of Pension Income

Send your check or money order for $3.00 (payable to TAXES AND ACCOUNTING, INC) and your email address to –

TAXPRO FORMS JANUARY DISCOUNT OFFER
TAXES AND ACCOUNTING, INC
POB A
HAWLEY, PA 18428

A VOLUNTARY RTRP DESIGNATION!

Fellow tax blogger and (not fellow) Enrolled Agent Jason Dinesen has replied to my earlier request for his opinion on the issue of a voluntary RTRP designation, which has been made a current topic as a result of the recent comments by new IRS Commissioner John Koskinen (click here for the ACCOUNTING TODAY article), in “A Voluntary RTRP Designation?” at the DINESEN TAX TIMES.

Jason opposes the idea, whether it is administered by the IRS or a “private overseer”.

He makes the following comments within the post –

“What purpose would it serve?  It would be a useless designation no matter who oversees it.

If administered by the IRS, it would harm Enrolled Agents.

If you can prepare tax returns without being an RTRP, and if the RTRP designation doesn’t allow a person to represent clients, what exactly would people who achieve a voluntary RTRP designation do with it?????  What’s the point?????”

Under the current system any Tom, Dick, or Harriet can hang out a shingle as a “tax preparer”.  It has been this way for 100 years.  There are many educated, competent, and current “unenrolled” Toms, Dicks, and Harriets.  I am one of them.  I never wanted to represent non-client taxpayers before the IRS, so I never became an Enrolled Agent.  I can represent my own 1040 clients at an IRS audit as preparer without an EA credential.

But what about the person who simply buys a tax preparation software program and holds himself/herself out to the public as a “tax preparer” with no training or experience in tax preparation?  Or the guy or gal who has been preparing his/her own return and those of family and friends for years and now wants to make some extra part-time money at tax time by taking on “strangers”?  Or, worst of all, the person who adds tax preparation to his business solely so that he/she can sell “Refund Anticipation Loans” and profit from usurious interest rates and processing fees?

As a knowledgeable, experienced, competent, ethical, and current “unenrolled” preparer I, like Rodney Dangerfield, “get no respect”.  The point of a recognized designation is to set me, and those like me, apart from the “casual”, unethical, or uneducated preparer, and recognize my knowledge, experience, competence, and currency in preparing 1040s.

And the point is to provide the taxpayer public with a way to identify that a person claiming to be a “tax professional” is truly knowledgeable, experienced, competent, ethical, and current in 1040 preparation.

Jason is correct when discussing the already existing voluntary ATA and ATP credential, which I addressed in my December 2013 TWTP post “Here’s A Thought - A Few More Cents on a Voluntary Credential for Tax Pros”.  These credentials have little meaning because “1) no one has ever heard of them and 2) they have no legal backing”.

To be of value a non-IRS administered voluntary RTRP-like designation must be overseen by an independent organization with industry-wide support and recognition and at least “acknowledgement” by the Internal Revenue Service.  And it must be heavily promoted by the overseeing independent organization.

I also agree with Jason that, unfortunately, “no one’s heard of the EA designation either”.  The fault lies with both the IRS and the NAEA.  And with the actual designation itself.  A large percentage of the public erroneously thinks an EA is actually an “agent” or employee of the IRS.

And I do agree that the mandatory IRS RTRP credential, when it was in force, did indeed “dilute” the EA credential.  Many Enrolled Agents sat for and passed the IRS competency exam to get the RTRP designation solely for public relations purposes.  As one EA told me, it is easier to tell a potential client that one is a “Registered Tax Return Preparer”, which is self-explanatory, than to have to explain what an Enrolled Agent is.

If there is to be an IRS-administered RTRP designation I have suggested that it be part of a two-tiered program that includes the current EA designation, which I would change to ETRP (Enrolled Tax Return Preparer).

As I suggest in my ACCOUNTING TODAY editorial “What the IRS Should Do About the RTRP” –

“A preparer, again including CPAs and attorneys, would first apply for and be granted the RTRP designation by way of a test that is limited to tax preparation (more involved than the original basic open-book basic test). Minimum annual CPE in federal tax topics would be required once the RTRP designation was granted. Those who had been designated an RTRP under the former regulation regime would be “grandfathered” into the new voluntary program, so the time and money they spent under the former mandatory RTRP program would not have been wasted.

After a year, an RTRP could elect to take a second test, with emphasis on taxpayer representation issues and other advanced topics, to become an ETRP (Enrolled Tax Return Preparer -- a new title for the current Enrolled Agent) and be permitted to “practice” before the IRS.”

The IRS would need to educate the public on the differences between the RTRP and the ERTP.

Regardless of who oversees the voluntary designation any competency test needs to be more extensive than the truly basic exam that was in effect under the mandatory regulation regime.  And there must be grandfathering for experienced preparers who demonstrate they maintain annual CPE in taxation.

If there is a voluntary RTRP program I personally will not take advantage of it.  I do not accept new 1040 clients, and am actually trying to “thin the herd” in anticipation of retirement, so I no longer have a need to be “recognized”.

So, Jason, does this post change your opinion in any way?  And what about my idea for a 2-tiered program?

TTFN

SAME-SEX MARRIAGE AND THE 2013 NJ-1040

The “What’s New” page in the NJ-1040 instruction booklet, which I referenced yesterday, does not make specific mention of the tax treatment of same-sex married couples.

The only mention I could find of “same-sex marriage” in a quick review of the booklet was in the section explaining Filing Status -

“Any reference in this booklet to a spouse also refers to a spouse that entered into a valid same-sex marriage in another state or foreign nation and a partner in a civil union (CU) recognized under New Jersey law.”

The wording is a bit odd, and I expect that it also applies to a “valid same-sex marriage in New Jersey”, since NJ now apparently allows same-sex marriage - due to a state court's September 27 order that the state must allow same-sex couples to marry and the New Jersey Supreme Court’s denial of the Christie Administration’s request to temporarily prevent same-sex marriages.

So it appears that for the 2013 NJ-1040 legally married same sex couples must file their state tax return as married – either filing joint or separate.

I will be attending the NJ chapter of NATP’s annual “Famous State Tax Seminar” this coming Saturday, and I expect this issue will be addressed at the seminar.  I will report on the event here at TWTP on Monday.

TTFN

WHAT’S NEW FOR NJ STATE TAXES FOR 2013

The 2013 NJ-1040, supplemental forms and schedules (except for the NJ-BUS forms), and instruction booklet are now available at the NJ Division of Taxation website.  Click here.

The NJ-1040 available on the website has a new look.  For one – it is no longer red.  However the format is the same, and there is no change to the tax rates or tax rate schedules.

Here, according to the instruction booklet, is what is new for 2013 -

• Excludable Pensions, Annuities, and IRA Withdrawals (Line 19b). You must enter on this new line the excludable portion of any distribution from a pension, annuity, or IRA to which you made contributions.

• Alternative Business Calculation Adjustment. The percentage used to calculate the Alternative Business Calculation Adjustment on Schedule NJ-BUS-2 increases to 20 percent for 2013 as part of a five-year phase-in. If you have losses in certain business-related income categories, you will use this percentage to calculate an adjustment to your taxable income.

• Girl Scouts Councils in New Jersey Fund. This fund joins the list of charitable funds to which you can contribute when filing your New Jersey return.  

• Change of Address Oval. If you are filing a paper return and your address has changed since you last filed, or if any of the address information on your preprinted mailing label is incorrect, fill in the new “Change of Address” oval on Form NJ-1040 or NJ-1040NR.

• Check Amount Boxes. If you owe tax and are enclosing a check or money order with your paper return, enter your payment amount in the boxes below the signature line on the first page of Form NJ-1040.  

As I no longer live in NJ I no longer get the NJ-1040 package in the mail.  I will need to wait until a client gives me the 2013 package.

TTFN

MORE FINE WHINE ON THE LOT OF THE TAX PREPARER

Just because a tax professional is proficient, or even an expert, in preparing federal and state individual income tax returns, which are government forms, does not mean that he/she knows his/her arse from a hole in the ground about properly preparing any other type of government report, form, or application.

I prepare 1040s, 1040As, and certain state income tax returns.  I have experience, knowledge, and expertise with these returns. 

I do not prepare mortgage or loan applications (government or otherwise), census forms, college financial aid applications, FBAR filings (unless part of a Form 1040), state prescription drug or utility discount or property tax assistance program applications, or any other such forms, reports, or applications. 

I have absolutely no experience, knowledge or expertise with any of these forms, reports, or applications.  And, to be perfectly honest, I do not want any experience, knowledge, or expertise with any of them.  I just do not want to prepare them.  I have enough to do just keeping up-to-date on 1040 preparation.  

The most I can do is provide a client with any needed income information from their tax return.

It is not that I do not want to help my clients.  I just do not know any more about these forms, reports, or applications (probably actually less) than they do.

Please do not ask, or expect, your tax professional to fill out these forms for you.

Some tax professionals do actually have experience, knowledge, and expertise with, and also prepare, some of these types of forms - for example college financial aid applications - for a fee.  If they do I expect they will let you know.  Or you can find out by asking your tax pro if he/she knows of anyone who can help with these other government forms.

OK?

TTFN

AN ETHICAL, AND PERHAPS LEGAL, DILEMMA

Recently I have been pondering an ethical, or perhaps even a legal, question.

Under Obamacare, beginning with tax year 2014 a person or family that does not have proper health insurance coverage is subject to a penalty.  The penalty is not easy to determine – such as $100 per person for the year.  The process of calculating the penalty is truly a convoluted mucking fess.

In “How to Calculate Obamacare Penalties” the tax blogosphere’s MILWAUKEE CPA tries to explain the process.  He follows his attempt at an explanation with the following statement –

“I think there are plenty of American taxpayers not to mention tax professionals, whose heads are spinning at the language, definitions and complications of deciphering the formulas. And obviously more than one formula must be used. In fact, the calculations have to be run three times. Using the term ‘greater than’ and ‘less than’ indicates a comparison and therefore requires the use of more than one formula to determine the correct answer.”

As a tax professional, having to calculate this Obamacare penalty will be a real pain in the arse, and a total waste of valuable tax season time. 

And, if I am to determine whether a taxpayer is subject to this penalty, I will, next tax season (in 2015), appear to have the added responsibility of verifying that a client has, or doesn’t have, appropriate health insurance coverage.  Another total waste of valuable tax season time.

As happened with the IRS’ excessive due diligence requirements for claiming an Earned Income Credit, the tax preparer is once again unnecessarily forced to also be a social worker.

Let’s be honest.  Whether or not a client has health insurance coverage really has absolutely nothing to do with preparing the 1040, other than that the idiots in Congress, who passed Obamacare without actually reading the Act, have made the payment of this complicated and ridiculous non-tax penalty an addition to one’s federal tax liability.

I do not want to have to ask my clients if they have health insurance coverage and determine if the coverage is adequate under Obamacare.  And I do not want to have to tell a client that the fee for his or her 1040 has increased because I had to waste time calculating his Obamacare penalty.

With the Earned Income Credit a client making a claim must pay more to have his or her tax return prepared – but he or she gets an additional refund, or pays less, because of the EIC.  With the Obamacare penalty the client is paying me a higher fee to charge him or her a penalty!  Hey, I can’t submit the bill for the additional time involved to BO. 

 

So where is the ethical or legal dilemma? 

 Whenever I prepare an income tax return with a balance due I do not automatically check to see if the client is subject to a penalty for underpayment of estimated taxes.  If the IRS wants to charge the client this penalty let them do it themselves.  If a client receives an IRS notice assessing a penalty for underpayment of estimated tax I will verify the IRS calculation and attempt to eliminate or reduce it via First-Time Penalty Abatement or by using one of the exception methods available on Form 2210.  But I will never assess a client a tax penalty “upfront” - I leave it to the IRS.

If this situation applied to my own tax return I would never “self-assess” an underpayment penalty up front.  If the IRS wants to charge me a penalty let them do it and I will proceed from there.

My question –

Beginning with the 2014 Form 1040, am I legally, or ethically, required to assess my client a penalty for not having health insurance coverage?  Or can I, as I do with the penalty for underpayment of estimated tax, ignore the issue and leave it to the IRS to determine if a penalty is appropriate?  Will I face a potential preparer penalty if I ignore the issue?

I openly solicit the opinions of fellow tax bloggers and fellow tax preparers.

TTFN

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

Welcome to the first BUZZ of 2014!

* I began my series of Tax Tips for the MainStreet.com TAX CENTER with “Tax Tip - Your Small Assignment for Today”. 

For January and February I should have three (3) Tax Tips per week.

* Following the lead of my 2-part review of the year in taxes, “Top 10” tax topics lists for 2013 were posted by Kay Bell of DON’T MESS WITH TAXES (“10 Top Tax Events of 2013”), Kelly Phillips Erb, the FORBES.COM TaxGirl (“Top Tax Stories Of 2013”), and  The JOURNAL OF ACCOUNTANCY (“Top Tax News Developments in 2013”).

PARKER PUBLISHING expands its list to the “Top 15 Tax Developments of 2013”.

* Russ Fox has announced the “2013 Tax Offender of the Year” at TAXABLE TALK.

An interesting choice.  My continuing annual choice for Tax Offender, the idiots in Congress, were relatively inoffensive this year, compared to the last few years.  They continue to be unable to accomplish anything other than shut down the government, but they were not the biggest tax offender of 2013.

Want to know who has “won” the title for 2013?  Check out the post.

* And Russ starts the year off with an excellent post on keeping track of business mileage titled “Your Mileage Log —Start It Now (2014 Version)”.

He explains the importance of keeping a mileage log if you use your car for business (the highlight is his) –

“Start with keeping an accurate, contemporaneous written mileage log.

Why, you ask? Because if you want to deduct all of your business mileage, you must do this! IRS regulations and Tax Court rulings require this. Written is defined as ink, so that means you need a paper log.”

* Jason Dinesen has identified the “Most-Popular Blog Posts of 2013” – “a rundown of the top-5 most-popular stories” at DINESEN TAX TIMES in 2013, although all actually appeared in a prior year.

I am surprised that none of his same-sex tax issue posts are on the list.

I have never kept track of my most popular posts.  Maybe I should take a look sometime. 

 

* Robert W Wood of FORBES.COM also has a list.  His contains 9 “Savvy New Year's Resolutions IRS Hopes You Won't Keep”.  All of them are good resolutions to make and keep in 2014.

* Jimena Cortes also has some good resolutions, which she outlines in “Year End Musings of a Burbank CPA: A Quick List of New Year’s Resolutions” at the BRIAN STONER CPA BLOG.  

* I talk a lot about the various “designations” of tax preparer.  Jim Blankenship, who wants everyone to GET YOUR FINANCIAL DUCKS IN A ROW, expands the discussion to include other finance and investment initials in “A Note About Designations”, a post from earlier this year that he “tweeted”.

Obviously, when it comes to taxes I do not agree with his suggestion that –

“Your advisor should have a qualified designation as a minimum requirement before you start working with him or her.”

* And Jim reminds us of the “Retirement Plan Contribution Limits for 2014” in another recently “tweeted” earlier 2013 post.

* Tony Nitti of FORBES.COM gives us the word that “Yes Virginia, There Is A Tax Extender Bill In Congress”.

However, as Tony points out “ . . . don’t get too excited; the extensions would only be through the end of 2014, which means we’ll be right back in this will-they-or-won’t-they mess next December”. Remember - the members of Congress are idiots.

On the list to be extended are the “usual extenders”.  But, thankfully, Tony does not include the ridiculous deduction for mortgage insurance premiums (life insurance) in his listing.

* FYI, the instruction booklet for the 2013 Form 1040 is now available at www.irs.gov.  Click here to download.   

THE FINAL WORD-

I skipped back and forth between ABC, CNN, and FOX NEWS on New Year’s Eve (the only time of the year I would ever watch FOX NEWS – I did flip elsewhere when the DUCK DYNASTY idiots appeared).  Nothing very exciting – not interested in the musical acts (except for Billy Joel).  I miss Dick Clark.  Hey, I still remember New Year’s Eve with Guy Lombardo and brother Carmine from the Waldorf Astoria on CBS (1956-1976)!  Surprisingly, CBS does not have a NYE special – just Dave (who is nothing special – BTW, I noticed while channel surfing on NYE that he has stolen Jay Leno’s trademark “Headlines” bit).

I did three years of NYE in Times Square in the early 1970s – but would not go back anymore.  I remember that once the ball had dropped nobody wanted to hang around.  Whether you wanted to move or not you were swept up in a wave and carried toward 42^nd Street.

I used to always know where one of my 1040 clients would be on New Year’s Eve, but not anymore.  He was the technician who actually dropped the ball at One Times Square.

 

TTFN

A REMINDER FOR PERSONAL FINANCE WRITERS

Here is a quick but important reminder for journalists, columnists, and personal finance bloggers who will be talking about taxes this year.

Whenever writing about a tax deduction, credit, strategy, or technique DO NOT give the advice “consult your CPA”.  THIS IS WRONG ADVICE.

The CORRECT ADVICE is “consult your tax professional”.

While an individual CPA may be a tax professional, CPA does NOT = tax professional.

TTFN

HAPPY NEW YEAR!

HAPPY NEW YEAR!