Tax Guru – Ker$tetter Letter

Helping real people win the tax game.

Will anyone stop our King?

Posted by taxguru on March 3, 2015

If only we had a system of government where there were checks and balances against an out of control monarch/dictator.

Obama “Very Interested” In Raising Taxes Through Executive Action

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PITA Clients

Posted by taxguru on March 1, 2015

I’m sure every tax pro can relate to having had a few clients like in this excerpt from Broad City.  This CPA handled it brilliantly.

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IRS investigating itself?

Posted by taxguru on February 27, 2015

Some people think that there might be some actual criminal action against Lois Lerner and her accomplices in the IRS because of the recent release of her supposedly lost emails. I can’t be as optimistic about this happening because, as these articles explain, it’s the IRS’s own Inspector General who is threatening legal action. The odds of one branch of the IRS prosecuting another branch are fairly slim.

32,000 emails recovered in IRS targeting probe amid allegations agency chief may have lied  (FoxNews)

IRS watchdog reveals Lois Lerner missing emails now subject of criminal probe  (Washington Times)

Treasury IG: IRS Never Asked for Backup Tapes of Agency Emails (Breitbart)

IRS Withheld Document From Inspector General Showing Existence Of IRS Email Tapes (Conservative TreeHouse)

Posted in Crooks, IRS | Comments Off

Posted by taxguru on February 26, 2015

Lois Lerner Received $129K in Bonuses – for doing such an excellent job harassing enemies of the bHo Regime.

 
Will Only Suckers Pay The ObamaCare Tax Penalty? – Some more agreement with my assessment of this penalty as being optional.

 

 

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Posted by taxguru on February 25, 2015

From Jimmy Fallon via NewsMax:

The White House announced that many Obamacare customers got the wrong tax information and may have to refile their taxes this year. It’s pretty inconvenient — mainly just remembering what you lied about the first time you filed your taxes.

From Seth Meyers via NewsMax:
Boston’s city council is considering increasing its alcohol tax. The plan would raise an estimated $900 million billion trillion.

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Posted by taxguru on February 24, 2015

As the bHo Regime and their DemonRat comrades in Congress succeed in converting more and more privately owned wealth to government owned, it will never be enough to satisfy them.

First Time Ever: Federal Tax Revenues Top $1 Trillion Thru January; Gov’t Still Runs $194B Deficit - The “drunk sailors” in DC can always spend money faster than they can steal it from the taxpayers.

Eye of the beholder…

IRS says budget cuts forced agency to reduce number of tax audits to lowest level in decade – Is this a good thing or a bad one?


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Posted in audits, IRS | Comments Off

It’s Alive!

Posted by taxguru on February 23, 2015

A perfect name for it.

ObamaCare’s Frankenstein Tax Monster Awakens

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Why it’s best to pay your own property taxes & insurance…

Posted by taxguru on February 23, 2015

For decades I have been warning people about the dangers of relying on lenders to handle their property tax and insurance payments via impound accounts. Many people have the false impression that using a lender impound account is more convenient than having to pay these bills themselves.  I have seen far too many cases where lenders have missed payments on both property taxes and insurance.  This is even more likely to occur when a loan is sold to a different lender than you started with, or lenders merge, which happen with almost all loans.

Besides the risk of losing one’s house for unpaid property taxes, as in this recent case, there are other pitfalls to depending on lenders.  I have frequently had to be the bearer of bad news and explain to clients that they can’t deduct payments to their lenders’ impound accounts if the property taxes weren’t actually paid to the County.  Under IRS rules, the lender is considered to be an agent of the taxpayer, and if they are still holding onto that money as of December 31, it’s the same as if nothing was paid for the taxes.

In a similar vein, even with lenders who pay the property taxes, they normally make those payments at the latest possible date. This removes a very common tax planning technique, which is to make the next year’s property tax payment in December of the year before in order to get the tax benefit a year earlier.  With no impound account, you have the freedom to do this.  With an impound account, you are SOL and the lender will laugh in your face if you request an early payment of the taxes.

An even more extreme danger is the nonpayment of homeowner’s insurance.  I have seen cases where homes have burned to the ground and then the homeowners discovered that their insurance coverage had lapsed because the lenders hadn’t sent in the premium payments, even though all of the loan payments had been made on time.

I am fully ware that in some cases, such as with a low down payment (usually less than 20%), lender impound accounts are mandatory in order to obtain the loan. However, in cases where it is optional, borrowers should definitely opt out of the impound account and pay their own taxes and insurance.  What many borrowers don’t know is that, for cases where a loan began with a mandatory impound account, that can be changed after a few years, as the borrower’s equity grows to over the 20% level.  This will sometimes require an appraisal or Realtor CMA to verify; but is well worth it to get away from the risky situation of having lenders in control of your fate with taxes and insurance.

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Posted in lenders, realty | Comments Off

Kings don’t have to justify their actions…

Posted by taxguru on February 23, 2015

Neither do those who consider themselves to be above the law, as bHo has consistently demonstrated is his mindset.

White House that promised transparency refuses to cooperate with IRS probe

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Posted by taxguru on February 21, 2015

From Argus Hamilton:

Internal Revenue Service officials complained Tuesday that budget cuts were severely restricting the ability of the IRS to provide service to taxpayers. It’s frenetic. IRS agents are so buried by work they automatically referred the rapper Ice Tea for an audit just assuming he was a conservative group.

Hillary Clinton agreed to testify to the House committee on the Benghazi attack but the House can’t get State’s records. The president’s in the clear. President Obama can prove he knew nothing about a terrorist attack on the consulate, he was too busy not knowing anything about the IRS scandal.

Posted in humor, IRS | Comments Off

 
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