Tax Guru – Ker$tetter Letter

Helping real people win the tax game.

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.

Posted in humor | Comments Off

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?


TaxCoach Software: Finally! Plain-English Tax Planning That Builds Your Business!


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

Posted in ObamaCare | Comments Off

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.

QuickBooks Premier 2015 Software - Enjoy $120 off! Save Time & Get Organized!

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

Posted in IRS | Comments Off

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

GIGO – ObamaCare Style

Posted by taxguru on February 20, 2015

Dealing with all of the new forms and other info we need to report on tax returns is confusing enough with accurate data. It makes things worse when the source documents are screwed up, as seems to be the case for hundreds of thousands of  people we know about.

Covered California Sends Out Nearly 100,000 Tax Forms Containing Errors, Others Deal With Missing Forms

Obama administration sent 800,000 HealthCare.gov customers incorrect tax forms 

Posted in ObamaCare | Comments Off

IRS in CYA mode?

Posted by taxguru on February 12, 2015

IRS apologizes for seizing bank accounts of small businesses – IRS not happy about the recent publicity surrounding their stealing money from people.

Posted in IRS | Comments Off

Song about taxing the evil rich…

Posted by taxguru on February 12, 2015

This week’s song on the Capitol Steps’ website is a tribute to bHo’s desire to steal as much income from the evil rich so that he can buy votes and shower gifts on campaign contributors.

Download the MP3: If I Tax A Rich Man

Posted in humor, Music | Comments Off

Posted by taxguru on February 11, 2015

Please don’t leave! Connecticut tax agency keeps close watch on state’s super-rich - They are correctly aware that many victims of financial rape will eventually move to lower tax areas, such as down here in tax free Florida.

 

Remember When Taxes Used to Cause Revolutions? – Ah, the good old days, when people didn’t just bend over and allow the various levels of government to have their way with them.  It’s been quite a while since the Howard Jarvis led property tax revolt of Proposition 13 in California in 1978.  We need more of that kind of spirit.

 

Johnson asks how 80,000 ‘lost’ Lerner emails were recovered by IRS watchdog – The IRS coverup continues.

 

Is the IRS’s budget problems motivating them to outright steal money from taxpayers?
Small business owners forced to battle IRS over seized bank accounts – This is actually part of the insane and completely unconstitutional “War On Drugs” that allows law enforcement agencies to literally steal money and assets from people on the basis of mere suspicion of drug involvement. It tosses out the normal “Innocent until proven guilty” aspect of our legal system.
However, in the cases cited in this article, it appears that people are bringing this problem onto themselves by trying to avoid the filing of IRS Form 8300 for large cash transactions by obviously breaking them up into amounts just below the $10,000 threshold.  It makes them appear to be hiding something nefarious and is like waving a red flag for IRS to come and hassle them.  If the money is legitimately theirs and they can show that it all came from legal sources, they shouldn’t be afraid to just deposit the full amounts and have the 8300 forms filed.

 

 

Posted in IRS | Comments Off

 
Follow

Get every new post delivered to your Inbox.

Join 236 other followers