Tax Guru – Ker$tetter Letter

Helping real people win the tax game.

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Archive for January, 2010

Let’s all try 71% worth…

Posted by taxguru on January 7, 2010

It’s long been a stupid cliche when athletes and others promise to give an impossible 110 or more percent effort towards their goals.  I found it funny that IRS is only promising to try to answer 71 percent of calls from the tax paying public and that is considered a great goal. 

If you are lucky enough to have your phone call answered after their expected average wait time of 12 minutes, there is then the issue of whether you will get the correct answers.  The odds of that happening are most likely going to be the same as in the past; 33% to 50%.  It’s like a lottery.

Of course, the double standard is firmly in place.  If you were to file a tax return with the stated goal of being 71% accurate in your figures, guess what hell you will be faced with.

If that were acceptable, the fine print info above the taxpayer’s signature on Page 2 of the 1040 would need to be modified to read as follows.

Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief, they are 71% true, correct, and complete. Declaration of preparer (other than taxpayer) is based on 71% of all information of which preparer has any knowledge.

There are a couple of lessons to be learned from this IRS announcement.

1.  Those people who foolishly try to save a few bucks by not utilizing the services of professional tax preparers will be risking their necks even more than ever.

2.  This same philosophy of striving for a 71% rate of answering the phone is what we can expect for our health-care after that entire segment of our society is socialized and IRS employees are put in charge of administering our medical treatment. A 29% death rate will be considered as a success.

 

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

 

Posted in IRS | Comments Off on Let’s all try 71% worth…

IRS Regulating More Tax Preparers

Posted by taxguru on January 6, 2010

H&R Blockheads. The IRS wants to save you from your rogue tax accountant. – Being subject to extensive regulation and continuing education requirements as a CPA, I can’t share this writer’s sentiment that IRS is overstepping its bounds by requiring other “mom and pop” tax preparers to be regulated and take update courses.

I do share the writer’s sentiment that the trend towards having the State and Federal governments prepare tax returns for people is not a positive development because of the extreme conflict of interest that entails.

Posted in IRS, preparers | Comments Off on IRS Regulating More Tax Preparers

Urban legend still floating around…

Posted by taxguru on January 5, 2010

I have addressed this hoax previously, but it is still being passed around the net, as in this email I recently received from a client in the PRC.

Subject: Senate Bill 2099

Kerry
Senate bill 2099 will require us to put on our 1040 federal tax form all firearms that we have or own. Do you know anything about this?

My Reply:

That’s a hoax that’s been floating around the net for about a year now. The 2009 forms are in place and they don’t have anything for reporting firearms.

Snopes.com has a good explanation of it.

In case you haven’t seen a copy of the actual 2009 1040, here is a blank one you can look at. You’ll see that there is absolutely nothing about firearms.

Kerry

Follow-Up:

Thank you for the info.



Posted in scams, TaxForms | Comments Off on Urban legend still floating around…

Changing a corp tax year

Posted by taxguru on January 3, 2010

I’ve been teaching myself how to improve the vidcasts, and here is the first one with the semi-new style.  The built-in hyper-link to my article on corp fiscal years doesn’t seem to be working, so here it is.

 

 

 

Posted in corp, video | Comments Off on Changing a corp tax year

Posted by taxguru on January 3, 2010

Cash-rich real estate investors trigger bidding wars, frustrate other buyers – I knew that this eventually had to happen, as the large pools of investor money moved from the intangible and often phony assets in the stock markets to the real tangible assets such as precious metals and real property.  This is a very good sign during these extremely confusing economic times.

 

Posted in realty | Comments Off on

Posted by taxguru on January 2, 2010

Lack of Estate Tax in 2010: Now Cheaper to Die? – Others are picking up on what I predicted back in 2001; that unless the law is changed, there will be a lot of mysterious deaths in 2010 as some heirs become overly aggressive in their desire to avoid the Death Tax.

 

Posted in DeathTax | Comments Off on