Tax Guru – Ker$tetter Letter

Helping real people win the tax game.

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Archive for July, 2013

How IRS spends our money…

Posted by taxguru on July 16, 2013

Some more good jabs at the Dims from this week’s episode.




Posted in humor, NewsBusted, video | Comments Off on How IRS spends our money…

Posted by taxguru on July 15, 2013

From Jay Leno:

Now that marijuana is legal in the state of Colorado, in Denver they’re talking about taxing it up to 35 percent. Suddenly those drug cartels don’t seem so greedy anymore, do they?


The U.S. government had a $116.5 billion surplus in June. Officials say they are now conducting an investigation to see what went wrong.

A new poll shows that 26% of Obama voters think that Tea Partiers are more dangerous than radical Muslims. So… how many people have been killed by exploding Constitutions? 
Now open to the public: China’s “New Century Global Center”, which is described as the “largest freestanding building in the world”. Oddly, it’s not a storage warehouse for US Treasury Bonds. 
 President Obama has delayed implementation of Obamacare for businesses until 2015. Yes, much easier to implement when there are fewer businesses left to implement it. 
In Tanzania, First Lady Michelle Obama said that living in the White House is like being in a “really nice prison”. Yeah, if the inmates had an unlimited budget. 
The White House has ordered that Greek yogurt be added to school lunch menus. For the rest of the nation, Obama has ordered a Greek economy.
In an embarrassing incident, the IRS accidentally exposed thousands of Social Security numbers on its web site. And once they run Obamacare, it’ll be your colonoscopy video.
A new report says that Osama bin Laden wore a cowboy hat to avoid detection from US drones. Obviously they don’t work as well against IRS audits.


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Multi-State Taxes

Posted by taxguru on July 13, 2013


Hello Kerry,

I was in full time Real Estate and you came and done a Tax Seminar on Tax Free Exchanges. I still have me Real Estate License, but work full time now as Industrial Lumber Salesman for a company that is based out of  Texas. My question is this I live in  Arkansas and I was hired to be a salesman for the Oklahoma plant. I have an office at the plant and chose to work there most of the time, but I could work from home or really anywhere I have a phone and a computer.  My dilemma is this our company is not set up to do Arkansas State Tax withholdings, and do not want to get set up because they are concerned about being subject to additional franchise taxes.

My problem is they are paying all my State Tax to Oklahoma, and I get about a $50.00 refund from Oklahoma and owe Arkansas about $2000.00 in state tax every year. I do not think I have should have to pay state tax in 2 states, and would like to know if there is a legal way out of paying state tax in 2 states. If nothing else could I set up a checking account in Texas for my check to be Direct Deposit to and then transfer the money to a local account online.?

Please Advise…




There is a mechanism for dealing with your situation that you and your professional tax preparer appear to be overlooking.

If your employer is treating you as an OK employee, you need to file a non-resident OK tax return.

When you file your AR tax return, you are supposed to report all income, including the OK wages.  However, to prevent paying two state income taxes on the same OK income, you are allowed to claim a tax credit on the AR return for the income tax that you had to pay to the State of OK.  To document this, you need to attach a copy of the OK tax return to your AR return.

Your professional preparer should have know this because it is a very common situation with people working across state lines.

It looks like it would actually be worth filing amended AR tax returns for the past three years to claim the credit for the OK taxes paid.  Any tax return older than three years can’t be amended.

Good luck.  I hope this helps.

Kerry Kerstetter




I appreciate your advise, let me ask are you taking on any new clients. I would be interested in having you do my taxes.


Beginners QuickBooks 2013 Training Videos



Posted in StateTaxes | Comments Off on Multi-State Taxes

Stuck In Debasement

Posted by taxguru on July 13, 2013

Another excellent Politickle from F.R. Duplantier:

 Treat your people as if they were knaves,
 Make them crave what an animal craves,
 Confiscate all their wealth,
 Micromanage their health,
 And you’ll soon have a nation of slaves.



Posted in humor | Comments Off on Stuck In Debasement

Show Biz Tax Breaks

Posted by taxguru on July 11, 2013

The panel on The Jeselnik Offensive discusses tax deductions for rappers and comedians.



Posted in Deductions, humor, video | Comments Off on Show Biz Tax Breaks

Posted by taxguru on July 10, 2013

From Argus Hamilton:

Barack Obama was in Africa when he ordered ObamaCare delayed for a year despite the law’s mandate to begin this year. It’s not legal for him to do this without Congress. However, until the Egyptian Army can make it across the Atlantic, he’s pretty much got carte blanche.


Eliot Spitzer shrugged off his hooker scandal Monday and announced he may run for New York Comptroller. He saw Anthony Weiner is leading for New York mayor. New York doesn’t just screw the taxpayer, they leave the money on the dresser along with a commemorative photo.


Egypt’s President Morsi was arrested by the army Friday. The president issued laws by decree, he ignored the constitution, and he blamed his predecessor for the economy. Most impressive is how it only took Egypt a year to establish an American-style democracy.


The White House said Monday that people may register for taxpayer-subsidized health care on the honor system. The expense could bust future budgets without tax hikes. The administration prefers to shovel money into a problem because it burns cleaner than coal.


New York’s disgraced former governor Eliot Spitzer announced Sunday he’ll run for New York City comptroller. He got caught paying call girls four thousand dollars a session in a four-star hotel. If he’s smart he’ll tell that to every voter who needs welfare and housing.


President Obama decided to allow people to sign up for taxpayer-subsidized ObamaCare health coverage without having to show proof they have no other coverage. We’ve always done well under the honor system. At the voting polls during the early days of the Republic, each voter had to give his word as an Englishman that he was an American.


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Can IRS be properly controled?

Posted by taxguru on July 9, 2013

Nominee for Tanzania ambassador helped plan disclosure of IRS scandal –  It’s long been common practice to award ambassadorships as rewards for favors or for large campaign donations (aka Bribes).


Sen. Grassley challenges IRS over claim $70M in bonuses was mandatory –  It all depends on the definition of “mandatory.”


IRS chief moves to cancel $70M in bonuses –  Wouldn’t it be a crying shame if the IRS employee union would use this as an excuse for all IRS personnel to go out on strike until their bonuses are restored.


Group: IRS mistakenly posted thousands of Social Security numbers on website –  Of course, this was purely accidental.


I.R.S. Scrutiny Went Beyond the Political –  NY Slimes tries to muddy the waters surrounding IRS abuses.


Lookout List’ Not Much Broader Than Originally Thought, Contrary to Reports –  Debunking the Dims’ scam story that left wing groups were subjected to the same scrutiny as the patriotic ones were.


IRS Agents ‘Accidentally’ Discharged Guns 11 Times, Possible Injuries – Something to look out for, as more IRS agents are issued more weapons.


Union-tied group slips IRS scrutiny –  No surprise here.  BHO has never hid the fact that he considers himself to be in the pocket of unions.


Proposed bill would fire federal employees who refuse to testify –  Another reason for a union led strike.  How dare any government employee be deprived of the same right to tell lies as those in the White House have always had.  To be practical, how many employees would be left if all of the liars are dismissed?


The IRS’s Best Friend in Congress –  That Mensa reject Elijah Cummings does his best to cover up IRS sins, even using the Race Card to accomplish that.


Watchdog recommends ‘apology payments’ for IRS victims, says agency fought oversight –  Don’t anyone plan on ever receiving any such payments.  It’s going to be impossible to get any of the IRS criminals actually fired for their crimes, much less any other admission of guilt, such as a payment of money.


Second IRS staffer pleads the Fifth –  More on the doofus in this video.


IRS supporters 0-for-3 on putting scandal to rest –  They, along with the MSM, will continue to try their best at downplaying the IRS crimes.


Congressman: IRS Scandal Will Widen to Leaks –  Let’s hope so.


House Republicans push to slash IRS budget by 24 percent, cite abuses and sequestration – Another case of I’ll believe this when I see it. 


Eric Cantor plans anti-IRS push – I’m sure he’s already used to having all of his tax returns audited and understands the consequences of messing with the IRS Hornets’ Nest.


Yoo-hoo! IRS! Hire me! – Celia Rivenbank wants some of the money IRS spends on its conferences.


Exit the IRS Stage Left – Looking at some of the IRS criminals and those who have used them to harass their enemies. 


The Cincinnati lie – Trying to pretend nobody else (ie in DC) knew about IRS abuses of Tea Parties.


Posted in IRS | Comments Off on Can IRS be properly controled?

Posted by taxguru on July 8, 2013

From Argus Hamilton:

President Obama praised Nelson Mandela in South Africa Sunday. Proper decorum was maintained. President Obama refers to Nelson Mandela by his tribal name Madibah, while South Africans call President Obama by his rap star name, Biggie Deficits.


The New England Patriots halted sales of Aaron Hernandez jerseys Monday after his murder charge. His crimes against the state didn’t stop at homicide. For months he was under investigation by the IRS for being involved in a organization called The Patriots.


From Fred Thompson:

Nancy Pelosi said people should celebrate Obamacare this July 4th. Right. Is there even a rocket big enough to lift all 20,000 pages of regulations?



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IRS Coverup Continues…

Posted by taxguru on July 3, 2013

From Drudge:

FBI Still Hasn’t Contacted IRS-Targeted Tea Party Groups About Investigation –  And they never will as long as arch-criminal Eric Holder is in power at Justice.

Lois Lerner’s price for testimony: Immunity –  As expected, none of the IRS criminals will be punished for their crimes.


Posted in Crooks, IRS | Comments Off on IRS Coverup Continues…

NewsBusted Jokes

Posted by taxguru on July 2, 2013

Some more good ones from this week’s episode.


Posted in humor, NewsBusted, video | Comments Off on NewsBusted Jokes