TaxMamas TaxQuips: AskTaxMama

Ask TaxMama Issue 566 - All about Education

Eva Rosenberg — Fri, 03 Sep 2010 10:07:00 -0700

Dear Family,

We were at the IRS Tax Forums last week. You can read all about our experiences in this week’s IRS News. There will be more information next week, as I have time to keep writing. It will just pour out as I sit at the keyboard.

The fun part was meeting so many of you! Some people, it was the very first time, mathing faces to names. Others, we get together year-after-year at these Tax Forums, so we’re old friends. And of course, there were Lucie and Mark, whom I’ve known since my teens. I really enjoyed meeting the spouses and family of students I’ve only known over the computer. These are the people who support my students while they are immersed into the EA Exam class for an entire summer. Life changes can be scary. But the qualitative improvements are worth it in the end. The House of Blues treated us royally, providing a steady stream of tasty food and lively music.

Other people have sent me notes about their experiences with other forms of education. Whether you’re a tax professional or an individual doing your own tax returns, you simply cannot do anything correctly without constant education. You may have noticed all the emphasis on education, classes, EA courses, etc. around here? There’s a reason for that. With the constant stream of legislation flowing from Capitol Hill, if we don’t keep up, there’s no way to prepare tax returns properly.

Aside from my classes and the IRS Tax Forums, you can find outstanding education provided by the tax and accounting associations. My favorites are NAEA (www.naea.org) – and all their local chapters, NATP (www.natptaxcom) and all their local chaptersm and for California updates, Spidell (www.caltax.com). Naturally, the AICPA and their chapters are a great resource, too.

Speaking about education, this week I taught the Online Tax Research class at CPE Link. http://www.cpelink.com/teamtaxmama

Phillip sent me this note that is just so gratifying. “He said the webinar was EXCELLENT, and I received a wealth of information. I will be attending more of them.”

Until you get feedback, you never really know if your efforts hit their target. You have no idea how much work goes into these classes behind the scenes. Team TaxMama has been busy all week finishing up the details on the IRS Levy workshop and the Tax Treaty workshops coming up the week of September 13th . Please come and join us. You’re going to find the classes really helpful AND you can ask all the questions you want!
http://www.cpelink.com/teamtaxmama

You can get a preview of these on YouTube (can you believe it? TaxMama on YouTube???)

Oh that’s right! There’s another YouTube video you might find interesting. Remember a couple of weeks ago I told you about our lobbying excursion? Well the Performance Marketing video, discussing the nexus issue is now up. Take a moment to see how this affects your business – or your website.

Since we’ve got business issues on the table, how far along are you in your bookkeeping this year? If you need help getting caught up and you have a whole bunch of recipts, checks to enter and bank statements to reconcile, consider dumping the whole shebang into a shoebox and send it off to Shoeboxed.com! You’ll find a $10 coupon here. Save $10 on any Shoeboxed Mail-In plan.

This month’s MarketWatch column will help you determine if you owe extra taxes because of this year’s Making Work Pay Credit – and what to do about the penalties. It also explains an issue you need to be concerned about – do you have a tax conflict with your spouse?
http://www.marketwatch.com/Journalists/Eva_Rosenberg

EA Class News

Several people managed to finish up all three parts of the exam while the class was on hiatus last week. Hooray! They are done and have filed their applications with IRS.

More folks are passing Part 2 and Part 1. The list is growing and growing.

The Part 3 started last week. We will be dark all next week due to Labor Day and Rosh Hashanah.
www.irsexams.com

We have new FALL SPECIAL price, to give you Part 3 live and Self-Study on Parts 1 and 2
http://irsexams.com/registration/

And remember, you can get a 10% discount on the EA Class if you register for TaxMama’s Family first.
http://taxmama.com/membership/family-membership/
The discount code can be found in the Family Look-Ups resource.
http://taxmama.com/family-member-resources/

Upcoming Events

Upcoming on CPE LINK – with CPE for CPAs, EAs, and more
http://taxmama.com/earn-cpe-without-leaving-the-office/

September 15 at 10:00 PT – Roger B. Adams, EA (with minor assist from TaxMama)
Understanding Tax Treaties
Learn the fundamental principles of the purpose and application of tax treaties. Why should you care? Because there are over five million Americans living outside of the U.S., over two million of whom live in the Western hemisphere (principally in Canada and Mexico).

The IRS Practice Series
Team taught with Eva Rosenberg, EA, Tom Buck, CPA and Sonya Wilt, EA
Sep 13, 9:00am – 10 Steps to Release IRS Levies on Paychecks or Bank
Oct 8, 9:00am – 10 Steps to Resolving Collection Issues
Nov 1, 10:00am – Hands-on Collections Workshop
Dec 7, 10:00am – 6 Simple Steps to an Offer-in-Compromise (form 656)
Dec 10, 9:00am – The Un-agreed Collection Alternatives and Appeals

http://www.cpelink.com/teamtaxmama

SELF-STUDY at CPE LINK:

>Homebuyers Credits for Tax Professionals
The specific laws related to your clients. How to get it rigth the first time. What to watch out for.
And how to overcome IRS Rejections.

>IRS Practice Series: Overview of Collection Issues – Price = ZERO:
This on-demand webcast provides a broad overview of the collections process. From preparing the Power of Attorney – IRS Form 4868, to freezing the collection activity, to Offers-in-Compromise and Appeals, the course will explore the numerous collection issues a practitioner may encounter and lay the ground work for the IRS Practice Series. Topics will be covered in more detail in the dozen courses of The IRS Practice Series – leading to a Tax Mediary (CTM) Certificate upon completion of the series.
http://www.cpelink.com/teamtaxmama
Other TaxMama News:

At Equifax this week, you learn about the Tax Consequences of Unemployment. Ilyce Glink tells you to Beware Developers Hawking Empty Subdivisions. Dan Solin tells us that Short Selling Is Shortsighted When Navigating Today’s Stock Market. Linda Rey discusses Auto Insurance Options: Collision Coverage Vs. Comprehensive Coverage. The Equifax Experts reveal the truth about Security Freezes, Credit, Identity Theft, and Fraud.
http://www.equifax.com/blog/tax/en_ff

This week’s AccountingWeb.com blog discusses the Roni Deutch prosecution. California State Attorney General Jerry Brown has just filed a lawsuit claiming Deutch is a swindler. You’ve seen her late-night commercials. What do you think? Read some history about another firm in the same business.
http://www.accountingweb.com/blogs/accountingweb/talk-taxmama

In Money Funnies this week we give you a brilliant and fun alternative to a nursing home. Perhaps we should arrange for Medicare and Medicaid to look into this alternative?
http://taxmama.com/category/asktaxmama/money-funnies/

In IRS News, we are privy to the latest set of small business statistics. It seems there were two percent fewer non-farm business in 2008 than in 2007. And so far, the profits for those businesses have decreased by an overall 6%. That’s not as bad as I expected. That means many businesses were doing quite well. Also in this week’s IRS News I start the series on this year’s IRS Tax Forums. You will find two articles today. More next week.
http://taxmama.com/category/asktaxmama/irs-news/

In TaxQuips this week we spend a lot of time on real estate issues. First, we look into the tax effects of selling inherited property. Then we discuss a partnership’s treatment of the sale of 2 properties – which leads to a discussion of what is a real estate dealer. It’s all actually quite interesting. Especially if you want to exercise your mind.
http://taxmama.com/category/tax-quips/

Uh oh! Bad News For Leveraged Partnerships. Leveraged partnerships have been one of the few remaining techniques to dispose of unwanted businesses. Bob Gordon explains the new court decision at the TaxQueries blog!
http://blog.taxqueries.com/

As always, we love your feedback, opinions and ideas.
You are what makes all this fun – and interesting!

Please use the Comments link online.
http://taxmama.com/asktaxmama/ask-taxmama-issue-566

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It helps attract the opposite sex!
Shop at www.taxnerd.net or http://www.zazzle.com/taxmama*

Hugs from your favorite TaxNerd,
http://www.zazzle.com/taxmama*

Eva Rosenberg, EA

Your TaxMama® is watching…out for you.

www.TaxMama.com
www.snurl.com/homebiz-tax
www.TaxMama.com/TaxQuips
www.IRSExams.com
www.TaxNerd.net

==========================————————————————————-
TAX CALENDAR
http://taxmama.com/tax-calendar-2010/————————————————————-
09/15/2010 Partnership Returns Due- FINAL DEADLINE
09/15/2010 Corporate Returns Due- FINAL DEADLINE
09/15/2010 S Corporate Returns Due- FINAL DEADLINE
09/15/2010 Estate & Trusts Returns – Final Deadline; Bankruptcy fillings use the same form
09/15/2010 Individuals, Farmers & Fishermen Pay 3rd Quarter Estimated Tax Payment
09/15/2010 Corporations – 3rd Quarter Estimate Tax payment Due
09/15/2010 Estates & Trusts 3rd Estimated Tax Payment
09/15/2010 Deadline for Corporations and Partnerships to fund SEP-IRAs for previous year.
09/30/2010 Last day to establish SIMPLE plans for current year
09/30/2010 Time for businesses to consider setting up retirement plans
10/15/2010 Net Operating Loss – Eligible Small Business carry back loss
10/15/2010 Personal Returns – FINAL DEADLINE————————————————————-
From TaxMama® to You!————————————————————-

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http://www.widgetbox.com/widget/taxmamas-taxquips-daily-tax-podcasts

Download TaxMama’s 2010 iphone Tax Calendar. My gift to you.
http://snurl.com/taxcalendar

Never miss a tax deadline again!
The customizable tax calendar is here.
Add or Remove dates. Add your own reminders – get alerts.
http://snurl.com/itaxmamapro

Ask TaxMama :: Where taxes are fun and answers are free
www.TaxQuips.com :: The number ONE free tax podcast online
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A Trip to the IRS Tax Forums, Page 2

Eva Rosenberg — Fri, 03 Sep 2010 09:17:00 -0700

Problem Resolution and Focus Groups

Problem Resolution had a facility at the Tax Forum. One of my friends brought a case file with her (and power of attorney forms, etc.). When picking up her registration packet on Monday, she was given a form to fill out with the specifics of her case (and a copy of the power of attorney – Form 2848). By the time she arrived at her appointment on Tuesday or Wednesday, the staff had pulled up relevant information about her case and researched the stumbling blocks. She sat down with them and resolved all the problems in no time at all. This is a case that has been a source of frustration for many, many months. Her clients have a refund coming soon.

Those folks who are smart enough to take advantage of the Problem Resolution services at these Tax Forums and other IRS events generally walk away really happy. This is one of the essential services I would hate to see go away, if IRS stops operating these forums and turns continuing education over to the associations and private vendors like myself.

Focus Groups are another special benefit at these Tax Forums. You get to meet with IRS and Taxpayers Advocate (TAS) staff (and perhaps other groups within IRS) to discuss issues of concern about taxpayers’ and tax professionals’ needs and how the system addresses them. Topics I attended two sessions with TAS – IRS Structure and Small Business Issues.

We ran into a little glitch on the Small Business session. Nine of the ten panelists showed up early, so they wanted to convene the session 15 minutes early. My friend Kris was booked to attend, too. She wasn’t there yet, so I called her cell phone, telling her we were starting early. She never managed to get in – and one of the coordinators was giving me nasty looks. She complained that she had been turning people away, waiting for my friend to show up. We finally started at 9:00 am without Kris. Well…it turned out that one of the people they turned away WAS Kris. Despite her telling them she had RSVPd and was expected. Oh well, it was the last day. Staff was tired.

Humor and irony aside, what did we discuss, or learn?

IRS Structure

The biggest complaint from tax professionals about the current structure of IRS is lack of consistency.
Consistency within the database, consistency of information, consistency in administering tax policy.

Now that IRS has moved away from regional operations to more centralized campuses, we would have expected that all information about a taxpayer can be consisently accessed from anywhere in the system. That’s not the case. When a taxpayer talks to the IRS customer service line, or to any of the collections or examination staff, they are meant to make notations about the contact in the client’s master file. Yet you call back a few days later, and the system doesn’t show the details of the last contact. The taxpayer or Rep has to start all over again, providing information and back-up. It’s time-consuming, frustrating and leads to frayed tempers.

Another problem is that the central exam campus loses paperwork. One person talked about a 9-inch stack of documents they sent in that never got associated with their client’s file. Another about submitting documents that take forever to get linked to the file, in the meantime, the next cycle of notices is being issued.

At present, some notices provide a fax number allowing you to submit documents. However, no one ever acknowledges receipt of those faxes. So you don’t know if your pages arrived, or something didn’t get through, or…

I suggested that IRS take advantage of the current e-services system IRS already has in place. Presently, we can look up client data. But how about allow practitioners to upload their documents related to audits and colletions directly into the client’s file? There would be a date/time stamp on the submissions – and we would know if any pages didn’t arrive.

Small Business Issues

The big surprise here was that the Taxpayers Advocate Service offers services to small businesses. Frankly, except for problems with payroll tax issues, none of us could really think of business instances of contacting TAS.

So the first recommendation was to have TAS put together a guide on what services businesses can count on from TAS.

The question came up about what one thing businesses do not use to their advantage or know enough about? Tax Credits available to small businesses. We recommended that IRS produce a publication putting all small business tax credits into one place.

Other recommendations where information is needed:

..How to properly dissolve a business – especially how to close out the books.
..Clear and usable cancellation of debt formulas, with their effect on tax attributes.

Recommendation on rules to change, clarify or make more fair?

BIG SCARY ISSUE – bookkeepers, staff and anyone dealing with payoll even remotely, can be held personally liable when the owner or officers don’t pay payroll taxes. In fact, even whistleblowers, trying to correct the situation have suddenly found themselves being financially responsible when they tried to get their boss to do the right thing and the boss used the money frivolously instead. Totally unfair and unreasonable. More payroll defaults are expected as the economy gets worse. These rules must change.

Pension rules for small businesses and the administration of the pensions – too complicated. Too easy to run afoul of.

Medical benefits for small businesses. Come on, is it REALLY necessary to jump through the hoops, to hire your spouse, etc. to get medical benefits in your business? Puhlleeeze. Please, make the medical benefits for small businesses easier to claim and to administer.

Gifts – limited to $25 per person per year? This number hasn’t changed since the Revolution. You can barely even cover postage for this amount. Time to update deductible gifts, don’t you think?

The new 1099 reporting requirements. CRAZY! Need I say more?

For more about the classes at the Tax Forum stay tuned. This will continue on Page 3 next week.

Ask TaxMama :: Where taxes are fun and answers are free
www.TaxQuips.com :: The number ONE free tax podcast online
The New TaxMama site :: Where you can comment on this

A Trip to the IRS Tax Forums, Page 1

Eva Rosenberg — Fri, 03 Sep 2010 08:43:00 -0700

Last week, all my tax staff and I took our annual trip to the IRS Tax Forum.

When these forums first started out many years ago, the fee was $25 for three days of education provided by IRS staff and a variety of tax professionals from sponsor associations. It was an amazing value – especially since you could fulfill your entire annual continuing education requirement in one shot – for $25. Wow! OK, so the material was a little basic, with IRS devoting time to propagandize about their service…but still, the contacts you made were excellent. And you did get some insight into the way IRS operates.

A decade or so later, the fee has risen to $206 ($335 if registering late). Still a pretty decent value for three days of classes. Yet Walter J Matisewski, CPA from Rhode Island tells me these fees are not high enough. At a recent NATP conference, Walter heard Karen Hawkins, the Director of IRS’ Office of Profesional Responsibility indicat (or hint) that the IRS is going to be looking at the tax forums in the next couple of years to determine if they should be continued due to the excess cost and time it takes.

Hawkins is right. It’s time to re-evaluate the events. They have become bloated, out of all proportion. This year, there were over 6,000 people at the Las Vegas venue. Picture this. About 1,00 people sitting in a room, on those metal frame banquet room chairs, linked to each other in batches of 20 or 30. All these people squashed together, no room for their books or materials. Struggling to take notes, elbow poked into someone’s ribs. Nary a writing surface in sight.

Thank goodness for the two tall screens, one on either side of the podium, that show you the slides being presented. Unfortunately (since notes are so hard to take), the information on the slides is often not the same as the copies of the slides published in the conference syllabus. Some of the changes are significant – and it would be really good to be able to make note – but the presentations move pretty quickly and people miss some crucial details.

Moving between classes is like facing a stampede. Neither the conference administrators, nor the hotel (who surely must do this regularly, since they have these facilities for thousands of attendees) have worked out a way to get people smoothly into and out of the rooms. In fact, even if you get wise and stay in the same room for two or three classes, you have to fight against the tide of the stampede to get your registration card scanned so you can get continuing education credit for being present. (Has anyone thought of putting scanners in the front of the room, near the stage, instead of just at the entrance, in the back of the room?)

And the distance to conference facility! Whoowee! More people than ever rented those senior-mobiles to get around. One woman told me that she was stuck in the elevator for nearly half an hour trying to back her senior-mobile out before the doors closed. And just wait until you try to use the only two elevators in the facility – filled with two senior-mobiles side-by-side. Anyway, they solved that problem. They won’t be using the Mandalay Bay Hotel next year. They are moving to Cesear’s Palace, where the distances are not nearly as bad.

OK, enough about logistics. What about the services?

Ask TaxMama :: Where taxes are fun and answers are free
www.TaxQuips.com :: The number ONE free tax podcast online
IRS News at TaxMama.com :: Where you can comment on this

Summer 2010 Statistics of Income Bulletin - Shows Drops in Small Business Income

Eva Rosenberg — Fri, 03 Sep 2010 07:27:00 -0700

WASHINGTON — The Internal Revenue Service announced availability of the summer 2010 issue of the Statistics of Income Bulletin, which features sole proprietorship data for tax year 2008.

About 23 million individual income tax returns reported at least one nonfarm sole proprietorship in tax year 2008, a 2 percent decrease since the prior year. Reported profits for those sole proprietorships decreased by 6 percent to $265 billion.

The Statistics of Income (SOI) Division produces the SOI Bulletin on a quarterly basis. Articles included in the publication provide the most recent data available from various tax and information returns filed by U.S.taxpayers. This issue of the SOI Bulletin also includes articles on the following:

Foreign-controlled domestic corporations: Foreign-controlled domestic corporations (FCDCs) filed 64,000 U.S. income tax returns for tax year 2007, accounting for only 1 percent of all U.S. corporation income tax returns filed for the year. Almost half of FCDCs reported profits (i.e., net income) totaling $226 billion, and those companies reported $184 billion in taxable income. FCDCs reported $53 billion in U.S. tax liability for 2007.

Corporate foreign tax credit: For tax year 2006, U.S.corporations reported more than $78 billion in foreign tax credits on about $847 billion in worldwide taxable income.

International income and taxes: Real foreign-source taxable income for corporations with a foreign tax credit rose 43 percent between tax years 2002 and 2004. Likewise, real total receipts of controlled foreign corporations grew 19 percent between tax years 2004 and 2006, while total receipts for U.S.corporations increased by just over 11 percent. Several other trends toward increased foreign activity of U.S.persons, as well as increased U.S.activity of foreign persons, are examined in this article.

The Statistics of Income Bulletin is available for download at IRS.gov/taxstats. Printed copies of the Statistics of Income Bulletin are available from the Superintendent of Documents, U.S. Government Printing Office, P.O. Box 37954, Pittsburgh, PA 1520-7954. The annual subscription rate is $53 ($74.20 foreign), single issues cost $39 ($48.75 foreign).

For more information about these data, write to the Director, Statistics of Income (SOI) Division, RAS:S, Internal Revenue Service, P.O. Box 2608, Washington, DC 20013-2608.

Related Items:

SOI Bulletin: Summer 2010

Historical Tables and Appendix

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www.TaxQuips.com :: The number ONE free tax podcast online
TaxMama's New Site :: Where you can comment on this question

NO NURSING HOME FOR ME!

Eva Rosenberg — Fri, 03 Sep 2010 06:53:00 -0700

About two years ago my wife and I were on a cruise through the western Mediterranean aboard a Princess liner.

At dinner we noticed an elderly lady sitting alone along the rail of the grand stairway in the main dining room. I noticed that all the staff, ship officers, waiters, busboys, etc. all seemed very familiar with this lady. I asked our waiter who the lady was, expecting to be told she owned the line. Instead, he said he only knew that she had been on board for the last four cruises, back to back.

As we left the dining room one evening, I caught her eye and stopped to say hello. We chatted and I said, “I understand you’ve been on this ship for the last four cruises.” She replied, “Yes, that’s true.” I stated, “I don’t understand.” She replied without a pause, “It’s cheaper than a nursing home.”

So, there will be no nursing home in my future. When I get old and feeble, I am going to get on a Princess cruise ship. The average cost for a nursing home is $200 a day. Checking for reservations at Princess or other cruise lines, I can get a long term discount and senior discount price of $135 per day. That leaves $65 a day for:

1. Gratuities which will only be $10 per day.

2. I will have as many as 10 meals a day if I can waddle to the restaurant or I can have room service (which means I can have breakfast in bed every day of the week.)

3. Princess has as many as three swimming pools, a workout room, free washers and dryers and shows every night.

4. They have free toothpaste, razors, soap and shampoo.

5. They will even treat you like a customer, not a patient. An extra $5 worth of tips will have the entire staff scrambling to help you.

6. I will get to meet new people every 3 to 14 days.

7. TV broken? Light bulb need changing? Need to have the mattress replaced? No problem! They will fix everything and apologize for your inconvenience.

8. Clean sheets and towels every day and you don’t even have to ask for them.

9. If you fall in the nursing home and break a hip, you are on Medicare. If you fall and break a hip on the cruise ship, they will upgrade you to a suite for the rest of your life.

10. Who knows, if I am widowed at the time, there may even be an opportunity for a new romance – or several.

Now hold on for the best! Do you want to see South America, the Panama Canal, Tahiti, Australia, New Zealand, Asia or name where you want to go?

Any number of cruise lines will have a ship ready to go. So don’t look for me in a nursing home, just call shore to ship.

P. S. And don’t forget, when you die, they just dump you over the side at no charge.

Courtesy of Doug Thorburn, EA in Northridge, CA
In honor of and memory of Floyd B. Greenman, EA – the man who used to send us so much humor.
He never lived in a nursing home either!
(Floyd, we already miss you!)

Please remember to send us your humor.
Clean jokes preferred.

Read more Money Funnies here:
http://taxmama.com/asktaxmama/money-funnies/

Ask TaxMama :: Where taxes are fun and answers are free
www.TaxQuips.com :: The number ONE free tax podcast online
The New TaxMama site :: Where you can comment on this

Ask TaxMama Issue 565 - Thank YOU

Eva Rosenberg — Fri, 20 Aug 2010 09:47:00 -0700

Dear Family,

THANK YOU.

Did I remember to tell you just how much I appreciate you – your friendship and support, your comments and even, sometimes, your silences? Well, THANK YOU.

We don’t always remember to show our gratitude or appreciation. So, many years ago, I created a holiday for this very purpose. (You’ll even find mentions of it online) Thanks for All the Gifts Week. Today’s Thank You letter will tell you all about how to use for your own benefit, too.
http://taxmama.com/asktaxmama/happy-thanks-for-all-the-gifts-week/

Last week I told about the new series of courses I am starting to teach with Tom Buck, CPA and Sonya Wilt, EA. We developed these courses in response to the many requests from people who are in tax trouble and need guidance. This is the first phase of the project – training more tax professionals to help you. You – and the Tax Pros can see a sample and overview of the new series by scrolling down to the bottom of this page and selecting “IRS Practice Series: Overview of Collection Issues” – price = $0!
http://www.cpelink.com/teamtaxmama

The second phase of the project is develop a resource where people in trouble can meet and help each other. Having kind of a hot-line for folks who’ve all faced horrible tax messes due to the nastiness of divorce, the new business quicksand of payroll taxes and taxes confusing beyond words, and just plain tax anxiety overload! Sonya, Eva and Tom (SET – hey, how do you like that acronym?) are going to provide complimentary resources for you, a place where you can congregate anonymously with others and compare notes and share ideas and successes – and there will be some inexpensive hands-on courses to help you fill out the forms yourself when you simply cannot afford to pay the thousands that tax professionals must charge you for the intense number of hours involved in collections defense. The graduates of the Tax Practice Series (above) will be able to help you – we’ll encourage them to donate some hours of Pro Bono guidance. There’s not much at the new site – but Tax Debt Anonymous coming this fall.
http://www.taxdebtanonymous.com/

Tax Holidays are ending, but there may still be some for a while. Check to see if you have back-to-school savings in your state.
http://taxmama.com/tax-quips/tax-holidays-coming-up/

This month’s MarketWatch column will help you determine if you owe extra taxes because of this year’s Making Work Pay Credit. Look for it next week. Or…I might just write about something new and interesting that we learn at the IRS Tax Forums – and tell you about the Making Work Pay Credit elsewhere.
http://www.marketwatch.com/Journalists/Eva_Rosenberg

Other interesting articles on MarketWatch Tax available to you include Amending Your Tax Returns to Get Refunds; Can’t Pay Your Taxes – Tips on what you can still do…and more.
http://www.marketwatch.com/taxes

EA Class News
Wow! We finished up Part 2 last night. Everyone was jubilant and ready to party. In fact, some will join me in Las Vegas next week to do just that. Lots of people have been passing Part 1. A few people have gone ahead and tackled Part 3 – and passed! Our first brave soul, Greg, took Part 2 and PASSED!

The Part 3 class will start on August 31 when we return.
www.irsexams.com

We have new FALL SPECIAL price, to give you Part 3 live and Self-Study on Parts 1 and 2
http://irsexams.com/registration/

Upcoming on CPE LINK – with CPE for CPAs, EAs, and more
http://taxmama.com/earn-cpe-without-leaving-the-office/

September 1 at 12:00pm PT
Doing Tax Research Online for Free
Identify reliable sources of tax information,
how to use them and understand them.

September 15 at 10:00 PT – Roger B. Adams, EA (with minor assist from TaxMama)
Understanding Tax Treaties
Learn the fundamental principles of the purpose and application of tax treaties. Why should you care? Because there are over five million Americans living outside of the U.S., over two million of whom live in the Western hemisphere (principally in Canada and Mexico).

The IRS Practice Series
Team taught with Eva Rosenberg, EA, Tom Buck, CPA and Sonya Wilt, EA
Sep 13, 9:00am – 10 Steps to Release IRS Levies on Paychecks or Bank
Oct 8, 9:00am – 10 Steps to Resolving Collection Issues
Nov 1, 10:00am – Hands-on Collections Workshop
Dec 7, 10:00am – 6 Simple Steps to an Offer-in-Compromise (form 656)
Dec 10, 9:00am – The Un-agreed Collection Alternatives and Appeals

http://www.cpelink.com/teamtaxmama

SELF-STUDY at CPE LINK:

>Homebuyers Credits for Tax Professionals
The specific laws related to your clients. How to get it rigth the first time. What to watch out for.
And how to overcome IRS Rejections.

At Equifax this week, you learn about the new Tax Increase for Wealthy Americans: Will You Pay More? Ilyce Glink tells you How to Save More Money at Home. Dan Solin gives you 10 Golden Rules All Investors Should Follow. Linda Rey tells you all about Insuring a Vacant Home. Equifax Expert Diane Moogalian gives you profound about about – Credit Report FAQs: What Do I Do When a Family Member Dies?
http://www.equifax.com/blog/tax/en_ff
This week’s AccountingWeb.com blog discusses the very unpopular new Preparer Licensing rules.
http://www.accountingweb.com/blogs/accountingweb/talk-taxmama
These rules are designed to protect taxpayers like you – so pay attention to what your preparers are saying. They are talking about it everywhere – passionately.
http://taxmama.com/forum/taxquips/new-irs-rules-for-tax-preparers/

In Money Funnies this week we give you some sarcasm about leglislative brilliance.
http://taxmama.com/category/asktaxmama/money-funnies/

In IRS News, we learn that IRS is doing away with paper payment systems as much as they can. Businesses with regular payment requirements, like payroll taxes, estimated payments, etc. will all have to go electronic next year. IRS provides explanations and alternatives. TaxMama gives you a tool to use for last-minute e-payments if you have to make a payment before your EFTPS account is set up.
http://taxmama.com/category/asktaxmama/irs-news/
In TaxQuips this week we start the week with Bill, who is really angry about the new rules for tax professionals. Look at what everyone else has to say about this – passion! Same-sex Marriage is in the news again. TaxMama explains the tax issues. Chris challenges TaxMama to provide tax-savings tips for wage-earners. I meet the challenge! We end the week with Karen whose father died. She wants to know if the settlement she’s getting is taxable.
http://taxmama.com/category/tax-quips/
Have you always wanted to understand how a Balance Sheet works? Or how to do a tax return when you work in two or more states? Bruce McFarland explains, at the TaxQueries blog!
http://blog.taxqueries.com/author/brucemcfarland/
http://blog.taxqueries.com/

As always, we love your feedback, opinions and ideas.
You are what makes all this fun – and interesting!

Please use the Comments link online.
http://taxmama.com/asktaxmama/ask-taxmama-issue-565

TaxNerd gear makes a bold statement year-round.
It helps attract the opposite sex!
Shop at www.taxnerd.net or http://www.zazzle.com/taxmama*

Hugs from your favorite TaxNerd,
http://www.zazzle.com/taxmama*

Eva Rosenberg, EA

Your TaxMama® is watching…out for you.

www.TaxMama.com
www.snurl.com/homebiz-tax
www.TaxMama.com/TaxQuips
www.IRSExams.com
www.TaxNerd.net

==========================————————————————————-
TAX CALENDAR
http://taxmama.com/tax-calendar-2010/————————————————————-
08/31/2010 Time for businesses to consider setting up retirement plans
09/15/2010 Partnership Returns Due- FINAL DEADLINE
09/15/2010 Corporate Returns Due- FINAL DEADLINE
09/15/2010 S Corporate Returns Due- FINAL DEADLINE
09/15/2010 Estate & Trusts Returns – Final Deadline; Bankruptcy fillings use the same form
09/15/2010 Individuals, Farmers & Fishermen Pay 3rd Quarter Estimated Tax Payment
09/15/2010 Corporations – 3rd Quarter Estimate Tax payment Due
09/15/2010 Estates & Trusts 3rd Estimated Tax Payment
09/15/2010 Deadline for Corporations and Partnerships to fund SEP-IRAs for previous year.
09/30/2010 Last day to establish SIMPLE plans for current year
09/30/2010 Time for businesses to consider setting up retirement plans
10/15/2010 Net Operating Loss – Eligible Small Business carry back loss
10/15/2010 Personal Returns – FINAL DEADLINE————————————————————-
From TaxMama® to You!————————————————————-

Follow TaxMama®’s Tweets – http://twitter.com/TaxMama

Download TaxMama’s 2010 iphone Tax Calendar. My gift to you.
http://snurl.com/taxcalendar

Never miss a tax deadline again!
The customizable tax calendar is here.
Add or Remove dates. Add your own reminders – get alerts.
http://snurl.com/itaxmamapro

Ask TaxMama :: Where taxes are fun and answers are free
www.TaxQuips.com :: The number ONE free tax podcast online

Making IRS Payments

Eva Rosenberg — Fri, 20 Aug 2010 09:32:00 -0700

Proposed Regulations Expand the Use of Electronic Payment System and Discontinue Paper Coupons Next Year

WASHINGTON — Consistent with a Financial Management Service initiative announced in April of this year, the IRS today issued proposed regulations to significantly increase the number of electronic transactions between taxpayers and the federal government.

The proposed regulations (REG 153340-09) would eliminate the rules for making federal tax deposits by paper coupon because the paper coupon system will no longer be maintained by the Treasury Department after Dec. 31, 2010. The proposed regulations generally maintain existing rules for depositing federal taxes through the Electronic Federal Tax Payment System (EFTPS).

Using EFTPS to make federal tax deposits provides substantial benefits to both taxpayers and the government. EFTPS users can make tax payments 24 hours a day, seven days a week from home or the office.

Deposits can be made online with a computer or by telephone. EFTPS also significantly reduces payment-related errors that could result in a penalty. The system helps taxpayers schedule dates to make payments even when they are out of town or on vacation when a payment is due. EFTPS business users can schedule payments up to 120 days in advance of the desired payment date.

Information on EFTPS, including how to enroll, can be found at www.eftps.gov or by calling EFTPS Customer Service at 1-800-555-4477.

Some businesses paying a minimal amount of tax may make their payments with the related tax return, instead of using EFTPS. More details regarding taxes required to be deposited using EFTPS, dollar thresholds and other specific requirements are in the proposed regulations.

[TaxMama Note” Be sure to take a look at this last-minute payment option if you have not yet set up our EFTPS account.

Additional Information:

Publication 4132, which explains the process of enrolling and paying via the Internet

Publication 966, The Secure Way to Pay Your Federal Taxes for Businesses and Individuals

Publication 4169, Tax Professional Guide to Electronic Federal Tax Payment System

Publication 4320, EFTPS Toolkit, which contains PDF and descriptions of EFTPS educational materials and their intended target audience, and is for use by tax professionals and financial institutions to assist in educating their clients on the benefits of EFTPS.

Publication 4275, Express Enrollment for New Businesses

Electronic Payment Options Home Page

Ask TaxMama :: Where taxes are fun and answers are free
www.TaxQuips.com :: The number ONE free tax podcast online
IRS News :: Where you can comment on this

The Sheer Genius of Politicians

Eva Rosenberg — Fri, 20 Aug 2010 08:19:00 -0700

In a bid to stem taxpayer losses for bad loans guaranteed by federal housing agencies Fanny Mae and Freddy Mac, Senator Bob Corker (R-Tenn) proposed that borrowers be required to make a 5% down payment in order to qualify.

His proposal was rejected 57-42 on a party-line vote because, as one Senator explained, “passage of such a requirement would restrict home ownership to only those who can afford it.”

I can’t add anything to this.

Courtesy of Blakely Sanford, EA in San Diego, CA

Please remember to send us your humor.
Clean jokes preferred.

Ask TaxMama :: Where taxes are fun and answers are free
www.TaxQuips.com :: The number ONE free tax podcast online
Money Funnies at TaxMama.com :: Where you can find more humor

Happy Thanks for All the Gifts Week

Eva Rosenberg — Fri, 20 Aug 2010 07:04:00 -0700

Is there someone you forgot to thank?
Is that Thank You card burning a hole in your pocket?
Is Mom pestering you about calling your aunt?
How long have you meant to thank him for that locket?

Well, for all you procrastinators,
you ‘I meant to do it’ divas,
you folks with good hearts and poor memories – This one’s for YOU!

Annually, the third week in August is dedicated to saying “Thank You.” This year, the celebration spans August 16th through August 22th.

What’s a Gift?

At first glance, what things come to your mind when you see the name of this holiday? Do you see brightly wrapped packages with glittery bows? Do you see an envelope with a card, but more importantly, a generous check?

Or do you see a caring friend or relative stepping in to help when you’re overwhelmed? How about an acquaintance or mentor who takes time out of their busy day to guide you through a problem? Then, there’s the clerk at the dry cleaners who went out of her way to get you something on time – or the service manager at your auto place who fixed things you didn’t even realize could have killed you. What about the teacher who spent extra time putting together interesting lesson plans so you’d want to learn? Remember the client or customer who came by with gift because they were so pleased with your work? What about that grocery clerk at the end of the day who smiles and banters with you and lightens your load?

Taken for Granted?

Often, you don’t think about the family members who are always there for you. The people who call you regularly so yo never feel you’re alone. Or the boss who gives you regular paychecks, on time, every month – or the bonuses that you feel are your right! Do you think about the IRS agent or other tax agent who went out of their way to help get you out of a tight fix? Have you thought about your co-workers who cover for you when you’re late, or give you a hand with your projects? How did you thank your spouse, lover or parents when they made sure you had food in the fridge, utilities always operational, clean clothes. In fact, did you remember to thank your parents for all that they did? Your home, your education, perhaps even your car?

When was the last time you said “Thank You” to all the people who make your life so good?

Often, you mean to, but time seems to pass so quickly, have you noticed? All of sudden, ‘I’ll write that card next week’ has turned into two or three months. If you send it now, it would be embarrassing. Or would it?

Oodles of Gift Occasions

Thanks For All The Gifts Week was created by me, Eva Rosenberg, at this time of year for several reasons.

First, By the end of August, you’ve lived through Valentine’s Day, Purim, Easter, Passover, Secretary’s Day, Mother’s Day, Father’s Day, graduation, Fourth of July, and your country’s annual celebration, most birthdays, many weddings and showers, lots of new babies, lots of successes and celebrations.

By this time of the summer, if you’ve had the luxury of having one (say a big THANK YOU for that privilege), your enthusiasm and energy has wilted in the heat and the humidity. School hasn’t started yet, neither has the new job. The High Holy Days of the Jews and aren’t due for a little while. It’s still a long way to Thanksgiving, Christmas and New Years…when, of course, you want to position yourself to get more gifts, right?

Second, one of the lovely traditions of Judaism is that before the High Holy Days, people are supposed to seek forgiveness from those they’ve wronged or hurt. But there is no tradition for you to remember to say “Thank You” to those who always treat us well.

Third, doing something nice, for no apparent reason, will make both you and recipient of your thanks feel great. (And since you’ve been feeling guilty for neglecting them for so long, just imagine the burden this will lift from your shoulders!) After all, there is never a bad time to do something nice, is there?

For Every Thing There is a Season

Well, that makes this the perfect time to catch up on all those ‘Thank You’s.’

The people you send them to aren’t expecting these expressions of gratitude. They’ll be charmed and delighted to hear from – when you don’t have your hand out. In fact, they may have been harboring resentments towards you because of all the things they’ve done for you, that you took and took as though you were simply entitled. (Read Dear Abby and Ann Landers sometimes – you’ll see some of the pain and anger expressed by parents, aunts, uncles, grandparents,...)

This is also a great time to catch up on those birthday gifts you meant to send out on their birthday. Ok, so it’s three, or six months late. Won’t that make them like it even more? It could even revive relationships!

Good Pranks

In fact, when I was in high school, I had a boyfriend whose birthday was in December. I missed it. And later, we faded apart. In the middle of the summer, I saw something that reminded me of him. So, I wrapped it up and sent it off with a birthday card. Naturally, he called, bewildered about my timing. It opened a door between us and we got closer than we ever had. In fact, it led to a marriage proposal. (Only he was just one evening too late.)

Over the years, I’ve done this to people, even people I saw every day. They’re always surprised, think I’m nuts, but go about feeling great all day. You never know when an unexpected card or gift can change a person’s life.

Buried Treasure

So, take this week to think about the people who’ve made you feel good all year. Send them a card, a note or a letter. You could send them a virtual card, but it has no permanence. Give them something they can save and cherish.

Maybe, like me, they’ve kept every personal card and letter they’ve ever received. To me, those are my most precious treasures. They are the history of all the love in my life – from friends, family, lovers, clients, and especially my husband…who seems to have squirreled away all the cards I’ve given him, too. I fell in love all over again when I found his stash one day.

And to you, my friends, I say thank you for reading my Ask TaxMama columns every week or my TaxQuips columns every day – my occasional Tweets. I thank you for your notes and comments, even when you disagree with me.

Just hearing from you spices up my day!

With warmest gratitude,

Eva Rosenberg.

Ask TaxMama :: Where taxes are fun and answers are free
www.TaxQuips.com :: The number ONE free tax podcast online
TaxQuip Archive :: Where you can comment on this

Ask TaxMama Issue 529 - Lucky Friday the 13th

Eva Rosenberg — Fri, 13 Aug 2010 09:07:00 -0700

Dear Family,

Welcome to Friday the 13th.
The days dawns bright and sunny. The squirrels are still quietly asleep before their busy day of frolicking on their trellis jungle jim and spitting out walnut seed pieces on my car. The birds are twittering quietly, still asleep. Soon, they’ll be up chattering passionately about their latest victory over the neighbor’s cat or local raccoon. It’s a nice, cozy, sleepy morning, and I’d love to go back to bed and snooze a little more.

But, there’s so much to do! You need today’s serving of taxes, laughter and education. Some of you will be joining me for today’s Webinar for Writers, Bloggers and Journalists at 10:00 am. That PowerPoint still has to be finalized.

McGraw-Hill wants my edits on Small Business Taxes Made Easy by next week. There’s still a story to include that I haven’t quite written. I’m doing the final edits and clean-up on the 100% Home-Based Business Tax Cuts – which you’ll have this month. I’ve got to read all about new legislation, finish writing new classes,...and…so much more. Who has time to sleep?

One of my students last night was saying she’s working around the clock. My brother-in-law, who finally replaced his truck’s engine this week (on his own – do you know how heavy and engine is?), seems to burning the candle at both ends. And then there are people who have no work to do? Hmmm….they ought to listen to Jim Kukral’s video, where he tells the story of the brilliant way a woman found to get herself a job.
http://taxmama.com/asktaxmama/its-all-about-pain/

We’re very excited to announce a new series of classes for you on CPE Link. I will be teaching it with Tom Buck, CPA, who has many years of successful experience securing Offers in Compromise for his clients, and helping people get out of tax debt. Also joining us is Sonya Wilt, with her new Enrolled Agent designation, after graduating from TaxMama’s EA class. Sonya has been working with my friend Tom for quite some time and has become quite an expert in her own right.

The IRS Practice Series will start next month Overview of Collection Issues, which will be a free class. You will find the entire list of 2010 classes below.
Tax Holidays may be coming your way. Check to see if you have back-to-school savings in your state.
http://taxmama.com/tax-quips/tax-holidays-coming-up/

This month’s MarketWatch column outlines some of the new laws that may affect your wallet, and taxes. There have been a lot of laws passed lately – and more to come.
http://www.marketwatch.com/Journalists/Eva_Rosenberg

Other interesting articles on MarketWatch Tax this week include Tips for Summer Workers, Estate Tax Debates, Turn Your Traffic Ticket Into a Deductible Donation – that’s a new concept!
http://www.marketwatch.com/taxes
EA Class News
One of our students found some errors in the wording on the Part 1 of the Exam. I brought this to the attention of IRS and Prometric. They have reviewed all the questions in the exam and concur. There were some errors. All those whose scores have been affected have been notified. Some (few) people will now learn that they passed. You can thank TaxMama and Wayne M. Davies

One more week and we’re done with Part 2 of the exam. Several people are starting to take Part 3 – and passing.
www.irsexams.com

Yup. You can get a 10% discount on the EA Class if you register for TaxMama’s Family first.
http://taxmama.com/membership/family-membership/
The discount code can be found in the Family Look-Ups resource.
http://taxmama.com/family-member-resources/
Upcoming Events

August 13, 2010 10:00 – noon PT
Taxes for Writers, Bloggers and Journalists
If you’re earning money from your website, your articles or your blog, you must take this class.
http://taxmama.com/business/web-workshop-for-writers/

August 18, 2010 at 8:00 am – 9:00 am PT – RESCHEDULED!
The next Tax Roundtable is next month. Will you be joining us?
At the last meeting – we covered a lot topics – you can tune in, the replay is here:
http://taxmama.com/category/tax-roundtables/
Just scroll down to July’s event.
Upcoming on CPE LINK – with CPE for CPAs, EAs, and more
http://taxmama.com/earn-cpe-without-leaving-the-office/

September 1 at 12:00pm PT
Doing Tax Research Online for Free
Identify reliable sources of tax information,
how to use them and understand them.

http://wwww.cpelink.com/teamtaxmama

SELF-STUDY at CPE LINK:

Homebuyers Credits for Tax Professionals
The specific laws related to your clients.
How to get it rigth the first time. What to watch out for.
And how to overcome IRS Rejections.

http://wwww.cpelink.com/teamtaxmama
Other TaxMama News:

At Equifax this week, you get tax tips for commercial real estate owners; Dan Solin tells you the 6 Biggest Estate-Planning Mistakes You Can Make; Ilyce Glink asks, Is Now the Right Time to Buy a Vacation Home along the Gulf of Mexico?; Linda Rey reports on Insurance Agents vs. Insurance Websites: Where Will You Get the Better Buy? ; and Robin Holland from the Equifax Credit team tells you if Equifax can decline your credit application – and why.
http://www.equifax.com/blog/tax/en_ff
Have you tried out the really nifty tool I showed you in the AccountingWeb.com blog? You get to see how your tax liability would look under three different tax plans.
http://www.accountingweb.com/blogs/accountingweb/talk-taxmama

In Money Funnies this week will make you groan. It’s full of puns. Really good, bad puns.
http://taxmama.com/category/asktaxmama/money-funnies/

In IRS News, we learn 9 ways to deal with tax debt.
http://taxmama.com/category/asktaxmama/irs-news/
In TaxQuips this week we start the week with Alex, working as a workship leader, among other things. How does he handle this taxes? Help! Rob is trying to apply a special depreciation-related process/ Needs help.
Karol has an untaxed internship and wants to know how to pay estimated taxes. Kris Hix, EA and Tracy Bauman, EA pitch in and help. We end the week with Terri who wants to help someone inherit or receive some propery worth over a millin bucks.
http://taxmama.com/category/tax-quips/
Have you always wanted to understand how a Balance Sheet works? Or how to do a tax return when you work in two or more states? Bruce McFarland explains, at the TaxQueries blog!
http://blog.taxqueries.com/author/brucemcfarland/
http://blog.taxqueries.com/

As always, we love your feedback, opinions and ideas.
You are what makes all this fun – and interesting!

Please use the Comments link online.
http://taxmama.com/asktaxmama/ask-taxmama-issue-564

TaxNerd gear makes a bold statement year-round.
It helps attract the opposite sex!
Shop at www.taxnerd.net or http://www.zazzle.com/taxmama*

Hugs from your favorite TaxNerd,
http://www.zazzle.com/taxmama*

Eva Rosenberg, EA

Your TaxMama® is watching…out for you.

www.TaxMama.com
www.snurl.com/homebiz-tax
www.TaxMama.com/TaxQuips
www.IRSExams.com
www.TaxNerd.net

==========================————————————————————-
TAX CALENDAR
http://taxmama.com/tax-calendar-2010/————————————————————-

08/16/2010 Employers Make Monthly Payroll tax deposit on the 15th of each month
08/31/2010 Time for businesses to consider setting up retirement plans
09/15/2010 Partnership Returns Due- FINAL DEADLINE
09/15/2010 Corporate Returns Due- FINAL DEADLINE
09/15/2010 S Corporate Returns Due- FINAL DEADLINE
09/15/2010 Estate & Trusts Returns – Final Deadline; Bankruptcy fillings use the same form
09/15/2010 Individuals, Farmers & Fishermen Pay 3rd Quarter Estimated Tax Payment
09/15/2010 Corporations – 3rd Quarter Estimate Tax payment Due
09/15/2010 Estates & Trusts 3rd Estimated Tax Payment
09/15/2010 Deadline for Corporations and Partnerships to fund SEP-IRAs for previous year.
09/30/2010 Last day to establish SIMPLE plans for current year
09/30/2010 Time for businesses to consider setting up retirement plans
10/15/2010 Net Operating Loss – Eligible Small Business carry back loss
10/15/2010 Personal Returns – FINAL DEADLINE

Ask TaxMama :: Where taxes are fun and answers are free
www.TaxQuips.com :: The number ONE free tax podcast online
Ask TaxMama :: Where you can comment on this