Unread Content 30 Days

And Margaret, it doesn't have to be the end of your fax line. You can go to an e-fax type service (I use RingCentral) and even keep the same number. I am not sure how often you will need a fax line - they seem to be going the way of the dinosaur but occasionally it is helpful in communicating with IRS or filing some paperwork that is not set up for e-file.

I have Chrome open to chrome://settings/help. This page automatically checks the version to ensure you are up to date.

This is all so true. Funny thing is that I still have a desktop calculator and do still have check tapes attached to the office copy on occasion (just in case). BTW, is my nearly perfect new electric Smith-Corona, slightly dusty, now considered an antique?

Married Tennessee taxpayers own a house in Memphis, mortgage free with no interest. Also owns a primary residence in Nashville, encumbered with mortgage and interest. For purposes of illustration, assume the taxes on both houses, interest on their primary residence, and contributions total $29,001, meaning their itemized deductions are next virtually without tax benefit. Nashville is a boom town, and Memphis has become the crime capital of the USA, so they can't sell their house in Memphis. Nobody wants to buy in Memphis, everyone wants out. So......here is their plan. Put the Memphis house into an LLC and begin renting it out. The LLC deductions will be property taxes, depreciation, repairs, and little of anything else. They would like to also deduct interest but have no mortage. So they can borrow money against the Memphis home, and with the proceeds pay off the Nashville mortgage which was not helping them anyway taxwise. Since the Memphis house in the LLC is now mortgaged, can the LLC deduct the interest expense? (assume the LLC makes the choice of entity, for example a partnership). Or will the "tracing" rules prevent it? My guess is yes they can...but would love to hear from some of you...

Amending the Social Security Act requires 60 votes, so there's no way they'll include it in the bill.

I wasn't commenting about your post, I was just making a general comment about the almost daily warnings that I see online.

Ok, well this one came to me in an email that I get directly from Malwarebytes. Whatever version, users should check to make sure the software is UTD.

. For Android, the latest version is 136.0.7103.126, released on May 23, 2025. On iOS/iPadOS, the latest version is 137.0.7151.34, released on May 21, 2025. Frankly, there are so many so-called emergency announcements it's hard to know what's an emergency or what's clickbait

Google released an emergency update for Chrome to fix a severe vulnerability. If you don't have Chrome set to update automatically, or if you close it infrequently, you should check to make sure you are up to date with the latest version. "The update brings the Stable channel to versions 136.0.7103.113/.114 for Windows and Mac and 136.0.7103.113 for Linux." https://www.malwarebytes.com/blog/news/2025/05/update-your-chrome-to-fix-serious-actively-exploited-vulnerability?utm_source=iterable&utm_medium=email&utm_campaign=b2c_pro_oth_20250526_mayweeklynewsletter_paid_v4_1_174792831761&utm_content=Update_your_Chrome

OK, since we're reminiscing, let's talk about the calculator-only period. A desktop calculator, lookup tables, and rolls of calculator tape - especially the "check tapes" stapled to my office copy of the return. I don't think anyone has mentioned the days of putting a tiny staple at the top of 3 pages with carbon paper inserted between them. Make a mistake and then it was a decision between starting all over or dabbing a tiny bit of White Out on each page, then blowing on it to dry before starting to write again. Then along came the NCR (No Carbon Required) paper sets. It was pricey, but a a real time saver. You just had to be sure not to lick your fingers when handling/sorting/collating the sheets or you'd get a sore throat. (I still wonder what that chemical in the NCR paper might have done to my airways and digestive system) My first copier used rolls of chemically coated paper & liquid toner. You could almost always guarantee a spill when you refilled the reservoir. It also had a really weird smell. (Again, wonder if there were any problematic chemicals in all that stuff.) Or maybe the above-mentioned volatile organic compounds (including formaldehyde, benzene and toluene) acted as a preservative - I'm still here.

Someone calculated that only 15% of the Social Security collect is the dollars that you paid in, with another 15% from your employers and the rest is earnings. Hopefully they adjusted for inflation, but that's how we got to 85% taxable. And the tax on Social Security helps keep the fund solvent, which means that the IRS must forward the tax paid on Social Security to the Social Security fund.

This was the reason for the $4,000 increase in the standard deduction for seniors.

If my memory is correct, when I started with Parsons I would have to mail, yes, mail a 3.5" disk to Parsons and they would efile the return on the disk.

Remember when your IRS tax book would come in the mail. And it had your Social Security numbers on the "Return Sticker" Oh how times have changed.

There should be no tax on Soc. Sec. at all. Hopefully they will amend it in the senate. But I doubt it.

I too started with Parsons Technology then switched to Saber

I prepared taxes with pen and paper in the 60's and 70's. When the first computerized returns came out, I worked for another accountant and continued my pen and paper returns at home. When E-filing came out, I invested in a computer and printer. I filed everyone efile and ate the cost because nobody wanted to pay $15 to efile their return and I didn't want to lose my Efin. My first computerized program with efile cost $89 and was a wonderful program, Parsons Technology, which was soon gobbled up and spit out by Intuit. I have never used an Intuit product since. I then discovered Saber, which did me well for several years until it became ATX, which I am still using. My prices have not increased in relation to the cost of the program. I have kept careful track of all income and the first year as a business, I grossed $709. I felt like a Pro. As I approach the end of my career (who knows when); things are much different, but I still feel like a Pro.

I prepared returns with pen in the late 80s while volunteering on the VITA program. Those days people were claiming dependents that didn't exist or that were in other countries because the rules didn't require SS numbers. I remember that I prepared taxes when full credit card interest was deductible if you itemized deductions. The next year only 2/3 were allowed and the last year only 1/3 of interest was allowed before it was eliminated as itemizable. A couple of years later, SS number were required but you could right something like 205(c) in the social security. The following year, you could write "applied for" and the next year you were required SS number without any excuses. Those were years when Papa Bush was president. I remember one time that I pen prepared a return and when ready to sign, the tax payer pulled out credit card statements and qualified to itemize. You guessed it, I had to start from scratch. I stopped preparing taxes for some years because I knew too many people were lying on their returns. I only did my own return and about 5 returns from my friends who wanted to report correctly and I know their situation. When I came back everything was computer prepared. When the IRS open the gates to efiling, I was the first one to embrace it and I efiled all returns except the ones that cannot be efiled. Even though, everything was printed from a computer program, the IRS was giving paper EA exams. You had to pass 4 exams which were administered once a year. On day one you took two exams, and the next day you took the other two. If you missed any of the them, you had to wait a whole year to retake. Luckily for me, I passed them, but I didn't pay the "$35" for the form and I didn't become enrolled agent. two years later, I took the exams on computers which is much easy because you can take one at a time and your convenience. I was about to retire when the current standard deduction was going to revert back and personals exemptions were going to kick in but luckily for me, the current tax credits and standard deduction will stay. A lot of things have changed and I don't miss most of the things that are gone. The only one I don't like coming down the pipe is "deductibility of interest paid on American cars". I also don't like "no tax on overtime" because people will not understand that the only portion not taxable the .5 of the 1.5 received on overtime hours worked. I wonder if the fact that tips will not be taxable will make the server position more attractive... that will be perfect since ICE will hit that position the most.

This was (and is) a one-way trend for document corroboration. Before 1987 a taxpayer could pretty well claim any itemized deductions with no documents required. Even before then, the "TEFRA" act (1982) began the issuance of 1099s to recipients for services rendered. Nowadays look at the itemized deductions. Mortgage interest deductions are supported by 1098s, education credits supported by 1098-T, student interest supported by 1098-E, etc. Not to mention the standard deductions are so large most people cannot itemize anyway. Also, in earlier days, tax rates were higher, such that tighter control of expenses could justify lower rates (which were broadly announced to delight the public) And we also have the thinly disguised effort to make auditors of taxpayers via the 8867. Although the IRS denies it - the mechanics of correctly navigating through the 8867 really means much of the busiwork of an audit has been transferred to the preparer. Self-prepared returns don't require an 8867. And the legislation making its way through congress does nothing to reverse the trends.

"Before 1987, taxpayers could claim dependents by simply listing their names. The Tax Reform Act of 1986 changed that, requiring taxpayers to include the SSNs of dependents over the age of five when filing their taxes. The following year, seven million FEWER dependents were claimed on individual federal income tax returns, resulting in a $2.8 billion increase in tax revenue."

This is a copy of a post on the OSCPA Board from Tuesday: "I have a client that received an IRS notice dated April 30, 2025, regarding not filing their 2025 tax return. It is LTR 112C. This is frankly baffling Have others received this notice? Is this a harbinger of things to come with the IRS going forward? Are we going to have to be constantly responding to notices that are totally bogus, while the IRS customer service declines due to a reduction in force? Is this what AI will look like at the IRS?"

Wow!

Client whose spouse died in 2024 and for which we filed a final joint return showing the husband's date of death. She received a letter this week saying they have no record of receiving the tax return for the tax period ending Dec. 31, 2025. It also refers to payments or credits for 2025 of $XXX. ???

The AICPA says that you shouldn't give investment advice. They listed a number of cases where CPA's were sued and lost for giving investment advice or for recommending specific investment advisors. I know my Professional Liability Insurance Carrier specifically excludes investment advice.

I agree with Abby Normal on the crypto investing. As for your second question, if you are simply suggesting that the client considers an IRA and are explaining the effects it would have on their tax return, then you are not giving investment advice.