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Here's one we can all probably agree on: lock all the legis-vermin (state and federal) in separate rooms, with sharp pencils, LOTS of erasers, and NO calculators. Keep 'em in there (oh, all right, we can feed them) until they prepare their OWN tax return correctly. Teach them how complicated it is and how many gyrations real people have to go through to "voluntarily comply." Plus, all the time they are locked away, they can't make anything *worse*. Looks to me like a win all 'round.

Funny story. AZ legisvermin decided to add a line on the state income tax form to report use tax for internet purchases. Evidently, when the lawmakers were confronted with having to list all of THEIR OWN amazon and eBay purchases, they changed the reporting requirement retroactively in the middle of the tax season, claiming it was too much of a burden to look up all those receipts. I think Catherine is on the right track

Just like when media people assumed that a candidate did not pay any taxes of any kind for 20 years because of a loss on one return. This is my face when anybody, any profession besides this one, either party, tries to explain taxes. They can't. They don't know.

If the issuer won't ask his accountant to correct the 1099, then all you can do is wait for the IRS Notice. About 10 years ago I had a Appliance Repairman receive a 1099 for $ 60,000 when it should have been $ 6,000. When we received the IRS Notice, I attached a copy of the 1099 with a letter of explanation which the IRS accepted. I didn't try to get this 1099 corrected because it was from a very large corporation. Ideally you would explain the potential tax impact to your client and he would go to the issuer who would ask his accountant to fix the problem. If that doesn't happen, then I would ask your client to get a signed letter from the issuer explaining the discrepancy. This should be on your client to pursue. Your job is to explain to your client what will happen if the 1099 isn't corrected.

I read the article. It was like watching someone trying to chew the cap off a child proof bottle. I don't think the media is going to be able to write correctly informative articles without having at least a basic understanding of how the current tax code works. And, they don't. So, we should be prepared for a lot of amusement and amazement.

You need to make your dog a .0001% partner.

And if they did write a correct article, the reaction of the general public would be this

Yes, I've been leaving it as long as the topic stayed with taxes. "Don't make me pull this car over..."

More conjecture I have no time for. I am making plans to spend time with my Grandson. Now THIS is important!!

I haven't delved deeply into it, but it seems an LLC taxed as a partnership (or S corp) would have a special flat 15% tax rate on the pass thru income. So if you're in the 25% bracket, you'll save money if the cost of filing an entity return doesn't exceed the tax savings. BUT, what about S corp salaries and who would a sole prop add as a partner, etc. etc. The devil is always in the details.

After contacting them they will ask for a licensing/security/up front good faith payment. Your bank and account info would suffice so you don't have to write a check. They make is so easy.

If I prepared an incorrect 1099, I would correct it. I'm not sure if the issuer prepared the 1099, or his accountant prepared it. Since issuer is having you call me, the accountant, I'd fix the thing. No way would I suggest a work around if I have been asked to fix something. I can't get over the aversion some people have to correcting things. If my client told me wrong, I'd charge an appropriate fee. If my client prepared the 1099 himself, I'd charge a really appropriate fee. If I'm handed an incorrect form and it's time to fish or cut bait, I use DANRVAN's option #3. Cause people are lazy, apparently, and I don't have time to dink around with begging for forms to be corrected. If my client has not been able to get that done before he gets here, let's move on.

You have three choices. 1. Write a letter to the issuer and point out the penalties under section 6721 for failure to file a correct 1099. 2. Follow the accountant's advice and wait for your client to receive a CP 2000 for you to respond to. 3. Report the incorrect amount and back it out of the tax return. For example, if the client is an independent contractor, report the correct amount on his schedule C. Then open up a second schedule C where you report the incorrect amount as income and as an other expense to zero it out. Option 1 will not only add cost to your client, but possibly ill will to one of his clients. Option 2 also adds extra cost and the potential coronary by your client when he receives the CP 2000. Option 3 allows you to file a correct tax return and disclose the incorrect 1099.

The issuer of the incorrect 1099 should prepare and file a corrected 1099; I do not hold much hope that the 'note' will be effective lynn

I just got this email (no links). And no, I don't think I'll be contacting them. And just as a reminder to y'all, I am not a "sir". Sir, We are a construction machinery manufacturing company, with several design patents. Shenzhen Machinery Limited sales service network covers all around the world and our products are mainly sold to such regions as Japan, Mainland China, Thailand, Taiwan, USA, and Canada. We have many customers spread all over in the USA, and we think it will be more beneficial for us to establish our corporate presence there. This is why we are reaching out to you. We require your help with establishing our "branch" in the USA. We will like you to represent our interests, by acting as our Financial Administrator over there in the USA. We feel that as a knowledgeable professional, you have actionable professional insights that can bring our business to the next level in the USA, as we Plan to minimize investment expenses and tax. We wait to hear from you with respect to moving this subject matter forward. We thank you for your anticipated co-operation. Best Regards, Ms. Shan Kiyoko Public Affairs Director Shenzhen Machinery Limited 2-gokan 21-4, Kita Ueno 2-chome, Taito-ku, Tokyo 110-0014, Japan Tel: 81-3-45400923 Fax: 81-3-45400924

I keep waiting for the other shoe to drop on personal property taxes, now that we're expensing everything 2,500 or less. The MD form asks for 'expensed' personal property. Hold on while I find that list. I'm sure it's here somewhere.

This use tax line has been on the Ohio returns for many years. A few years ago the then tax commissioner said the Dept. of Tax was hiring additional agents just to audit returns for this added (or omitted) tax. So I have my clients state yes or no using the verbiage on the return. And you cannot efile Ohio without marking yes or no. But I will not make that choice for my clients. Yes, it is a royal pain to keep track but I manage.

Catherine, Watch out......You may end up dealing with this fellow....

At least the English and grammar are way above the usual standard. Sure it isn't legit? /s

CT doesn't show the cents on returns, like the federal. But, I've seen them compute using the cents, so the refunds are to the penny instead of to the nearest dollar. I've also seen the feds truncate amounts instead of round off. Wish they'd make up their minds. Hard to hit a moving target.

Mass had that law on the books since the original sales tax law was passed back when I was a toddler or something. No one bothered. So they put it on the Form 1, and have a "safe harbor" calculation. We used to use that a lot before Amazon started charging sales tax. We've gone back to mainly leaving it blank - because people DON'T track, and the safe harbor figure is wildly skewed in favor of the state. One of my persnickety clients who used to owe $75+ a year in use tax (pre-Amazon tax collection) went through last year and came up with less than $3 in tax due. We still ask - but don't worry about it as much when we get the blank stares and "I dunno" as answers.

Tell me how to separate tax LAW being changed can be separated form Politics? Has everyone become the ultra-sensitive snowflake? Politicians are the ones to make the tax law changes.

There is no "free lunch". Except for Wimpy....

Uh oh! We're getting dangerously close to a politics thread! Danger, Will Robinson, danger!

I would be happy to see the lower tax rates for 'qualified' dividends and capital gains taxes go away. Maybe we could get brokerage 1099s in early February instead of late March, like the good ole days.

It will be a race to the bottom if graduated tax rates go away. Can you imagine the reaction of someone whose entire income is taxed at 25% instead of 10% because she earned $1 too much? I would like to see a lot of the social engineering rewards and punishments be taken out of our tax code, though.

That will be sweet if that law passes. Do you own a house? NO Do you have a letter from your church for donations? NO. "Then you will get the standard deductions... please put away that CVS bag full of receipts"

The usual offer from ATX quoting the best price of the year. This year they apparently are not sending a CD. This year's increase is even greater than ones in prior years amounting to right at 10% for the package I use. Next year I am planning an across the board increase for almost all clients. I look into other software options from time to time but never find one better price wise than ATX. I have never packed my returns with stuff (calculations and all that stuff) but next year will begin doing so as apparently many clients feel it really means they are getting their monies worth even though they have no clue what all that stuff means. Despite my concerns about diy returns the business was fairly stable this year and I had all I should really take on as I about wore myself out. I sincerely appreciate all the responses to my posts during the season as so many help clarify these occasional thorny problems.