Jump to content
ATX Community

Yardley CPA

Donors
  • Posts

    1,279
  • Joined

  • Last visited

  • Days Won

    12

Contact Methods

  • Website URL
    http://
  • ICQ
    0

Profile Information

  • State
    PA
  • Gender
    Male

Recent Profile Visitors

8,833 profile views
  1. We're fortunate that our area provides free shredding days throughout the year. Various not for profit groups in our town and surrounding towns hold these events. In some cases, our state representatives and government entities also hold them. I look for when these events are offered and use them for my shredding needs. A local shredding vendor also has set hours where they offer shredding services for $10 a box.
  2. Yup...January 24th it is. https://home.treasury.gov/news/press-releases/jy0553 I sent my clients an email informing them that I would start to prepare returns in early February. Given tax forms should flow in by January 31 (if we're lucky), I like to wait even further. Over the last few years, some forms have flowed in up until mid-February or later. But you have to start sometime, so I'll begin around February 5 this year. I also informed them we should be ready for delays this year. What normally would take the IRS a couple of weeks to a month to process, and then issue refunds, could take longer this year. Last year, several clients waited months, literally. So who knows what this year will bring.
  3. I selected "auto renew" when I donated a few years ago. At least I think it was auto renew. That makes the process very easy and automatically charges my card each year. Eric...thanks for all you do.
  4. As Catherine stated, no problem with anyone dropping off information. I only discuss client information with the client, but if a "daughter, neighbor, or friend" wants to drop it off for them, so be it.
  5. Sending everyone good wishes for a happy and healthy 2022 and a tax season filled with "easy" returns.
  6. Does Tax Dome offer website templates? I currently do not have a website but have been considering it. The site I am looking to create will have updated features similar to what CPASiteColutions.com offers. Updated information and data that automatically populates the site. Tax tips and other informative data. Does Tax Dome offer that? I am going to reach out to them but was hoping to hear from individuals who use the offer first. Thanks!
  7. I received monthly solicitations advising of the waning discounts that they were offering over their initial renewal option. Haven't received one in a while. With that said, after nearly 25 years of using ATX / Saber, I made the switch to ProSeries. I couldn't justify the rising cost of ATX. So far, so good with ProSeries and I find that many of the features I paid extra for with ATX (advanced calculations and portal access) are part of my package price for ProSeries. I received their 2021 program update last week and will begin the process of transferring my existing ATX clients into ProSeries. I recognize there will be a bit of a learning curve and I'll have a better sense whether my choice was a good one or not after tax season, but I'm excited to move forward.
  8. You have to smile when you hear these types of responses from "professionals". When was the last time the IRS randomly accessed an individuals account electronically just because?? I think that preparers approach is a disservice to his clients. Processing returns electronically is more efficient and I believe more secure as well. I would never inform a client they should not efile, I actually encourage it and it's been quite a while since I prepared a paper return. There isn't much you can do to sway the opinion of some people, you just have to grin and move on.
  9. Can someone please verify that Thursday, November 11 is the last day that a 2020 1040 can be efiled with ATX? Thank you.
  10. I just renewed. One less thing to do in December.
  11. The Wall Street Journals position on this proposal: OPINION REVIEW & OUTLOOK The IRS Wants to Look at Your Bank Account Its quest for missing revenue would threaten taxpayer privacy. By The Editorial Board Oct. 4, 2021 6:43 pm ET On your next trip to the ATM, imagine that Uncle Sam is looking over your shoulder. As if your annual tax filing wasn’t invasive enough, the Biden Administration would like a look at your checking account. Charles Rettig, commissioner of the Internal Revenue Service, wants banks to report annual cash flows for ordinary account holders. Treasury Secretary Janet Yellen is promoting the plan, and the House Ways and Means Committee is debating whether to include this mandate in the Democrats’ $3.5 trillion spending bill. Ms. Yellen says the reporting will help to catch wealthy tax dodgers. In a recent letter to the committee she said the plan would reveal “opaque income streams that disproportionately accrue to the top.” Treasury and congressional Democrats hope taxpayers will report income more accurately if they know the feds have their account information. Yet the IRS plans to review every account above a $600 balance, or with more than $600 of transactions in a year. So every American with a job could get looked over. A group of 41 industry groups recently warned congressional leaders that the plan “is not remotely targeted” to detect major tax avoidance. It’s also a privacy breach waiting to happen. Not long ago the confidential tax records of Jeff Bezos, Mike Bloomberg and other wealthy Americans were exposed by ProPublica. Whoever leaked or hacked those records committed a crime, but the IRS has revealed nothing from its promised investigation. Adding bank account info to the IRS trove would risk the disclosure of savings and spending information of political adversaries in the same way. Twenty-three state treasurers and auditors signed a letter last month opposing the plan, calling it “one of the largest infringements of data privacy in our nation’s history.” Nebraska Treasurer John Murante says his state won’t comply if the reporting rule takes effect. Casting a wide net over personal finances is a longstanding aim for Democrats and the political left. President Obama in 2009 formed a panel to discuss closing the “tax gap,” arguing that widespread underreporting of income costs the government hundreds of billions a year. The House continues to debate the bank account proposal, but the spending bill already includes $80 billion for the IRS to hire thousands of new staffers. Treasury estimates that these changes would collect $700 billion in revenue over the coming decade. But Rep. Kevin Brady, the top Republican on Ways and Means, points out that the tax gap is murkier than Democrats admit. “The IRS will admit their data is seven years old,” Mr. Brady told CNBC in July, noting that the agency’s estimates don’t account for the 2017 federal tax reform that limited many loopholes. “What they’re saying is give us a ton of money, let’s hire a bunch of auditors and we think this will create revenue.” Overestimating the results of greater enforcement lets the Biden Administration attach a higher revenue number to its multi-trillion-dollar spending proposal. That’s bad enough. But the bigger threat of giving the IRS access to the details of your bank account is that politicians will eventually find a way to control how you save and spend your own money. This is a bad idea that deserves to die. Copyright ©2021 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8 Appeared in the October 5, 2021, print edition as 'The IRS and Your Bank Account.'
  12. I'm having a complete brain freeze this morning. Client sold rental property that was originally purchased in 2005. Sale price was $253,000. Purchase price was $170,000. Land was valued at $100,000 at the time, so $70,000 was depreciated. Entering the information in the Fixed Asset schedule, Disposition tab. How is the land value of $100,000 handled?? Is it included as a basis adjustment? I appreciate any input...I seem to be fogging up on this one.
  13. This has the potential to turn into a record keeping / reporting nightmare for banks and other financial institutions. I'm sure it will impact us as tax preparers also. Time will tell. Under Biden Plan, The IRS Would Know A Lot More About Your Bank Accounts (Forbes.com) President Biden announced the American Families Plan today, which is designed to “grow the middle class and expand benefits of economic growth to all Americans.” The American Families Plan includes a lot to like, no matter what side of the aisle you are on. By any measure, the amount of benefits being proposed is staggering, which begs the question, how will we pay for all of this? By increasing IRS enforcement, by increasing reporting obligations for financial institutions, and by raising taxes on the wealthy. Each aspect of this plan is worthy of its own column. This column will focus what a senior administration official called one of the “significant steps” designed to make “sure that [ ] taxpayers are paying the taxes they already owe”: increased reporting obligations for financial institutions. Simply put, the American Families Plan calls for banks and other financial institutions to report more than just a taxpayer’s interest earned, capital gains and losses. Banks and other financial institutions would also be required to report “aggregate account outflows and inflows.” In other words, the IRS will know about all of your bank accounts, whether you earned income on that account or not, how much is in the account in a given year, and how much was transferred in and out of the account. It is unclear how this would work, but what is clear is that this new reporting obligation will create a massive compliance effort on the part of financial institutions, and eliminate a massive blindspot that the IRS is currently enduring. As things stand today, most taxpayers don’t have an obligation to report how much money they have in their bank accounts, how much they deposited, or how much they withdrew. Self-employed taxpayers who - like all Americans - self-report their income and deductions to the IRS are on the honor system. W-2 Wage earners, on the other hand, have their amount of wages reported to the IRS on their behalf. The IRS’s lack of information about the balance of the business bank account, how much was deposited, and how much was withdrawn allows the self-employed taxpayer to lie (or make an honest mistake) about gross receipts or gross revenue. For some self-employed taxpayers, this temptation is hard to resist. Cheating on taxes by taking outlandish deductions is likely to end up in an IRS audit, but under-reporting revenue is harder to track or identify. By requiring banks to report highest balances and aggregate deposits and withdrawals, the American Families Plan will effectively close off the option of underreporting gross receipts or revenues for businesses and self-employed taxpayers. It may create problems, however, that should be considered and addressed as this plan works its way through Congress. For example, consider a young couple saving up to buy a home. All savings are put into the “dream home” savings account. Then, when it comes time to make the down payment, the $50,000 dream home savings goes into the regular checking account, which is then wired to the seller’s escrow account. Buying a home is not a taxable event (at least for federal income tax), selling one is. Will the IRS receive information from the financial institutions that leads to an audit? Conversely, say the young couple receives the down payment as a gift from their parents. If the parents gifted $50,000 to the adult children to make a down payment, that must be reported on a gift tax return, even though no gift tax is due. This type of gift is frequently made, and in my practice as a tax controversy lawyer, rarely reported as it should be. The increased financial reporting obligation would likely increase compliance with gift tax reporting rules. If the proposal to require financial institutions to increase reporting to include account balances, inflows and outflows, is passed there is no question it will increase taxes collected. Both self-reporting and audit outcomes will likely be improved. However, defending against an IRS exam is stressful and can be costly. The Biden administration and Congress should work together to ensure that taxpayers who simply move funds between accounts are not audited solely as a result of the proposed increased financial reporting obligations for financial institutions.
×
×
  • Create New...