This is it, Folks! The last day of our tax season.

I hearken you back to your elementary school days; do you remember how you felt on the last day of school, when that final bell rang signifying the start of your summer? Well, that's how it feels to be a tax practitioner today (or the spouse of a tax practitioner).  Our offices will remain open this week, but all of our staff members will be taking some much needed and well-deserved time off in the coming weeks.

To add a little mass to this message and in support of our goal to help you become more aware of the impact of taxes on your financial situation, I'd like to share with you the story of Douglass Stives, CPA.  Doug Stives earns less than 75 percent of his former salary but takes home almost 90 percent as much. How? He claims every tax deduction he can. Kelsey Hubbard talks with the CPA-turned-professor about using the tax code to get more with less in this light and fun article from the "Wall Street Journal".  

http://online.wsj.com/article/SB10001424052748703696704576222590253291266.html?mod=dist_smartbrief

Carpe Diem!

IRS Updates it's version of "the Dirty Dozen"

One week to go!!  We're working hard to get everything done and realize that there are still some of you that we haven't heard from yet.  Get in here soon, OK!

 

The IRS released its 2011 iteration of the Dirty Dozen. There's no reference to the classic WWII themed movie or its great cast of characters, which included Lee Marvin, Jim Brown, Charles Bronson, George Kennedy, Telly Savalas, Donald Sutherland, Clint Walker and John Cassavetes (who was nominated for an Oscar and a Golden Globe as best supporting actor).  I vividly remember watching the Dirty Dozen with my dad and it is one of my all time favorite movies.  I don't know how I feel about the IRS stealing the tag line! 

 

The 2011 version of this IRS list of evil-doers "represents the worst of the worst tax scams," said IRS Commissioner Doug Shulman. "They may look tempting, but these fraudulent deals end up hurting people who participate in them." Hiding income in offshore accounts, identity theft, return preparer fraud and filing false or misleading tax forms top this year's list.  The rest of the story can be found in the following link.

 

http://www.irs.gov/newsroom/article/0,,id=238262,00.html

 

Note: According to Wikipedia, John Wayne was the original choice for Colonel Reisman (Lee Marvin's character), but he turned down the role.

Repeal of Expanded Form 1099 Reporting!

We've been harping about the disastrous consequences of the 1099 reporting requirements included in the 2010 health care law and it looks like the collective criticism of this overreaching policy hasn't fallen on deaf ears.  The U.S. House of Representatives bill H.R. 4 repeals those requirements and it has passed in the U.S. Senate and now awaits the President's signature.

H.R. 4 repeals the information reporting requirements under IRC Sec. 6041 for payments to recipients of rental income made after 12/31/10, as well as the provisions for payments made to corporations and payments for goods and other property made after 12/31/11. Under H.R. 4, the 1099 reporting rules return to the way they read before enactment of the Affordable Care Act and Small Business Jobs Act and generally require reporting by payors considered to be engaged in a trade or business for payments totaling at least $600 in a year.

This is a win for all business owners, regardless of the size of the business.  Check that! -- the folks that print blank 1099 forms can't be happy because this was going to be a windfall for them!

ELEVEN DAYS LEFT TO FILE YOUR 2010 TAX RETURNS!  Have a great day.