Category: Taxes
-
Professional tax preparation fees for 2016
Average tax return preparation rates are published by the National Association of Accountants in the national and regional average tax preparer fee survey for 2016. The fee for my online remote tax services is typically about 1/3 lower than typical walk-in tax preparers. However, late season returns or services that do not use online cost savings are…
-
No pity for another tax scam victim
A peer accountant reports today that he had a client fall for a tax collection scheme and paid the scammers $5,700 in Apple Itunes gift cards. I have been posting consumer warnings about tax scams for decades and am normally empathetic to victims. But I have a hard time feeling much pity for any person who:…
-
Trends in individual health insurance, 2016
In the 19 states that have not expanded eligibility to Medicaid to lower-income individuals, the results of the Affordable Care Act (ACA) are minimal, at least as observed from ‘street level’ among those who are not covered by group or government-sponsored health plans. In Florida, for example, more than half a million remain without health insurance.…
-
Is it smart to pay no taxes?
Donald Trump brings fresh attention to the possibility that affluent individuals and businesses can pay no federal income taxes. Last night, at Hofstra University, Trump said “That makes me smart”. Is he right? Is it smart to pay no income taxes? The first point we should reach is that it is possible for an affluent…
-
Tax filing deadline and penalties
With less than three weeks until late tax filing deadline for 2015, I have only one signed engagement to complete a tax return and many clients who still haven’t filed. I need to emphasize that unless they actually hire me, and not just presume that I’ll take care of their tax filing requirements by the…
-
The IRS requirement for personal auto mileage records
You drove your car on business trips. You made a report of how many miles you drove for business, the dates, the specific destination and the purpose of the trips. You have all the expense receipts for gas and other out-of-pocket expenses. You submitted the expense documentation to your employer who reimbursed you. This is a…
-
The myth of the ‘correct’ tax return
I occasionally have a conversation with a client, a potential client or another accountant on the topic of the accuracy of a tax return and IRS action. The comments might sound something like one of these: “The last two accountants messed this up and it needs to be made right.” “I am very particular about my…
-
IRS catches nonprofit accounting cover-up
This week the Washington Post reported that Donald Trump was fined $2,500 by the IRS for filing a false report to the IRS about the activities of his nonprofit foundation. Nonprofit organizations are not supposed to give money to political campaigns. He did, and then covered up the political donation by reporting it to the…
-
Higher state taxes for 225,000 in our region
One hundred thousand South Jersey residents working in Philadelphia and 125,000 Pennsylvania residents working in New Jersey will pay higher state wage taxes in 2017. The tax hike is a result of Governor Christie’s election to cancel the PA/NJ state tax reciprocity arrangement. The change was announced yesterday. The cost to the average South Jersey resident taxpayer…
-
Contemporaneous travel log required
Accountants have generally not done a good job communicating the legal concept of “contemporaneous log”; a term legally required under tax law to take a mileage reimbursement or deduction for business travel on a personally owned automobile. Programs like MileIQ do a great job but I still think that a taxpayer needs to understand the underlying…