The whole tax return landscape is changing. Big things are happening to protect the average taxpayer from shoddy tax return preparers.
Until 2011, there was no regulation of unlicensed tax return preparers. Anybody could wake up in the morning and decide to do
taxes for money. At the same time the government subjected Certified Public Accountants, Attorneys, Enrolled Agents, Enrolled Actuaries, Enrolled Retirement Plan Agents, and Appraisers were to strict regulation via Circular 230; licensed tax preparers could face severe penalties and lose their licenses for if convicted of certain kinds of crimes, if they did not file their taxes, if they gave marginal tax returns or gave bad advice. That has changed. Now the IRS will regulate all tax return preparers.
Archive for the ‘Other Information’ Category
Go for the real tax thing, use an EA.
Saturday, July 23rd, 2011Using an FSA to pay for OTC drugs? Get a prescription
Thursday, July 21st, 2011The Affordable Care Act changed the way FSAs, HRAs, MSAs & HSAs handle reimbursement for over-the-counter (OTC) drugs; after December 31, 2010 you can no longer use these accounts to pay for OTC drugs without a prescription. The IRS will only allow prescribed medicines or drugs (including prescribed OTC medicines and drugs) and insulin (even if purchased without a prescription) as qualifying medical expenses subject to preferred tax treatment. (more…)
US Congress Will Punt-Legislative Update June 2011
Friday, June 17th, 2011Last year I spent a lot of time writing about how the US Congress had done nothing with respect to resolving tax issues. Why is it important for Congress to pass tax law? It is very hard to do tax planning before the end of the year, when you do not know what taxes you have to pay. In 2010, the extenders package, AKA the 2010 Tax Relief Act, finally passed and was signed on December 17 of 2010-which meant the average taxpayer had very little time to engage in tax planning for 2010. Furthermore many of the provisions in that act expire at the end of this year or the next. In otherwords the 111th Congress punted and left these issues to be resolved after the next presidential election. Why should the 112 Congress be any different? (more…)
1099-MISC For Dummies
Friday, June 17th, 2011I got a question from somebody who read my latest blog entry and she said she could barely understand it at all. I had no idea.
So… (cornet flourish sounds, “da tadada”) Introducing 1099-MISC for Dummies. If you are in business and pay other people for services, Form 1099-MISC & Form 1096 are probably “tax” Forms you should be filing. Why? Just like any other “tax” form there are penalties for not filing them. If you like living on the edge, and sneering at the tax man, you don’t have to read any further, this post is not for you. However if just seeing a letter from the IRS gives you the cold sweats, read on. (more…)
