DId you know that until 2010 anyone could be a tax preparer? A CPA, an enrolled agent, the butcher, the baker, the candlestick maker – anyone coule be a tax preparer! Before this tax season, there have been some real bizarre tax preparers out there. Now with the PTIN there is a little more regulation, but remember that when you sign your tax return, you are responsible for what gets filed. You should know what is on your return before you sign it or the efile documents attesting you have checked your return before filing. At my office, before I efile a return, I make sure my clients at least have an idea of why they are getting money back or owing, and the return is always reviewed before filing. Like I said, I have seen returns and heard stories where that is simply not the case. I heard a story the other day about a big tax preparation firm (a CPA firm no less, to my shame) that messed up the address of someone I know. When the client asked him to change the address, the CPA said just white it out and change it. He billed my friend [...]
Brian’s Tax Musings
Well, another bill to fix the horrible 1099 reporting requirement is winding its way through Congress even as we speak (again!) From what I read the bill will be voted on as part of a larger bill this week in the Senate and should be voted on in the House soon. This time it appears that they have a good chance of passing. Imagine that – good news out of Washington! See this article:http://thehill.com/blogs/floor-action/house/143681-possible-new-hurdle-for-1099-repeal-reconciliationand this regarding House Ways and Means commitee votes:http://www.businessinsurance.com/article/20110215/BENEFITS11/110219964I will let you know when things happen if they happen.
Brian’s Tax Musings
Did you work two jobs last year? There is a chance you are due back additional taxes! When combined Social Security (FICA) taxes withheld exceed $6,621.60, any excess paid will be refunded on your federal tax return. See this article about it:http://online.wsj.com/article/SB10001424052748703843004576140972174233398.htmlIf you have excess social security withheld you probably have excess State Disability withheld, too. SDI withheld in excess of $1026.48 is refundable on your state income tax return. See this from the Franchise Tax Board:http://www.ftb.ca.gov/individuals/faq/ivr/227.shtmlRemember to bring this up with your tax preparer so you can get the maximum back. (If your tax preparer is me I will know this when I see your W2s).