Kind of sounds like one of those movies from the seventies, doesn’t it. And no, the IRS computer system really isn’t that old (it has been upgraded to at least 2001). But Uncle Sam wants you to efile your taxes, and he gives you a few reasons here to efile instead of paper filing your taxes this year: http://content.govdelivery.com/accounts/USIRS/bulletins/a23412?reqfrom=share Here is another reason to efile; US mail screwups! The last year I paper filed my taxes (2005) I was on the phone with the IRS as much for my return as my clients! I am a sole practitioner and the IRS either didn’t receive (so they claimed) or lost (more likely) my sole proprietor form Schedule C. I had to mail (gasp!) them another copy before they would leave me alone. When the IRS says efiling is safe and secure, they mean from their keypunchers (who work at close to minimum wage and have no real incentive to do a good job except for their own personal desire to do a good job) as well as mail messups and identity theft! I have efiled ever since that 2005 disaster and have never had a problem since. For financial, accounting [...]
Financial Musings of a CPA: Let’s Talk About MyRA, the New Girl on the Block!
Well, when the President talked about the State of the Union, I didn’t think he would start talking about any women (except maybe Michelle), but right in front of his wife he started talking about his new girl, MyRA. Who is this chick, anyway? Well, look at this post in USAToday by Gregory Korte and John Waggoner to find out more about the Obamas’ new main squeeze (apparently Michelle is ok with her, too): http://www.usatoday.com/story/news/politics/2014/01/28/obama-state-of-the-union-myra-savings-plan/4992743/ There are some big plusses and potential minuses to this new retirement savings plan – you can only put your retirement money into low return assets that the Federal Government guarantees will not lose money, but probably not make much money either. This is effectively a Roth IRA with low initial contributions (its investing limits and income limits are just like a Roth) with only one investment option until you accumulate $15,000 – then you have to change to a regular Roth IRA. It is a nice idea to start people saving with low contribution minimums, but it is more of a gimmick than a new idea. Be careful, this girl could break your heart if you want a large nest egg when you retire! For financial, accounting [...]
CPA Tax Musings: Joint Return or Married Filing Separate – Make Sure Before You File!
This article in AccountingToday by Paul R. Tom brings up some interesting points in regard to whether a client should file married filing joint or married filing separate (especially if several years have not been filed) - make sure you get all available info before you decide on what you will recommend to your clients: http://www.accountingtoday.com/news/Joint-Return-Married-Filing-Separate-69387-1.html There are situations where on the surface filing joint is a no-brainer, but you may have some additional hidden info that changes things; you need as much data as you can possibly get before making a recommendation; otherwise it could cost your clients big-time! You can never have enough information. For financial, accounting and tax musings, You can count on us to count for you! Email: bstonercpa@sbcglobal.net Phone: 818-317-6035 Website: www.briantstonercpa.com Has been Featured On https://twitter.com/bstonercpa