H&R Block saved them an extra $2313 this year
 

Doesn't that statement alone suggest that there is something radically wrong with our tax code?

(Yes its the annual rant)

Could mean the taxpayer didn't follow the instructions. Or it could be a lie if you read it in an H&R add. It's generally a bad idea to believe adcopy.

"Bend over, this won't hurt a bit."

My accountant saved me $1200 on my personal return, he found a deduction I didn't know about.

Umm, you forgot a word. "Bend over, this won't hurt ME a bit".

"You got the whole fist in there, doc?"

Don't worry you have until the 15th to lube up!:D:eek:

More that its confusing to fill out the paperwork and people miss deductions that trained CPAs will know to look for.

That's quite a deduction. Would you mind sharing?

Doesn't suggest anything. All it means is a worst case scenario vs their case, their case is better. So what is the worst case scenario? Me doing my taxes drunk and on drugs without a clue vs their help? Obviously. Pick a mistake someone else made and do the correct job and you can legally say "See? I saved you $2000 by your coming here instead of what happened last year.". What I would like to see is H&R's best vs another company's best.

For all we know his accountant found a way to deduct his gun collection :D

I don't remember since it was last year, something to do with college. Ie it cost me a lot more than $1200!:eek::D

This year I'm pushing the mileage write off on my truck a bit.

The IRS is one sleeping dog to not wake.....

got that right, milage deductions, personal computer deductions, home office deductions. those just leave the wayward IRS agent straight to your house

Meh I'm not worried, as long as you don't go nuts.

H&R always got me a nice lump of about 800 to a grand back. I noticed though that it was far less since I got married. Hope I'll still get something this year.

- Peter.

Since switching over to software to process/print the tax returns, I have gotten quite a bit back, a couple thousand usually. But thats because I've also gotten paid next to nothing :D

Booze expenses? :cool:

That would be an interesting exercise. I should take a spin over after I get mine back from my accountant.

He said 1200, not 12000. :D

It's as much the hassle and inconvenience of the audit as anything else. We had our company books audited by the nice IRS lady last year. Everything was in order but it took the better part of two days and many hours of our bookkeepers time back and forth to fetch the documents she wanted to see.

They're going after the low hanging fruit first to get the easy pickings. And the deductions are the red flags.

D'oh! My bad. What's an extraneous 0 here and there? :D

Still, probably closer to that than his arsenal expenses. :)

That's what I said....I'm like honey, are you sure we have THAT much in deductions??

"Moooon Riveeerrr!" :eek:

I love that movie.

It's not how much you get back at tax time that matters. You pay the same amount regardless. Either you have it taken out each paycheck and get something back or have a bigger paycheck each time and pay in during tax time.

The whole idea of paying somebody to "find" what's yours to begin with after the government artfully "hides" it really gets me steamed. There's no way I could do our taxes manually without the help of an accountant or Turbo tax. Its way too complex. The software solution requires investing in a newer Windows computer that you might not otherwise need. Double ripoff.

They're after big fish too.....


-2011-14, Feb. 8, 2011

WASHINGTON — The Internal Revenue Service announced today a special voluntary disclosure initiative designed to bring offshore money back into the U.S. tax system and help people with undisclosed income from hidden offshore accounts get current with their taxes. The new voluntary disclosure initiative will be available through Aug. 31, 2011.

“As we continue to amass more information and pursue more people internationally, the risk to individuals hiding assets offshore is increasing,” said IRS Commissioner Doug Shulman. “This new effort gives those hiding money in foreign accounts a tough, fair way to resolve their tax problems once and for all. And it gives people a chance to come in before we find them.”
The IRS decision to open a second special disclosure initiative follows continuing interest from taxpayers with foreign accounts. The first special voluntary disclosure program closed with 15,000 voluntary disclosures on Oct. 15, 2009. Since that time, more than 3,000 taxpayers have come forward to the IRS with bank accounts from around the world. These taxpayers will also be eligible to take advantage of the special provisions of the new initiative.

For the 2011 initiative, there is a new penalty framework that requires individuals to pay a penalty of 25 percent of the amount in the foreign bank accounts in the year with the highest aggregate account balance covering the 2003 to 2010 time period. :eek::eek:Some taxpayers will be eligible for 5 or 12.5 percent penalties. Participants also must pay back-taxes and interest for up to eight years as well as paying accuracy-related and/or delinquency penalties.

Taxpayers participating in the new initiative must file all original and amended tax returns and include payment for taxes, interest and accuracy-related penalties by the Aug. 31 deadline

Lemme see now:

Back income taxes Ka-ching
Interest Ka-ching
Late payment penalties (25% of bal. due) Ka-ching
Accuracy related penlties (20% of tax due) Ka-ching
and lastly
New penalty 25% of highest account balance penalty KKAAAAAA-CCHHHHIIIIINNGGG!

Whoaa Nellie :eek::eek::eek:!!!

The good news is, I suppose, they get to keep their sorry azzes out of jail.:rolleyes:

It makes me appreciate our expensive, by the book accounting firm quite a bit more! :)

Swamp,

Google Circular 230. We're under the same microscope as you!:rolleyes:;)

Should I send a thank you note to Arthur Andersen? Oh, wait.. :D

Nah, just send it to New Delhi.
More and more US tax returns are being shipped to India to be prepared each year! ;)

That might be good. They will see how much Americans earn and question why they are getting $10 a day. Upward wage pressure on their part can only help us.

Hey Swamp,
The local farm supply place near here sells booze. They always give a receipt, they call it 'drench', there must be a lot of drunk cattle & sheep around here!! ;)

Hmmmm...maybe I should get into the Austrailian root drench/liquid fertilizer import business... :D

I'm in the wrong line of work to deduct that stuff!:P:D

Screw that, if I had enough in offshore accounts I'd just wait for them to catch up to me than leave the country when they did.

How do you think they find those Rolls Royce abandon in airport parking lots?:D

My littlest sister asked me to check over her 1040-EZ for her a couple years back...

That's right...1040-EZ. :rolleyes:

She didn't make that much, but for some unknown reason, she was getting ready to WRITE THEM A CHECK FOR $2XX.XX (I don't remember the exact dollar/cents amount...I just remember it was, definately, over $200.00).

I went over her form just once and she ended up with the IRS giving her $90.00 back...and I double-checked my math to be sure.

The point?

The year before, she wrote a check for something around $150.00. But she couldn't find her paperwork so I couldn't help her staighten that mistake out.

I told her that she should be able to go down to the local IRS office and they would be able to supply her with the older forms and the dollar amounts they had from her the year before and that she should be able to re-file an amended return.

Never followed up with her to see if she did it or not...my bad. :sad:

Point?

If I could find that kind of cash, the people doing the original forms themselves are NOT the most sharpest crayons in the box.

And then, some folks, like my sister, just don't have the aptitude for numbers and lawyer-ese when it comes to tax forms and the like.

How much is your freedom worth? Criminal prosecution is worse financially, and then there's jail time too, Mr. fresh meat! ;)
Maybe you could bunk with Bernie Madoff! :D
Or if you skip, maybe you have presidential pull like Marc Rich to buy a pardon.
Think Roman Polanski. :rolleyes:
Fwiw I saw a headline recently that said something like 2,000 people had renounced their US Citizenship last year.



WASHINGTON – Jack Barouh of Golden Beach, Fla., pleaded guilty today to filing a false tax return, the Justice Department and Internal Revenue Service (IRS) announced. Sentencing has been set for April 16, 2010, before U.S. District Judge Adalberto Jordan in Miami. The defendant remains free on a $1 million bail pending sentencing. He faces a maximum sentence of three years in prison.

According to court documents and statements made in court, Barouh admitted to filing a false tax return for 2007 in which he failed to report that he had an interest in or a signature authority over financial accounts at UBS AG, one of Switzerland's largest bank. He also failed to report income earned on his UBS Swiss bank accounts. The UBS accounts were opened in the names of Domilou S.A., a nominee Panamanian corporation, and Similen Investments Limited, a nominee British Virgin Island corporation. For years 2002 through 2007, the tax loss associated with the Domilou and Similen accounts at UBS is approximately $736,269.
In addition to the Domilou and Similen accounts, the defendant owned and controlled several additional offshore bank accounts located at banks other than UBS, including accounts in Switzerland and Hong Kong.
http://www.justice.gov/tax/txdv10123.htm


He got 10 months, so I guess he's about to be sprung.

http://www.businessweek.com/news/2010-04-23/ex-watchmaker-barouh-gets-10-months-in-ubs-tax-case-update1-.html

I understand that. But I'm happy to have a lump I can use once a year rather than a small amount I hardly notice every month. Psychological rather than real I know but I'm happy to keep it that way. Getting a small amount back each year rather than having to pay in more is a better situation to be in in my opinion.

- Peter.

I don't go for the psychological crap. Here is how I look at it. IF you get a refund, the govt said "Here is the PRINCIPAL for the loan back. NO INTEREST." I have to ask "Why am I giving you an INTEREST FREE LOAN?". If I took that money and put it in a savings account, I may get $20 of interest and that is that but it is a damn sight more than I would get giving you an INTEREST FREE LOAN."

My goal is always to owe as much as possible without having any interest or penalties due. hold onto your money as long as possible.

Has anyone ever compared their personal federal income tax results with TurboTax or TaxCut with a preparation pro, like an accountant?

We had a tricky year last year; selling a house, moving to another state, renting, mid year conversion from salary to independent contractor, relocation costs, setting up a home office and more. We were surprised to see that TurboTax was able to handle all the issues, although it did require buying the software tables for the second state, since the program only provides for one free state.

Fixed it for ya.;)

I got a call today from a guy to help him with setting up a rental property he and his wife bought with his sister as tenants in common. He uses turbo tax and has done all but the seashore rental stuff. So, I told him to send me the TT draft, copies of his own docs, last years return and the rental info and I would prepare his return for filing. So I will get a fresh look at TT.

Occasionally I get calls from people who use TT and have hit snags or have unusual one time issues they need help with. So I look it over or do the return for the year in question.

Generally, I find TT to be up to the task. I have never used it as a software tool, so I can't comment on ease of use or its design for efficiency.

I suggest the IRS' free file portal to folks. Pick your software company, including TurboTax!:cool: For the simplest returns, a good option to buying a new program every year. No data storage though.

http://apps.irs.gov/app/freeFile/jsp/index.jsp?ck

Questions for you MTI. Does TT home installed software interface online with IRS publications or other research providers like BNA? Or is there built in "research" ability? Is the preparation done online or is the only online function efiling the returns?

fwiw, we use CCH prosystems for everything... ALL tax returns, research, and time & billing.
http://tax.cchgroup.com/Tax/default.htm

Yes, TT does interface with the IRS online publications; it provides the specific link for further information. Of course, the IRS publications can be fairly incomprehensible at times.

The heck you say! :D

Anyone old enough to rember the Honeymooners with Jackie Gleason may recall the episode where he gets a letter from the IRS and looks up what the penalties are for not paying tax. He starts reciting an actual code Section. Years ago I stumbled upon it in doing some research and the recall was instantaneous.:D
Ralph Kramden gets through the first part and then goes into hysterics.:D:D
Classic comedy. (maybe I should list this in the old geezers 1955 thread. ;)
Still the law:
Sec. 7203:
"Any person required under this title to pay any estimated tax or tax, or required by this title or by regulations made under authority thereof to make a return, keep any records, or supply any information, who willfully fails to pay such estimated tax or tax, make such return, keep such records, or supply such information, at the time or times required by law or regulations, shall, in addition to other penalties provided by law, be guilty of a misdemeanor and, upon conviction thereof, shall be fined not more than $25,000 ($100,000 in the case of a corporation), or imprisoned not more than 1 year, or both, together with the costs of prosecution. In the case of any person with respect to whom there is a failure to pay any estimated tax, this section shall not apply to such person with respect to such failure if there is no addition to tax under section 6654 or 6655 with respect to such failure. In the case of a willful violation of any provision of section 6050I, the first sentence of this section shall be applied by substituting “felony” for “misdemeanor” and “5 years” for “1 year”..............................."