Thursday, November 24, 2011

Happy Thanksgiving

Let us take one day and reflect on all we have to be thankful for. And we all have things to be thankful for.

Live life with an attitude of gratefulness.

Best wishes from my family to yours.

Sunday, November 20, 2011

Fixing the Deficit is Automatic

All the talk this week will center around the deficit committee entrusted to come up with a plan to shave $1.2 trillion or more of red ink over the next 10 years. That will not happen and if it does, Congress will not pass the measures.

The good news is that debt reduction is on automatic. Without action, automatic spending cuts are already law and will kick in in 2013. This will make the Reepublicans happy. Numerous tax cuts will expire at the end of 2012. This will raise even more revenue than the automatic tax cuts will save. This will make Democrats happy.

The automatic spending cuts and revenue raisers will start after the election. Under the automatic measures, spending and taxes will look more like the late 1990's when the economy boomed.

What do you think the chances are Congress will not mess with the automatic budget adjustments and tax laws? Me too.

Monday, November 7, 2011

Free My Coke Rewards Codes-November 2011

For everyone collecting My Coke Rewards codes, here is a nice batch from the soda in the office.

A few simple disclaimers: 1.) First come, first serve; 2.) I don't play favorites; 3.) I will not send you codes directly; 4.) Check back often to see if I listed more. I have a large stack of soda in the corner in preparation for tax season. I'll list them in bulk once we open the cases. 5.) If you have codes to share, do so in the comments section.

24 oz Bottle Coke


12 Can Case Coke


12 Pack Pib


12 Can Case Sprite Bonus Code


12 can Coke Zero


2 Liter Coke


2 Liter Sprite


2 Liter Coke Zero


12 Can Fanta Orange


Tuesday, November 1, 2011

IRS Screws Up, But Taxpayer Wins

They should make a reality show on the daily drama in a tax office. I volunteer to use my office as I think some of the garbage the IRS comes up with is a joke and I enjoy a good laugh.

Few of my regular clients get audited and for good reason. My team works hard at filing an accurate tax return the first time. We can get aggressive, but only if we have a nail to hang our hat on. No wingers. When audits do occur, they are usually short with a small or no change. The same cannot be said about audits that come from outside the firm.

A regular client received his audit notice recently and we went to work. Preparing a tax return and preparing for an audit are two different animals. Preparing a return requires numbers to be placed in the correct spot with consideration toward tax savings. An audit is the process of verifying those numbers. The audit in question stood the test when reviewed internally. The IRS disagreed.

The auditor, new to the job, disallowed all business miles. The taxpayer's mileage log was in perfect order. The IRS demanded that additional documentation not listed in the tax code for the deduction to be allowed. I told the auditor he was full of... (Sorry, this is a family blog.) After months of discussion and no progress, I filed suit in Tax Court. The auditor called when he received notice of the suit. I told him to get ready to look like an idiot in front of the judge, a real tax professional. The audit was dropped, no change.

All those resources wasted. And to think: Why does Congress want to cut the IRS's budget for 2012? If Revenue used their money more wisely they could cut their budget in half without sacrificing a thing. But then again, I don't run the IRS.