Dear Family,

First let me start with an urgent reminder. There are deadlines coming up – all corporate, partnership and estate tax returns are due next week, on September 15th. Estimated tax payments are due, as well.
http://taxmama.com/tax-calendar-2010/

Note: The office will be closed and please don’t look for answers from TaxMama – until Monday!

Tonight is the beginning of a fresh, clean new year – 5771 on the Jewish calendar.

You will hear people wishing you a healthy and happy new year.
Or may you be written into the book of life.
Wishing for peace in the year to come.

That is what I wish for you!

Peace in the world, health, sweetness, love, family, friends, and prosperity.

I got a pre-declined credit card in the mail.

Wives are having sex with their husbands because they can’t afford batteries. 

Taxpayers don’t have any taxes to pay.

Dear Family,

We were at the IRS Tax Forums last week. You can read all about our experiences in this week’s IRS News. There will be more information next week, as I have time to keep writing. It will just pour out as I sit at the keyboard.

The fun part was meeting so many of you! Some people, it was the very first time, mathing faces to names. Others, we get together year-after-year at these Tax Forums, so we’re old friends. And of course, there were Lucie and Mark, whom I’ve known since my teens. I really enjoyed meeting the spouses and family of students I’ve only known over the computer. These are the people who support my students while they are immersed into the EA Exam class for an entire summer. Life changes can be scary. But the qualitative improvements are worth it in the end. The House of Blues treated us royally, providing a steady stream of tasty food and lively music.

Problem Resolution and Focus Groups

Problem Resolution had a facility at the Tax Forum. One of my friends brought a case file with her (and power of attorney forms, etc.). When picking up her registration packet on Monday, she was given a form to fill out with the specifics of her case (and a copy of the power of attorney – Form 2848). By the time she arrived at her appointment on Tuesday or Wednesday, the staff had pulled up relevant information about her case and researched the stumbling blocks. She sat down with them and resolved all the problems in no time at all. This is a case that has been a source of frustration for many, many months. Her clients have a refund coming soon.

Last week, all my tax staff and I took our annual trip to the IRS Tax Forum.

When these forums first started out many years ago, the fee was $25 for three days of education provided by IRS staff and a variety of tax professionals from sponsor associations. It was an amazing value – especially since you could fulfill your entire annual continuing education requirement in one shot – for $25. Wow! OK, so the material was a little basic, with IRS devoting time to propagandize about their service…but still, the contacts you made were excellent. And you did get some insight into the way IRS operates.

WASHINGTON — The Internal Revenue Service announced availability of the summer 2010 issue of the Statistics of Income Bulletin, which features sole proprietorship data for tax year 2008.

About 23 million individual income tax returns reported at least one nonfarm sole proprietorship in tax year 2008, a 2 percent decrease since the prior year. Reported profits for those sole proprietorships decreased by 6 percent to $265 billion.

About two years ago my wife and I were on a cruise through the western Mediterranean aboard a Princess liner.

At dinner we noticed an elderly lady sitting alone along the rail of the grand stairway in the main dining room. I noticed that all the staff, ship officers, waiters, busboys, etc. all seemed very familiar with this lady.  I asked our waiter who the lady was, expecting to be told she owned the line. Instead, he said he only knew that she had been on board for the last four cruises, back to back.

Dear Family,

THANK YOU.

Did I remember to tell you just how much I appreciate you – your friendship and support, your comments and even, sometimes, your silences? Well, THANK YOU.

We don’t always remember to show our gratitude or appreciation. So, many years ago, I created a holiday for this very purpose. (You’ll even find mentions of it online) Thanks for All the Gifts Week. Today’s Thank You letter will tell you all about how to use for your own benefit, too.
http://taxmama.com/asktaxmama/happy-thanks-for-all-the-gifts-week/

Proposed Regulations Expand the Use of Electronic Payment System and Discontinue Paper Coupons Next Year

WASHINGTON — Consistent with a Financial Management Service initiative announced in April of this year, the IRS today issued proposed regulations to significantly increase the number of electronic transactions between taxpayers and the federal government.

The proposed regulations (REG 153340-09) would eliminate the rules for making federal tax deposits by paper coupon because the paper coupon system will no longer be maintained by the Treasury Department after Dec. 31, 2010. The proposed regulations generally maintain existing rules for depositing federal taxes through the Electronic Federal Tax Payment System (EFTPS).

Using EFTPS to make federal tax deposits provides substantial benefits to both taxpayers and the government. EFTPS users can make tax payments 24 hours a day, seven days a week from home or the office.

Deposits can be made online with a computer or by telephone. EFTPS also significantly reduces payment-related errors that could result in a penalty. The system helps taxpayers schedule dates to make payments even when they are out of town or on vacation when a payment is due. EFTPS business users can schedule payments up to 120 days in advance of the desired payment date.

Information on EFTPS, including how to enroll, can be found at www.eftps.gov or by calling EFTPS Customer Service at 1-800-555-4477.

Some businesses paying a minimal amount of tax may make their payments with the related tax return, instead of using EFTPS. More details regarding taxes required to be deposited using EFTPS, dollar thresholds and other specific requirements are in the proposed regulations.

[TaxMama Note” Be sure to take a look at this last-minute payment option if you have not yet set up our EFTPS account.

Additional Information:

• Publication 4132, which explains the process of enrolling and paying via the Internet
• Publication 966, The Secure Way to Pay Your Federal Taxes for Businesses and Individuals
• Publication 4169, Tax Professional Guide to Electronic Federal Tax Payment System
• Publication 4320, EFTPS Toolkit, which contains PDF(s) and descriptions of EFTPS educational materials and their intended target audience, and is for use by tax professionals and financial institutions to assist in educating their clients on the benefits of EFTPS.
• Publication 4275, Express Enrollment for New Businesses
• Electronic Payment Options Home Page

In a bid to stem taxpayer losses for bad loans guaranteed by federal housing agencies Fanny Mae and Freddy Mac, Senator Bob Corker (R-Tenn) proposed that borrowers be required to make a 5% down payment in order to qualify.

His proposal was rejected 57-42 on a party-line vote because, as one Senator explained, “passage of such a requirement would restrict home ownership to only those who can afford it.”

I can’t add anything to this. 

Courtesy of Blakely Sanford, EA in San Diego, CA

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