Ask TaxMama Issue 571 – He Did Not Quit?

Dear Family, 

The news is buzzing this week about Robert Rizzo, the City Manager of Bell who is being investigated and prosecuted for his outrageous compensation levels. He’s offended by all the hostile news coverage and being treated like a pinata.

 Even though, last June when the scandal hit the air, the news blasted that Rizzo had resigned. It turns out that he never did. Nor did the City of Bell formally fire him, despite the “thank you for resigning letter” issued in August. Rizzo is so offended about his treatment that he may sue to get his lost compensation for the last few months. Now that, my friends, is CHUTZPAH!

 Early this morning (around 5:30 am), the California legislature finally signed a budget. It appears to be a total compromise on many fronts – and is labeled a temporary fix to some problems, but not a solution to California’s financial woes. We’ll get you more details next week as they become more clear.

As for IRS News this week, nothing much exciting is going on right now. IRS still needs to issue guidance on the provisions of the new Small Business Jobs Act. The PTIN registration system has been up and down all week, frustrating tax professionals. You can read the notes about my attempt to register.

 The big flurry of activity this week was about the FTC rules related to tax debt resolution. The FTC issued guidelines for folks with tax debt on how to handle it yourself. I do applaud that. In fact, as you know, we are in the process of a building a resource to help you deal with the paperwork and issues yourself. We’ll get back to work on after tax season ends. 

 Most tax professionals are not aware that the new FTC rules went into effect on September 27th – and the retainer rules go into effect this month. That means, your tax pro might not be able to collect a retainer from you before handling your complex IRS collections problem. Hardly any tax pros are willing to work on complicated, time consuming cases like this without getting paid. You will find many tax pros turning away clients who desperately need help, if there is no assurance they can be paid. We are working with Mark Guimond of the National Policy Group and a coalition of tax professionals to define the FTC’s rules and to protect tax pros and ensure that we can keep representing our clients and get them out of trouble.

This morning we have a CPE  Link class starting shortly – maybe even now!

(Oh goodness, I was so excited that I logged in an hour early. The class starts at 9:00 am, not 8:00 am. Whew!)  

TODAY! October 8 –  Eva Rosenberg, EA, Tom Buck, CPA and Sonya Wilt, EA

IRS Practice Series: 10 Steps to Resolving Collection Issues

You’re going to learn how to help your clients set up installment agreements, how to use the various types of offers in compromise, and even how to suspend collections! 

Upcoming Events  

Upcoming on CPE LINK – with CPE for CPAs, EAs, and more

 Preview the series on YouTube

The IRS Practice Series

Team taught with Eva Rosenberg, EA, Tom Buck, CPA and Sonya Wilt, EA

Oct 8, 9:00am – 10 Steps to Resolving Collection Issues

Nov 1, 10:00am – Hands-on Collections Workshop   

Dec 7, 10:00am – 6 Simple Steps to an Offer-in-Compromise (form 656) 

Dec 10, 9:00am – The Un-agreed Collection Alternatives and Appeals 


Homebuyers Credits for Tax Professionals

The specific laws related to your clients.  How to get it rigth the first time. What to watch out for.

And how to overcome IRS Rejections.

IRS Practice Series: Overview of Collection Issues – Price = ZERO:

This on-demand webcast provides a broad overview of the collections process. From preparing the Power of Attorney – IRS Form 4868, to freezing the collection activity, to Offers-in-Compromise and Appeals, the course will explore the numerous collection issues a practitioner may encounter and lay the ground work for the IRS Practice Series. Topics will be covered in more detail in the dozen courses of The IRS Practice Series – leading to a Tax Mediary (CTM) Certificate upon completion of the series. 

EA Class News


Is on hiatus while we finish tax season – but people are still passing.  

Anyone signing up from Today forward – I upgrade you to a Live Member for the rest of the Part 3 sessions. 

Remember, you can get a 10% discount on the EA Class if you register for TaxMama’s Family first.

The discount code can be found in the Family Look-Ups resource.

Other TaxMama News:


This month’s MarketWatch column outlines the new Small Business Jobs Act that was signed into law last week. There are enough benefits in the new law (and recent laws) to cause you do some serious tax planning before year-end. Just give your tax pro a little time to learn more about the details and get some things clarified.

At Equifax this week, you learn how to review your payroll tax withholding. Ilyce Glink discusses zero-down mortgage options. Linda Rey helps you chose the right high-deductible insurance plan. Dan Solin helps you maximize your 401(k) returns. The Equifax Experts talks about credit trends.

This week’s blog you will find more discussion of the new FTC telemarketing rules related to consumer debt. The law affects tax professionals who help clients reduce IRS debt, too – but how are we affected? And how will this harm taxpayers in trouble?

In IRS News, there’s nothing special going on this week – except for the October 15th deadline looming.

Money Funnies & Inspiration this week we honor women.

In TaxQuips, we start the week with Midge, who is really upset because IRS won’t fix her husband’s mistakes. Just How Stupid IS IRS? . Timothy got a rejection from IRS for his Homebuyers Credit claim. Is IRS possibly right? Uh oh.  Homebuyer Credit Confusion .
Alissa is collecting less rent than her costs for the property. Does she still have to report the rental income? Renting Losses . DWe end the week, as TaxMama gives you the Rules of Divorce, when it comes to dependents! Rules of Divorce

As always, we love your feedback, opinions and ideas.

You are what makes all this fun – and interesting!

Please use the Comments link online.  

TaxNerd gear makes a bold statement year-round.

It helps attract the opposite sex!

Shop at  or* 

Hugs from your favorite TaxNerd,*

Eva Rosenberg, EA

Your TaxMama®  is watching…out for you.





09/15/2010 Partnership Returns Due- FINAL DEADLINE

09/15/2010 Corporate Returns Due- FINAL DEADLINE

09/15/2010 S Corporate Returns Due- FINAL DEADLINE

09/15/2010 Estate & Trusts Returns – Final Deadline; Bankruptcy fillings use the same form

09/15/2010 Individuals, Farmers & Fishermen Pay 3rd Quarter Estimated Tax Payment

09/15/2010 Corporations – 3rd Quarter Estimate Tax payment Due 

09/15/2010 Estates & Trusts 3rd Estimated Tax Payment

09/15/2010 Deadline for Corporations and Partnerships to fund SEP-IRAs for previous year.

09/30/2010 Last day to establish SIMPLE plans for current year

09/30/2010 Time for businesses to consider setting up retirement plans

10/15/2010 Net Operating Loss – Eligible Small Business carry back loss

10/15/2010 Personal Returns – FINAL DEADLINE


From TaxMama® to You!


Follow TaxMama®’s Tweets –  

You are invited to put a TaxQuips Widget on your phone, social networking page, website, or… You’ll get the TaxQuips as soon as they published – long before they are distributed in by e-mail. It’s a nifty gadget. Just pick up the code and paste into your site or application.

Download TaxMama’s 2010 iphone Tax Calendar. My gift to you.

Never miss a tax deadline again!

The customizable tax calendar is here.

Add or Remove dates. Add your own reminders – get alerts.  




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Take TaxMama®’s 2010 EA Exam Review Class  

Tomorrow we will do the Part 3 – second Final Review session.

I got a funny note from a student who just passed the hardest part – Part 2, and is now done. He told me how my class not only helped him pass the EA Exam, but also to lose 10 pounds. I’ll tell you about it in next week’s EA Exam News.

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