Ask TaxMama Issue 609 – Cat-atonic

Dear Family,

Busy week, with lots of catching up to do. One of the discussions that has been interesting is whether or not employees are allowed to use the IRS per diem rates for lodging if their employer does not have a reimbursement plan. The discussion has been playing out in two places – on the TaxQuips newsletter and the TaxQuips Forum. Perhaps you have some definitive insight into this issue?

We still don’t have a budget. Did you know that not getting the budget done will affect more than just the interest rate the US pays on Treasury Bonds? It will affect YOUR rate on variable mortgages, new financing, credit cards, and any new loan you get. Once you realize just how close to home the affects can be, it stops being an abstract, amusing and perhaps childish exercise. It starts to become very real and ever more frightening.

In IRS News today, we learn that IRS is waiving the two-year statute of limitations on certain innocent spouse cases. That means, once you find out that your spouse has caused tax troubles that you didn’t realize you would be held responsible for, you will have more time to build a defense and separate yourself from his or her taxes. You can read more about it here.

Folks who are adopting children have some substantial tax benefits available. IRS provides an overview of the adoption credits you can use, when you can use them, and how to increase your benefit by having your employer contribute tax-free funds towards your adoption(s).

We are getting ever closer to developing testing and standards for tax preparers on a national level. IRS, the Taxpayers Advocate Service, the National Association of Enrolled Agents (NAEA) and others have been working hard to protect your interests. It’s hard to believe that all these years there have been no standards at all. It would not be nearly as hard to believe, if every state had their own licensing laws for tax preparers. Astonishingly enough, for such a sensitive function (where people get enough information from you to steal your identity or your funds, and sometimes do so), 48 states did not establish any licensing at all. (A couple made some weak attempts recently, but…) You can read about NAEA’s testimony before Congress on this issue.

By now, you’re all getting familiar with the Amazon battle and the State of California. You should be, because it’s coming to your home state, soon. California recently announced that California taxpayers may use a table to estimated their annual purchases on which they did not pay taxes. More and more states are trying to recoup lost sales taxes by imposing use tax payments and including them directly on the personal tax returns.

In today’s Money Funnies & Inspiration, you learn that it takes a certain perspective to succeed in business – and in life, as we learn how to bathe the cat.

A Week of TaxMama’s TaxQuips

We start the week off with Duncan, who has a Mexican client working in the U.S. picking your produce. Duncan is sure his client is exempt from FICA and Medicare taxes. How does he explain this on a tax return? K Syl is starting a new online business reviewing comic books. Is he allowed to write off the comics? Bob has been working out of town for the last six months. He totaled up all this allowable deductions – about $50,000! Bob was shocked to learn that $50,000 in expenses didn’t reduce his taxes. Why not? We end this week with Chan, who is getting all caught up. Chan wants to know if he can recover taxes IRS and his state levied from him because he was a little slow to respond.

Lower taxes, achieved ethically = higher profits and increased joy

Small Business Taxes Made Easy

The new, award-winning Small Business Taxes Made Easy is getting lots of attention. Andrew collected some of the reviews and awards generated by this book.

Orlando made a brilliant observation this morning –

Step 1 to being successful with my business…learn how to read instructions!

This week’s question for you – Where can you find the best resources for your business?

Read the end of each chapter of Small Business Taxes Made Easy to find many free, online resources.

TaxMama’s EA Exam Review Class

Do you want to know more about the IRS Special Enrollment Examination? Please replay Everything you Ever Wanted to Know about the EA Exam.

Last night, TaxMama’s students learned all about Partnerships

Tomorrow, we’re going to learn all about Corporations and S Corps.

We had great fun getting insights into Partnerships this past week.

There is still time to sign up for TaxMama’s EA Exam Review Course.

There is a Family Member discount of 10%.

CPE-Link – The IRS Practice Series is now over.

But they are ALL up as a Self-Study Package https://www.cpelink.com/teamtaxmama/

We’ll be working on some year-end reviews for you soon, too.

In the meantime, people keep telling me they don’t know how to use Facebook and Twitter to improve their business. You will find some classes here, at CPE Link.

Incidentally, if there is anything else you’d like to learn more about, please let me know. We’ll develop the classes for you.

TaxMama Interviews

LA Times, by Liz Weston
Tax strategies for self-employment income

TaxMama Writing:

AccountingWeb.com blog – Going to the IRS Tax Forum

This week’s Equifax article is – Common Mistakes the Self-Employed Make

But it will be – Summer Tax-Free Days – very soon.

You can find daily TaxQuips into YouTube videos
https://www.youtube.com/taxmama1#p/u

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

You are what makes all this fun – and interesting!

Please use the Comments link online.

https://taxmama.wpengine.com/asktaxmama/ask-taxmama-issue-609

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Eva Rosenberg, EA

Your TaxMama®

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Your TaxMama® is watching…out for you.

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TAX CALENDAR

https://taxmama.wpengine.com/tax-calendar-2011/

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06/30/2011 File Form TDF 90-22.1 – Report of Foreign Banks with $10,000 anytime during year

07/15/2011 Employers Make Monthly Payroll tax deposit on the 15th of each month

08/01/2011 2nd Quarter Payroll Taxes Due

08/01/2011 Deposit FUTA tax if more than $500 was paid through June 30th

08/01/2011 Employer’s Deposit Federal Unemployment (FUTA)

08/01/2011 Employers File Annual Return for Employee Benefits Plan 5500

08/01/2011 Employers File Annual Return for Employee Benefits Plan 5500-EZ

08/01/2011 Employers File request for Extension filing Employee Benefits Plan Return

08/01/2011 2nd Quarter Federal Excise Tax Return & Payment Voucher

08/15/2011 Employers Make Monthly Payroll tax deposit on the 15th of each month

08/30/2011 Time for businesses to consider setting up retirement plans

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From TaxMama® to You!

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