Military Thoughts

Thanks to the Tax Girl for her piece Tax Tips for the Military on Memorial Day. My husband heads overseas in a few weeks for a six-month tour with the Air Force, and I appreciate everyone thinking of the military this past weekend.

I look forward to announcing my husband's safe return around the start of next tax season!

And thank you Kay, as well! ... Memorial Day remembering, planning

Read More

Work in Progress...

I'm going to say this blog is a work in progress, where the term "progress" has a very loose meaning.

As I explain over at my less technical (i.e. more "touchy-feely") blog, I'm going to be on blog hiatus for awhile, as my husband will be serving overseas with the Air Force.

I often note that I won't be perfect until my next life, so I guess that applies to my blog too. Here's to another life with a perfect blog!

Good luck with tax season!

Read More

Caution is the better part of valor... sometimes

Back in Ohio, we used to pass a street sign each week that said: "Right turn with caution." (Which was probably safer than "Right turn with abandon.")

My impression is that accountants are a cautious bunch. We like to look before we leap. When we learn in the news of a disaster that could have been avoided with more safeguards, we point to it and say: "See, that's why we need to be careful."

For example, Key Bell shares a report of Donald Bren's $1.4 million federal tax refund stolen by an ID thief. She writes: "While Bren and others at his rarefied income level are an identity thief's dream target, any of us can become victims."

Kay is (as usual) absolutely correct.

David McClure recently wrote on CPATechViews:

I have dropped out of FaceBook, don’t Twitter or Tweet, and refuse to give real information to any web site. And I wipe my cookies and tracker caches every single night. Because I do not want to let advertisers know who I am, where I am or what I am thinking about. That may seem extreme, but you should consider it as well. I’m a pretty stable guy, not a privacy lunatic by any means, but I am scared.

And so as with all things in life, we find ourselves dealing with the gray area. I understand McClure's position, and at the same time am not taking the same position. Perhaps I am setting myself up for trouble by staying active online. But I keep thinking of the Spanish proverb quoted in one of my favorite movies ("Strictly Ballroom"):

"A life lived in fear is a life half lived."

I'm not about to go sky diving or anything, but I'll stick around on Twitter, and hopefully not have my tax refund stolen. (To any ID thieves out there: there's not a whole lot of money to be gained from swiping my name.)

Read More

Murray Blum for President

I've now been in the S.F. Bay Area for one week; and in addition to loving the lack of humidity and beautiful views, I am noticing how the fiscal troubles of the state seem to come up everywhere I turn.

A friend in law enforcement discussed rumors that Oakland would be cutting 200 officers. A family member working for the state is down to four days a week since weekly furlough days were enacted. The registrar at my daughter's school said the calendar would be changing, as they will be taking furlough days.

My impression is that California, like many people, was not closely watching expenditures when times were good. And now times are not so good. On both the micro and macro scales, we need to make careful, informed decisions about how we spend our money. That requires we take the time to look at where the money is going. This includes where the money goes both via direct spending and via tax benefits, as Professor Nellen points out in a great discussion of Increasing attention on tax expenditures.

Maybe the movie Dave was right, and we just need to get an everyday CPA into the White House to dig through the books.

Read More

Speaking out

Kudos to Joe Kristan for encouraging us to write our senators, and providing links to do so, to speak out against the S corp tax in the extender bill. This is social media at its best. Let's show people that tax folks aren't all that quiet.

Read More

Shooting just around the corner

I just read Peter Pappas' post about a man in Dayton, Ohio opening fire on an H&R Block employee (which he read about on WebCPA). According to Yahoo! maps, the bar where the shooting took place is just over 7 miles from my house. That's a little frightening.

This seems to be a classic example of shooting the messenger (forgive the pun, as I don't know another way to say it!). And as long as the system is out of control, I wager we'll continue to see taxpayers blaming tax professionals. I figure the only way this will slow down is if we get a system in place that is transparent and understandable to taxpayers. We all know it, now we've got to figure out how to make it happen.

A place to start the dialogue is Professor Nellen's 21 Century Taxation blog, which recently celebrated its third anniversary (congrats!). If we can somehow manage to get a lot of us "messengers" in a dialogue and come to some agreement, maybe we could make progress on getting the public and Congress on board with serious reform. Of course, getting a large body of tax professionals to agree on a reform plan is going to take some work. I figure once I get these kids a little older, I'll make that one of my long, long term projects. Someday my kids will thank me for it! Maybe...

In the meantime, I'll be safe from angry Dayton taxpayers when I move to California in a few weeks. Although I'm guessing the taxpayers aren't much happier there.

Read More

Under Pressure

Dan Meyer of TickMarks pays me a huge honor in yesterday's post: Too Long Between Posts--Apologies ..

I look forward to seeing the posts of Robert Flach (Wandering Tax Pro), Monica Lavwer (Confessions of a CPA and the Tax CPA)and others as they return to blogging after their working hiatus. Major applause to Joe Kristan, Russ Fox and other working tax accountants (yes, and Peter Pappas, Kelly Erb and tax lawyers too) who were able to post in the midst of the maelstrom.

First off, I've got to agree 100% that the practitioners who blogged through the season quite simply rock. They are definitely in a league of their own. And in this league we can't forget Trish McIntire, who's April 14 "A Little Rant" made me smile. Stacie Clifford also managed to keep posting throughout, though she admits most were borrowed from the IRS.

Second, I must say I am pleasantly surprised that Dan would look forward to my writing. Few things feel as marvelous as respect from one's mentors and peers.

Last, but not least, to have my name even listed in such an impressive group, I feel like I better step up my game! It would sure be a shame if, a year from now, bloggers wrote: "Remember that blog that seemed to have good stuff, then completely choked?"

So with that classic CPA perfectionist thought in mind, I thought I'd share one of my favorite songs.

Read More

The Three Rules

In (what I'm guessing is) an effort to scare practitioners away from cheating, the IRS announced last Friday that a "Certified Public Accountant has been suspended for twelve months from practice before the Internal Revenue Service by the Office of Professional Responsibility for providing false or misleading information in connection with the preparation of his clients’ tax returns."

Unscrupulous tax preparers come in all kinds: tax attorneys, CPAs, Enrolled Agents (EAs), unlicensed preparers. Everyone should try and avoid a preparer who lacks integrity. Tax bloggers provide good advice for choosing a preparer, including Joe Kristan, Trich McIntire, Bruce The Tax Guy, Robert Flach, Peter Pappas, the IRS Hitman, and many others.

Upon reading the news of this suspended CPA, I thought this might perhaps lead to more debate on the topic of whether a CPA is more qualified to prepare a tax return than an unlicensed preparer. There's been so much written on the topic in the past few months, that I'm honestly not sure where the discussion left off. (One post that includes links to many others can be found at The Missouri Taxguy.)

I posted my thoughts on tax preparer regulation a few months back, and find my opinion has not changed much since then. I do, however, have some new thoughts on the matter of how such a topic is debated.

When reading about this CPA who was suspended, I thought: "Oh dear, I hope people don't start thinking he is representative of all CPAs."

I think most people agree that one bad apple is not representative of the entire bunch. But when in the throws of an argument, we often give undue attention to the one bad apple in an effort to make a point. This happens in debates about matters ranging from types of tax preparer, gender, race, nationality, and perhaps most of all religion. Since people tend to disagree in all such matters, I suggest we can learn from how others address the challenge of engaging in productive debate. Perhaps the most debated topic of all: religion.

The world reknowned theological and scholar Dr. Krister Stendahl is credited with creating Stendahl's three rules of religious understanding, which are:

1. When you are trying to understand another religion, you should ask the adherents of that religion and not its enemies.
2. Don't compare your best to their worst.
3. Leave room for "holy envy." (By this Stendahl meant that you should be willing to recognize elements in the other religious tradition or faith that you admire and wish could, in some way, be reflected in your own religious tradition or faith.)

When considering the strengths and weaknesses of a group of tax professionals, I try to learn about the group from its members, try not to compare the best of one group to the worst of another, and try to stay open to the possibility that another group has aspects that are better than mine.

This may seem to you completely unrelated to the topic at hand, and that is quite all right. I have a tendency to see connections everywhere, and perhaps may even imagine them. I like connecting the dots, even if I'm the only one who sees the line!

Read More

The tough choices

(For those who also read Confessions of a CPA, I apologize for the duplicate post!)

As I often observe, time is the most scarce of a person's resources. (Rita Keller shared an interesting post on this topic last month.)

Over the past few weeks, I have fallen behind in even skimming the headlines of the 1000+ contents from my of my 168 subscriptions in Google Reader. With tax season barreling down on me, I've finally admitted to myself that I won't be able to keep up. So much interesting content, so little time!

Today, I created a separate folder in Reader for "Daily Reads," which also shows up as its own list on the right of this blog. It was very hard to come up with such a short list.

Some blogs not on the list are fantastic reads that require a lot of my mental horsepower to follow, and I hope to make more time this summer to summon the brainpower to read them daily. These include the tax and legal experts at such blogs as ataxingmatter, Mauled Again, and TaxProf.

Other blogs not on the list are great reads about the world of finance and accounting, which I hope to revisit with a vengeance after April 15 when I am not required to only live and breathe tax. Some of these include BookMarkLee, The Exuberant Accountant, Jr Deputy Accountant, and many, many others.

So my "Daily Reads" are not a review (though of course I recommend them all), but simply the list of what I think a tax manager like me will religiously follow when time is short.

What are your "can't miss" blogs?

Read More

You know you're addicted to Twitter when...

You're checking Twitter while sitting in the Orpheum Theater in San Francisco waiting for Wicked to begin.

In my defense, I had not been on Twitter for two weeks. That's a lifetime in tweets.

While waiting for the show to begin, I stumbled upon an update from favorite @taxtweet with a link to her post Another top 12 holiday tax countdown. As she notes, I was lucky enough to make Dan Meyer's Twelve Blogs of Christmas. What a pleasant surprise!

Dan is a blogging veteran at Tick Marks. I'm honored to be included in his list. In all honesty, I fear that it won't be long before top bloggers like Dan and Kay discover my secret: I really don't know what I'm doing out here in the blogosphere.

I owe a few more thanks to people smarter than me who take the time to converse with this blogging novice...

Thank you to Stacie Clifford Kitts at Stacie's Tax Tips for saying I have wit. What a lovely compliment! So much nicer than some of the things my 6 year old says to me.

Thank you to Wandering Tax Pro Robert Flach for giving this "new girl on the block" such a warm welcome. I can even forgive him often calling me Marilyn instead of Monica. :)

Thanks to Joe Kristan for saying my blog is worthy of making Dan's Top 12. I'll take "worthy!"

Happy New Year, everyone!

Read More

I got the part!

I finally got the part I've always wanted. Peter Pappas has cast me as Glinda "the good witch" in Professionalism: A Love Story. As I commented on his blog -- if I seem as nice as Glinda, then I must have an incredible hidden talent for public relations.

There has been much debate in the tax blogosphere about the issues of professionalism, rules of conduct, and so forth. Spineless though it may seem, I am opting to abstain from this discussion, primarily due to my inability to articulate coherent thoughts on the matter.

In general, my writing has been sadly lacking of late, due to an unexplained lack of ideas. Yesterday, I commented on this writer's block to my husband, and added: "I figure quality over quantity, so I'll wait until inspiration strikes."

I guess I can't keep my mouth shut, even if I'm lacking inspiration. These days, the issue of tax reform remains on my mind. On my "to do" list is to read ideas on simplification from top blogger Robert Flach, along with the AICPA's Tax Reform Alternatives.

Have you been reading any other good simplification ideas lately?

Read More

21st Century Taxation

I just discovered the 21st Century Taxation blog and related site about federal and California state tax reform. The site is the work of Annette Nellen, professor at San Jose State University.

She provides a great list of resources on tax reform, including the reports from President Bush's Advisory Panel.

Once I get to reading this, maybe there's a chance one will seem like real reform, and not just a band-aid. I will happily send that on to the White House for consideration!

What topics are you writing the White House about?

Read More

Slacker

I'm a blogging slacker. I hesitate to post when I haven't kept up on all the other blogging out there, which is really hard to do. You diligent tax bloggers are amazing.

I'm still at 1000+ unread items in Google Reader, so I won't be caught up any time soon. These cursed 9/15 and 10/15 deadlines are such a nuisance.

As the days tick by, I imagine myself being summarily dropped from the list of tax bloggers anyone cares to follow. I'd like to be part of the cool tax crowd, but may not yet have what it takes. Perhaps when this house gets sold and my kids are out of diapers, I'll have a shot.

Today I figured I'd mention a few posts that have caught my eye:

• Paul Caron reports that Tax Analysts presented President Obama's task force with 32 essays from top tax minds on tax reform. I admit I'm eagerly awaiting the task force's recommendations in December.
  
  
• A great new blog, Bed Buffaloes in your tax code, discusses Tax software and barriers to entry: are tax pros more like physicians or more like hair braiders? I'm always comparing my profession as a CPA to that of a physician, but maybe I'm wrong!


• I'm with The Wandering Tax Pro when it comes to TV, as he posts in "If I Had my Druthers."


• Yet another Obama nominee with tax trouble... seriously? Paul Caron posts "Home Office Deduction Trips Up Treasury Department Nominee."
  


• And a quick thank you to The Wandering Tax Pro for mentioning a recent post on my companion blog, Confessions of a CPA.

I look forward to scanning several hundred more posts over the next couple weeks, and just maybe I'll manage to come up with an original post of my own. (I can hope, anyway.)

Read More

Accounting Cheese

Just catching up on the blogosphere, and came across this post from Joe Kristan (originally from Taxprof) with two of the worst accounting videos ever.

I watched a few seconds of each, then had to stop because it was just too painful.

I guess I'll just have to get used to being one of the few cool accountants in existence.

Read More

Rally the troops

Thanks to Robert Flach, the Wandering Tax Pro, for his informative comment in answer to my question of how to get involved in pushing for tax simplification.

He writes:

There is really no effective lobby for the individual taxpayer. Until there is, all the other lobbies for special interest groups, with their huge budgets, will continue to entice Congress to complicate the Tax Code in their favor.

National Taxpayer Advocate Nina Olsen is a good loud advocate for the taxpayer and for simplification, but Congress rarely acts on her recommendations.

It's unfortunate that my perception turns out to be fairly accurate -- that there is no effective lobby for the taxpayer in pushing for simplification. Instead, the problem just keeps getting worse with each new credit and deduction.

I was thrilled to read Mr. Flach's offer to join me in organizing Tax Professionals for Simplification in his weekly recap of what's going on in the tax world, What's the Buzz. I'm not sure precisely when I'll be able to delve into the idea (selling a house and all), and I won't be able to devote a lot of time to this (and am sure others can't devote a lot either), but I figure some time is better than none. And I really think it's high time for change!

We'll keep you posted.

Read More

Banking Blunders

June Walker recently posted "You need only one checking account. Do not open a separate checking account for your business."

On this matter she and I respectfully disagree, and it seems most of the tax bloggers disagree with her as well.

Joe Kristan says it well in his usual no-nonsense way:

You will save yourself a lot of time at tax time, and a lot of grief in an IRS exam, if personal is personal, business is business, and that's that. Run your business like a business.

The Tax Lawyer provides some more good reasons for setting up a separate account. The Wandering Tax Pro wrote a good post arguing the case for a separate account.

I was disappointed with June's response, which was inflammatory and, in my humble opinion, uncalled for. As Robert Flach put it:

Just because someone respectfully disagrees with you on a subject does not make them a fool, or stupid, or uninformed.

The thing that bugged me most in her response was the accusation that Robert was being sexist when he referred to "One-man LLCs." To Robert's credit, he responded with an apology for not being perfectly PC, and indicated his efforts to use "he/she" in his writing.

Being female, I'm obviously aware of and sensitive to gender issues. I have tremendous admiration and gratitude for the generations of women that have come before and paved the way for younger gals like me. Because of this, I get really annoyed when people start looking for any excuse to accuse someone of being sexist. To me, June's comment was out of left field, and had no real basis in fact. If we always made sure to use the exact PC wording in everything we said, we'd never manage effective communication.

So in summary, I believe strongly in having a separate checking account for business, and even more strongly in keeping communication respectful and productive.

Read More