To contact us Click
HERE
Afterpublishing my post on the first day of NATP’s National Conference in BaltimoreI realized that I forgot to include my pet peeve with NATP (although NATP iscertainly not the only offender – it is a common complaint) when announcing thelodging facilities of conference, workshops, and seminars.NATP,and just about every other provider, will tell you in its publicity that theevent or activity will be held at the High End Hotel in Hottown, and that thespecial event or activity room rate is, let’s say, $149 per night.This is a lie! You will not pay $149 per night for your room. After adding in various state and local taxesand other charges, different for each location, you will actually pay over $170 pernight. Plus, if you drive, as was anoption for me for the Baltimore location, you will pay perhaps an additional $10-$18for parking at the hotel. Please,please, please – when announcing the “special room rate” give the true rate,with all taxes and additional charges included.TTFN
To contact us Click
HERE
Thismorning I returned to the Baltimore Marriott Waterfront for more educational sessionsat the NATP National Conference – although I did not have to arise as early asI did on Monday morning.Ihad scheduled one session before the free box lunch break and two after – but endedup with only one afternoon session. Ihad originally planned to attend the session on Current Developments –Business, but after reviewing the session workbook I determined there wasreally nothing new for me to learn. Rather than sit around the hotel for the 50minutes between sessions I decided to head back to my Mount Vernon CulturalDistrict located hotel to check email and work on my post.Whilethere are a multitude of educational sessions to choose from at Conference eachyear, I am in a unique situation. I donot accept any new 1040 clients, and do not accept any “entity” clients(partnerships and corporations). I haveno desire to represent taxpayers before the IRS (other than to attend audits ofreturns I have prepared). And I will besleeping through the required 2 hours of ethics preaching at the NATP year-endupdate in November – so no need to waste the 2 hours (actually 100 minutes)now. In reality there are only so manysessions of interest, or actual value, to me – one reason why I often find theannual National Conference not cost effective.Mymorning session was another attempt at “Stump the Stars” (actually Stump theInstructors). Over the years NATP hastried this type of format in various incarnations – Panel of Experts, Ask theResearch Director, Frequently Asked Research Questions, etc – with anindividual or panel addressing a variety of questions on all aspects of taxes eithersubmitted prior to the session or from the floor. I have always liked this kind of session, andalways attended when offered, and wish it were an annual offering (like CurrentDevelopments).Thissession had three of the current instructors (one of whom was Beanna Whitlock,who was more serious this time around) answer questions, some previously submittedvia email (I had received an email solicitation last week, and did not submit aquestion) but most from the floor. Onequestion from the floor concerned the reason for one of my “eccentricities”. Apreparer thought she had taken care of a client issue with an IRSrepresentative over the phone, and had submitted via fax all requiredinformation to facilitate the settlement as per what she had been told by theIRS person. However a few months laterthe client received an IRS notice that a lien had been placed on his businessproperty – which ended up FU-ing the mortgage refinancing process that he wasgoing through. So the issue was notsettled as the preparer had thought – the IRS staffer lied and totally ignoredwhat had been agreed upon.Overthe years I, and my clients, have been lied to left and right over thetelephone by IRS employees and NJ Division of Taxation representatives. I decided several years back never to address a federal or state taxissue over the phone. If an issue arisesI will never initiate contact via afederal or state “practitioner hotline”, but will always contact the IRS, or NJDOT, in writing – so I have a writtenrecord of my contact and the agency’s response. It takes longer – but it usually ends in a satisfactory resolution andminimal, if any, agita.Nobodywas able to “stump” the instructors – who gave good (and in my opinion correct)answers to all questions.Theafternoon session was “Audit Proof Your Client’s Return” – with every seat filledand several attendees sitting on the floor. The instructor was new to me, and I think NATP as well, and providedsome good suggestions. Ihave three more sessions tomorrow. I dobelieve I will meet my 15 hour CPE requirement at Conference, although I willbe short 1 hour of “updates” (more than covered by the year-end class inNovember) and the 2 wasted, but required, hours of “ethics” preaching. TTFN
To contact us Click
HERE
Thelast day of the NATP National Conference in Baltimore turned out to provide thebest content – at least from my perspective. I attended one morning session and two in the afternoon.Themorning class was “Form 4797 Basics” taught by Chris Bixby, EA.Iadmit that I, like many other preparers, have always been somewhat confused byaspects of Form 4797. I have takenseveral 4797 CPE classes over the years, but always have my Taxfinder Handbookin front of me when completing the form.Chrisdid a great job of explaining the concepts of Sections 1231, 1245 and 1250property and recapture, unrecapture, and nonrecapture in such a way that I dobelieve, by Jove, I have finally got it!Ispent the afternoon with Larry Gray, CPA, a 35-year veteran tax pro andlong-time NATP instructor (and former President). Larry led back-to-back “Did You Know?” sessionson Form 1041 and the dreaded Alternative Minimum Tax (AMT). His format wasunique, and, rather than working his way down the individual forms, dealt withspecific questions clients might have about differing 1041 and dreaded AMTsituations. WhileI have no desire to prepare 1041s, I am occasionally forced to prepare one fora long-time client who has gone to his/her final audit. Larry gave me some new insights.Hisdreaded AMT class demonstrated what a real monster the parallel tax systemtruly is – and why it should be destroyed. It also discussed tax planning suggestions and alternatives for variousdreaded AMT scenarios.Theseclasses reinforced that no taxpayerfaced with Forms 4797, 1041, or 6251 should attempt to prepare his/her own taxreturn – and should certainly notrely on a “box”. Asusual NATP did a good job offering some great education. While no longer really cost effective for me,the National Conference is still a good value for most other tax pros.UnfortunatelyI am heading back to New Jersey as you read this – although thankfully not forlong. I close on my condo in PA nextTuesday!TTFN
To contact us Click
HERE
Iam sure there are several out there who knew it was inevitable that I wouldpost my comments on the item “343,020 Reasons CPAs Should Talk Up Their Tax Expertise Now” by Jina Etienne, CPA, Director of Taxation of the AmericanInstitute of CPAs, at AICPA Insights - and have been waiting with baitedbreath.Well– here it is!Jinaexplains in the piece - “While CPAs havedominated the regulated tax preparation arena, that landscape is about tochange.” Thank the Lord that it is! AndJina tells us – “Unfortunately, the public doesn’t reallyunderstand the difference between a CPA and other tax return preparers.” Iwholeheartedly agree with this statement, but not in the way Jina intended. The public, and most journalists, have foryears believed the totally untrue “urban tax myth” that a CPA was automaticallya 1040 tax expert. Articlesand columns on 1040 topics constantly suggest that readers “consult your CPA” when they mean “consult your tax professional”. The two terms are not interchangeable! Howmany times do I have to say this? Just because a person has the initials CPAafter his/her name does not mean that he/she knows his/her arse from a hole inthe ground when it comes to 1040 preparation.The CPA exam is not atest of 1040 knowledge or competence. I doubt there are any questions on the examthat have to do with 1040 preparation. Iexpect any tax questions on a CPA exam are concerned with “entity” taxation(corporations, partnerships, estates and trusts). TheCPA exam is certainly no substitute for the initial competency exam now requiredof “previously unenrolled” tax preparers.Andwhile CPAs are required to maintain a designated number of hours of annualcontinuing professional education, thereis no requirement that any of this CPE be in federal 1040 taxation.However,CPAs should be afraid, very afraid, of the new Registered Tax Return Preparer(RTRP) designation. Itis not that there are all of a sudden tens of thousands of new tax preparers to“compete” with the CPA. There havealways been hundreds of thousands of educated, experienced, and highlycompetent “unenrolled” preparers(like me) out there (often having to fixmistakes made on 1040s by CPAs). Actually the new regulation regime has, and will, actually reduce thenumber of non-EA and non-CPA preparers.Whatthe new designation will do is affirm the fact that those who earn it have proventhemselves competent in 1040 preparation, and remain current by taking annualCPE in federal taxation each year. Itwill indicate to the public that these individuals, and not CPAs, are proven,if not tax experts, at least competent tax professionals. CPAs are currently exempt from having to prove basic tax competence by taking the IRS exam and are exempt from having to remain current in tax knowledge by taking at least 15 hours per year of CPE in federal taxation. Yet the IRS says it is ok for CPAs to prepare tax returns - while the rest of us must go through the hoops. There is no good reason for exempting CPAs who want to prepare 1040s for a fee from these requirements.Many EAs, who are also exempt, and for good reason, from the RTRP test, are actually sitting for it so that they can add the initials RTRP to their name. This is because of the widespread public confusion about what an EA is. If a CPA wants to be held out as a tax expert he/she should sit for the exam, maintain 15 hours per year in federal taxation CPE, and get the RTRP credential.Jinawants clients to know that “their CPA isthe premier provider of tax services”. While “their” CPA may indeed be a tax expert – it has nothing whatsoeverto do with the presence of the initials CPA. It isonly because of the education, training, experience, ability, temperament, andother factors that are specific to that individual preparer.TheRTRP, and the EA, are the premier providers of tax services – not the CPA!TTFN
To contact us Click
HERE
Forthe next at least 9 days I must devote pretty much all of my attention tothe physical moving of my home and office from New Jersey to Pennsylvania – andgetting rid of the ton of “stuff” that is not making the move with me.
WhileI will try to keep current on the Wednesday and Saturday BUZZ installments, Iwill not have time to post anything else at any of my blogs.
OnceI have settled in at my new homestead I will make an effort to return toregular posting.
Thanksfor your understanding. In the meanwhileI am sure Kelly, Kay, Joe, Bruce, Peter, Jason, et al can satisfy your tax-postcravings.
TTFN
