Today we meet Dan Meyer, a Professorof Accounting at Austin Peay State University in Clarksville, TN, and author ofthe blog TICK MARKS, which I love to say has nothing to do with lyme disease(you see lyme disease is transmitted by ticks, who leave a distinctive markwhen they bite you). In this case “tickmarks” refer to the mark an accountant makes when footing and cross-footingcolumns of numbers.
While primarily an accounting blog,Dan often discusses tax issues.
Dan used to list “The Twelve Blogsof Christmas” each year, and TWTP made the list in the tax category back in2007.
Howdid you become interested/involved in preparing tax returns?
As I was settling on an accountingmajor in my sophomore year of college; I took an H&R Block self-study taxtraining class.
How were you educated/trained inpreparing tax returns?
Inaddition to the class above; I took a tax course as an undergraduate at “OleMiss” and several tax theory classes during my doctorate at the University ofMissouri. In addition, I got“on-the-job” training in tax preparation while working for CPA firms inMemphis, TN and Corinth, MS
Whenand why did you decide to write a blog on tax issues?
In 2005, there were not a lot ofaccounting and tax blogs in existence and I believed that starting a blog wouldhelp in my academic career at Austin Peay State University.
Howhas blogging helped your business?
I do not have a business, but it hashelped me as a college teacher by helping me keep up on developments in theprofession (and at closer to “real time” than I would get simply by taking CPEcourses as a CPA), by enabling me to get a journal publication (New Accountant,2007, Issue 723?) and I have assigned students to do a simulated blog in one ofmy undergraduate courses.
Whatdo you consider the “best tax advice” you can give anyone?
Take legitimate deductions andcredits to be sure, but after that, PAY your taxes.
Doyou think the regulation of tax return preparers is a good thing?
From a purely ideological point ofview, no; the present American economy is badly overregulated and that is animportant contributor to the present high unemployment rate. However, the tax return preparer legislationhas a saving grace—accounting students with marginal GPAs can and should takethe RTRP exam and have a saleable skill along with their diploma.
Do you think CPAs and attorneysshould be exempt from testing and required CPEs in taxation?
Ingeneral, yes since tax is tested on the CPA and bar exam. I do agree, however,that if subsequent research by the IRS shows that CPAs and attorneys have anerror rate comparable to non-EAs/CPAs/attorneys, that this exemption should bepulled (note: EAs should have an unconditional exemption). An additional tweak that I could accept(though not support for selfish reasons) would be to pull this exemption if theCPA/attorney had prepared less than 20 returns in the past five years or if theCPA/attorney had received ethical or criminal sanction at the state or federallevel in the last five years.
Do you think experienced taxpreparers should be exempt from the initial RTRP competency test under“grandfathering”?
Mixedanswer here since I can see good arguments for both sides—thus somewhat similarto the immigration debate in Washington. At most, I could support something like a refund of competency test feeif the experienced preparer passed on the first try or a one-year deferral onthe due date for the competency exam for preparers with over 10 yearsexperience AND no ethical or criminal sanctions during the last 10 years.
How would you reform/rewrite the TaxCode?
SinceI am in my mid-50s, I doubt that I could live long enough (even if I had theinterest to do so) to read the code, regulations and court cases needed tofully understand what is in the present U. S. Internal Code of 1986,amended. Having said that, a fewsuperficial adjustments:
[1]Raise the capital gains and dividend rate to the lower of actual marginal rateor 25% except for sales of principal residence,
[2]eliminate the 85% provision on taxation of income for Social Securityrecipients and raise the floor to 50K MFJ/ 35K single/ 20K MFS,
[3]allow the first $1000 of charitable contributions and medical insurance to bededucted toward AGI,
[4]eliminate Subchapter C taxation of corporations (making virtually all businessincome pass-through) UNLESS they directly or constructively have taxable incomein excess of $100,000,000; then a single tax rate of 25%,
[5]eliminate the estate tax on estates with net worth of less than $5 million;
[6]eliminate or drastically rework the credit for the elderly—at present, it ismore hassle than it is worth. In my bloglast year, I have separately proposed several changes to extend the projectedlife of Social Security.
What is your favorite Broadwaymusical – and why?
Ihave never seen a musical on Broadway—I did see an off-Broadway presentation of“1776” in the Elliott Hall of Music at Purdue University in West Lafayette, INas an adolescent and was quite impressed.
WhileDan and I disagree on the basic concept of exempting CPAs from taking the RTRPexam, if we are indeed stuck with the blanket exemption I do like hissuggestion of removing the exemption of CPAs who have prepared less than 20 returnsin the past 5 years. Although I wouldmake it at least 10 Form 1040s per year in the past 5 years.
Ifhe had to see only one Broadway musical he chose a good one.
TTFN
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