NEW JERSEY IS NUMBER ONE - AGAIN!

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In his post “AMT By State, 2007” fellow tax blogger Paul Caron, the internet’s TAX PROF, tells us about a report by Carol Rosenberg of the Tax Policy Center that discusses the proportion of taxpayers paying AMT in each state in 2007.
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Paul tells us (the highlight is mine) –
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“In two-thirds of the states, less than 3.5% of taxpayers were subject to the AMT, but in New Jersey 8.7% of taxpayers paid AMT, and 7.7% owed AMT in neighboring New York. More than 6.5% of taxpayers in California, Connecticut, and the District of Columbia were subject to the AMT.”
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So New Jersey tops another list of the highest taxed states!
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TAFN

A LETTER OF THANKS

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FYI - I just sent the following email to my “contact” in the NJ Division of Taxation, with a “cc” to Acting Director Cheryl Fulmer, regarding his help with the recent NJDOT FU discussed here in previous posts.
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“It looks like I have heard from all of the clients submitting balance due NJ-1040s via NJWebFIle whose account the Division of Taxation FU-ed.
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The list was much less this time around because I was still hesitant to submit balance due NJ-1040s online, considering the 2006 FU. To be perfectly honest, as this has happened in two separate years I will no longer submit balance due NJ-1040s online in the future. I am sure that all appropriate clients will gladly sign the OPT-OUT form to avoid potential agita.
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Thank you very much for all your help in resolving this current FU. Everything was taken care of promptly and satisfactorily - and, miracle of miracles, you even got the NJDOT to issue letters of apology! Your continued help and support is greatly appreciated by NJ tax professionals.
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I also appreciate the assistance and concern of your new "employer". I hope that when Governor Corzine is thrown out of office in the upcoming election Ms Fulmer remains with NJDOT as it’s at least "Acting" Director.
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Before I leave this topic I must make the following comment.
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The current FU, just like the one from 2006, involved applying a taxpayer's current year tax payment to a prior year's tax "account". This would obviously result in an "overpayment" in the prior year account. Why did this resulting overpayment not cause the NJ Division of Taxation to automatically, if not actually refund the overpayment, at least send a letter of inquiry to the taxpayer identifying the overpayment and asking what the payment was for?
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If this exact same situation happened at the federal level there is no doubt that the IRS would send a form letter to the taxpayer identifying the overpayment and requesting more information on the payment. I have seen this happen often in the past.
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If the IRS can act honestly and responsibly in such a situation why can the NJ Division not also do so? Was the NJDOT hoping that the taxpayer would forget about the overpayment, erroneously pay the current year tax again when billed, and allow the State of New Jersey to just keep the overpayment to add to its Treasury so that the State's corrupt politicians could continue to get fat on pork?
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Thanks again for all your help. I hope I can call on you again in the future for help when the NJDOT FUs.”
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TAFN

THIS JUST IN

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The New York Department of Taxation and Finance has just updated its “Handbook of New York State and Local Taxes”.
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According to the DOTAF the Handbook "provides a general descriptive overview of the taxes which New York State and its local governments impose. For calendar-year taxes, except as otherwise noted, the descriptions apply to tax year 2009. For other taxes, the descriptions generally apply to the tax as in effect on September 1, 2009. Where applicable, scheduled law changes in subsequent periods are noted."
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Click here to download a copy of the Handbook.
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TAFN

NO SURPRISE TO ME!

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As expected, according to a Press Release from NJ Governor Corzine’s office “Filing Deadline Extended to November 2 for Senior Freeze and Homestead Rebate Applications”.
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This happens every year! A June 1st filing deadline is initially announced for both applications. As the end of May approaches the deadline is extended to August 15th (or this year August 17th as the 15th is a Saturday). And then, at the last minute, the word comes down that the deadline for these applications is again extended to October 31st (or this year November 2nd).
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So if you have not yet submitted your NJ Homestead Rebate and/or Property Tax Reimbursement (aka “Senior Freeze”) application you now have until November 2nd to get it in.
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I wish the idiots in Trenton would just set October 31st as the filing deadline in the beginning!
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TAFN

ARE THOSE WINGED PIGS I SEE?

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I thought that there was nothing the NJ Division of Taxation, or for that matter the State of New Jersey, could do any more to shock or surprise me.
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My clients who were victim of the latest NJDOT FU (i.e. misapplication of 2008 NJ-1040 balance due payments – nothing new), and which I was able to fix promptly through email contact with a contact in Trenton, received the following letter from the Division of Taxation (the highlight is mine) -
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“Dear Taxpayer(s):
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A review of your 2008 New Jersey income tax account shows that an error was made in processing the payment you submitted using the payment voucher printed from our NJ WebFile system. As a result, you were mailed a Statement of Account earlier this month which showed that you had a balance of tax due, plus a penalty and interest. Please accept my apologies for this error and for any inconvenience it may have caused.
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Your 2008 State income tax payment has now been properly credited and your 2008 income tax account shows that you no longer have a balance due. No further action is needed on your part and you may discard the Statement of Account previously sent to you.
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Please know that the Division of Taxation continually strives to ensure that our systems and processes are working properly and adequately serving the needs of New Jersey taxpayers. We have taken the necessary steps to ensure that our NJ WebFile System has been updated and that this error does not recur.
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Once again, please accept my apologies.
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Very truly yours,
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Peter Lowicki
Assistant Director
Technical Services”
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Will wonders never cease?
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TAFN

SOMETHING YOU MIGHT BE INTERESTED IN

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FYI - here is an email I received while away In Pennsylvania. I have absolutely no knowledge of this person or her services, just thought you might be interested in checking it out. Since I am not looking for new clients I will not be registering for the service myself.

“My name is Rhonda Nelson and I am a referral agent. I am launching a tax preparation referral service in New York. My service is strictly for the New York and New Jersey market. I will have a great website for consumers to search for tax preparation professionals.

I perform extensive advertising before and all through the tax season every year, so my site will gain lots of exposure. Some of the advertising I perform is:

• Newspapers (Daily News and NY Post are definites, with at least a half page daily for each newspaper)
• Magazines
• Online Advertising (MySpace, FaceBook, and Google are a few)
• TV Commercials

Benefits of registering with my service:

• Strictly based in New York and New Jersey
• Gain lots of exposure for your service without cold calling
• Consumers will search based on zip code, city and rates
• Consumers will be able to set appointments with tax professional right through the site
• You will have an extensive profile with contact information, rates, schedule, summary of service, ratings, and education and/or training
• There is only a flat yearly fee of $400.00 for everything included- no different levels of service

Once the site is launched in November, tax professionals registered will be able to place their available times on site every week (or keep them the same) for appointment making.

If you would like to register for my service, send me an email stating so, and I will email you my electronic agreement to fill out and sign. Once you electronically sign and send it back, you will receive a payment email to pay through PayPal.

Thank you in advance for your consideration,

Rhonda Nelson”

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Her email is rhondan@zoho.com.

TAFN

VERY INTERESTING

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This sounds interesting.
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The NJ Association of Public Accountants will hold its Annual Fall Seminar on Monday and Tuesday, September 14 and 15 from 8:00 AM – 4:30 PM at the Sheraton Hotel in Eatontown, offering a total of 16 CPE.
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Monday covers “Accounting and Auditing”. It is Tuesday’s presentation that interested me –
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“Deductible or Not? Can I deduct this? The most common question asked by clients. In this economy clients are looking for all the deductions they are entitled to. This seminar is TOTALLY different from typical CPE. It is a quick and lively review of unusual and often misunderstood deductions on Individual returns. Learn under what circumstances certain items can be deducted. Citations will be provided so you can authoritatively respond to your clients’ questions.”
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The seminar is taught by Alice Orzechowski, CPA, EA. Alice also teaches for NATP and I have attended a few of her presentations in the past. She is a very good instructor.
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The cost for the Tuesday tax presentation only is $260 for NJAPA members and $300 for non-members if you register before September 1st. After 9/1 it is $280 or $320.
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Click here to download the brochure and application.
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While I have you – you may want to check out my detailed review of the testimony presented by the various related membership organizations at last weeks IRS Public Forum on tax preparer regulation today (Monday) and tomorrow (Tuesday) at THE WANDERING TAX PRO.
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And as an update to the latest NJ Division of Taxation FU - According to my "contact" at NJDOT, "We have just received word than an apology letter will be going out to your affected clients". Will wonders never cease? I do believe that is truly a first!We have just received word that an

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TAFN