Tuesday, August 31, 2010

SPECIAL OFFER FOR TAX PRO FORMS COLLECTION

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I have been preparing 1040s for individuals in all walks of life since February of 1972. Over the years I have developed a collection of forms, schedules and worksheets that have proven very helpful in my practice - and which you might find them helpful to your practice as well.

Some of my “homemade” forms are given to clients to help them provide me with the information I need to properly prepare their returns. Some are used as “memos” to the client’s copy and my office file copy to back-up items reported on the returns. Others are used as attachments to the returns.

The regular price for this collection is $6.00, but you can have this package of forms, schedules and worksheets for a limited time for half price – only $3.00! While this special offer was originally limited to members of NATP it is now expanded to include all readers of the NJ TAX PRACTICE BLOG.

The forms package will be sent as a “word document” email attachment, so you may edit and revise them as you see fit to personalize them to your firm, to customize them be more relevant to your particular practice or clients or specific professions, or to update information for annual COLAs or tax law changes.

Here is a listing of what is included in the package.

A. SCHEDULE A –

1. Supplement to Schedule A
2. Medical Expense Worksheet
3. Medical Expenses – Out of Pocket Analysis
4. Charitable Contribution Listing – for non-cash contributions
5. Charitable Contribution Record – for cash contributions (2 pages)
6. Charitable Mileage Record
7. Contribution Worksheet
8. Employee Business Expenses – generic format, can be customized
9. Employee Business Expenses – Police Officer – example of customized
10. Conventions, Conference and Education
11. Miscellaneous Expenses #1
12. Miscellaneous Expenses #2

B. SCHEDULE C – (some of these forms can also be used for employee expenses)

1. Allocation of Expenses
2. Automobile Expense Worksheet
3. Auto Mileage Log
4. Business Expenses of a Freelance Writer
5. Business Travel Record
6. Computer Use Log
7. Election to Deduct Organization Expenses
8. Employee Expense Report
9. Employee Time Card
10. Home Office Deduction Worksheet
11. Cell Phone Log

C. SCHEDULE D – 1. Cost Basis Worksheet

B. SCHEDULE E –

1. Owner-Occupied Multi-Unit Rental Property Expense
2. Statement of Rental Income and
3. Statement of Rental Income and Expenses – Vacation Property
4. Multi Family Building

D. GENERAL –

1. Alternative Minimum Tax Worksheet
2. Does Not Have To File
3. Statement of Dividend Income
4. Statement of Pension Income

Send your check or money order for $3.00 (payable to TAXPRO SERVICES CORPORATION) and your email address to –

TAXPRO FORMS SPECIAL OFFER
TAXPRO SERVICES CORPORATION
PMB 304
72 VAN REIPEN AVENUE
JERSEY CITY NJ 07306-2806

FYI – I do not accept Paypal.

TAFN

Monday, August 30, 2010

FOR YOUR INFORMATION

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FYI – the link to look up the amount of your Homestead Rebate check (received in calendar year 2009 and earlier) is no longer available on the NJDOT home page, or on the “Homestead Benefit” program information page.

It is available through the “Electronic Services” menu under the “Individuals” category. Click on “Property Tax Relief” and then “Check the Status (Amount) of your Homestead Rebate”.
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Or click here.

TAFN

Friday, August 27, 2010

HOMESTEAD “BENEFIT” APPLICATIONS TO BE MAILED IN SEPTEMBER

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The NJ Division of Taxation has announced the mailing schedule for the application for the 2009 Homestead Benefit (the benefit formerly known as the NJ Homestead Rebate) -

Atlantic, Essex, Monmouth, Sussex = Wednesday, September 8
Morris, Ocean = Saturday, September 11
Camden, Hudson, Hunterdon, Salem, Somerset = Wednesday, September 15
Bergen, Burlington, Cumberland, Warren = Saturday, September 18
Gloucester, Mercer, Middlesex, Passaic = Wednesday, September 22
Cape May, Union = Saturday, September 25

Not everyone will receive their application the day delivery is expected to begin. It may take the Postal Service a few days to deliver all the applications in your county.

Applications will not be sent to homeowners who were identified by the Division of Taxation as having New Jersey Gross Income (Line 28 on the NJ-1040) for 2009 that exceeded the income limit of either $75,000 (for non-senior, non-disabled homeowners) or $150,000 (for homeowners age 65 or older or disabled), as they are not eligible for a 2009 Homestead Benefit.

There will be no rebate checks issued in 2010. Instead eligible homeowners will receive their homestead benefit for 2009 as a credit on the property tax bill for the second quarter of 2011. However the filing process remains the same.

If the “benefit” is really distributed as a reduction of one’s actual tax payment to the municipality I will be very pleased. This is the way it should be done. By doing it this way there are no potential adverse federal income tax consequences. And it will be one less piece of information I will need to pry from my clients!

The NJDOT website says that “Tenants will not receive a 2009 rebate”. Since no distinction has been made I assume this means senior and disabled tenants as well us “regular” folks.

Click here for more info on the progam.

TAFN

Wednesday, August 25, 2010

NJ-NATP FALL NEWSLETTER


The Fall 2010 issue of NJ TAXING TIMES, the newsletter of the NJ chapter of the National Association of Tax Professionals, is now available. Click here to download.

This issue features two (2) articles on NJ taxation by me –

CAPITAL GAINS AND NJ STATE INCOME TAX and

ALLOCATING NEW YORK STATE WAGES FOR A NEW JERSEY RESIDENT

It has other good “stuff” too!

TAFN

Friday, August 20, 2010

HE TOOK THE WORDS OUT OF MY MOUTH

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I realize that this post may not be strictly tax-related – but I could not help but pass along the great insights of Bob Ingle’s POLITICS PATROL column from Wednesday’s ASBURY PARK PRESS.

Titled “Teachers Unions Ignore Lessons of L.A. Study” the column discusses the findings of a report that appeared in the LA Times.
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According to Bob – “The newspaper obtained seven years if math and English test scores from the school district and rated teachers on their students’ progress on standardized tests from year to year, then compared each student’s performance with his or her past years.”

The report concluded –

Most districts act as though one teacher is about as good as another. As a result, the most effective teachers often go unrecognized, the keys to their success rarely studied. Ineffective teachers often face no consequence and get no extra help.”

It went on to say –

In Los Angeles, and across the country, education officials have long know of the often huge disparities among teachers. They’ve seen the indelible effects, for good and ill, on children. But rather than analyze and address these disparities, they have opted mostly to ignore them.”

Bob also quotes Jeanne Allen, president of the Washington-based Center for Education Reform, who responded to the report by saying –

"Path-breaking analysis ... confirms without a doubt that teacher effectiveness is not related to their tenure, seniority or pay grade. Great teachers help their students achieve at significantly high rates as a result of knowing the subjects they teach.”

And –

"The new data underscores why policymakers must implement reforms that make teacher quality the single factor that drives pay and contracts. The union rejects the conclusions ... saying that the data ignores the ‘complicated and creative process of teaching’. Fortunately, the public now understands that teaching isn't about process at all, but about producing real education value in our schools."

Bob takes the words out of my mouth when he sums up the problem here in New Jersey (the highlight is definitely mine) –

When you have a school system dominated by teachers' unions, like the New Jersey Education Association, the NJEA, you have misplaced emphasis. The NJEA is like any other industrial union. It is not about educating kids, it's about perpetuating itself and collecting dues to buy off lily-livered politicians more interested in getting re-elected than education.

The union doesn't like merit pay based on performance because it maintains all teachers are equal at the same experience and education level. That's absurd on its face. Tenure also is a problem. Guaranteed job protection after three years practically assures a job for life. Job security and pay then are based on seniority, not performance
.”

The NJEA’s domination of NJ’s school systems is one reason why we have the highest property taxes in the country. Thank God Gov Christie is not afraid of the NJEA and is apparently willing to take it on.

It is not just the NJEA. The primary goal and underlying motivation of any organism is to survive – to continue to exist. This is true for an organizational entity as much as it is for a biological entity.

There was a time in our history when unions were necessary and important. But with all the local and federal labor laws and protections on the books today the continued need for unions is in question, and they can often do more harm than good to the economy. However, a union is an organizational entity and will never say, “We have accomplished our purpose of protecting the American worker and can now dissolve.” The number 1 goal and motivation of a union is not to protect and serve its membership, or to benefit society, but to continue to exist.

Similarly, the main goal and motivation of any politician at any level is not to protect and serve its constituents, but to get re-elected.

In defense of unions my labor lawyer friend pointed out, and rightfully so, that there is nothing wrong with a union asking for the moon for its members, whether or not it is deserved, feasible, practical, or appropriate. In theory the purpose of the union, second to continuing to exist, is to get as much as it can for the worker, without regard to the consequences to “management” or shareholders or, in the case of a municipal, state or federal employee union, the general taxpaying public.

Frankly nothing can be said in defense of politicians.

TAFN

Thursday, August 19, 2010

THE NJ DIVISION OF TAXATION IS LOOKING FOR A FEW GOOD MEN (AND WOMEN)

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Fifteen (15) to be exact.

Here is the story – “The Division of Taxation is proud to announce the formation of the Tax Director’s Advisory Council”.

The purpose of “TDAC” will be –

1. To provide a public forum for communication between New Jersey’s Tax Director and representatives of the public interested in New Jersey tax policy, and

2. To provide ideas, input and perspective to the New Jersey Tax Director, assisting him in developing tax policy and identifying improvements in the administration of New Jersey’s taxes and to offer constructive observations regarding current or proposed New Jersey Tax policies
.”

If you are interested in becoming a member of the “TDCA” click here to download the application form. Applications must be “postmarked, faxed, or emailed on or before September 15, 2010.”

According to the release – “Applicants must have a strong tax or business background, excellent communication skills, practical tax administration experience and knowledge, and the ability to interact in a diversified environment.” You must submit a detailed statement of your experience and qualifications and a resume with the application.

TAFN

Wednesday, August 18, 2010

UPDATE ON NYS TAX PREPARER REGISTRATION

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It looks like the New York Society of Enrolled Agents has won a victory in getting EAs, wherever they are located in the world, excluded from the need to pay the $100.00 extortion fee to New York State in order to be able to prepare NYS income tax returns.

Here is the word from a recent “NAEA E@lert” (the highlight is mine) -

New York Enrolled Agents Gain Registration Exempt Status

The New York State Society of Enrolled Agents celebrated a legislative victory this week as Governor David Paterson (D) signed A8556A, which included the state registration exemption for enrolled agents. As previously reported in E@lert on July 16, 2010 a New York court ruled against NYSSEA's claim that enrolled agents should be included in the same exemption from state registration that attorneys and certified public accountants enjoyed. Governor Paterson signed the legislation into law on July 30, 2010. Without the current exemption enrolled agents would have been required to register and pay an annual fee to the New York Department of Taxation and Finance. With the new exemption, enrolled agents throughout the country are treated on par with certified public accountants and attorneys nationwide. Further, the law excludes anyone working for an EA, which will provide significant value over the years to EAs owning an office with multiple staff members
.”

What remains uncontested, apparently because it is not worth the expense for any tax preparer organization to take up the fight, is New York’s right to charge non-resident preparers the fee.

So a tax preparer (who is not a CPA, Attorney or EA) in Alaska who wants to prepare NYS returns for a client has to pay New York $100.00 for the privilege.

As I have said before – NY cannot force a barber located in New Jersey to pay a regisration fee to NYS in order to be able to cut the hair of a NY resident, so what gives it the right to charge a tax preparer located in New Jersey for preparing a tax return, in an office located in New Jersey and without stepping one foot in New York, for a NY resident?

I wonder how many other cash-strapped states (is there one that is not cash-strapped) will join the bandwagon and begin to extort non-resident tax preparers?

TAFN

Thursday, August 12, 2010

FYI

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For those of you who are interested I just received the following email -

“Dear Colleagues:

We at the National Tax Institute are looking forward to our fall programs, and we would like to notify you that space is currently available at all of our locations.

Visit with NTI in Sonoma (wine country); relax in beautiful Sicily, Italy or at the newly renovated Greenbrier with its new casino; view fall foliage in Stowe, Vermont or Asheville, North Carolina; enjoy the sunshine and beaches in Boca Raton, Florida; or take in Palm Springs with the featured topic “Health Care Reform and Taxation.”

In November, enjoy the beaches of Grand Cayman, or Maui at the fabulous Kapalua resort; or enjoy the excitement of Las Vegas at the incomparable Wynn Hotel. And if you can’t get away until the holidays, don’t pass up NTI’s Christmas in New York program in mid-December or Walt Disney World over New Year’s Eve!

Please visit NTI’s web site at www.nti-inc.com or call CPE Meetings at 800-588-8491 for further information on locations and topics. We look forward to seeing you in 2010!”

TAFN

Wednesday, August 11, 2010

IRS ANNOUNCES 2011 NATIONWIDE TAX FORUMS

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The IRS has announced the dates and locations of the 2011 Nationwide Tax Forums

6/28-30/11 – Atlanta, GA – Marriott Atlanta
7/12-14/11 – Orlando, FL – Hilton Orlando
7/26-28/11 – Dallas, TX – Hilton Anatole
8/9-11/11 – Anaheim, CA – Hilton Anaheim
8-16-18/11 – Las Vegas, NV – Caesar’s Palace
8/30-9/1/11 – National Harbor, MD – Gaylord National

I attended the Forum in NYC yesterday. Check out my review at TWTP.

TAFN

Monday, August 2, 2010

SOME NEWS FROM THE NATIONAL ASSOCIATION OF TAX PROFESSIONALS


Here is some news from the National Association of Tax Professionals, which I received in an email early Friday evening -

The NATP exclusive social networking community -- Member to Member -- is ready for all NATP members to ask questions, find answers, read and write blogs, comment on discussion boards, listen to podcasts, talk tax, create common interest groups, and so much more!

On Tuesday, August 3rd, the Member to Member Grand Opening is happening with great incentives to get involved, for example:

• If you logon to Member to Member on August 3rd and simply update your status and add one colleague by the end of the day, you will automatically be entered in a drawing to win one of two $200 cash prizes.

• Enjoy a lively discussion on the timely topic of Return Preparer Registration with three NATP staff members from 10 a.m. - 12 p.m. CDT. There will be a discussion and then the board will be opened up to questions.

• NATP staff members will be out on Member to Member all day -- watch the active discussion boards, add to the conversation, and have fun!

To enter the Member to Member community you must be logged into the NATP website as a member of NATP. Check the upper right-hand box of the homepage to verify this. Click the Member to Member image on the homepage and enter the community! Once at the Community, read and agree to the user agreement, then click the Member to Member logo to join the community.

NATP is the ONLY tax association to offer a social network EXCLUSIVELY for its members. Now, no matter how small your business might be, you have a community of thousands here to help you with any question you might have -- from where to find a tax answer to where to find great seafood in Philadelphia. The community has endless possibilities for you.

If you have any questions or need help getting signed on, please contact Member Services at 800.558.3402, ext. 3. or visit www.natptax.com
.”

So if you are a member of NATP and have not already joined the M2M community do so today – and return tomorrow to participate in the Grand Opening and enter the drawing.

If you are not a member of NATP – join today! And please give my name – Robert D Flach – as a referral so I can get some goodies. If you like you can email me at rdftaxpro@yahoo.com and I will have NATP contact you directly about membership.

TAFN

Sunday, August 1, 2010

OOPS - THEY DID IT AGAIN!

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The NJ Division of Taxation announced that the deadline for filing the application for the Property Tax Reimbursement has been extended again, from August 2nd to November 1st. Click here to read the press release.

This happens every year. The initial deadline is June 1st, which is extended to August, and again extended to October 31st. While the first extension was expected, I was not sure if the second extension would take place this year.

As reported earlier – only qualified taxpayers who received a PTR check in 2009 will receive one in 2010. If you did not get a check last year you will not get one this year. However, those who did not qualify last year should still file an application this year, if they now qualify, to establish a “base year” for future reimbursements.

Applications for the NJ Homestead Rebate will be sent out in the fall.

TAFN