Dear Family, We are running very late today because I started the day by writing articles. The first one was completed on time – TaxMama’s 10 Tips for Success. But the second took quite a bit longer. I got absorbed researching in this week’s MarketWatch article. It’s essentially exploring whether or not delayed tax benefits are worth the trouble when rates of return are so low. In the course of writing the article, I tried to find objective information about how many >>Read More

On the first day of creation, God created the dog. On the second day, God created man to serve the dog. On the third day, God created all the animals of the earth (especially the horse) to serve as potential food for the dog. On the fourth day, God created honest toil so that man could labor for the good of the dog. On the fifth day, God created the tennis ball so that the dog might or might not retrieve it. On the sixth day, God created veterinary science to keep the dog healthy and the >>Read More

You may have heard (or, perhaps read) about a company called Facebook (FB), which is going public today. For weeks now, there’s been a steady drumbeat of stories, and an even steadier drumbeat of filings. The most recent S-1, with the pricing details, was filed on Tuesday morning, making it the 8th version of the document. We’ll let others focus on the blow-by-blow today. Our friends at both the New York Times’ DealBook and the WSJ are both live blogging today’s >>Read More

Yesterday’s column at American Banker digs into the accounting for JP Morgan’s reported “hedge”. I was shocked – OK, not really – that no main stream media outlet had explained the stunning announcement made by Jamie Dimon last Thursday. >>Read More

Book value: Value placed on an asset for accounting purposes that bears no relation to its true worth. Budgeting: An exercise where the unknowledgeable force the unwilling to predict the impossible based entirely on the inaccurate. Credit: Something that accountants rarely get. FIFO: ‘First In, First Out’, a method of valuing stock. Also a method never used when accountancy firms are considering redundancies. Goodwill: Concept invested to explain the difference between the value >>Read More

The House has passed the Mobile Workforce State Income Tax Simplification Act of 2012. I discussed the bill last year here. This bill doesn't apply to a taxpayer who takes a job in a non-resident state. It would only apply when an employer sends an employee to a non-resident state to work and the job lasts less than 30 days. It will be interesting to see what the Senate does and if it's passed the number of taxpayers who will hear part of the law and think it applies to them. >>Read More

Another scam is making the rounds that tells taxpayers they qualify for special Federal payments or credits towards their energy bill. In Kansas, Westar Energy is alerting customers to the scam that has been seen in several states around the country, The scammers are using social media, text messages and flyers to get people to call them. Once they have the taxpayer on the phone, the scammers get personal info like social security numbers. Westar points out that they already have that info on >>Read More

Today TaxMama® hears from Blake in the TaxQuips Forum who is upset. “I bought a used car last December for $8,000. The car was owned by an individual who apparently had a business bank account where he deposited the money. The bill of sale just says his name on it, no company. How can the state of Georgia charge me $700 in taxes plus a $115 penalty on a car I bought from an individual? I don’t have the coins laying around for this kind of “surprise” expense. I was >>Read More

Today TaxMama® hears from Ada in the TaxQuips Forum with a deceptively difficult question. “My father is a non-resident alien with a non-business U.S. checking account that he opened over 15 years ago. He wants to give me and another sibling (both resident US citizens) the money from that account (split equally to about $20k each). What are the reporting requirements and tax liabilities for him, my sibling and myself? Dear Ada, I asked Roger B. Adams, EA, our resident >>Read More

This morning, Wal-Mart Stores (WMT) filed its most extensive disclosure yet about questions of corruption and bribery in its Mexico operations, but sadly, that isn’t saying much. What’s most striking about the new disclosure is that it was buried at the bottom of the 8-K that put Wal-Mart’s first-quarter earnings release on record. Somehow, though, there’s no mention in the earnings release itself, which is the document that most investors see and read — >>Read More

There is at least one thing that the powers-that-be at Las Vegas Sands Corp. (LVS) aren’t willing to gamble on – the continued employment of Robert G. Goldstein, an Executive Vice President and the President of its Global Gaming Operations. Goldstein has been with the company for a long time. His biography in the April, 2012 proxy discloses that he joined Las Vegas Sands in December, 1995, although he worked as the Executive Vice President of Marketing at the Sands Hotel in >>Read More

The biggest laugh at last night’s CTA Address came in response to a question from the floor. The question was related to a point the speaker, Andrew Tyrie*, had made about the need for the tax system to be made simpler. He had also stressed, as others have done for many years, that this will only really happen when Ministers are really motivated to change the system. Question: What if, all Ministers and members of the Treasury Select Committee were obliged to complete their own self >>Read More

Have I ever told you the story of my “magic elixir”? Well, during the days when I spent my Friday mornings at a network group meeting in VA, I heard tell about this “all natural mouth wash”. A couple of the people in the network used it and the dentist in the group just raved about its qualities. Since I had gingivitis (receding of the gums), I was all ears! One of the things this mouth wash does is treat gum recession.  In fact, after using religiously >>Read More

Now the scammers are trying to make users of Facebook think that you need to click on messages and update information. I am a faithful Facebook user these days.  It helps me keep in contact with all my friends where ever they are in the world. But I do know that I have not changed my password or e-mail or such in Facebook. Anytime I use Facebook, I go in directly from my computer.  I don’t answer messages anymore even if it says someone has friended me or accepted my >>Read More

This is a true story about a tax dispute that went on for two years before the underlying issue was clarified. It made me smile. An Inspector of Taxes was explaining to me that the owner of the small business had been refusing to co-operate. As a result a relatively straightforward tax dispute about a tax scheme was heading towards the first tier tax tribunal. It was when the case was reviewed and a new Inspector contacted the taxpayer that the REAL issue became apparent. The taxpayer had >>Read More

There’s plenty of news on the pay, performance and corporate governance front out there today, what with JPMorgan Chase’s (JPM) annual meeting, the recent departure of Yahoo’s (YHOO) embattled chief executive, and more. Those are getting plenty of attention — and, honestly, we didn’t see a lot in recent JPMorgan and Yahoo filings that hasn’t been covered pretty thoroughly already. But big news days can let other interesting but less momentous details >>Read More

Well, it’s now over 4 months since I last posted on this Tax-Buzz blog. And not one person has asked me why or seems to have missed it.  After over 400 posts over the previous 4 years. I think this evidences that much of what is said about blogging is bogus. I first shared my concerns on this topic back in 2008. Don’t get me wrong. I’m still an active blogger – especially for Ambitious Accountants where I share tips, insights and advice for a key target audience. >>Read More

Today TaxMama® hears from Kelly in the TaxQuips Forum who cares about her friend. “A friend’s home will soon be going into foreclosure. He’s owned the home for 2.5 years and we’re trying to figure out if he’ll have to repay the $8,000 tax credit he received as a first time homebuyer. I’ve read that if the house sells and there’s no gain you’ll owe nothing. If the home is in foreclosure how is a gain calculated? Would it be of any benefit to >>Read More

Today TaxMama® hears from Saroj in the TaxQuips Forum with a valid concern. “I have been doing taxes for last 20 years or so. I was thinking of taking the EA exam. But I added Financial Advising to the practice (HD Vest) and QuickBooks, also. I am 62 years old; so I don’t know how long I will be doing taxes. With all the regulations and continuing education requirements, what do you think is more beneficial? Should I still get my EA or just pass the Registered Tax Return >>Read More

My column on the subject this morning at American Banker is getting quite a bit of play. Dimon’s mea culpa on the loss was timed to avoid lying, again, to a room full of people – JP Morgan’s Annual Meeting is tomorrow May 15 – about how bad 2nd quarter results will end up. >>Read More