Archive for July, 2010
Tax Preparation: A New Profession!
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Our ITS team at the Orlando Tax Forum
I’m writing from the IRS Nationwide Tax Forum in Orlando, the third of six IRS Forums being held this Summer. The “Buzz On The Street” is that we are entering an exciting new era in the Tax Industry. Underlying the new “Rules of the Game” will be the need for education. We are exhibiting at all six IRS Tax Forums as The Income Tax School. Attendance for the Forums is up dramatically over recent years, Some 3,000 tax business owners and independent tax professionals are here at the Orlando Tax Forum.
Yesterday, our booth was swamped by tax practitioners seeking information about our e-learning courses and seminars and materials to teach live classed to train new tax preparers. We’ve already scanned the name badges of 245 attendees who want to receive more information by e-mail! I’ve also talked with a number of key tax industry players including the president of the National Society of Accountants and the director of the IRS Office of Professional Responsibility, and they are all talking about the need for quality tax preparer education to meet the new preparer regulation requirements, which is driving much higher attendance at the IRS Tax Forums.
We will be at the upcoming NYC, Las Vegas and San Diego IRS Forums, as well as the NSA conferencein DC. Hope to see some of you there!
- Chuck
Chuck McCabe’s Lessons Learned – Lesson 2
Posted by: | CommentsHere’s the second video in my Lessons Learned video series. Lesson 2: The Transition from Blue-collar to Professional. Enjoy!
IRS Releases Proposed Regulations Regarding Fees for Preparer Tax Identification Numbers
Posted by: | CommentsThe Internal Revenue Service has released proposed regulations that would establish a fee for individuals who apply for a preparer tax identification number (PTIN). The proposed regulations (REG-139343-08) would establish a fee of $50, payable to the IRS, to cover technology costs, as well as compliance and outreach efforts associated with the new PTIN program. The proposed regulations would also provide for an additional fee (expected to be lower than $50) to be charged by the third-party vendor chosen to operate the new online system. That fee amount is expected to be announced soon, as well as additional details about the launch of a new online application system. These fees could change in future years as program costs are reevaluated. Tax professionals and other interested parties have until Aug. 23, 2010, to submit comments regarding the proposed regulations.There is a hearing on these proposed regulations scheduled for August 24.
Click here for the full IRS text of the rules.
Chuck McCabe’s Lessons Learned video series
Posted by: | CommentsI recently uploaded this video to YouTube. It is the first in a series of ten short videos that I will be uploading in the weeks to come.
This video is Lesson 1: Breaking Out of a Destiny of Failure.
Summer Book Review – No Man’s Land
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No Man’s Land by Doug Tatum is a truly unique book for entrepreneurs with established high-growth businesses who attempt to cross the hazardous chasm necessary to grow to the next level and survive. These are typically high-growth businesses with 20 to 100 employees and revenue of less than $5 million. The pitfalls of crossing “No Man’s Land” result in failure to attain the next level by 95% of emerging growth businesses that attempt this journey. Many go out of business along the way. Only a small fraction become “Gazelles” and emerge as “business breakouts.”
Tatum dissects the reasons for failure, dispels common myths and provides a roadmap for entrepreneurs who are willing to be guided by his wisdom to successfully navigate the treacherous chasm of No Man’s Land. He knows how survive this journey because he has lived through it himself. This is one of the most relevant, insightful and invaluable books for entrepreneurs that I have ever read!
Closing Deadline for Eligible Homebuyer Credit Purchases Extended to September 30
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Eligible taxpayers who contracted to buy a home, qualifying for the first-time homebuyer credit, before the end of April now have until Sept. 30, 2010 to close the deal, thanks to The Homebuyer Assistance and Improvement Act of 2010, signed by the President on July 3rd.
This act extends the closing deadline from June 30 to Sept. 30 for any eligible homebuyer who entered into a binding purchase contract on or before April 30 to close on the purchase of the home on or before June 30, 2010. The new law addresses concerns that many homebuyers might be unable to meet the original June 30 closing deadline.
The IRS reminds taxpayers that special filing and documentation requirements apply to anyone claiming the homebuyer credit. To avoid refund delays, those who entered into a purchase contract on or before April 30, but closed after that date, should attach to their return a copy of the pages from the signed contract showing all parties’ names and signatures if required by local law, the property address, the purchase price, and the date of the contract.
Besides filling out Form 5405 [ http://www.irs.gov/pub/irs-pdf/f5405.pdf ], First-Time Homebuyer Credit and Repayment of the Credit, all eligible homebuyers must also include with their return one of the following documents:
* A copy of the settlement statement showing all parties’ names and signatures if required by local law, property address, sales price, and date of purchase. Normally, this is the properly executed Form HUD-1, Settlement Statement.
* For mobile home purchasers who are unable to get a settlement statement, a copy of the executed retail sales contract showing all parties’ names and signatures, property address, purchase price and date of purchase.
* For a newly constructed home where a settlement statement is not available, a copy of the certificate of occupancy showing the owner’s name, property address and date of the certificate.
Besides providing a tax benefit to first-time homebuyers and purchasers who haven’t owned homes in recent years, the law allows a long-time resident of the same main home to claim the credit if they purchase a new principal residence. To qualify, eligible taxpayers must show that they lived in their old homes for a five-consecutive-year period during the eight-year period ending on the purchase date of the new home. Homebuyers claiming this credit can avoid refund delays by attaching
documentation covering the five-consecutive-year period:
* Form 1098, Mortgage Interest Statement, or substitute mortgage interest statements,
* Property tax records or
* Homeowner’s insurance records.
There are three options for claiming the credit on a qualifying 2010 purchase:
* If a 2009 return has not yet been filed, claim it on Form 1040 for tax-year 2009. Though these returns cannot be filed electronically, taxpayers can still use IRS Free File [http://www.irs.gov/efile/article/0,,id=118986,00.html ] to prepare their return. The returns must be printed out and sent to the IRS, along with all required documentation. The IRS urges taxpayers claiming refunds to choose direct deposit.
* If a 2009 return has already been filed, claim it on an amended return using Form 1040X.
* Whether or not a 2009 return has been filed, wait until next year and claim it on a 2010 Form 1040.
More details on claiming the credit can be found in the instructions [http://www.irs.gov/pub/irs-pdf/i5405.pdf ] to Form 5405, as well as on the First-Time Homebuyer Credit page [http://www.irs.gov/newsroom/article/0,,id=204671,00.html ] on IRS.gov.
Source: IRS / newsblaze.com
