The link on this page is to tax report, a bi-monthly newsletter on U.S. taxes I purchase for use by clients and friends.  I have reviewed many of the newsletter products offered to CPAs, and I believe tax report is the best on product on the market.  It is neither so simplistic that one does not have to think about the issues presented, nor is it so complex that the issues pertain to only a small segment of my clients.  Like any off the shelf product, however, it is a compromise. 

When the content of the current issues commands additional comments, I will make them here. I will limit my comments to those areas where there can be some planning opportunities. 

January 2010

The top ten list of tax do’s is one of the better articles to come along in awhile.  I particularly want to call your attention to Numbers 4, 8 and 9. 

Tax motivated decisions are usually bad decisions.  If a decision makes good business or investment sense, a tax benefit is usually an added bonus, or the tax cost usually won’t negate the decision.  A bad decision with a favorable tax benefit is still a bad decision and will cost you in the long run.

The IRS has a matching program where they compare the Forms 1099 received directly from brokers and others with the items reported in your tax return.  Where there is a discrepancy, they issue an imposing assessment letter, usually including negligence penalties.  These notices frequently contain errors, and even if an items was omitted from; your tax return, the deficiency is usually different from that contained in the IRS letter.  If you receive a letter, don’t be frightened and automatically pay the deficiency, but call me.  More often than not, the deficiency in the letter incorrect..

Plan ahead.  What more can I say.  Advance planning will always save you money and grief—plus you can sleep better at night.

Click on the Tax report link above to get to these newsletters.

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