Monday, January 21, 2013

Tax Seminar complete!

With yet another tax seminar under my belt, I can report that absolutely nothing was mentioned about the aforementioned 1099 filing requirements. So, it put the topic to bed, I am suggesting you follow the instructions on the form.

What to do if you sent in a 1099 where none was needed? Nothing. It never hurts to "over report." So there is no need to fret.

The seminar centered on the American Taxpayer Relief Act of 2012, which Congress passed on New Year's Day 2013. With no time to digest the new law, no time to design the required forms, and no time to implement all the changes needed to efile returns, this tax season is going to be very slow.

If you have a business return, depreciation schedules will not be ready until late February or early March. This means that you may not be able to file a return without an extension. It's frustrating at best. All corporate returns are due on March 15th, and without an act of Congress, that due date cannot be extended.  My suggestion is to simply have everything ready to go as early as possible, so your return can be completed up to the point the depreciation and many of the tax credit forms become available.

What software is affected? All software. The problem lies not in the software, but with the IRS computers which simply cannot be programmed for all these changes. And think about it. Congress passes a tax law, containing anywhere from perhaps a few pages to possibly a thousand or more pages, and someone, somewhere has to incorporate all these changes into a 1 or 2 page form which you and I are then asked to complete. It's a daunting task. So put on your sense of humor (we're all going to need it!) and try your best to finish what you do have as early as possible. We are all playing the waiting game.

P,S, PS. Since my original comment, depreciation has been disallowed for RVs. See Jackson, T.C. Memo 2014-160, August 7, 2014.

1 comment:

  1. PS. Since my original answer, depreciation on RVs has been disallowed. See Jackson, T.C. Hemo 2014-160, August 7, 2014