New Tax Law?

December 6, 2017

Still No Tax Law – 12/5/17

It is already December and the biggest tax changes since 1986 are on the table. The House and Senate bills have big differences still, making it difficult to plan before the year-end.

Some suggestions are logical despite the uncertainty. We know there will be changes. Some deductions will disappear or change in 2018. Tax brackets are changing. Standard deductions are increasing and personal exemptions could be eliminated.

Some ideas:

  1. Since state and local income tax deductions may go away, if you make estimated payments and itemize deductions, make all your state and local 4th quarter payments before Dec.31st for a larger 2017 deduction.
  2. Another itemized deduction item, mortgage payments due in January can be paid in December and increase deduction.
  3. Homeowners can also pay real estate taxes in December instead of January.
  4. If you plan to make some charitable contributions in 2018, you might want to make them in 2017 in case you don’t itemize in 2018.
  5. In addition to deduction planning, delaying income can be beneficial to self-employed individuals. Sending year end invoices in January will move your income into 2018.

These are general suggestions that will help some taxpayers and not others. Hopefully by the time your 2017 taxes are done we will understand how the changes will affect your 2018 tax filing.

Ten Tips to Help You Choose a Tax Preparer

January 13, 2012

IRS TAX TIP 2012-06, January 10, 2012
Many people look for help from professionals when it’s time to file their tax return. If you use a paid tax preparer to file your return this year, the IRS urges you to choose that preparer wisely. Even if a return is prepared by someone else, the taxpayer is legally responsible for what’s on it. So, it’s very important to choose your tax preparer carefully.This year, the IRS wants to remind taxpayers to use a preparer who will sign the returns they prepare and enter their required Preparer Tax Identification Number (PTIN).

Here are ten tips to keep in mind when choosing a tax return preparer:

  1. Check the preparer’s qualifications. New regulations require all paid tax return preparers to have a Preparer Tax Identification Number. In addition to making sure they have a PTIN, ask if the preparer is affiliated with a professional organization and attends continuing education classes. The IRS is also phasing in a new test requirement to make sure those who are not an enrolled agent, CPA, or attorney have met minimal competency requirements. Those subject to the test will become a Registered Tax Return Preparer once they pass it.
  2. Check on the preparer’s history. Check to see if the preparer has a questionable history with the Better Business Bureau and check for any disciplinary actions and licensure status through the state boards of accountancy for certified public accountants; the state bar associations for attorneys; and the IRS Office of Enrollment for enrolled agents.
  3. Ask about their service fees. Avoid preparers who base their fee on a percentage of your refund or those who claim they can obtain larger refunds than other preparers. Also, always make sure any refund due is sent to you or deposited into an account in your name. Under no circumstances should all or part of your refund be directly deposited into a preparer’s bank account.
  4. Ask if they offer electronic filing.  Any paid preparer who prepares and files more than 10 returns for clients must file the returns electronically, unless the client opts to file a paper return.  More than 1 billion individual tax returns have been safely and securely processed since the debut of electronic filing in 1990.  Make sure your preparer offers IRS e-file.
  5. Make sure the tax preparer is accessible.  Make sure you will be able to contact the tax preparer after the return has been filed, even after the April due date, in case questions arise.
  6. Provide all records and receipts needed to prepare your return. Reputable preparers will request to see your records and receipts and will ask you multiple questions to determine your total income and your qualifications for expenses, deductions and other items. Do not use a preparer who is willing to electronically file your return before you receive your Form W-2 using your last pay stub. This is against IRS e-file rules.
  7. Never sign a blank return. Avoid tax preparers that ask you to sign a blank tax form.
  8. Review the entire return before signing it.  Before you sign your tax return, review it and ask questions. Make sure you understand everything and are comfortable with the accuracy of the return before you sign it.
  9. Make sure the preparer signs the form and includes their PTIN.  A paid preparer must sign the return and include their PTIN as required by law. Although the preparer signs the return, you are responsible for the accuracy of every item on your return.  The preparer must also give you a copy of the return.

Report abusive tax preparers to the IRS. You can report abusive tax preparers and suspected tax fraud to the IRS on Form 14157, Complaint: Tax Return Preparer. Download Form 14157 from or order by mail at 800-TAX-FORM (800-829-3676).

Countdown to Tax Day


April 2019