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 It is a little disheartening, but not surprising, when someone asked me if a tax attorney or tax preparer is worth it. In truth, however, this is a loaded question. If you are asking me if the local store front office of the mega-tax preparer service is worth it, I would say probably no. If you are asking me if an experienced tax attorney is worth it, the answer is yes. And not just a little yes; a resounding yes.
Let me explain by way of illustration. If I decide that I want burnt ends (a Kansas City favorite) for dinner, I can either make them myself or go out. If I decide to make them myself, I would do what everyone faced with this situation would do. I would go to Google and type in “Burnt End Recipes.” I’m sure this would yield me many useful results. After perusing the many links, I would probably find one that sounded good and easy. I would then print it out and head to the store for ingredients. After getting the ingredients, I would come home, fire up the smoker, follow the recipe, and soon after, I would have my burnt ends. Now if I went to any of the fine BBQ restaurants in Kansas City, I could probably get better burnt ends, a variety of side dishes, and not be faced with the messy cleanup. Would they be significantly better? I would hope not! Could I not figure out the side dishes I like and just make those? Yes. Is the extra cost worth avoiding the cleanup? Maybe; my wife would say, “Yes!” So why don’t I cook every meal at home? Because, I like the variety the restaurant offers. I like the fact that the menu contains items I’ve never heard of but want to try. Most importantly, I’m only as good as the recipe. The restaurant, on the other hand, has the ability to explore and create new and unique items for me. I could try and do this, but I’m almost certain nothing I make would be edible. And yes, my wife likes the piece of mind of no cleanup.
The same goes for your tax return and your tax preparer/tax attorney. You can go out and purchase some great products that will help you complete your tax return. [continue reading]
 Because 2010 is not a reassessment year for Missouri real property (i.e., your real property does not get revalued for tax purposes), Missouri property taxes in 2010 will be based on property values as of January 1, 2009. So if you own residential property, vacant or undeveloped land, apartments, commercial buildings, office buildings, etc. in Missouri and feel that this property has declinved in value since January 1, 2009, you should consider filing a property tax appeal challenging the 2009 valuation. The higher the property value, the higher the tax bill.
Given the current economic conditions in Kansas City, Missouri, it may not be that uncommon to have had significant fluctuations between the January 1, 2009 valuation and the January 1, 2010 valuation. The time to appeal your property’s valuation is now. An experienced Kansas City real estate attorney can help you with this process.
– ksmolawyer
Many of the large tax preparers our offering “refund anticipation loans and services,” while in theory these provide a valuable service, they offer little to no benefit to the average taxpayer. With the IRS’s stated position that “taxpayers can get their refunds in as few as 10 days” (emphasis added) by using e-file and direct deposit, paying any fee to receive an anticipation loan just doesn’t make much sense. Especially when some of the “loans” are being marketed as the appropriate vehicle when you need your refund within “8 to 15 days.”
– The State Line Lawyer
Update: Here is a great article from MissouriFamilies.org explaining how the annual percentage rates on refund anticipation loans can range from 40% to 1,800%. In case the embedded link doesn’t work: http://missourifamilies.org/features/financearticles/refundloan.htm.
The short answer is “YES!” Even though the federal estate tax has been repealed, at least for a year, there are still countless other issues that need to be addressed by a proper estate plan. Naming a guardian for minor children or children with special needs, protecting assets from creditors, providing for the payment of certain expenses, providing for future generations, insuring children from a previous marriage are protected and provided for, are just a few of these reasons. Additionally, while the estate tax is down, it is not out. The estate tax is scheduled to return in 2011 with a lower exemption amount and a higher tax rate.
A recent article published by the New York Times highlights some of the concerns caused by the ever-moving target that is the estate tax regime. Here are some of the highlights as well as my commentary on the issue.
As many are aware, the federal estate tax is taking a one-year hiatus in 2010. While many predicted that the U.S. Congress would act to avoid this, it did not. Thus, for one-year, there is no federal estate tax, at least for now. In 2011, however, the federal estate tax comes back, and this time, the federal estate tax reverts back to the smaller $1 million estate tax exemption amount and the higher 55% marginal tax rate. While there are countless jokes about encouraging rich relatives to take advantage of this, this advice, while in jest, my be completely wrong. [continue reading]
Just yesterday, the IRS revealed the results of a six-month landmark study that requires paid tax preparers register, pass competency tests, and participate in continuing education. This is a step in the right direction of not only protecting taxpayers in one of their biggest financial decisions of each year but also ensuring quality service for all taxpayers. Unfortunately, these requirements will not be in effect for the current 2010 tax season. What is a taxpayer to do?
Choose the right credentials.
- Taxpayers should look to what the future requirements will be in determining who to choose this year. The requirements will require competency tests for all paid tax return preparers except attorneys, certified public accountants (CPAs) and certain enrolled agents as well as requiring ongoing continuing professional education for all paid tax return prepares except attorneys, CPAs, enrolled agents and others who are already subject to continuing education requirements. Thus, taxpayers should choose a preparer from one of these three areas: attorneys, CPAs, and enrolled agents. H&R Block, a Kansas City based company, and Jackson Hewitt have expressed support for these measures, but currently there is no quality control on their services other than what they impose. [continue reading]
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It is a little disheartening, but not surprising, when someone asked me if a tax attorney or tax preparer is worth it. In truth, however, this is a loaded question. If you are asking me if the local store front office of the mega-tax preparer service is worth it, I would say probably no. If you are asking me if an experienced tax attorney is worth it, the answer is yes. And not just a little yes; a resounding yes.
