“A lot of people like to do certain things, but they’re not that good at it. Keep going through the things that you like to do, until you find something that you actually seem to be extremely good at. It can be anything.” – George Lucas This subject came up in a note I wrote in mid-June, and the topic is back in the news. You see, unlike my clients, there is a growing number of individuals and families who feel like they get a bit taken advantage by unethical and poorly-trained tax preparers and professionals. Families get sold on promises of fat refunds and excellent service…and then reality sets in. Errors, unfulfilled promises and worse–audits (!) come down the pike, and these families are left hanging in the lurch. Well, the federal government is considering requiring a license for *anyone* who prepares taxes on another’s behalf. And yes…you might [...]

No life ever grows great until it is focused, dedicated, disciplined. – Harry Emerson Fosdick It’s pretty crazy that we’re already nearing the end of July! Is it just me, or is time really flying by? More than halfway through 2009… Well, I often try to avoid discussing taxes with you in these personal notes. I find that too many tax professionals and accountants are so full of tax jargon, that the regular family just ends up buried in a blizzard of gobbledy-gook. I hope you can already tell that I take a different approach . And, of course, it’s our JOB (and our true pleasure at my firm) to take care of most of that stuff on your behalf in the first place! But I did want to make some suggestions this week for how you can plan ahead NOW to avoid getting nailed next tax season. That’s my [...]

“A true conservationist is a man who knows that the world is not given by his fathers, but borrowed from his children.” – John James Audubon Thanks for your responses from last week’s Strategy Note on achieving financial independence. It was so well-received, that I thought I would spend a bit more time on that subject in this weeks’ note for you. But, before I get there, I’d like to speak some encouragement to you. A few people wrote to me saying that they were feeling pretty dispirited about their personal situation…and that anything discussing “financial independence” really seemed like a pipe dream, and unrealistic for them. As usual, I know that when a few people write about it, there’s many more that think it, and I’d like to speak a word to you, if you’re in that category. Don’t give up. Yes, simplistic perhaps–but with all of the folks [...]

No bird soars too high, if he soars with his own wings. – William Blake I truly hope you enjoyed your Independence Day festivities. Interestingly, did you know that the Declaration of Independence was actually approved on July 2nd, and most of the delegates didn’t sign it until August 2nd? While John Adams expected Americans would celebrate July 2, the date on the publicized copies of the document was July 4th…so that’s why we celebrate it then! Some other facts you may not know about our just-passed holiday… * Three presidents died on July 4th: Thomas Jefferson and John Adams in 1826, and James Monroe, in 1831. Calvin Coolidge was the only president born on July 4th, in 1872. * The Massachusetts General Court was the first state legislature to recognize July 4th as a state celebration, in 1781. * The first recorded use of the name “Independence Day” occurred [...]

“For beautiful eyes, look for the good in others; for beautiful lips, speak only words of kindness; and for poise, walk with the knowledge that you are never alone.” – Audrey Hepburn Well there’s potentially depressing news all over the place these days. The loss of an American Icon (two, if you include Farrah Fawcett), unrest around the world and all of the political developments can leave your head spinning, I bet! Further, if you do follow the news, we continue to get barraged with stories like this: http://www.istockanalyst.com/article/viewiStockNews/articleid/3317499 Essentially, not only are many Americans falling into debt…but so is the country! It would be even worse were it not for the fact that many other established countries are in even worse shape (UK, Germany, etc.). But here’s my advice on this: Enlightened Ignorance. By “enlightened”, I mean that it’s not a bad thing to be aware of the fact [...]

“If you want a happy ending, that depends, of course, on where you stop your story.” – Orson Welles I hope your Father’s Day was special…that you took the time to thank (or remember) your father, wherever he may be. On to the subject of my note: You know, I deal with taxes all the time of course…it’s my job, right? But that still doesn’t mean I <span style=”text-decoration: underline;”>like</span> paying taxes–who does? Certainly none of us are opposed to contributing to the necessary functions of our government–police, roads, fire, administration, etc. Yet I must say that I really do take a special pleasure in helping my clients keep their tax obligations to a minimum. Dave Ramsey calls the unnecessary fees and payments we make when we don’t make wise financial decisions the “stupid tax”. Well, I won’t be so blunt perhaps–but the unnecessary taxes which many families pay because [...]

“There are people who make things happen, there are people who watch things happen, and there are people who wonder what happened. To be successful, you need to be a person who makes things happen.” <em>- Jim Lovell</em> So there’s been a bit of a flurry recently in the tax professional community about some proposals to further regulate our profession. Specifically, the federal government is looking at licensing anyone who prepares taxes on others’ behalf (this is already the case, essentially, in California and Oregon). The goal is to nab the people who are helping others cheat on their taxes…and get the IRS more revenue, of course. So what do I think about this? Well, you might think I’d be opposed to it… but, in fact, legitimate preparers generally welcome higher standards as a way of announcing to our clients that we meet those standards! The American Bar Association and [...]

“Worry a little bit every day and in a lifetime you will lose a couple of years. If something is wrong, fix it if you can. You can train yourself not to worry. Worry never fixes anything.” <em>- Mary Hemingway</em> An amusing story came out just recently…apparently, there’s consequences for not being on top of your taxes! Turns out a restaurant owner in Texas got audited, and it was discovered that he owed about $40,000 in back taxes. OUCH! This particular entrepreneur decided to, oh, find a way around it…by offering the IRS agent *pizza*–and a job. (Full story here: <a href=”http://www.webcpa.com/news/IRS-Agent-Refuses-Pizza-Bribe-50595-1.html”>http://www.webcpa.com/news/IRS-Agent-Refuses-Pizza-Bribe-50595-1.html</a>) Two lessons to take from this one: 1) Pizza may not be the best form of bribery 2) <strong>Always let a professional handle your books!</strong> (personal and ESPECIALLY business) Sure, that’s a bit self-serving…but come on–pizza? Moving on, another recent story points to a rising problem for our [...]

Never work just for money or for power. They won’t save your soul or help you sleep at night. <em>-Marian Wright Edelman</em> There’s just something about the advent of summer which seems to bring out parental fears. I suppose it’s all of the possibilities for injury, etc. during vacation…but I really don’t quite have an understanding of it. One thing I KNOW is true for parents–they want their children to be well cared for, should anything ever happen to them. You see, life can turn on a dime…and we’ve all faced our share of abrupt shifts. Some good, some … pretty rough. But I can’t tell you how good it feels to be <span style=”text-decoration: underline;”>prepared</span> for whatever curve balls might come across the plate of your life. For me and my family, we’ve put some simple plans in place for a VARIETY of circumstances, not just financial or legal. [...]

“An inexhaustible good nature is one of the most precious gifts of heaven, spreading itself like oil over the troubled sea of thought, and keeping the mind smooth and equable in the roughest weather.” – Washington Irving The dust is truly beginning to settle around here (ok, maybe that’s just pollen). Regardless, we’re beginning the process of serving you during the “off season”, and evaluating how things went. To that end, if you’re one of the many good folks we helped this season, then–THANK YOU for trusting us with your finances this year. We know how personal it is to you! Speaking of tax returns (and personal details)…how would you like to see former President George W. Bush’s *actual* tax return from 1997? It’s been obtained by CNN, and is available here: http://i.cdn.turner.com/cnn/interactive/allpolitics/0804/bush.cheney.taxes/bush.pdf (I like that he and Laura seemed to be very generous with their charitable contributions–which, if you’ve [...]