The AAA-CPA Weekly Update
Feb. 13, 2013

Congrats to our 3 winners from the membership survey
Here are the winners:

Each got to choose a gift card from either American Express, or iTunes. Thank you to all of our members for taking the time to fill out the survey. Your answers will continue to help us as we build stronger programs and content. More

Thank you from Zelda Laster
Zelda Laster, Eli Robins' companion, sends her thanks and appreciation for the outpouring of support following his death. She is overwhelmed with the cards, phone calls and donations in his name to the foundation. She is doing well and looks forward to seeing everyone soon. For those in the New York City area, Zaster will be scheduling a dinner in the spring to honor Eli Robins and his contributions to the AAA-CPA. More

Update on IRS reporting 1099G to taxpayers
At the NJPLM January meeting, members showed serious concern over the reporting of the 1099G to taxpayers, and about what to do if the statement is not issued on paper. As a result, here is a drop-in article that organizations can use in their newsletters, websites or client organizer to advise clients accordingly. Please click here to review this article. During the meeting, members continued to raise concerns over the Internal Revenue Service's efforts to reduce and assist victims of identity theft. One member asked for 2012 statistics of reported incidents, which totaled 233,365 based on information provided by the Office of Privacy, Governmental Liaison and Disclosure. For additional information on the dollar amounts and increased staffing, please review the IRS 2013-2 fact sheet.More

January federal tax update
by David S. De Jong, Esq., CPA
In Brady v. Commissioner, the tax court determined that Social Security disability payments that must be paid over as an offset to a private disability policy do not reduce the gross amount of Social Security income.

How should investors respond to the new US tax picture?
The Wall Street Journal
First, start tax-loss harvesting. There are billions of dollars in tax savings from simple tax-loss harvesting strategies. If you don't know what that is or how to do it, Google it. More

Obama welcomes debate on taxes
USA Today
President Barack Obama says he's looking forward to debating Republicans about taxes, as he and Congress approach another round of budget battles. Obama also told House Democrats at a retreat that he wants to do a major debt reduction deal, but it has to include new tax revenue as well as spending cuts.More

IRS extends deadline for including mandatory language in taxpayer disclosure consent forms
Accounting Today
The Internal Revenue Service has extended the deadline for including mandatory language in consent forms that tax preparers are expected to send to clients before disclosing or using their tax return information. Revenue Procedure 2013-19 extends the deadline to comply with the mandatory language requirements in Revenue Procedure 2013-14 from Jan. 14 until Jan. 1, 2014.More

Study: Tough Wall Street enforcement lost in 'revolving door'
Is the Securities and Exchange Commission too cozy with Wall Street? A new report by a nonprofit government watchdog group said former SEC employees, hired away from the commission by the private sector, "routinely" help their new employers to influence the agency and blunt SEC enforcement actions.More

Looking beyond income, to a tax on wealth
The New York Times
Income tax rates have recently been raised slightly for some affluent people, and there is pressure for additional increases. But some economists say raising marginal income tax rates on high earners may miss the mark. One reason is that the truly wealthy employ all kinds of legal means to minimize their tax liability, including shifting income around the world, deferring gains on their assets and many other sophisticated strategies.More

Democrats aim tax, spending cuts at rich to avoid 'meat ax'
Facing government spending cuts that could delay air travelers, education programs for the poor and weaken military readiness, Democrats in the U.S. Congress recently sought to shift the deficit-reduction burden to the rich. Without congressional action, about $85 billion in across-the-board spending cuts are set to begin on March 1. More