Firstly, I’m here to offer you a friendly reminder: Sunday is Mother’s Day. Do with this reminder what you will .

And speaking of moms, if you’ve ever spoken with friends who have had to place their parents into a care facility, you know how difficult the process can be.

I was once asked to weigh in on how to make this decision, so I’ve done so, here. I did some digging, and I believe I’ve put together something helpful — and clear.

(And I know that this isn’t a “normal” topic for a Costa Mesa Tax Preparation Business to go into — but I’m not interested in “just” sticking to the script.)

Because for far too many people, the “story” of their lives doesn’t end as well as they might have hoped. Care facilities (when they’re necessary) can be a blessing … and, well, they can be a nightmare. So, to help you make sure that your family (and your friends’ families) make the best decision possible, I’ve put together a two-part series on nursing home placement — and how to do it right.

Feel free to forward this along to anyone who may be affected by these issues. We’re always here to help!
Not Your Normal Costa Mesa Tax Professional: Bass’s Long-Term Care Guide (Part 1)
It’s a fact: most nursing home admissions happen under extremely stressful circumstances.

It’s an overwhelming task to find the best nursing home placement for a loved one, perhaps because, well … where do you even begin?

But, although this is a job that no one wants, it can be done with forethought and confidence that the best decision was made for everyone involved. It’s easier (and better for your loved one), if that first placement is well thought out. Yes–a nursing home resident can be moved from one facility to another, but this type of disruption is rarely in everyone’s best interest, as it can be disturbing on a variety of levels.

So it’s best to do it right–from the beginning.

Here’s a great place to start your search:

The Federal Center for Medicare & Medicaid Services (CMS) has a part of its Web site called “Nursing Home Compare”. Surprisingly (for a government service), it’s actually quite handy:

http://www.medicare.gov/NHCompare

This area of their site identifies facilities that have a history of poor performance–and ones which do well. In fact, the Nursing Home Compare site labels nursing homes it calls “Special Focus Facilities” — those that have repeatedly violated state and federal health and safety rules and that rank in the worst 5 to 10 percent of all inspected facilities in a given state.

You’ll want to cross those off your list from the very beginning.

Using this website, you can see detailed inspection information about each nursing facility that interests you, comparing various government-rated “quality measures” such as:

• Percent of High-Risk Residents Who Have Pressure Sores
• Percent of Residents Who Spend Most of Their Time in Bed or in a Chair
• Percent of Residents Who Have Moderate to Severe Pain
• Percent of Residents Who Were Physically Restrained
• Et cetera.

The site also rates the care and services that each facility provides to its residents, and allows you to view how each facility stacks up in staffing hours for each type of health care worker against the state and national averages.

And there’s other comparison tools available. For example, U.S. News and World Report has recently started providing rankings of America’s nursing homes.

http://health.usnews.com/senior-housing

These rankings rely on the data from the above government site–but they DO provide some advanced search engine capability. Nursing homes are presented in tiers within each star category, based on their total stars in all three of the major areas. The topmost tier, for example, consists only of five-star homes that got 15 stars. The next tier down is five-star homes with 14 total stars, and so on.

Within each tier, nursing homes are listed alphabetically. If you’re looking for a nursing home by location, and turn up too many, search terms can be combined in order to narrow the results.  For example, perhaps you want to search just for nursing homes that have a religious affiliation, or that accept Medicaid residents. Or you can launch a multi-pronged search, perhaps searching for non-profit four-star nursing homes that accept Medicaid and are located within 25 miles of a particular city.

However–here’s my big caveat when it comes to just looking at ratings: Nothing can substitute for visiting a nursing home in person. After all, every nursing home will have some deficiencies; working with extremely disabled and impaired persons is very difficult.

So, to find the best possible nursing home for your family’s situation, the first step is to determine what is most important for your family in looking for a facility. And I hope that you would agree that the potential resident’s needs and desires must be included in this evaluation. Consider variables such as location of the facility, whether a special care unit (such as for dementia) is available, and what types of payment sources are accepted.

The second step is to identify the facilities in your area which meet the criteria you have established.

In my next Note, I’ll give you some pointers on how to conduct an on-site tour properly–what to look for, questions to ask, etc.

The dust is truly beginning to settle around our Costa Mesa tax preparation offices after our very busy TY2011 tax season (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, I’ve got ONE BIG FAVOR TO ASK:

(If you haven’t already done so) Would you take three minutes, right now, to jot me a quick email about your experience with me and my staff? It really helps us to evaluate our season. Plus, it’s helpful feedback for new and potential clients. I’ve found that I can “promise the moon”  with a potential client, but they really want to hear from somebody like YOU.

One more thing on this: could you be as specific as possible? You may not be comfortable disclosing savings amounts, refunds, etc, but as much as you’re willing to share, would be great!

Thanks again…and THANK YOU for trusting us with your finances this year. We know how personal it is to you!
Your Costa Mesa Tax Professional ‘s FAQ Guide For After The Tax Return Dust Settles
It’s a familiar feeling.

Relief. Exhilaration (or frustration at having to pay *more* taxes!). Gratitude for a job well done by your preparer.

Unless you’ve filed for an extension, however you feel about your tax return…chances are, it’s done.

But, even now, we do get some questions. So, I thought I would answer some of the basic ones for you. If you have any additional questions, feel free to give us a call ((866) 282-3127) or send me an email.

We’re here for you!

1. “When will I get my refund?”
Well, the IRS does seem to have entered the 21st century.

If you had us “e-file” your return, you can check your status right now, or if you had us mail a paper return, after about 3 to 4 weeks.

When you’re checking with the following options, make sure you have a copy of your tax return on hand or know your “filing status”, SSN and the exact dollar amount of the anticipated refund.

• Online: Go to IRS.gov and click on Where’s My Refund.
[or go right to: http://www.irs.gov/individuals/article/0,,id=96596,00.html ]
• Automated Phone: Call 1-800-829-4477 24 hours a day, 7 days a week for automated refund information.
• In-Person Phone: Call 1-800-829-1954 during the hours shown in your IRS form instructions. [Of course, the hold time for the IRS is ... somewhat of an issue ]

2. “Do I need to keep a copy of my return?”
Yes, for a *minimum* of three years. There’s all kinds of contexts where it’s useful. We do keep one on file, on your behalf, but it’s just smart and safe for you to keep one in a secure place at home. (I’ve already written about Amended Returns, and you need a copy for that process, of course.)

As for the supporting documents from your return, anything that relates to a home purchase or sale, stock transactions, retirement, business or rental property, should be kept much longer than the three years.

3. “I think there’s a mistake in my return. What should I do?”
Sometimes, you’ll find a receipt or a documentation after April 17th which really would have changed your prior year tax return. That’s, again, when you would have us file an “Amended Return”. Here are some other common reasons to Amend…
•           You neglected to report some income earned.
•           You claimed deductions or credits you should not have claimed.
•           You did not claim deductions or credits you could have claimed.
•           You filed under one filing status, but you should have filed under another.

You might have other questions, which I haven’t addressed here. Let me know!

(And don’t forget to write me a quick note about your experience! THANK YOU!)

Part of me can’t believe that I’m taking the time to write this post, here, Monday morning the 16th (the day before the filing deadline). But I also know if I don’t do it now, this tax season having been so full … well, I’ll admit that we can anticipate a bit of a break being needed come Wednesday .

And, of course, the other part of me (the wiser part) says: “Tom, helping people with their taxes is only the means to a greater end: enabling your clients to live richer lives, without having to fret about the details.”

My relationship with you (and all of our clients in and outside of the Costa Mesa area) is worth the time investment (and more).

And speaking of investments, I know that a fair number of our clients were graciously invited to send their final “investment” to the IRS (and their state) this week.

And some of our clients also received (or will be receiving) a payment from the Treasury, as a sort of “thanks for letting us have your money for a year!” gesture. No interest paid out, of course.

Both of these circumstances are problematic in their own way.

In the following weeks, I’ll be sharing with you how you can fix that — but one of the first (and often overlooked) methods is … well, allow me to elaborate.

Costa Mesa’s Most Trusted Tax Professional Explains The First Step To Reclaiming Control Over Your Taxes
Our clients who filed with us this year already feel the peace-of-mind that you were able to claim every possible deduction which is legally allowed in the tax code for 2011. After all, we put each return through an extensive review process to ensure you keep as much of your hard-earned income as the IRS allows.

But what about your friends, both here in Costa Mesa and beyond? And what about your previous years?

Well, since the filing deadline is already upon us, they (and you) might think that the proverbial “fat lady” has sung on 2011 returns (and 2010 and 2009). Not so.

Because according to the most recent report on the matter, issued by the General Accounting Office, taxpayers overpay the IRS almost $1 billion every year due to incorrect itemization and preparation.

What’s worse is that those who prepared their own taxes (with a software, or on their own) are the most vulnerable, according to the report. But did you also know that taxpayers who used one of the “big chain” preparers are almost as bad off?

An excerpt from an additional report from the GAO: In a Limited Study, Chain Preparers Made Serious Errors

In GAO (United States Government Accountability Office) visits to chain preparers, paid preparers often prepared returns that were incorrect, with tax consequences that were sometimes significant. Some of the most serious problems involved these preparers…

1.  Not reporting business income in 10 of 19 cases;
2.  Failing to take the most advantageous post-secondary education tax benefit in 3 out of the 9 applicable cases; and
3. Failing to itemize deductions at all or failing to claim all available deductions in 7 out of the 9 applicable cases.

More clippings from the report:
* The 19 paid preparers we visited arrived at the correct refund amount only twice. On 5 returns, all for the plumber, they understated our refund amount by a total of $3,465.
* All 19 of our visits to tax return preparers affiliated with chains showed problems. Nearly all of the returns prepared for us were incorrect to some degree, and several of the preparers gave us very bad tax advice, particularly when it came to reporting non-W-2 business income. Only 2 of 19 tax returns showed the correct refund amount, and in both of those visits the paid preparer made mistakes that did not affect the final refund amount.

So what can your friends do about this? And what could YOU do about it, if you didn’t have us handle your taxes in prior years? Simple: file an “Amended” Return.

Many tax businesses don’t provide this service, but even though we’ve completed our clients’ returns, we WILL review any of your friends’ returns–at no charge.

See the below special message, for more details…

+++++++++++++++++
“No Charge” Return Review
Special Gift Certificate
As a complimentary service this year, we will provide a Return Review To Any Non-Client.
We will also review prior year returns from clients who did NOT have us handle their taxes during the year under question..
No charge will be made, unless we have to file an amended return.
Email our office or call (866) 282-3127 to set up this complimentary service!
Deadline May 4th
+++++++++++++++++

Sending you our affection, through a haze of tax forms…

It’s the final week of tax season, and our office here in Costa Mesa is hopping!

Which isn’t to say that I don’t have the time to step away for a moment and write to you, my friend (if you have all your papers in, and are waiting for our completion — fear not! My team is hard at work, as I type…).

This is often our busiest week of the year (so please be understanding), but it’s also the week when we receive, with clockwork regularity, many questions about extensions.

So, I’ll be clearing that up this week, but before I do so, a few quick unrelated points:
1) Next Tuesday, April 17th is the filing deadline, but it’s ALSO (by actual coincidence) “Tax Freedom Day”. This is the date pegged by the Tax Foundation as the date when you’ve finally worked to pay off your taxes. The rest of the year is “take home” pay.

2) Don’t forget that April 17th is also the deadline to contribute to IRA’s and HSA’s in order to have them count on this year’s (2011) taxes.

And, onto this week’s Note on Extensions…

Your Costa Mesa Tax Professional Tells The Truth About Extensions
Let’s clear some things up with some facts about getting an “extension”.

As you know, Tuesday April 17th is the filing deadline for a federal tax return.  If you need more time to get your paperwork complete, you need to file (or have us file on your behalf) Form 4868 (Automatic Extension of Time to File) with the IRS by the end of the day on the 17th.  This gives you an automatic six-month (until October 17, 2012) extension of time to file.

Here’s the deal: An “Extension of Time to File” is not an “Extension of Time to Pay”, unfortunately — except for certain cases (more in a moment). In normal circumstances, the Extension simply gives you an automatic six months of additional time to get your paperwork together and file that return.  But, if you owe more than what you paid with your estimate, you’ll be accumulating penalties and interest on the difference–so PLEASE don’t take the entire six months to do this!

The exception to this rule is for:
1) Wage earners who have been unemployed at least thirty consecutive days during 2011 or in 2012 up to this year’s April 17 tax deadline; or
2) Self-employed individuals who experienced a 25 percent or greater reduction in business income in 2011 due to the economy.

So, if that’s you — let us know! We’ll get you payment relief.

For the rest of you, when filing your “Extension of Time to File”, you’ll need to estimate what you think you owe to the IRS.  This should not be pulling numbers out of thin air (or other various body parts)!  You’ll still need to go through your receipts and tax documents and get them “somewhat” organized.

From here, you can estimate both your income and your expenses, and then approximate what you owe Uncle Sam.  Keep in mind that this is an ESTIMATE.  And, you’ll have to pay what you estimate you owe at the time we file for the extension.

You can do this all electronically through our office, you can mail in the form WITH estimated payment (must be postmarked by the 17th), or you can call a specialized provider and pay by credit card. We can provide you with the appropriate number to call.

And it’s NOT TOO LATE! See below, and come by right away!

To more of your money in your wallet!
+++++++++++++++++
“PROCRASTINATORS ONLY” Special Gift Certificate
$23 Towards Any Tax Service
“Yes, I Have Procrastinated Filing My Taxes This Year … But I Still Want to Protect Myself from All the New Tax Laws and Get MORE Money Back from Uncle Sam with A Peace-Of-Mind Guarantee that’ll Keep Me Sleeping like a Baby when My Taxes are Filed with the IRS!”
Deadline April 17th
Not valid with any other offer
+++++++++++++++++

On Friday, I remember thinking to myself: Tom, I’ve never seen it this busy before! By that, I mean a RUSH of new clients, referrals and longtime clients streaming through our doors these first couple weeks of April.

And then, I remember thinking the very same thing last year.

That said, the good news for folks here in the Costa Mesa area (and, beyond, I suppose!) is that we’ve been preparing for this season all year, and our capacity is still not at the breaking point (though truly busier than we have ever been). for these next two weeks (see the bottom of this email for details).

Even at this late hour, we will gladly receive friends of our existing clients — we make a special point to accommodate clients’ friends, because we’ve found that our great clients have very good taste in friends!

So, send this blogpost to five of your friends right now and make sure they let us know you sent them. They can also call: (866) 282-3127 and we’ll be their last-minute lifeline!

And, a few words for the possibly-panicked procrastinators in our midst this week…
Oh, but before I go there, two important tax items of note:
1) First off, the actual tax deadline is Tuesday, April 17th this year (due to a DC holiday).
2) That’s also the day which is the LAST day that you can make an IRA contribution which will count for 2011. Don’t miss that chance, because you may even be able to deduct some or all of those contributions for THIS tax year.

Now, I started writing a new Note for you today … and I turned to my Note from last year for inspiration. And, well, I’m not sure that I can even improve on it, and the busyness-induced temptation to offer it to you once more was simply too great . But it’s just as timely as ever…

Costa Mesa’s Most Trusted Tax Professional Reveals: When Procrastination Is Really Smart
Right now, there are an infinite number of things you could be doing, especially around here in Costa Mesa. No matter what you work on, you’re not working on everything else. So the question is not how to avoid procrastination, but how to procrastinate well.

In my view, there are three kinds of procrastination. Depending on what you do instead of working on something, you could work on:
(a) nothing,
(b) something less important, or
(c) something more important.

That last type, I’d say, is good procrastination.

This is the “absent-minded professor” who forgets to shave, or eat, or even perhaps look where he’s going while he’s thinking about some interesting question. His mind is absent from the everyday world because it’s hard at work in another.

That’s the sense in which the most impressive people I know are all procrastinators. They’re type-C procrastinators: they put off working on small stuff to work on big stuff.

What’s “small stuff?” Roughly, work that has zero chance of being mentioned in your obituary. It’s hard to say at the time what will turn out to be your best work (will it be your thesis for your PhD, or that detective thriller you worked on at night?), but there’s a whole class of tasks you can safely rule out: shaving, doing your laundry, cleaning the house, writing thank-you notes—anything that might be called an errand.

Good procrastination is avoiding errands to do real work.

Good in a sense, at least. The people who want you to do the errands won’t think it’s good. But you probably have to annoy them if you want to get any real work done. The mildest seeming people, if they want to do real work, all have a certain degree of ruthlessness when it comes to avoiding errands.

Some errands, like replying to emails, go away if you ignore them (perhaps taking friends with them). Others, like mowing the lawn, or filing your tax returns, only get worse if you put them off. In principle, it shouldn’t work to put off the second kind of errand. You’re going to have to do whatever it is eventually. Why not (as past-due notices are always saying) do it now?

The reason it pays to put off even those errands is that real work needs two things errands don’t: big chunks of time, and the right mood. If you get inspired by some project, it can be a net win to blow off everything you were supposed to do for the next few days to work on it. Yes, those errands may cost you more time when you finally get around to them. But if you get a lot done during those few days, you will be net more productive.

So here’s where we come in.

Consider us “The Ultimate Procrastination Solution”.

Allow us to take the pain away from these second-level tasks (like getting your return filed) — and you go back to writing that killer novel.

And, of course, here’s something which will make it even easier…
+++++++++++++++++
“PROCRASTINATORS ONLY” Special Gift Certificate
$23 Towards Any Tax Service
“Yes, I Have Procrastinated Filing My Taxes This Year … But I Still Want to Protect Myself from All the New Tax Laws and Get MORE Money Back from Uncle Sam with A Peace-Of-Mind Guarantee that’ll Keep Me Sleeping like a Baby when My Taxes are Filed with the IRS!”
Deadline April 17th
Not valid with any other offer
+++++++++++++++++

We’re rounding third base, and headed towards the “home plate” of April 17th, and the resultant END of “tax season”. This has already been one of our best tax seasons yet  — not just because we’ve seen so many new Costa Mesa tax preparation clients added to the “Bass office family”, but because of the stories we’ve been privileged to share.

Stories of new financial freedom and recovering from losses … new family members (both biological and adopted) … new careers and the sunsets of “old” ones.

Our clients never let us forget that what we do is never only about “which forms to fill out”, or even how much money we can save you. No, it’s always been about the stories, and it’s always worth it.

So, if you haven’t had a chance yet: would you send us YOUR “tax season story”? We’d love to hear how things went with us, but even more … we’d *really* like to know what’s underneath those tax forms we fill out for you! It truly helps us keep our vision straight through the entire year…

And one more thing we’d like to ask:

Many of our clients are active on Facebook or Twitter. If you’re willing, would you make a post about us? Here’s something you can write:

Are you procrastinating on your taxes? Well, Tom Bass wants to help! I had my taxes prepared there, and just found out that their office is making special efforts to help procrastinators this year! Give them a call: (866) 282-3127 … you won’t regret it!

Or some such. We want your “procrastinating” friends to know that they don’t have to rush out and download unreliable software, or rush to some “big box” preparer. (Especially in light of stories like the one I just saw this morning: http://www.accountingtoday.com/news/HR-Block-Manager-Arrested-Identity-Theft-Tax-Clients-62102-1.html Yikes!)

Well, I also wanted to address both current and future clients with this little Note today…
Your Best Costa Mesa Tax Professional Says: ‘It’s A Report — Not a Strategy!’
It’s true — there are certain people for whom this Note doesn’t apply. There are those who are perfectly fine paying the amount of tax they pay every year, thank you very much.

However, since YOU have chosen to invest yourself in our services (or at one point considered it), you are probably in the second group of Costa Mesa taxpayers: those who would love to pay less in taxes, THIS year.

There are two main things which you need to understand:

Immutable Fact #1: Our tax system is not fair.
Yes indeed — the Mitt Romneys, Warren Buffetts, Barack Obamas, Rick Santorums etc etc operate under a vastly different system than most “regular” taxpayers. This is NOT because they are politically-connected (though they are), and the sooner you quit complaining about those who *seem* to be connected … and make the decision to JOIN their ranks, the sooner you will pay less in taxes.

Because all of those men, and other people like them, understand the second fact…

Immutable Fact #2: A tax return is a report, NOT a strategy.
Yes, we’re pretty good at coming behind with our magic brushes and cleaning up the mess made by many of our clients in their finances and taxes. But there is a much better way to fly.

It’s called tax planning, and it’s essentially comprised of three parts:

1) Strategic review: Assess the current situation, and identify short-, mid-, and long-term strategies to lessen your taxes, and grow your income.
2) Implementation: This can be a little tricky (especially if you do it yourself), because there are bound to be accounting and local regulatory questions which arise. We recommend that you stay with your same team who developed the tax strategy so they make sure you’re doing what you need to do.
3) Proper compliance: There are plenty of folks out there who will give you “the secrets to paying less taxes!!!” — but are they willing to put their name on a dotted line and defend it? If not, RUN from these people. They are true blowhards. Or worse, they know that their advice will lead to a fraudulent return.

But the main thing to understand is that in order to REALLY get your tax situation improved, you MUST plan ahead.

Otherwise, you’re just cleaning up a mess when filing your tax return.

I hope I didn’t ruffle too many feathers … but if so, understand that most of all, we are here to walk with you no matter WHAT kind of planning you do (or don’t do)!

Give us a call today: (866) 282-3127, or drop us an email. We’re here for you!

Our clients here in Costa Mesa are afflicted with “March Madness”, along with the rest of the country, it seems.

Unfortunately, this little national hoops holiday isn’t one which my Costa Mesa tax preparation staff and I get much chance to participate in. We’re too busy doing your taxes!

Yep, this is close to our busiest time of the year, and we’re working like mad to handle the increased volume this year. Because with all of the economic uncertainty out there, it’s clear that people both inside and outside of the Costa Mesa area want real answers from someone who knows them — and cares..

But let me say this: though my business does well this time of year, I’d rather things were better and our tax code was simpler! I’d rather the economy was thriving and everyone felt confident enough to handle their own situation.

The sheer complexity of the tax code keeps me in business — to take the hassle from you and other Costa Mesa taxpayers, and apply our expertise to your situation. But wouldn’t it be more efficient if paying taxes didn’t actually require so much expertise?

I know … a bit of a controversial statement from an accountant. But I get tired of seeing new clients bring last year’s tax returns to us–and realize that if we’d helped them sooner, they would have saved a bunch of money (fortunately, we *can* file amended returns!). If things were simpler, people would keep more of their money — and THAT’S one of my passions.

Now, I have a thought or two about your refund (if you’re receiving one), and other such close-to-the-wallet thoughts. I’d love to hear your opinion…

A Costa Mesa Tax Professional Suggests Giving Your Refund Away?
We have many clients who are receiving refunds this month, and that number of course will only be rising. So, here’s a thought for you: What would it look like for you to give your refund away?

Yes, this is a radical idea to think about, but consider: what does this refund represent to you?

If you’re like many families, it’s a bit like “found money” — i.e., an unexpected windfall. And, in those scenarios, it’s tempting to hoard, or to splurge.

However, as with other windfall scenarios which I’ve written about in the past, one of the smartest things you can do is to give a portion (at least) of it away.

Why do I suggest this?

Well, I believe it’s actually “enlightened” self-interest in the long run. And not just in our sense of feeling good.

I see the balance sheets of folks from every walk of life, and over the years I’ve noticed an interesting phenomenon: individuals and families who make giving a priority, even when they aren’t “wealthy”, seem to do better in the long run. And I mean financially–not just in their state of mind.

(Though, there are significant “state of mind” reasons for giving. Have you seen, as I have, that those who freely give seem to be more pleasant company?)

Before you write this off as being “ask the universe” mushiness, understand that A) I don’t subscribe to that baloney and B) I am merely reporting an observed phenomenon. Do with it what you will.

You see, I make it a point to seek to observe how money works. And, for some reason — money gets attracted to those who aren’t only in hot, desperate pursuit of it. It’s almost like in romance — potential lovers are usually turned off by the overly-aggressive seeker.

Consider this. I know it might feel painful. But trust me when I tell you that it can actually provide you with a deeper feeling of joy than if you choose to cling tightly to everything which comes your way.

I hope I didn’t ruffle too many feathers … but if so, understand that most of all, we are here to walk with you no matter WHAT your balance sheets look like!

The IRS just released a study which shows that the average time it takes ALL taxpayers to do their taxes is a total of 18 hours. (Editor: I wonder what the number is for Costa Mesa-area taxpayers? Probably even higher)

Would you send this blogpost to your friends (post it on Facebook, even?) and have them let us know you sent them?
Now, we posted this in the beginning of the year, but I thought it worth "re-releasing", if you will, as we reach about one month left in "tax season" …

Bass’s Tax Time Document Chase List for Costa Mesa-area TaxPayers
Yes, this is a long list — but it’s the unfortunate reality of our tax code that it’s not even comprehensive! But these items will cover 95% of our clients.  Really, this is for ensuring that we’re able to help you keep everything you deserve to keep under our tax code.

We hope this helps, and we really look forward to seeing you this year!

The IRS just released a study which shows that the average time it takes ALL taxpayers to do their taxes is a total of 18 hours. (Editor: I wonder what the number is for Costa Mesa-area taxpayers? Probably even higher)

The number is even higher if you don’t just use the 1040EZ form. Bet you wish you had that hour of daylight savings time back, don’t you?

Seeing that figure once again reminded me of the Costa Mesa tax service we get to provide. Truth be told, it doesn’t require those kind of man-hours for us to complete most returns, even those which are more complicated. But that’s also because after all — we’re sort of experts at this stuff (It’s not for nothing that we’ve been called the best tax professionals in Costa Mesa — and the most trusted).

Already, we have many, many clients who have filed, have received refunds and have written us notes telling us that they’ve never been more pleased. This makes me happy, as you might imagine.

Well, we’d like to ask you a favor, and we have a simple way to help you help us, as it were. Yes, we’re extremely busy, but we’ve set aside some capacity for friends and family of our clients. The reason we’re willing to do this is that we already know that you are a good person to work with (else we would have released you as a client!) so it stands to reason that you associate with similar people.

Would you send this blogpost to your friends (post it on Facebook, even?) and have them let us know you sent them?

Now, we posted this in the beginning of the year, but I thought it worth “re-releasing”, if you will, as we reach about one month left in “tax season” …

Bass’s Tax Time Document Chase List for Costa Mesa-area TaxPayers

Yes, this is a long list — but it’s the unfortunate reality of our tax code that it’s not even comprehensive! But these items will cover 95% of our clients.  Really, this is for ensuring that we’re able to help you keep everything you deserve to keep under our tax code.

Even if for some strange reason you won’t be using our cost-effective services this year, feel free to use this list as a handy guide…

Personal Data

Social Security Numbers (including spouse and children)

Child care provider tax I.D. or Social Security Number

Employment & Income Data

W-2 forms for this year

Tax refunds and unemployment compensation: Form 1099-G

Miscellaneous income including rent: Form 1099-MISC

Partnership and trust income

Pensions and annuities

Alimony received

Jury duty pay

Gambling and lottery winnings

Prizes and awards

Scholarships and fellowships

State and local income tax refunds

Unemployment compensation

Homeowner/Renter Data

Residential address(es) for this year

Mortgage interest: Form 1098

Sale of your home or other real estate: Form 1099-S

Second mortgage interest paid

Real estate taxes paid

Rent paid during tax year

Moving expenses

Financial Assets

Interest income statements: Form 1099-INT & 1099-OID

Dividend income statements: Form 1099-DIV

Proceeds from broker transactions: Form 1099-B

Retirement plan distribution: Form 1099-R

Capital gains or losses

Financial Liabilities

Auto loans and leases (account numbers and car value) if vehicle used for business

Student loan interest paid

Early withdrawal penalties on CDs and other fixed time deposits

Automobiles

Personal property tax information

Department of Motor Vehicles fees

Expenses

Gifts to charity (receipts for any single donations of $250 or more)

Unreimbursed expenses related to volunteer work

Unreimbursed expenses related to your job (travel expenses, entertainment, uniforms, union dues, subscriptions)

Investment expenses

Job-hunting expenses

Education expenses (tuition and fees)

Child care expenses

Medical Savings Accounts

Adoption expenses

Alimony paid

Tax return preparation expenses and fees

Self-Employment Data

Estimated tax vouchers for the current year

Self-employment tax

Self-employment SEP plans

Self-employed health insurance

K-1s on all partnerships

Receipts or documentation for business-related expenses

Farm income

Deduction Documents

State and local income taxes

IRA, Keogh and other retirement plan contributions

Medical expenses

Casualty or theft losses

Other miscellaneous deductions

We hope this helps, and we really look forward to seeing you this year!

Even though all the news media here in the Costa Mesa area (and nationally) are telling us how HARD things are out there, there are still regular people who are quietly but quickly moving forward with their financial goals.

And, sometimes, they get a little help.

This week I’m going to address what you should do if and when you receive some sort of sudden financial blessing — and what not to do.

But, before I get there, I wanted to give a few quick guidelines for the MANY people who are beginning to stream through our tax offices these next few weeks, as the tax deadline begins to approach (!)…

Call this my “Best Costa Mesa Tax Professional Tip Sheet”…

1) Understand the bounds of our (admittedly awe-inspiring) powers:As much as I would LOVE to be able to change the tax law with an imperious nod to my assistant, unfortunately … I can’t. So yes — there are sometimes situations we run across with clients here at Team Tom, where the tax law pretty much stinks. But we can’t change that for you. All we can do in that circumstance is to help you get through it with maximum assets intact.

2) We like thoroughness. It’s one of the reasons I send out the list of things you’ll need to have handy for your tax prep process. Yep — it’s long. Tedious? Sometimes. But we actually can’t magically create receipts or tax forms from thin air. So bring all that you can — we’ll wade through it with you.

3) Lying to us is like lying to your lawyer.It’s only happened once or twice in my career, but when a client hides stuff from us …  well, shoot — what’s the point of that? All we’re going to do is to HELP you by leveraging every available deduction, credit and tax provision we possibly can to help you keep all that you deserve to.

So help us help you. Don’t fight the best Costa Mesa tax professional if you don’t have to!

Phew! Let’s move on to something a little more fun to think about, shall we?

A Costa Mesa Tax Preparer’s Guide For Keeping A Windfall From Ruining You

According to recent data from the Federal Reserve (what do they NOT keep track of??), more than nine million households in the U.S. reported getting an inheritance of at least $100,000. And there is other data which suggests that baby boomers stand to receive over $8 trillion in inheritance over the next few decades.

But sometimes such “blessings” end up as curses to those who aren’t prepared.

Consider former baseball star Lenny Dykstra, who recently filed for bankruptcy in 2009 after once having a net worth estimated at $58 million. And, of course, the stories of lottery winners has become so pervasive that Hollywood has even begun using it as regular plot device on TV.

So — a few quick essentials for Costa Mesa-area taxpayers to consider, should you find yourself on the receiving end of a small fortune. These aren’t pieces of investment advice, per se, but rather some guidelines which will help you emotionally handle the new situation:

1) Move slowly at first.

Take some time to let it sink in and get through the emotion of it all. Most of the bad decisions made with sudden wealth happen in the first couple months. So lock it up in a low-yield savings account for three months, proceed as normal, and use that time productively.

Do this during that time…

2) Circle back to your life goals, and evaluate how the money will help you achieve them.Just because you’ve suddenly been given some cushion, doesn’t mean your life has to radically change. It might get easier … but if you leave behind the goals you created BEFORE this windfall, it’s more likely that it will get harder.

3) Find a disinterested advisor to be a buffer.It’s often best to work with someone who already has experienced handling the finances for people of means. That way they, too, won’t get caught up in the emotion of it. Let them be your “go to” gatekeeper for your greedy cousin or high school friend with those “can’t miss” investment ideas.

4) Immediately, give a portion of it away.I’ve written about this dynamic before, but there’s something special which happens inside your mind when you give away your money: it loses its grip on you, ever so slowly. And, far from turning you into a profligate (and unwise) giver, what can happen is that you aren’t as affected in your character by the sudden influx of funds. Which means that you don’t become more flashy, nor do you become a tightwad.

5) And, of course, assess your tax strategy.Coming from me, this should be a no-brainer, but every gift has a variety of ways by which it can affect your taxes. And many of the moves which we can help you make can protect you greatly.

So let us help you in all of these areas, and many more … you won’t regret it! Give us a call today: (866) 282-3127