Year Round Naperville Tax Preparation

Year-round Naperville Tax Preparation

Every once in a rare while, it seems as though laws actually have some logical, common sense basis. Maybe the legislators who designed them are even something like me! Obviously the tax code has been written for procrastinators: we’re allowed to contribute to IRA’s beyond December 31st and still count them for the previous year; the nearby Naperville Post Office remains open until midnight on April 15th.

Unfortunately, this stretching of time frames doesn’t help cure my procrastination. It’s kind of like setting all my watches ahead 5 minutes in an effort to be more timely. For a while I’m pleasantly surprised that I’m not running as late as I thought, but soon I begin to depend upon that extra time, figuring it into my optimistic estimations of how long it will take me to get ready or to drive somewhere.

What I ought to develop in my daily habits is actually allowing sufficient time rather than tricking myself. I should make a more structured change to my tax habits as well, and plan for my Naperville income tax throughout the year rather than just in April. In fact, looking at my finances only as tax day approaches means I really don’t have time to consider them thoroughly. I’m more likely to simply stay with the status quo.

However, if I sit down with my Naperville accountant on a more regular basis, I can make adjustments that will make April 15th less fraught and perhaps less costly. Investments should be reviewed on a regular basis as industries change, as the stock market fluctuates, as I near retirement and as my situation in life goes through stages. I can be making better choices about my budget and expenditures, if I bear in mind the tax regulations as they relate to my income level.

Granted, my procrastinating nature can be difficult to overcome. But I have tremendous incentive when it comes to tax strategies: keeping more of my hard-earned money in my own pocket. True, the tax laws allow me to postpone all my planning until April 14th if I wish. But the tax laws also allow me to forgo itemizing deductions, thus paying more to Uncle Sam. That may be logical to legislators, but it’s not a very common-sense way to plan my personal budget.

Madoff victims may get millions in tax refunds

Madoff victims may get millions in tax refunds
Lita Epstein

Aug 6th 2009 at 2:00PM

Taking advantage of a special IRS rule for Ponzi-scheme losses, some Madoff victims are starting to get some of their money back in the form of IRS refunds, according to a report in today's Wall Street Journal. So far the biggest refund is about $500,000 dollars, but some people have filed returns for multi-million dollar refunds. In March the IRS ruled that investors could take a theft loss on their amended 2008 returns. Since many Madoff investors let their money grow with Madoff for 20 years or more and paid taxes on the dividends and capital gains they supposedly earned, even though they didn't take the money out, they are sitting on multi-million dollar loses.

The IRS is paying out less to those who are suing third parties, on the assumption that they have a better prospect of recovering losses. Some tax accountants advised their clients to wait on filing because they didn't know how the IRS would handle the refunds. So their clients will need to file for refunds on their 2009 returns. I'll bet the people that were advised to hold off wish they had filed those amended claims. Who knows how generous the IRS will be next year?Those that did file amended 2008 tax returns will soon have cash in their pocket. Sometimes not playing games does pay off with the IRS.

Lita Epstein has written 25 books including The Complete Idiot's Guide to Tax Breaks and Deductions.