Duvall & Associates, Inc.
BUSINESS ADVISOR NEWSLETTER
 

 Tax season has been source of complexity, aggravation

- by Alan Duvall 

Published in Dayton Daily News  April 15, 2007 

March Madness isn't limited to the basketball court, it's also at Congress behind closed doors. 

The tax season began with passage of federal legislation which arrived too late to publish revised forms, forcing taxpayers to cram items into goofy boxes intended for non-related items.  As a result, deductions for educator costs and tuition expenses were wedged into lines respectively designated Archer MSA and Domestic Production, respectively.  

Confusion reigned over calculation of a one-shot telephone excise tax which yielded few bankable dollars.  

Financial institution bookkeepers remain bewildered over the reporting of interest and dividends. 

Investment forms are initially mailed to investors which are relied upon in filing personal returns.  When amended forms arrive later, the filer is forced to amend the returns. 

Marching in lock-step, many IRA funds reported recently allowed charitable contributions as taxable distributions, defeating the entire intent of the tax break. 

Investors can attempt to contact brokers for assistance with such issues, only to find a frequent air of resentment from the intrusion. 

Somehow such inquiries are not always considered an essential element of customer service.   

“Workin’ on mysteries without any clues.”  Bob Seger 

No self-respecting tax complaint column would be complete without mention of the accursed Alternative Minimum Tax (AMT).  It’s horrid enough to explain to clients why returns are saddled with AMT penalty taxes – let alone attempt to clarify why the system disallowed Hybrid auto credits designed to encourage energy conservation.   

Ohio, hoping to add to the complexity of the process, has just expanded its historically tidy 2-page return to an eye-numbing 4-page format.   

And we always have the ever-present Ohio city business returns (led by the dome of Oakwood) which are nearly impossible to file without prompt receipt of an indecipherable correction notice.  

Oh, well.  The immediate tax crush has receded, caffeine-rushed CPA zombies are in recovery mode and Congress is gushing pride in its tax handiwork.  Life is good.

Alan Duvall is a certified public accountant in Dayton.  Contact him at Alan@Duvallcpa.com.