1 00:00:00,600 --> 00:00:02,200 Speaker 1: It's nice with Dan Ray. 2 00:00:02,880 --> 00:00:06,160 Speaker 2: I'm going you Mazy Boston's News Radio. 3 00:00:06,400 --> 00:00:08,080 Speaker 3: All right now, thank you very much. 4 00:00:09,039 --> 00:00:14,000 Speaker 2: We are now in March and four weeks ago or so, 5 00:00:14,880 --> 00:00:20,480 Speaker 2: our great friend Mark Misselbeck, an extraordinary CPA who has 6 00:00:20,560 --> 00:00:26,120 Speaker 2: been the unofficial Night Side CPA now for many many years. 7 00:00:26,520 --> 00:00:29,680 Speaker 2: He's been with us every tax season for so many years. 8 00:00:30,320 --> 00:00:32,560 Speaker 2: I can't even tell you exactly, but it's got to 9 00:00:32,600 --> 00:00:36,479 Speaker 2: be somewhere between twelve and fifteen years. And we are 10 00:00:36,680 --> 00:00:40,120 Speaker 2: once again having we have Mark with us tonight. Mark 11 00:00:40,240 --> 00:00:44,320 Speaker 2: is with a company called Cherry Beckertt Advisory LLC. 12 00:00:44,800 --> 00:00:46,440 Speaker 3: He's not here looking for business. 13 00:00:46,520 --> 00:00:50,480 Speaker 2: He deals with a lot of high end companies businesses, 14 00:00:51,080 --> 00:00:55,600 Speaker 2: but he always is so generous with his time to 15 00:00:55,720 --> 00:00:58,800 Speaker 2: take your questions about your taxes. All of us are 16 00:00:58,840 --> 00:01:04,600 Speaker 2: going to face the April fifteenth deadline in one way 17 00:01:04,680 --> 00:01:08,720 Speaker 2: or another, and for some of us, all of us 18 00:01:08,800 --> 00:01:10,920 Speaker 2: is going to be piggled. I don't know anybody who 19 00:01:11,040 --> 00:01:15,640 Speaker 2: enjoys just going through the process. But with us once again, 20 00:01:15,959 --> 00:01:20,000 Speaker 2: Mark misselback, Mark, welcome back to Nightside. You're an extraordinary guy, 21 00:01:20,040 --> 00:01:23,880 Speaker 2: a person and a friend, but also an extraordinary tax expert. 22 00:01:23,959 --> 00:01:26,560 Speaker 2: And I just can't tell you much. I thank you 23 00:01:26,600 --> 00:01:28,600 Speaker 2: on behalf of my audience that you will give us 24 00:01:28,640 --> 00:01:33,520 Speaker 2: your time. Generally, it's twice a a tax season, and 25 00:01:33,640 --> 00:01:36,759 Speaker 2: this is the second, so we won't be doing one 26 00:01:36,800 --> 00:01:40,000 Speaker 2: more this year, but so people could jump on board 27 00:01:40,080 --> 00:01:44,360 Speaker 2: any questions that they might have as to deductions. All 28 00:01:44,840 --> 00:01:47,320 Speaker 2: sorts of questions are in people's minds, and they need 29 00:01:47,360 --> 00:01:52,560 Speaker 2: to jump on board and take advantage of some really 30 00:01:52,600 --> 00:01:55,280 Speaker 2: solid advice. Welcome back to Nightside, Mark, welcome. 31 00:01:56,240 --> 00:01:57,400 Speaker 1: I thank you for having me. 32 00:01:58,080 --> 00:02:00,760 Speaker 3: Well, I'll tell you that it's my is my honor, 33 00:02:00,840 --> 00:02:01,640 Speaker 3: and my pleasure. 34 00:02:02,840 --> 00:02:07,680 Speaker 2: You have been preparing taxes for decades. Uh, let me 35 00:02:07,760 --> 00:02:09,760 Speaker 2: just start off with the general question, which I've never 36 00:02:09,800 --> 00:02:11,920 Speaker 2: asked her before. Why the hell doesn't have to be 37 00:02:12,000 --> 00:02:12,840 Speaker 2: so complicated? 38 00:02:15,040 --> 00:02:16,120 Speaker 1: I asked the wrong person. 39 00:02:18,200 --> 00:02:20,720 Speaker 2: No, I understand that, and I think most people don't 40 00:02:20,840 --> 00:02:27,079 Speaker 2: understand it. How many pages do that technically are devoted 41 00:02:27,120 --> 00:02:30,280 Speaker 2: to our taxes? Now i've i've I remember you know 42 00:02:30,520 --> 00:02:34,960 Speaker 2: the the Revenue Internal Revenue Code that when I was 43 00:02:35,000 --> 00:02:37,200 Speaker 2: in law school many years ago, that yellow book it 44 00:02:37,240 --> 00:02:38,880 Speaker 2: was about a four inches thick. 45 00:02:40,360 --> 00:02:43,760 Speaker 3: How do they spend this much time on all of this? 46 00:02:43,919 --> 00:02:46,960 Speaker 2: And now again I don't want to get into the 47 00:02:47,000 --> 00:02:53,239 Speaker 2: politics of a simplified tax code, but it's really impossible 48 00:02:53,320 --> 00:02:57,520 Speaker 2: for for anybody or the every man to understand what 49 00:02:57,600 --> 00:03:02,080 Speaker 2: they're doing. What percentage of people, in your opinion need help. 50 00:03:02,160 --> 00:03:04,080 Speaker 2: I know that some people are able to file a 51 00:03:04,160 --> 00:03:07,400 Speaker 2: simple tax return, but it seems to me that that 52 00:03:07,880 --> 00:03:11,560 Speaker 2: number is despite all the efforts, it's getting smaller and 53 00:03:11,639 --> 00:03:14,679 Speaker 2: smaller every year because taxes are becoming more complicated, or 54 00:03:14,680 --> 00:03:16,960 Speaker 2: am I just missing things? 55 00:03:17,400 --> 00:03:22,720 Speaker 1: Well, there's likely fifty percent of the populace needs some 56 00:03:22,800 --> 00:03:25,680 Speaker 1: kind of tax assistance of one sort or another, I 57 00:03:25,680 --> 00:03:27,360 Speaker 1: would guess, I. 58 00:03:28,200 --> 00:03:31,360 Speaker 2: Would think, And of course one of the things that 59 00:03:31,400 --> 00:03:34,359 Speaker 2: people should be aware of is if they for some 60 00:03:34,440 --> 00:03:39,640 Speaker 2: reason can't get their taxes done, they have an opportunity 61 00:03:40,120 --> 00:03:44,000 Speaker 2: around on a before April fifteenth to ask for an 62 00:03:44,040 --> 00:03:48,320 Speaker 2: automatic extension. Many people don't realize that, and they're filing 63 00:03:48,400 --> 00:03:49,880 Speaker 2: taxes under the deadline. 64 00:03:50,080 --> 00:03:52,520 Speaker 3: Whether they're doing on their own or not. 65 00:03:53,080 --> 00:03:57,120 Speaker 2: Explain that process, and I would suspect that there's more 66 00:03:57,120 --> 00:04:00,360 Speaker 2: and more people who are filing for that automatic extension 67 00:04:00,400 --> 00:04:00,800 Speaker 2: every year. 68 00:04:00,800 --> 00:04:02,920 Speaker 3: But there's a couple of catches to that. 69 00:04:04,200 --> 00:04:08,480 Speaker 1: Yeah, you have to make your best guess or best 70 00:04:08,520 --> 00:04:12,560 Speaker 1: testament of the balance of taxes you have to pay 71 00:04:13,080 --> 00:04:15,400 Speaker 1: at the new date. You get extra time to put 72 00:04:15,440 --> 00:04:18,640 Speaker 1: the information together of what it is you had for 73 00:04:18,720 --> 00:04:21,920 Speaker 1: income and deductions, but they don't give you extra time 74 00:04:21,960 --> 00:04:24,440 Speaker 1: to give them their money. 75 00:04:24,520 --> 00:04:27,800 Speaker 2: Yeah. So a lot of people who are waiting for 76 00:04:27,839 --> 00:04:32,479 Speaker 2: what's called K one documents and complicated investments that they 77 00:04:32,520 --> 00:04:36,440 Speaker 2: have put their money into, and the K one documents 78 00:04:36,760 --> 00:04:42,480 Speaker 2: are oftentimes lagging. So the extension gives people. Is the 79 00:04:42,600 --> 00:04:45,400 Speaker 2: date still October fifteenth? Is it a six month extension 80 00:04:45,480 --> 00:04:46,560 Speaker 2: or has that been diminished? 81 00:04:47,800 --> 00:04:52,799 Speaker 1: For individuals, it's October fifteenth, plus the fifteenth is a 82 00:04:52,839 --> 00:04:54,320 Speaker 1: Saturday or Sunday or a holiday. 83 00:04:54,600 --> 00:04:57,000 Speaker 2: Okay, so it's an effect when you think about it. 84 00:04:57,040 --> 00:04:59,640 Speaker 2: It's a six month extension, but you have to make 85 00:04:59,680 --> 00:05:02,919 Speaker 2: a good faith effort to pay, and if you don't, 86 00:05:03,279 --> 00:05:07,240 Speaker 2: when you do file your taxes, you may end up paying, uh, 87 00:05:07,600 --> 00:05:11,479 Speaker 2: you know, penalties or or or interest. Either way, the 88 00:05:11,520 --> 00:05:13,800 Speaker 2: government is going to get their money. You might get 89 00:05:13,880 --> 00:05:15,680 Speaker 2: you may put off the day of reckoning, but that 90 00:05:15,760 --> 00:05:16,960 Speaker 2: day of reckoning. 91 00:05:16,800 --> 00:05:17,719 Speaker 3: Will will come. 92 00:05:18,200 --> 00:05:21,719 Speaker 2: Let's talk about a couple of things that impact a 93 00:05:21,720 --> 00:05:25,680 Speaker 2: lot of people this year, uh, and that is there 94 00:05:25,760 --> 00:05:28,640 Speaker 2: are some some groups of people who are going to 95 00:05:28,680 --> 00:05:35,560 Speaker 2: see tax uh, you know, tax rebates this year. They're uh, 96 00:05:35,839 --> 00:05:40,159 Speaker 2: they're going to get some breaks. And primarily we're talking 97 00:05:40,200 --> 00:05:43,479 Speaker 2: about people who are in a portion or all of 98 00:05:43,520 --> 00:05:48,720 Speaker 2: their money through tips, and also folks who rely heavily 99 00:05:48,839 --> 00:05:53,640 Speaker 2: upon soial security. Let's let's deal with the tipped workers first. 100 00:05:54,000 --> 00:05:57,960 Speaker 2: And again, I know numbers are always complicated on radio, 101 00:05:58,000 --> 00:06:00,200 Speaker 2: but you have a way of making it simple. If 102 00:06:00,200 --> 00:06:02,200 Speaker 2: there are people out there who are waiters and waitresses 103 00:06:02,200 --> 00:06:04,880 Speaker 2: who are listening to this program and they're pulling their 104 00:06:05,320 --> 00:06:10,040 Speaker 2: information together, what are they obligated to do, and what 105 00:06:10,160 --> 00:06:14,839 Speaker 2: is the break that wait people's weight staff are going 106 00:06:14,880 --> 00:06:16,760 Speaker 2: to receive for the first time this year. 107 00:06:18,120 --> 00:06:21,200 Speaker 1: Well, the IRS has put out a listing of industries 108 00:06:21,720 --> 00:06:28,840 Speaker 1: and professions where tipping is a regular thing, and you 109 00:06:28,880 --> 00:06:31,640 Speaker 1: can check the list if you do a Google search. 110 00:06:32,120 --> 00:06:36,520 Speaker 1: I'm sure you qualify if you're within those industries. If 111 00:06:36,560 --> 00:06:39,920 Speaker 1: you're not listed in those industries you get tips anyway, 112 00:06:40,080 --> 00:06:41,880 Speaker 1: you're not going to qualify for this deduction. 113 00:06:43,040 --> 00:06:46,120 Speaker 3: The largest group are going to be food and beverage workers, 114 00:06:46,120 --> 00:06:47,000 Speaker 3: I assume. 115 00:06:46,800 --> 00:06:50,240 Speaker 1: Yes, yeah, And typically they have to report them to 116 00:06:50,320 --> 00:06:56,080 Speaker 1: their employers to put into their W two's. Now, you 117 00:06:56,200 --> 00:07:02,800 Speaker 1: can't have a situation where the restaurant charges a mandatory tip. 118 00:07:03,720 --> 00:07:07,200 Speaker 1: If it's a mandatory tip, it's not going to qualify. 119 00:07:07,480 --> 00:07:10,920 Speaker 1: The Congress took the position that the tip has historically 120 00:07:11,000 --> 00:07:14,120 Speaker 1: been an acknowledgement of the quality of the service. A 121 00:07:14,200 --> 00:07:19,000 Speaker 1: mandatory tip doesn't acknowledge that quality. It just it's the 122 00:07:19,360 --> 00:07:25,840 Speaker 1: customer or a consumer patron for an additional charge. So 123 00:07:25,920 --> 00:07:28,280 Speaker 1: those are off the table as far as it's a 124 00:07:28,360 --> 00:07:32,280 Speaker 1: deduction effectively, and the deduction is capped at twenty five 125 00:07:32,320 --> 00:07:34,240 Speaker 1: thousand dollars. 126 00:07:34,320 --> 00:07:37,440 Speaker 2: So that means that if just to put it in 127 00:07:37,840 --> 00:07:41,280 Speaker 2: language that even I will understand that if there is 128 00:07:41,720 --> 00:07:47,640 Speaker 2: and there are some I guess restaurants that say that 129 00:07:47,800 --> 00:07:50,240 Speaker 2: they're going to put in eighteen percent or a twenty 130 00:07:50,280 --> 00:07:56,280 Speaker 2: percent tip charge on your bill that is not going 131 00:07:56,360 --> 00:07:59,960 Speaker 2: to be deductible by the waiters or the weights. 132 00:08:00,080 --> 00:08:03,200 Speaker 1: Daff Yeah, and sometimes it's the size of the party 133 00:08:03,200 --> 00:08:07,160 Speaker 1: that genders the additional tech tip charge. 134 00:08:07,480 --> 00:08:08,280 Speaker 3: Right, But. 135 00:08:09,760 --> 00:08:14,080 Speaker 2: Up to twenty five thousand dollars of individual tips, if 136 00:08:14,080 --> 00:08:18,920 Speaker 2: you will not mandated tips that are given by customers voluntarily, 137 00:08:19,880 --> 00:08:22,480 Speaker 2: maybe even above and beyond what is the mandated tip 138 00:08:22,680 --> 00:08:29,200 Speaker 2: that would be deductible. So most waiters and waitresses are 139 00:08:29,280 --> 00:08:33,080 Speaker 2: probably going to be pleased with the refunds they might 140 00:08:33,160 --> 00:08:35,920 Speaker 2: get this year. That's assuming that another years they've been 141 00:08:36,720 --> 00:08:40,080 Speaker 2: disclosing their tips. And I know that this is what 142 00:08:40,200 --> 00:08:43,640 Speaker 2: is the interest of the government to do this this way. 143 00:08:43,800 --> 00:08:46,359 Speaker 2: Is it to try to induce the waiters and waitresses 144 00:08:46,800 --> 00:08:49,440 Speaker 2: to declare all of their tips and not to take 145 00:08:49,480 --> 00:08:51,800 Speaker 2: the cashes on the table and put it in put 146 00:08:51,800 --> 00:08:54,200 Speaker 2: it in one in one pocket and not disclose it 147 00:08:55,480 --> 00:08:56,400 Speaker 2: well effectively. 148 00:08:56,440 --> 00:09:00,120 Speaker 1: I believe that is the underpinning for the desire as well. 149 00:09:00,200 --> 00:09:05,440 Speaker 1: Was face it, the Congress people are out to buy votes, 150 00:09:05,440 --> 00:09:07,360 Speaker 1: and this is one way to buy votes is to 151 00:09:07,559 --> 00:09:09,160 Speaker 1: give a break to a taxpayer. 152 00:09:09,240 --> 00:09:09,440 Speaker 3: Right. 153 00:09:09,480 --> 00:09:12,600 Speaker 2: And also this emanates from the Trump administration, So it's 154 00:09:12,640 --> 00:09:16,559 Speaker 2: not just Congress, it's also the President who has advocated this. 155 00:09:16,679 --> 00:09:18,280 Speaker 2: He advocated on the campaign trail. 156 00:09:18,360 --> 00:09:18,560 Speaker 1: Yeah. 157 00:09:18,920 --> 00:09:21,800 Speaker 2: And then there's this so called twenty five thousand dollars 158 00:09:22,640 --> 00:09:26,280 Speaker 2: that is bandied about for people who rely on Social Security. 159 00:09:26,320 --> 00:09:29,440 Speaker 2: But that is not a clean twenty five thousand dollars 160 00:09:29,480 --> 00:09:31,360 Speaker 2: that people can take right off the top. 161 00:09:32,240 --> 00:09:34,360 Speaker 1: That's not that was never enacted. 162 00:09:35,679 --> 00:09:40,959 Speaker 3: Oh so what was if anything enacted, there. 163 00:09:40,800 --> 00:09:45,120 Speaker 1: Is a six thousand dollars senior deduction. All of these 164 00:09:45,360 --> 00:09:49,240 Speaker 1: there are four new deductions, the tips, the overtime, the 165 00:09:49,280 --> 00:09:54,000 Speaker 1: automobile interest deduction, and the senior deduction. And that believe 166 00:09:54,000 --> 00:09:57,040 Speaker 1: they're all on Schedule A one, which is newly issued 167 00:09:57,040 --> 00:10:01,560 Speaker 1: by the IRS to clean these deductions. And I believe 168 00:10:01,600 --> 00:10:05,959 Speaker 1: you do the calculations on a side schedule that are 169 00:10:06,000 --> 00:10:10,120 Speaker 1: in the instructions for filling out the form. The senior 170 00:10:10,160 --> 00:10:13,000 Speaker 1: deduction six thousand dollars if you're over sixty five, twelve 171 00:10:13,080 --> 00:10:16,040 Speaker 1: thousand in a couple if they're both over sixty five. 172 00:10:16,679 --> 00:10:20,560 Speaker 1: It phases out when the modified AGI breaches certain levels 173 00:10:21,040 --> 00:10:24,640 Speaker 1: singles you start losing it at seventy five thousand, joint 174 00:10:24,679 --> 00:10:29,360 Speaker 1: return at one hundred and fifty thousand, to the point 175 00:10:29,360 --> 00:10:32,280 Speaker 1: where from seventy five, if you breach one hundred and 176 00:10:32,280 --> 00:10:36,280 Speaker 1: seventy five thousand modified AGI, you lose the entire six 177 00:10:36,320 --> 00:10:40,880 Speaker 1: thousand deduction. Now, modified AGI is your regular income as 178 00:10:40,920 --> 00:10:44,280 Speaker 1: you figure it onto your return and you add back 179 00:10:44,360 --> 00:10:48,400 Speaker 1: tax exempt interest if you have any the excluded portion 180 00:10:48,480 --> 00:10:52,560 Speaker 1: of your Social Security benefits that you are reporting, and 181 00:10:52,600 --> 00:10:56,320 Speaker 1: if you are working abroad, you are entitled to claim 182 00:10:56,400 --> 00:11:01,079 Speaker 1: a foreigner an income deduction that excludes your earned income 183 00:11:01,160 --> 00:11:05,240 Speaker 1: from your taxable income that also gets added back for 184 00:11:05,280 --> 00:11:08,800 Speaker 1: these purposes to see what your level of income is 185 00:11:08,920 --> 00:11:11,679 Speaker 1: for the phase out on a joint return, the phase 186 00:11:11,679 --> 00:11:13,480 Speaker 1: out runs from one hundred and fifty thousand to two 187 00:11:13,520 --> 00:11:14,400 Speaker 1: hundred and fifty. 188 00:11:14,160 --> 00:11:18,280 Speaker 3: Thousand, same standards. 189 00:11:17,960 --> 00:11:20,760 Speaker 2: It's almost they try to make it more complicated for 190 00:11:20,840 --> 00:11:22,800 Speaker 2: the well. 191 00:11:22,920 --> 00:11:28,080 Speaker 1: Again, they have a certain intended group that they want 192 00:11:28,120 --> 00:11:32,000 Speaker 1: to benefit, and if you're not in that group, then 193 00:11:32,040 --> 00:11:33,800 Speaker 1: you're not going to get the benefit. How they do 194 00:11:33,880 --> 00:11:36,200 Speaker 1: it just the say it out. If they want it 195 00:11:36,280 --> 00:11:41,280 Speaker 1: in an income bracket that is not in the upper tier, 196 00:11:42,360 --> 00:11:46,160 Speaker 1: then as you approach or move up the tiers, they 197 00:11:46,200 --> 00:11:47,520 Speaker 1: squeeze down the deduction. 198 00:11:48,800 --> 00:11:53,720 Speaker 2: And the same way with the increase on the salt taxes, 199 00:11:53,760 --> 00:11:57,040 Speaker 2: which as a combination of state income taxes and also 200 00:11:57,120 --> 00:12:03,400 Speaker 2: your property taxes. They were dramatically reduced in the first 201 00:12:03,720 --> 00:12:09,240 Speaker 2: Trump tax whatever you want to call it, it was 202 00:12:09,280 --> 00:12:13,120 Speaker 2: reduced to ten thousand dollars. And in Massachusetts, which is 203 00:12:13,240 --> 00:12:16,240 Speaker 2: a high tax state not only in terms of its income, 204 00:12:16,320 --> 00:12:18,520 Speaker 2: but when you add in anyone who owns a home, 205 00:12:18,559 --> 00:12:23,880 Speaker 2: property taxes you were losing deductions when it was only 206 00:12:24,000 --> 00:12:25,920 Speaker 2: when it was it was top it was capped at 207 00:12:25,920 --> 00:12:29,280 Speaker 2: ten thousand dollars. That's now been pushed back to forty 208 00:12:29,360 --> 00:12:32,320 Speaker 2: thousand dollars. But even that goes away if you happen 209 00:12:32,400 --> 00:12:37,680 Speaker 2: to be a high in high earner, which. 210 00:12:37,559 --> 00:12:39,920 Speaker 1: Gives them around five or six hundred thousand dollars. 211 00:12:40,080 --> 00:12:40,320 Speaker 3: Yeah. 212 00:12:40,480 --> 00:12:44,560 Speaker 2: Right, But again, if you are a higher earner, you 213 00:12:44,640 --> 00:12:47,480 Speaker 2: probably do have a home and you do have high, 214 00:12:47,720 --> 00:12:50,440 Speaker 2: high real estate taxes, and it gives lie to the 215 00:12:50,559 --> 00:12:53,800 Speaker 2: argument that they're rich are not paying taxes because the 216 00:12:53,880 --> 00:12:57,480 Speaker 2: so called rich are actually, I would argue, probably paying 217 00:12:57,520 --> 00:13:00,760 Speaker 2: more taxes than most people realize. 218 00:13:00,800 --> 00:13:02,240 Speaker 3: But we'll get to all of that. 219 00:13:02,400 --> 00:13:07,360 Speaker 1: The dirty little secret, then is that everybody thought they 220 00:13:07,360 --> 00:13:10,760 Speaker 1: were benefiting a lot from getting these deduction for taxes, 221 00:13:10,880 --> 00:13:13,720 Speaker 1: but out hanging out there is a shadow tax called 222 00:13:13,720 --> 00:13:18,880 Speaker 1: the alternative minimum tax or. It originated based on congressional 223 00:13:18,920 --> 00:13:23,040 Speaker 1: hearings in nineteen sixty nine where eleven millionaires were grilled 224 00:13:23,080 --> 00:13:27,880 Speaker 1: over not paying any taxes whatsoever that year, and from 225 00:13:27,960 --> 00:13:31,800 Speaker 1: that it grew to our modern version where if the 226 00:13:31,840 --> 00:13:35,600 Speaker 1: Trump tax cuts in its first administration had not been enacted, 227 00:13:37,240 --> 00:13:40,200 Speaker 1: expayers would have been subjected to the Alternative minimum tax. 228 00:13:41,720 --> 00:13:45,840 Speaker 1: Under that regime, you don't get deduction for the taxes 229 00:13:45,880 --> 00:13:48,559 Speaker 1: that you were able to deduct for regular tax purposes. 230 00:13:49,400 --> 00:13:52,240 Speaker 1: And the tax rate there is twenty eight percent. So 231 00:13:52,280 --> 00:13:54,640 Speaker 1: if you were paying thirty seven percent on your income 232 00:13:54,679 --> 00:13:57,640 Speaker 1: and got a deduction for your taxes, but the AMT 233 00:13:57,800 --> 00:14:00,280 Speaker 1: took it away at twenty eight percent, you really save 234 00:14:00,400 --> 00:14:01,680 Speaker 1: nine percent from your deduction. 235 00:14:01,760 --> 00:14:07,840 Speaker 2: To begin with, Yeah, it's they say the lord the 236 00:14:07,880 --> 00:14:10,560 Speaker 2: government giveth and the government taketh away. I think that 237 00:14:10,679 --> 00:14:16,160 Speaker 2: is probably with that where that that that phrase was generated. 238 00:14:16,280 --> 00:14:18,640 Speaker 3: We'll take a break. My guest is Mark Misselbeck. 239 00:14:18,679 --> 00:14:20,800 Speaker 2: If you have a question about your taxes, six one 240 00:14:20,880 --> 00:14:25,080 Speaker 2: seven two five four ten thirty six one seven nine 241 00:14:25,200 --> 00:14:28,200 Speaker 2: three to one excuse me. Six months seven two, five 242 00:14:28,280 --> 00:14:30,360 Speaker 2: four ten thirty and six months seven nine three one 243 00:14:30,480 --> 00:14:33,360 Speaker 2: ten thirty. Those are the two main numbers. Get on board. 244 00:14:34,040 --> 00:14:37,280 Speaker 2: Mark will be with us tonight until ten o'clock at 245 00:14:37,360 --> 00:14:40,480 Speaker 2: least if there's enough phone calls. He's willing to spend 246 00:14:40,760 --> 00:14:44,200 Speaker 2: a couple of hours here. Any question you have, he 247 00:14:44,320 --> 00:14:46,680 Speaker 2: will be able to answer it. Trust me, there's probably 248 00:14:46,720 --> 00:14:49,560 Speaker 2: not a question you can ask uh that would stump him. 249 00:14:49,920 --> 00:14:52,040 Speaker 2: I know that because I've listened to him do this 250 00:14:52,080 --> 00:14:55,200 Speaker 2: now for many, many years. This is an opportunity for 251 00:14:55,240 --> 00:14:58,200 Speaker 2: you to get some free tax guidance. It's as simple 252 00:14:58,240 --> 00:15:00,320 Speaker 2: as that. Six one, seven, two, five, four, ten thirty 253 00:15:00,360 --> 00:15:03,400 Speaker 2: six months, seven nine three one ten thirty. Tax day 254 00:15:03,600 --> 00:15:06,400 Speaker 2: is now little more than a month away, and it 255 00:15:06,520 --> 00:15:09,800 Speaker 2: is that moment where we all have to square ourselves 256 00:15:09,800 --> 00:15:13,080 Speaker 2: away with Uncle Sam or suffer the consequences. Coming back 257 00:15:13,080 --> 00:15:15,920 Speaker 2: on nights Side right after these breaks, this break. 258 00:15:17,040 --> 00:15:21,760 Speaker 1: It's night Side with Dan Ray on w Boston's news radio. 259 00:15:22,560 --> 00:15:24,640 Speaker 3: My guest is Mark Misselback, CPA. 260 00:15:25,320 --> 00:15:28,120 Speaker 2: He has been kind enough to spend this Friday night 261 00:15:28,200 --> 00:15:31,400 Speaker 2: with us, as he has many nights over the years 262 00:15:31,440 --> 00:15:34,120 Speaker 2: here on Nightside, and he is currently with a company 263 00:15:34,160 --> 00:15:38,760 Speaker 2: called Cherry Beckert Advisory llc uh Mark, we only got 264 00:15:38,760 --> 00:15:40,560 Speaker 2: a couple of minutes until nine thirty, so I don't 265 00:15:40,560 --> 00:15:42,960 Speaker 2: want to short change any caller. The callers on the 266 00:15:43,000 --> 00:15:45,320 Speaker 2: line stay there. We will get to phone calls right 267 00:15:45,400 --> 00:15:48,080 Speaker 2: after the the news break at the bottom of the 268 00:15:48,200 --> 00:15:50,640 Speaker 2: r If you not there yet. Six one, seven, two, five, 269 00:15:50,720 --> 00:15:54,120 Speaker 2: four ten thirty six month, seven nine three one ten thirty. 270 00:15:54,520 --> 00:15:56,880 Speaker 2: Rob was telling me that earlier tonight a bunch of 271 00:15:56,920 --> 00:15:58,920 Speaker 2: people were calling knowing what wanted to know what time 272 00:15:58,960 --> 00:16:02,760 Speaker 2: you're on. So again, get in early, folks, and you 273 00:16:02,800 --> 00:16:06,000 Speaker 2: will be able to ask your questions of Mark Misselbeck. 274 00:16:06,480 --> 00:16:09,560 Speaker 3: Mark one of the controversies. 275 00:16:08,760 --> 00:16:11,280 Speaker 2: That I know, and this gets us away from taxes, 276 00:16:11,320 --> 00:16:14,080 Speaker 2: but it gets us into the whole question with all 277 00:16:14,120 --> 00:16:17,120 Speaker 2: of the government cutbacks that we have seen the Trump 278 00:16:17,160 --> 00:16:20,560 Speaker 2: administration do in the last year or so, going back 279 00:16:20,600 --> 00:16:24,280 Speaker 2: to the Department of Government Efficiency Dodge and all of that, 280 00:16:26,080 --> 00:16:30,680 Speaker 2: have has the i R s been impacted by government cutbacks? 281 00:16:30,840 --> 00:16:33,880 Speaker 2: And if you know, I'm curious what sort of an 282 00:16:33,920 --> 00:16:38,040 Speaker 2: impact that might have on how quickly people get their 283 00:16:38,960 --> 00:16:42,600 Speaker 2: refunds back if they are to a refund, or how 284 00:16:42,640 --> 00:16:48,120 Speaker 2: aggressive and how widespread can the i R S if 285 00:16:48,120 --> 00:16:52,120 Speaker 2: they have lost personnel on getting around and conducting audits. 286 00:16:52,440 --> 00:16:54,760 Speaker 2: Is there any information on that that you could share 287 00:16:54,800 --> 00:16:55,440 Speaker 2: with us. 288 00:16:56,760 --> 00:17:01,680 Speaker 1: Of the reports I'm seeing are maybe for public consumption 289 00:17:02,080 --> 00:17:06,960 Speaker 1: at least that they are on their game for processing 290 00:17:07,000 --> 00:17:13,240 Speaker 1: returns because of automation and computer with at least electronic filing. 291 00:17:14,000 --> 00:17:17,919 Speaker 1: It's always been something of a question how efficient they 292 00:17:17,960 --> 00:17:23,399 Speaker 1: are in processing paper returns, particularly during the pandemic, but 293 00:17:24,760 --> 00:17:28,359 Speaker 1: it's a matter of days, typically to a week for 294 00:17:28,720 --> 00:17:32,080 Speaker 1: a refund when you file electronically, if all your information 295 00:17:32,200 --> 00:17:36,840 Speaker 1: checks out and squares up paper filing and requesting a 296 00:17:36,880 --> 00:17:41,920 Speaker 1: refund by check, particularly with the presidents directive to discontinue 297 00:17:41,960 --> 00:17:47,879 Speaker 1: issues of checks, can take sixty eight weeks. I'm told audits. 298 00:17:48,000 --> 00:17:50,760 Speaker 1: I have a couple three audits that have started up 299 00:17:50,800 --> 00:17:56,440 Speaker 1: with the IRS, and I'm working on them as diligently 300 00:17:56,440 --> 00:18:02,040 Speaker 1: as possible. On behalf of my clients, they're still doing audits, 301 00:18:02,119 --> 00:18:04,280 Speaker 1: and it all depends upon what you have in your 302 00:18:04,280 --> 00:18:09,600 Speaker 1: return whether they will select you. Essentially a root canniel job. 303 00:18:10,680 --> 00:18:16,240 Speaker 2: Well, I'm glad you're talking about that, that type of orifice. 304 00:18:16,920 --> 00:18:20,200 Speaker 2: Some some can think of it as maybe even more uncomfortable, 305 00:18:20,200 --> 00:18:23,840 Speaker 2: but nothing is more uncomfortable to me than a root 306 00:18:23,880 --> 00:18:28,280 Speaker 2: canal job. The other thought that I have here is 307 00:18:28,280 --> 00:18:31,600 Speaker 2: that you said something which caught my ear, and that 308 00:18:31,760 --> 00:18:35,440 Speaker 2: is is the government now no longer. I haven't seen 309 00:18:35,480 --> 00:18:38,840 Speaker 2: a refund check in several years, but there was a 310 00:18:38,880 --> 00:18:40,959 Speaker 2: period of time when I would get refund checks. 311 00:18:41,640 --> 00:18:43,320 Speaker 3: They no longer. What do they do? 312 00:18:43,440 --> 00:18:46,159 Speaker 2: Direct deposit to your bank account if you indeed are 313 00:18:46,160 --> 00:18:47,520 Speaker 2: fortunate enough to get a refund. 314 00:18:48,600 --> 00:18:51,560 Speaker 1: Well, there's the mailing cost, the printing of the checks, 315 00:18:51,720 --> 00:18:54,160 Speaker 1: the tracking of the checks, the clearing of the checks 316 00:18:54,160 --> 00:18:57,280 Speaker 1: through the system, all of that is eliminated if they 317 00:18:57,280 --> 00:19:00,320 Speaker 1: can do it electronically. Okay, So they are ten to 318 00:19:00,480 --> 00:19:05,080 Speaker 1: encourage taxpayers not only to receive their refunds as a 319 00:19:05,080 --> 00:19:09,800 Speaker 1: direct deposit to some bank account or brokerage account if 320 00:19:09,840 --> 00:19:16,000 Speaker 1: they're in the banking system connection, or to tender their 321 00:19:16,000 --> 00:19:23,040 Speaker 1: payments through the electronic medium government website for payments through 322 00:19:23,080 --> 00:19:26,200 Speaker 1: IRS or whatever other hookup they have. 323 00:19:26,840 --> 00:19:28,720 Speaker 2: And you know, in this day and age, when I 324 00:19:28,800 --> 00:19:33,439 Speaker 2: do so many stories and hours of conversation about people 325 00:19:33,480 --> 00:19:36,320 Speaker 2: being hacked and all that, it just seems to me 326 00:19:36,800 --> 00:19:39,840 Speaker 2: that that's going to increase the likelihood as we move 327 00:19:39,880 --> 00:19:45,199 Speaker 2: into this brave new electronic world. I still write checks. 328 00:19:45,359 --> 00:19:49,080 Speaker 2: I mean that's my preference. I feel their tactile and 329 00:19:49,119 --> 00:19:51,000 Speaker 2: I can keep a record. I got the check, I 330 00:19:51,040 --> 00:19:53,640 Speaker 2: got a copy of the check. I have the checkbook, 331 00:19:54,040 --> 00:19:56,000 Speaker 2: just to make sure that all my records are complete. 332 00:19:56,000 --> 00:19:58,560 Speaker 2: But I guess I am at this point a bit 333 00:19:58,600 --> 00:20:02,560 Speaker 2: of a dinosaur. My guest is Mark Misselbeck. We're gonna 334 00:20:02,560 --> 00:20:05,159 Speaker 2: go to phone calls right after the break. Those of 335 00:20:05,160 --> 00:20:06,879 Speaker 2: you on the lines stay right there. You will be 336 00:20:06,920 --> 00:20:10,040 Speaker 2: accommodated first and foremost six one, seven, two, five, four 337 00:20:10,119 --> 00:20:13,320 Speaker 2: ten thirty six one seven, nine three, one ten thirty. 338 00:20:13,560 --> 00:20:13,720 Speaker 3: Uh. 339 00:20:13,920 --> 00:20:16,919 Speaker 2: Don't assume someone else is going to ask the question 340 00:20:17,520 --> 00:20:21,840 Speaker 2: that is on your mind, because they may not sit back. 341 00:20:22,040 --> 00:20:24,840 Speaker 2: You can call you got the numbers and join the 342 00:20:24,920 --> 00:20:29,119 Speaker 2: conversation here on Nightside with my friend Mark Misselbeck CPA, 343 00:20:30,440 --> 00:20:35,280 Speaker 2: I think a CPA extraordinary with Cherry Beckert Advisory LLC. 344 00:20:35,640 --> 00:20:37,920 Speaker 2: Back on night Side right after this quick news break. 345 00:20:39,359 --> 00:20:40,280 Speaker 3: It's night guys with. 346 00:20:42,840 --> 00:20:44,320 Speaker 1: Boston's News Radio. 347 00:20:44,840 --> 00:20:46,919 Speaker 2: And that soeltheas game is all. The Celtics beat the 348 00:20:46,960 --> 00:20:50,119 Speaker 2: MAVs one twenty to one hundred tonight at the Garden. 349 00:20:50,240 --> 00:20:54,520 Speaker 2: Jason Tatum scored fifteen points in his return to the lineup. 350 00:20:54,560 --> 00:20:58,119 Speaker 2: We have full lines, mister missle Beck, so let's buckle 351 00:20:58,240 --> 00:21:00,480 Speaker 2: up and see what people have to say they want 352 00:21:00,480 --> 00:21:04,639 Speaker 2: to ask about. We are going first too, Patty in Wellesley, Patty, 353 00:21:05,080 --> 00:21:09,640 Speaker 2: welcome back and you were on with Mark. Hi, Patty, welcome, 354 00:21:09,680 --> 00:21:11,119 Speaker 2: you're on with Mark Misselbeck. 355 00:21:12,000 --> 00:21:12,280 Speaker 3: Mark. 356 00:21:12,359 --> 00:21:16,119 Speaker 2: This is a woman who is a business owner in Wellesley. Patty, 357 00:21:16,160 --> 00:21:18,520 Speaker 2: give us the name of your store again so we 358 00:21:18,560 --> 00:21:20,840 Speaker 2: can get some some business over there. 359 00:21:21,960 --> 00:21:25,679 Speaker 4: All right, it's very difficult, but it's Patty, Patty, and 360 00:21:25,920 --> 00:21:31,920 Speaker 4: it's we three two Washington. Mark is Itsbuck. 361 00:21:31,560 --> 00:21:34,680 Speaker 3: Missile Beck, Missile M I, S S E L Missile Beck. 362 00:21:35,040 --> 00:21:39,760 Speaker 4: Awesome, Okay for the record. Hello Mark, nice to meet you. 363 00:21:39,800 --> 00:21:40,399 Speaker 1: Good to meet you. 364 00:21:42,000 --> 00:21:45,399 Speaker 3: And Patty. Somehow just Patty just disconnected herself. Patty. 365 00:21:45,440 --> 00:21:48,280 Speaker 2: If you call back, I don't know what happened there, Patty, 366 00:21:48,359 --> 00:21:50,919 Speaker 2: I think you press the wrong button. Call back and 367 00:21:50,960 --> 00:21:52,560 Speaker 2: we will get you right up. We'll get you to 368 00:21:52,600 --> 00:21:55,080 Speaker 2: the head of the line. Patty, that's not your fault. 369 00:21:55,119 --> 00:21:59,040 Speaker 2: Going next to IRIS in Rhode Island, Iris, hopefully we're 370 00:21:59,080 --> 00:22:00,760 Speaker 2: going to be more successful with your call. 371 00:22:00,880 --> 00:22:04,000 Speaker 3: Welcome to night Side. You're on with Mark Misselbeck. Hi 372 00:22:04,119 --> 00:22:04,600 Speaker 3: both of you. 373 00:22:04,680 --> 00:22:05,199 Speaker 1: How are you? 374 00:22:05,320 --> 00:22:06,720 Speaker 3: We're doing great? Go right ahead. 375 00:22:07,400 --> 00:22:09,119 Speaker 1: I'm from ask that I'm out of Rhode Island. 376 00:22:09,160 --> 00:22:13,520 Speaker 4: That's what'll doation And I'd like to know. 377 00:22:15,280 --> 00:22:16,760 Speaker 1: Oh now I forgot my question. 378 00:22:16,960 --> 00:22:19,920 Speaker 2: See you. I'm me off flusted. Well, if you want, 379 00:22:19,960 --> 00:22:22,280 Speaker 2: I can put you on hold and I'll come back 380 00:22:22,280 --> 00:22:23,960 Speaker 2: to you in a minute. Would you like to pull 381 00:22:24,000 --> 00:22:26,239 Speaker 2: yourself together. I'll be more than happy to do that 382 00:22:26,280 --> 00:22:32,000 Speaker 2: for you. Okay, is that okay with you? Okay, we'll 383 00:22:32,040 --> 00:22:33,760 Speaker 2: put you on hold. All right? 384 00:22:34,680 --> 00:22:35,440 Speaker 3: What are we doing? 385 00:22:35,480 --> 00:22:39,240 Speaker 2: My computer now is giving me problems? Here saying I'm 386 00:22:39,240 --> 00:22:43,239 Speaker 2: getting an update estimate six minutes. iHeart will restart your 387 00:22:43,240 --> 00:22:47,720 Speaker 2: device at nine fifty three pm. Oh man, oh god, 388 00:22:48,200 --> 00:22:52,919 Speaker 2: this we'll keep let us let's soldier on, let us 389 00:22:52,920 --> 00:22:56,320 Speaker 2: soldier on. We're gonna go next to what a country 390 00:22:56,520 --> 00:22:58,760 Speaker 2: Patty called back. We'll get to IRIS in a moment. 391 00:22:58,760 --> 00:23:02,320 Speaker 2: We're going to go to Elizabeth in Medfield. Third times. 392 00:23:02,320 --> 00:23:05,879 Speaker 2: The charge is a charm, Elizabeth, you're public, Mark Misselbeck, 393 00:23:05,920 --> 00:23:06,560 Speaker 2: go right ahead. 394 00:23:07,320 --> 00:23:09,399 Speaker 5: What the heck is going on? I think it is 395 00:23:09,760 --> 00:23:15,280 Speaker 5: something like taxes or electromagnetic something's work. 396 00:23:16,240 --> 00:23:19,920 Speaker 3: I don't know, I don't know, Go right ahead. Listener 397 00:23:20,080 --> 00:23:20,320 Speaker 3: went on. 398 00:23:21,320 --> 00:23:24,920 Speaker 5: When I was working in Big Pharma, the janitor told 399 00:23:24,920 --> 00:23:28,480 Speaker 5: me his girlfriend worked at the IRS and andover and 400 00:23:29,800 --> 00:23:33,520 Speaker 5: promised me one thing, you'll always file paper because they 401 00:23:33,560 --> 00:23:36,399 Speaker 5: want people to file electronically to lay off all the 402 00:23:36,440 --> 00:23:37,639 Speaker 5: IRS employers. 403 00:23:37,880 --> 00:23:39,520 Speaker 3: Yeah, sure that makes sense. 404 00:23:39,600 --> 00:23:42,720 Speaker 5: Yeah, So I do try. I do try to file, 405 00:23:43,280 --> 00:23:45,480 Speaker 5: and I got a letter from the IRS saying they 406 00:23:45,480 --> 00:23:49,120 Speaker 5: didn't get a filing for me from twenty nineteen, and 407 00:23:49,160 --> 00:23:52,679 Speaker 5: then they said that if nothing matches up, they just 408 00:23:52,960 --> 00:23:55,920 Speaker 5: kick it back. They make no note that it went 409 00:23:55,960 --> 00:23:59,320 Speaker 5: in the system, didn't appear to what they thought it was, 410 00:23:59,520 --> 00:24:02,560 Speaker 5: and could get back. Have you ever heard of that mark? 411 00:24:04,520 --> 00:24:04,600 Speaker 2: Not? 412 00:24:04,720 --> 00:24:10,119 Speaker 1: Really? What I would recommend is put a cover letter 413 00:24:10,200 --> 00:24:13,359 Speaker 1: on a copy of your twenty nineteen return saying that 414 00:24:14,000 --> 00:24:17,560 Speaker 1: you filed. You can't help it if they've lost it, 415 00:24:17,600 --> 00:24:21,159 Speaker 1: particularly as it may have been during the pandemic where 416 00:24:21,160 --> 00:24:24,919 Speaker 1: things were chaotic, and as a courtesy to them, you 417 00:24:25,000 --> 00:24:27,600 Speaker 1: are supplying them with a copy of the return that 418 00:24:27,680 --> 00:24:31,879 Speaker 1: you filed, but you will not sign it. If you 419 00:24:32,000 --> 00:24:35,000 Speaker 1: sign it and give them what looks to be a copy, 420 00:24:35,040 --> 00:24:37,280 Speaker 1: they will treat it as an original that since they 421 00:24:37,280 --> 00:24:40,280 Speaker 1: don't have a return on file and the late filing, 422 00:24:41,000 --> 00:24:43,240 Speaker 1: and then you really have problems to deal with them 423 00:24:43,280 --> 00:24:48,480 Speaker 1: on it. They may send you when they don't have 424 00:24:48,520 --> 00:24:51,720 Speaker 1: a return on file and you, by way of courtesy, 425 00:24:51,960 --> 00:24:55,159 Speaker 1: provide them with a return and you don't sign it, 426 00:24:55,200 --> 00:24:58,960 Speaker 1: they're probably going to send you a statement saying, well, 427 00:24:59,040 --> 00:25:01,600 Speaker 1: thank you for finally filing your nineteen or Trember, you 428 00:25:01,600 --> 00:25:05,720 Speaker 1: didn't sign it, Please sign this jurett that is under 429 00:25:05,720 --> 00:25:08,639 Speaker 1: the penalties of perjury. You swear up and down that 430 00:25:08,720 --> 00:25:12,439 Speaker 1: it's true, correct, complete reporting of your return, and they 431 00:25:12,440 --> 00:25:14,760 Speaker 1: will treat it that as an original but late filing 432 00:25:14,840 --> 00:25:17,080 Speaker 1: and have three years from the day you file it 433 00:25:17,119 --> 00:25:21,040 Speaker 1: to come after you for more taxes. My approach is 434 00:25:21,080 --> 00:25:25,879 Speaker 1: to tell them we filed, you lost it. To accommodate 435 00:25:25,920 --> 00:25:28,719 Speaker 1: your needs with giving you a copy, We're not going 436 00:25:28,760 --> 00:25:29,440 Speaker 1: to sign it. 437 00:25:29,680 --> 00:25:32,760 Speaker 2: Right, an unsigned copy? Did you keep a copy a 438 00:25:32,760 --> 00:25:35,920 Speaker 2: hard copy of your return? Elizabeth from twenty. 439 00:25:35,800 --> 00:25:40,760 Speaker 5: Nineteen, Well somewhere, but we you know, we had major 440 00:25:40,800 --> 00:25:46,679 Speaker 5: medical issues. We had a minor flood. So I actually 441 00:25:46,840 --> 00:25:49,880 Speaker 5: cannot find it. But I've always. 442 00:25:50,160 --> 00:25:55,920 Speaker 1: Spared by someone I have on some years I can't 443 00:25:55,920 --> 00:25:58,760 Speaker 1: remember because it was like during the pandemic. 444 00:25:58,880 --> 00:26:02,640 Speaker 5: Sure, but so make a if I can find it, 445 00:26:02,760 --> 00:26:06,359 Speaker 5: make a copy. But if I made a copy, I 446 00:26:06,400 --> 00:26:07,679 Speaker 5: would have a signature. 447 00:26:07,880 --> 00:26:13,080 Speaker 1: Right. No, No, you've the copy you keep. You typically 448 00:26:13,080 --> 00:26:16,399 Speaker 1: don't sign at least I don't, and I don't believe 449 00:26:16,400 --> 00:26:19,280 Speaker 1: my clients do. They just take their copy and file 450 00:26:19,320 --> 00:26:21,640 Speaker 1: it away or keep it on a hard drive. If 451 00:26:21,840 --> 00:26:24,320 Speaker 1: if we give it to him as a PDF document. 452 00:26:24,800 --> 00:26:28,600 Speaker 2: Okay, if she does, let's assume worst case scenario and 453 00:26:28,680 --> 00:26:31,359 Speaker 2: she finds a copy and she kept a copy with 454 00:26:31,400 --> 00:26:32,560 Speaker 2: a signature on it. 455 00:26:33,320 --> 00:26:35,480 Speaker 3: What about if she's able to take. 456 00:26:35,440 --> 00:26:41,879 Speaker 2: Say a magic marker, and you know, basically obliterate the signature, 457 00:26:42,240 --> 00:26:45,760 Speaker 2: but in the cover letter explained that this is a 458 00:26:45,880 --> 00:26:49,200 Speaker 2: copy of what was filed, and to make sure there's 459 00:26:49,240 --> 00:26:55,040 Speaker 2: no question or confusion, she has intentionally obliterated the signature. 460 00:26:55,119 --> 00:26:58,480 Speaker 2: I assume that they would understand what she's doing there 461 00:26:58,520 --> 00:26:59,640 Speaker 2: and why she's doing it. 462 00:27:01,080 --> 00:27:05,320 Speaker 1: No, they're not very understanding in these circumstances. They want 463 00:27:05,359 --> 00:27:08,040 Speaker 1: what they want. They want a filing of a twenty 464 00:27:08,119 --> 00:27:11,439 Speaker 1: nineteen return because it's not in their system, and you 465 00:27:11,560 --> 00:27:14,760 Speaker 1: have to kind of shortstop them. I'm going to be 466 00:27:14,800 --> 00:27:19,800 Speaker 1: old school with you. Remember white out rather than blackout? Yeah, 467 00:27:20,040 --> 00:27:22,040 Speaker 1: some white out. If you have a signature, white out 468 00:27:22,080 --> 00:27:23,200 Speaker 1: the signature. 469 00:27:23,600 --> 00:27:26,000 Speaker 2: White out the signature, and then take a copy of 470 00:27:26,000 --> 00:27:28,720 Speaker 2: the copy so they're not looking, they're not sending them. 471 00:27:28,640 --> 00:27:30,919 Speaker 1: A pack or tape a piece of paper over the 472 00:27:30,920 --> 00:27:33,240 Speaker 1: signature and take it to a copier and make a 473 00:27:33,280 --> 00:27:35,360 Speaker 1: copy with the signature blanked out. 474 00:27:35,440 --> 00:27:39,560 Speaker 2: Even better, even better, Okay, so I'm glad I called 475 00:27:39,600 --> 00:27:39,920 Speaker 2: on that. 476 00:27:40,440 --> 00:27:42,720 Speaker 5: And then the other thing too is I got a 477 00:27:42,880 --> 00:27:46,679 Speaker 5: letter from this Escabar or something and it was a 478 00:27:46,800 --> 00:27:51,440 Speaker 5: Haitian name. So I looked it up and I called, 479 00:27:51,440 --> 00:27:55,159 Speaker 5: and he called back, and he looked like he had 480 00:27:55,200 --> 00:27:58,080 Speaker 5: worked at the IRS maybe a few years ago, but 481 00:27:58,240 --> 00:28:01,680 Speaker 5: wasn't working there now, and it seemed like it was fraud. 482 00:28:02,160 --> 00:28:04,840 Speaker 5: So I actually did call the I R S because 483 00:28:05,800 --> 00:28:08,320 Speaker 5: it just seemed kind of I looked up the address 484 00:28:08,359 --> 00:28:10,600 Speaker 5: where he wanted me to send money to, and it 485 00:28:10,640 --> 00:28:13,320 Speaker 5: seemed like it was a PO box up near rep 486 00:28:13,560 --> 00:28:14,440 Speaker 5: near and Over. 487 00:28:15,520 --> 00:28:18,760 Speaker 1: This is this is a hotbed scheme where people are 488 00:28:18,840 --> 00:28:23,240 Speaker 1: impersonating I r S or scammers are spoofing you that 489 00:28:23,320 --> 00:28:25,800 Speaker 1: they are I R S. The I R S does 490 00:28:25,840 --> 00:28:28,480 Speaker 1: not directly contact you. They will send you a letter. 491 00:28:28,560 --> 00:28:33,720 Speaker 1: They don't email, they don't text it. Yes, it was 492 00:28:33,760 --> 00:28:36,399 Speaker 1: a letter. It would be it would be out of 493 00:28:36,440 --> 00:28:42,959 Speaker 1: one of their service centers Holtsville, Philadelphia, Ogden, Utah, Austin, Texas, 494 00:28:43,680 --> 00:28:47,200 Speaker 1: and I think that covers most of them right now. 495 00:28:48,320 --> 00:28:51,000 Speaker 1: And Over is pretty much inactive as an ir S 496 00:28:51,000 --> 00:28:54,400 Speaker 1: service center right electronic filing. 497 00:28:55,240 --> 00:28:57,239 Speaker 5: It was a mail stop and it looked like a 498 00:28:57,240 --> 00:28:57,960 Speaker 5: po box. 499 00:28:58,200 --> 00:29:00,960 Speaker 3: Well, clearly, cloarly, that's that's the Elizabeth. 500 00:29:00,960 --> 00:29:03,520 Speaker 2: Can I make another suggestion, please, I don't want to 501 00:29:03,600 --> 00:29:08,720 Speaker 2: overwhelm me you here, but from my own experience, I 502 00:29:08,760 --> 00:29:12,680 Speaker 2: don't know who your congressperson says, probably Catherine Clark if 503 00:29:12,720 --> 00:29:18,360 Speaker 2: I had to guess, but every member of Congress will 504 00:29:18,440 --> 00:29:23,280 Speaker 2: have someone in their staff who has a liaison with 505 00:29:23,320 --> 00:29:26,320 Speaker 2: a representative of the IRS. You will not be able 506 00:29:26,360 --> 00:29:31,080 Speaker 2: to personally reach a human being from the IRS. But 507 00:29:31,320 --> 00:29:35,160 Speaker 2: if you are having trouble in effect convincing them that 508 00:29:35,240 --> 00:29:38,560 Speaker 2: you did file in twenty nineteen, your twenty nineteen return 509 00:29:38,640 --> 00:29:42,640 Speaker 2: in twenty twenty and that was lost, go through your 510 00:29:42,680 --> 00:29:49,120 Speaker 2: congressperson's office, or go through Senator Markey's office and help 511 00:29:49,160 --> 00:29:53,640 Speaker 2: get some help so that this can be explained to someone. 512 00:29:54,760 --> 00:29:57,160 Speaker 2: Do follow what Mark said, which is the best advice, 513 00:29:57,200 --> 00:30:00,400 Speaker 2: But as an additional layer of protection, if you go 514 00:30:00,480 --> 00:30:04,120 Speaker 2: through a congress person's office, that's going to give you 515 00:30:04,160 --> 00:30:07,120 Speaker 2: a little bit more credibility to be honest with you. 516 00:30:07,240 --> 00:30:10,440 Speaker 2: In my opinion, Mark, I hope you don't just disagree with. 517 00:30:10,400 --> 00:30:10,880 Speaker 3: Me on that. 518 00:30:12,400 --> 00:30:14,280 Speaker 1: Any any of the help you can get any work 519 00:30:14,840 --> 00:30:17,600 Speaker 1: with them is very well received. 520 00:30:18,360 --> 00:30:18,880 Speaker 3: Elizabeth. 521 00:30:18,920 --> 00:30:20,680 Speaker 2: You've got a lot of information here. I got to 522 00:30:20,760 --> 00:30:24,920 Speaker 2: keep rolling and uh, keep keep in touch with us 523 00:30:25,000 --> 00:30:27,080 Speaker 2: on this. I hope, I hope this has been helpful. 524 00:30:27,800 --> 00:30:29,880 Speaker 5: You're right, Okay, thank you. I'm glad I called. 525 00:30:31,560 --> 00:30:32,000 Speaker 3: All right. 526 00:30:32,480 --> 00:30:34,440 Speaker 2: We will go back to IRIS in a moment, and 527 00:30:34,480 --> 00:30:36,800 Speaker 2: we'll say, Patty, if you're out there callback, I'll get 528 00:30:36,800 --> 00:30:38,360 Speaker 2: you to the head of the line. We'll also get 529 00:30:38,400 --> 00:30:42,120 Speaker 2: to Susan Carroll and Billy and Nevada. We will go 530 00:30:42,200 --> 00:30:45,840 Speaker 2: into the next hour with Mark. Mark the lines of 531 00:30:45,880 --> 00:30:48,440 Speaker 2: fold will take a break with my guest, Mark Misselbeck. 532 00:30:49,120 --> 00:30:53,400 Speaker 2: He is the tax guy for this program for many years. 533 00:30:53,480 --> 00:30:55,520 Speaker 2: I can't tell you how much I appreciate his time. 534 00:30:56,360 --> 00:31:00,480 Speaker 2: He is very resourceful, and you were getting the benefit 535 00:31:00,600 --> 00:31:03,840 Speaker 2: of his experience, which is truly priceless. We'll be back 536 00:31:03,880 --> 00:31:05,640 Speaker 2: on night Side. The only line open right now is 537 00:31:05,680 --> 00:31:09,360 Speaker 2: six one, seven, two, five, four, ten thirty. You're on 538 00:31:09,560 --> 00:31:14,360 Speaker 2: night Side with Dan Ray on Boston's news radio. Okay, 539 00:31:14,400 --> 00:31:17,160 Speaker 2: we're going to go back first Iris, IRIS. Have you 540 00:31:17,440 --> 00:31:19,640 Speaker 2: remembered your question for Mark Misselbeck? 541 00:31:20,600 --> 00:31:23,440 Speaker 3: Read ahead, thoughts together, go right ahead? 542 00:31:24,360 --> 00:31:28,440 Speaker 4: Okay, I could you explain a circuit breaker and I 543 00:31:28,480 --> 00:31:30,000 Speaker 4: heard it might help seniors. 544 00:31:30,040 --> 00:31:32,280 Speaker 1: And the other question is, okay. 545 00:31:32,040 --> 00:31:33,160 Speaker 3: Let's take them one at a time. 546 00:31:33,200 --> 00:31:36,520 Speaker 2: Iris, So just we'll just do the circuit breaker first, Mark, 547 00:31:36,560 --> 00:31:37,120 Speaker 2: go right ahead. 548 00:31:37,960 --> 00:31:43,400 Speaker 1: Yeah, circuit breaker is a mass benefit purportedly that seniors 549 00:31:43,440 --> 00:31:49,000 Speaker 1: can claim. But the we have a message board in 550 00:31:49,040 --> 00:31:53,880 Speaker 1: the CPA community, and every CPA that has a client 551 00:31:53,960 --> 00:31:58,720 Speaker 1: that has attempted to claim the circuit breaker credit has 552 00:31:58,760 --> 00:32:01,479 Speaker 1: gotten grief from the mask Department of Revenue about it, 553 00:32:02,440 --> 00:32:07,600 Speaker 1: demanding all kinds of documentation. To my opinion or understanding, 554 00:32:07,680 --> 00:32:11,880 Speaker 1: it is not working as intended by the legislature. But yes, 555 00:32:12,160 --> 00:32:15,400 Speaker 1: you there is a form in the mass packet of 556 00:32:16,480 --> 00:32:20,400 Speaker 1: instructions and booklets where you can fill it out. You 557 00:32:21,680 --> 00:32:24,960 Speaker 1: list your taxes, your income, and it is gone when 558 00:32:24,960 --> 00:32:27,479 Speaker 1: your income, I believe is over sixty five thousand dollars. 559 00:32:29,800 --> 00:32:34,120 Speaker 1: So it's a fairly low threshold of loss. Okay, And 560 00:32:34,160 --> 00:32:38,640 Speaker 1: how come some states don't use it the circumstance, Well, 561 00:32:40,760 --> 00:32:44,680 Speaker 1: circuit breaker is a discretionary grant from the legislature of 562 00:32:44,720 --> 00:32:48,760 Speaker 1: a benefit to a particular class of taxpayers. But it's 563 00:32:49,000 --> 00:32:52,600 Speaker 1: each state, fifty states, there's all different mindsets on what 564 00:32:52,680 --> 00:32:54,240 Speaker 1: they are going to give and who they're going to 565 00:32:54,280 --> 00:32:57,800 Speaker 1: give it to depending upon their budgetary considerations. 566 00:32:57,920 --> 00:33:00,719 Speaker 3: It's not a federal progres. It's not a federal program. Iris. 567 00:33:00,800 --> 00:33:04,080 Speaker 2: So therefore, if you're if there is a state that 568 00:33:04,080 --> 00:33:06,440 Speaker 2: you're where it exists, you can take advantage of it. 569 00:33:06,480 --> 00:33:09,280 Speaker 2: If there are states that tax income. There is New 570 00:33:09,280 --> 00:33:12,840 Speaker 2: Hampshire dozen tax income. So you know it's all the 571 00:33:12,920 --> 00:33:15,920 Speaker 2: different states are the states are different. That's not it's 572 00:33:15,920 --> 00:33:16,880 Speaker 2: not a federal program. 573 00:33:16,920 --> 00:33:19,400 Speaker 5: Okay, okay, thank you very much. 574 00:33:19,440 --> 00:33:23,200 Speaker 3: Thanks Iris, appreciate your call. Thank you great. Now we're 575 00:33:23,200 --> 00:33:25,120 Speaker 3: going to get Patty and Patty welcome back. 576 00:33:25,160 --> 00:33:28,600 Speaker 4: We lost you before I go right ahead, Hi, I 577 00:33:28,600 --> 00:33:31,440 Speaker 4: guess I ran in the twilight zone. Hey Mark, how 578 00:33:31,480 --> 00:33:32,280 Speaker 4: are you so? 579 00:33:32,760 --> 00:33:33,240 Speaker 2: Hi? Dan? 580 00:33:34,120 --> 00:33:34,760 Speaker 3: Hello you. 581 00:33:36,400 --> 00:33:36,560 Speaker 4: Hi? 582 00:33:36,720 --> 00:33:36,880 Speaker 3: So. 583 00:33:37,400 --> 00:33:40,680 Speaker 4: I have a small business and I actually make everything 584 00:33:40,800 --> 00:33:44,560 Speaker 4: I sell, and I make it in my house. For example. 585 00:33:44,920 --> 00:33:48,520 Speaker 4: It's a bonus contention, yes, but you know, the show 586 00:33:48,600 --> 00:33:49,960 Speaker 4: must go on and the goods. 587 00:33:49,760 --> 00:33:50,480 Speaker 5: Need to be made. 588 00:33:50,960 --> 00:33:55,000 Speaker 4: The joining room, the piano room, the basement, the garage, 589 00:33:55,320 --> 00:33:59,880 Speaker 4: the driveway, the backyard. That's six places for where I 590 00:34:00,120 --> 00:34:03,400 Speaker 4: make oh in the kitchen, seven places. Can I write 591 00:34:03,400 --> 00:34:06,560 Speaker 4: this off? My host at a tax right off? Due 592 00:34:06,680 --> 00:34:09,319 Speaker 4: to that that everything I do in there is for work. 593 00:34:11,160 --> 00:34:13,880 Speaker 1: Everything you do in that house is not for work. 594 00:34:14,880 --> 00:34:18,760 Speaker 1: You cook your meals, sleep there, you watch TV, you read, 595 00:34:19,960 --> 00:34:21,160 Speaker 1: take a bath in a shower. 596 00:34:22,520 --> 00:34:26,319 Speaker 2: But here's the thing, Mark, hold on, Patty, hold on, 597 00:34:26,560 --> 00:34:29,520 Speaker 2: Mark's going to give you advice. Here is there a 598 00:34:29,680 --> 00:34:33,719 Speaker 2: percentage of her home? Does it have to be isolated 599 00:34:33,800 --> 00:34:37,239 Speaker 2: to a specific room? Go ahead, Mark, Patty, I think 600 00:34:37,320 --> 00:34:38,600 Speaker 2: needs to understand this better. 601 00:34:38,640 --> 00:34:39,000 Speaker 3: Go ahead. 602 00:34:39,160 --> 00:34:43,200 Speaker 1: Yeah. The text code, the text law written by Congress 603 00:34:43,239 --> 00:34:47,000 Speaker 1: requires that the room or area that you say is 604 00:34:47,040 --> 00:34:53,680 Speaker 1: a business area be used exclusively and regularly for business. 605 00:34:54,200 --> 00:34:56,960 Speaker 1: That means you can't do anything else in that space 606 00:34:57,080 --> 00:35:01,480 Speaker 1: but business. If you watch TV, you read a newspaper, 607 00:35:01,560 --> 00:35:05,200 Speaker 1: you play games, you maintain your personal checkbook on the 608 00:35:05,239 --> 00:35:08,279 Speaker 1: computer that's in that room, you are not using it 609 00:35:08,320 --> 00:35:13,160 Speaker 1: exclusively for business. You can't do anything else but business 610 00:35:13,440 --> 00:35:15,719 Speaker 1: in the area you want to claim that's in your 611 00:35:15,719 --> 00:35:18,160 Speaker 1: home if you're going to get a deduction. 612 00:35:18,239 --> 00:35:22,720 Speaker 4: Okay, So the area is so out of those seven 613 00:35:22,880 --> 00:35:27,799 Speaker 4: are used three solely for the work. Nothing else, no TV, 614 00:35:28,000 --> 00:35:29,120 Speaker 4: no eating, no showers. 615 00:35:32,280 --> 00:35:36,160 Speaker 1: That's your representation, and I take you at your word. 616 00:35:36,680 --> 00:35:40,920 Speaker 1: So you have the choice of accumulating all of your costs, 617 00:35:41,080 --> 00:35:44,040 Speaker 1: figuring out your total square footage of the house and 618 00:35:44,120 --> 00:35:47,359 Speaker 1: the square footage of the areas that you use exclusively 619 00:35:47,400 --> 00:35:51,720 Speaker 1: for business, and taking the ratio of the exclusive areas 620 00:35:51,760 --> 00:35:56,719 Speaker 1: to the total area times your expenses and depreciation on 621 00:35:56,760 --> 00:36:01,759 Speaker 1: the house. You cannot claim more in deductions. Then you 622 00:36:01,840 --> 00:36:05,239 Speaker 1: have an income, so you can't run a loss by 623 00:36:05,280 --> 00:36:08,880 Speaker 1: claiming that home office deduction, and you will not be 624 00:36:09,000 --> 00:36:11,680 Speaker 1: able to exclude gain from the sale of your house 625 00:36:12,040 --> 00:36:14,960 Speaker 1: to the extent of the depreciation you claimed or should 626 00:36:14,960 --> 00:36:19,360 Speaker 1: have claimed. If you didn't claim it, you're still charged 627 00:36:19,360 --> 00:36:23,640 Speaker 1: as though you did claim it. Alternatively, the IRS will 628 00:36:23,680 --> 00:36:27,040 Speaker 1: allow a maximum of three hundred square feet and I 629 00:36:27,080 --> 00:36:30,439 Speaker 1: believe it's a buck and a half or some other 630 00:36:30,600 --> 00:36:36,239 Speaker 1: factor for an office in the home as an alternative 631 00:36:36,280 --> 00:36:39,560 Speaker 1: deduction to doing all this work in calculations. 632 00:36:41,239 --> 00:36:44,520 Speaker 4: Wow, Mark, you're really quite smart, because honestly, between you 633 00:36:44,600 --> 00:36:48,120 Speaker 4: and I I got maybe two percent because my brain 634 00:36:48,200 --> 00:36:52,160 Speaker 4: is not on your mathematical ability, which is very impressive, Mark, 635 00:36:52,719 --> 00:36:54,000 Speaker 4: very very impressible. 636 00:36:54,480 --> 00:36:57,120 Speaker 2: Patty, here's what I would do. Do you prepare your 637 00:36:57,120 --> 00:36:59,719 Speaker 2: own taxes or do you have an accountant prepare your 638 00:36:59,800 --> 00:37:05,520 Speaker 2: tax Second one second one. Okay, okay, So basically what 639 00:37:05,600 --> 00:37:08,000 Speaker 2: Mark has said to you is that if you have 640 00:37:08,280 --> 00:37:13,960 Speaker 2: a room or rooms which you use exclusively for your business, 641 00:37:14,040 --> 00:37:16,600 Speaker 2: now you you make jewelry, as I understand it. 642 00:37:16,560 --> 00:37:19,960 Speaker 4: Correct, jewelry, clothing and accessory. 643 00:37:20,120 --> 00:37:23,600 Speaker 2: Okay, fine, So if you have rooms, you know what, 644 00:37:23,920 --> 00:37:27,279 Speaker 2: Let's assume hypothetically the square footage of your home is 645 00:37:27,280 --> 00:37:30,480 Speaker 2: two thousand square feet, and let's assume the three rooms 646 00:37:30,480 --> 00:37:33,200 Speaker 2: that you say you use, we believe you. Let's assume 647 00:37:33,239 --> 00:37:38,080 Speaker 2: they represent you know, five hundred square feet. That would 648 00:37:38,120 --> 00:37:40,839 Speaker 2: be twenty five percent. And you would have to then 649 00:37:40,880 --> 00:37:44,200 Speaker 2: do that calculation as Mark was doing it with your 650 00:37:44,239 --> 00:37:49,160 Speaker 2: own preparer, your your own CPA preparer, and take that information, 651 00:37:49,320 --> 00:37:51,680 Speaker 2: take that knowledge, and your preparer will be able to 652 00:37:51,719 --> 00:37:52,320 Speaker 2: do to crunch that. 653 00:37:52,520 --> 00:37:54,160 Speaker 3: We'll be able to quench the numbers for you. 654 00:37:54,440 --> 00:37:58,239 Speaker 2: Mark was crunching numbers for you, and you know, look, 655 00:37:58,800 --> 00:38:00,640 Speaker 2: your CPA can be able to do that. 656 00:38:00,719 --> 00:38:11,000 Speaker 4: Okay, Yeah, very impressive, right, don very impressed, Thank you, and. 657 00:38:12,480 --> 00:38:18,600 Speaker 2: All right, thank you very much, Patty. All right, bye, Patty, 658 00:38:18,760 --> 00:38:20,560 Speaker 2: Uh Mark, We're going to take a break. We had 659 00:38:20,560 --> 00:38:23,919 Speaker 2: the news coming up. My computer apparently has come back 660 00:38:24,000 --> 00:38:28,359 Speaker 2: on uh this is when you work for a big 661 00:38:28,480 --> 00:38:32,800 Speaker 2: radio station. Someone somewhere presses a button which has taken 662 00:38:32,840 --> 00:38:34,360 Speaker 2: my computer off. 663 00:38:34,800 --> 00:38:37,919 Speaker 3: It happened. We got the news. It may work. 664 00:38:39,520 --> 00:38:42,959 Speaker 1: Damn Yes, which the machine. 665 00:38:43,239 --> 00:38:46,920 Speaker 3: Yes, Gremlin's in the machine. Yes, I see. Uh. 666 00:38:47,080 --> 00:38:49,160 Speaker 2: We will be back, Mark and I will be back, 667 00:38:49,280 --> 00:38:52,000 Speaker 2: that is for sure. Maybe Rob, you'll have to tell 668 00:38:52,040 --> 00:38:54,680 Speaker 2: me who's there, et cetera. Well we'll we'll. 669 00:38:54,480 --> 00:38:57,319 Speaker 3: Get it going here, coming back right after the tennaclog news. 670 00:38:57,440 --> 00:39:00,200 Speaker 3: Stretch your legs. Mark, we got phone calls. We will 671 00:39:00,280 --> 00:39:02,000 Speaker 3: soldier on right after the news