MISSION
SOCIETY OF ENROLLED AGENTS
Secretary Notes
San Jose,
CA
January 18, 2005
The Mission
Society of Enrolled Agents regular Board Meeting was called to
order by Second Vice President Karen Fihn, EA at 10:35AM.
Roll call
was taken. Board members present: Myra J. Thompson, EA, Karen
Fihn, EA, Ted Danen, EA, David Hatt, EA, George Pan, EA, Jessie
Singh, EA, Ilse Beck, EA, Dorothy McGinley, EA, Rosemary Hernandez,
EA and Mandy Bamdad, EA. Board members absent: Andrew Bonfield,
EA, Randy Warshawsky, EA, Richard Hillsbery, EA, Tom Chun, EA
and Martin Lowe, EA.
Minutes of
the meeting were approved as presented.
TREASURER'S
REPORT:
Was reviewed and accepted subject to audit.
COMMITTEE
AND ORGANIZATION REPORTS:
were presented.
NEW
BUSINESS:
No motions were made.
OLD
BUSINESS:
No motions were made.
ADJOURNMENT:
There being no further business, the board meeting was adjourned
at 11:35AM by Second Vice President Karen Fihn, EA. The next meeting
is scheduled for April 19, 2005 at 10:00AM at Maggiano's, in San
Jose.
Respectfully
Submitted,
Ted Danen, EA, MBA
Secretary
The
US Supreme Court ruled on January 24, 2005 --
When a litigant's recovery
constitutes income, ALL the money won in the lawsuit must be included
in income, even if a large portion of it went to lawyers.
The attorney fees are
deductible under Section 212 on Schedule A, Miscellaneous Deductions.
The ruling reverses
judgments of the Courts of Appeals for the Sixth and Ninth Circuits
allowing the taxpayer to report only the net recovery (total recovery
less attorney fees).
The court's opinion
in Commission vs. Banks, [03-892] can be downloaded from www.findlaw.com
under Federal Cases, US Supreme Court, Recent Cases, Commission
vs. Banks, [03-892].
A summary
is also available at the LA Times website (www.latimes.com) 1/25/05,
under the Nation Section.
Beginning
April 1, 2005, the FTB and BOE can impose new penalties on taxpayers
who were eligible but chose not to participate in amnesty or who
participated by underreported their liability.
The FTB and BOE will
NOT assess the interest penalty on taxpayers that have entered
into an installment agreement by January 31, 2005 to pay an existing
liability.
According
to Revenue & Taxation Code Section 19738, if a taxpayer has
an existing installment agreement as of January 31, 2005, the
FTB will not impose the amnesty penalty on any unpaid interest
amount they still owe under the installment agreement after the
amnesty period. Taxpayers that secure an installment agreement
by January 31, 2005, are exempt from the interest penalty whether
or not they participate in amnesty and whether or not they default
on the agreement.
To submit
an electronic installment agreement, go to http://www.ftb.ca.gov/online/payment_choices.html.
To
all the members of Mission Society of Enrolled Agents.
The next newsletter
you receive will not be until after April 15, 2005.
Hope you
all have a great tax season!
The Editor
(Randy)
