[Accounting is my LIFO]

How to Handle Identity Theft at Tax Time

2011-06-21T09:18:00.000-07:00

There are plenty of resources available to tell us what to do if we are a victim of identity theft. However, none (that I've seen, at least) address the implications of identity theft at tax time for the victim. Identity theft can affect the victim in a number of ways, and can be caused for different reasons.

In my experience, the main form of tax-related identity theft is what I call "buying children". No, I don't mean literally, but there is an entire "black market" of people buying and selling children's social security numbers for tax purposes only. Usually, it's a child's social security number that is being bought and sold, enabling the purchaser to qualify for benefits that they otherwise wouldn't be able to take (earned income, child tax credit, higher exemptions and deductions, lower tax rate), however it can also be older and/or mentally disabled dependents as well. This usually comes from non-working parents or guardians letting friends, family, or even strangers claim their children for a portion of the refund. However, it can also happen when someone goes to a sketchy tax preparer promising an extremely low price to prepare their tax return. The next year, that person has problems filing themselves or their dependents because the sketchy preparer has sold their information to the highest bidder. This may also end up being a problem for the child once the child reaches working age and wants to file their own tax return, they're being claimed by someone else so they cannot claim themselves which will result in them paying more money in tax than they may have to.

Another common source of identity theft is people using the SSN of a citizen to get a job because they aren't a citizen or are in some other way inable to get a job using their own SSN. This causes a huge problem at tax time when the employer or other payor sends wage and income information to the IRS in the stolen/purchased SSN. That income does not belong to the identity theft victim, however the IRS will assess tax, penalties, and interest on that income to the victim. In most cases, the fraudster does not file a tax return. If they do, however, file a return first, the victim has even more issues to work out with the IRS. This form of identity theft is more catastrophic than the first because this form will affect every aspect of the victim's life, whereas the "child buying" usually only affects the tax returns.

Below you will find out how identity theft affects your tax return, the steps to alert the IRS to potential or actual identity theft, and some some tips to prevent identity theft.

HOW IT AFFECTS YOU:

If someone uses your social security number to file a tax return in your name, the IRS will NOT issue you a refund without an investigation during the year of offense and for a few years afterward. If this happens, you will not be able to file an electronic return (if a return had already been filed in your name) and the investigation may take AT LEAST 12-16 weeks, if not longer. In the years after the initial claim of identity theft, the IRS may hold your tax refund for at least 8-12 weeks to make sure there are no other claims before releasing it, even if you file electronically.

WHAT TO DO IF YOU'RE A VICTIM:

If you believe you are a victim of identity theft and it is currently affecting or may potentially affect your tax returns, ALERT THE IRS IMMEDIATELY! If you have received correspondence from the IRS, immediately reply to the name, address, and/or number on the notice. If you haven't received correspondence but know that your tax records may be affected, mail or fax an Identity Theft Affidavit (Form 14039, found on the IRS website) along with a copy of proof of identity (driver's license, passport, etc). The IRS has various publications on their website about identity theft and you can find the list here.

If you believe you are a victim of identity theft and it is affecting other accounts than your tax records, follow these steps to report the fraud.

TIPS TO PREVENT IDENTITY THEFT:

Identity thieves can get your personal information any number of ways, so always make sure you guard your sensitive information.

-Be careful of your tax preparer! The IRS has great tips on choosing your tax preparer. You can find those tips here.
-Don't carry your social security card (or other documents with your social on them) on your person unless you will need it (ie, starting a new job).
-Shred all mail that contains sensitive information before throwing in the trash.
-Only share this sensitive information with Internet sites you trust.
-Never send your information over e-mail or text message without encryption.
-Do NOT give your information out over the phone.
-Be careful of phishing e-mails (reputable companies will never ask for your personal information through e-mail).

Tax Measures for Tough Times

2011-01-17T15:31:00.000-08:00

With unemployment figures hovering around 10% nationally, millions currently out of a job can breathe a sign of relief that unemployment benefits have been extended through 2011. There may be more. Liberty Tax urges those facing hardships to examine other tax measures that may be advantageous, and weigh the pros and cons of some available options.

“Unemployment compensation is considered taxable income, but reduced earned income for the year 2010 may mean that the taxpayer may be eligible for the Earned Income Tax Credit,” said Kesha Haley, Owner, of Liberty Tax Service.

Other possible tax breaks include claiming the tax credit for child and dependent care expenses paid when looking for work, a tax credit for health coverage when a worker is laid off, a retirement plan withdrawals without penalty when paying for unreimbursed medical expenses, and a deduction for job-hunting expenses for those who itemize. Those who must pay for child and dependent care in order to go on job interviews may claim up to 35% of these expenses as a credit against their tax. This is accomplished by filing Form 2441, Child and Dependent Care Expenses with the tax return.

Losing a job can mean losing health insurance. To help people maintain coverage for themselves and their families, the 65% subsidy for COBRA continuation premiums has been extended from 9 to 15 months for workers who have been involuntarily terminated between September 1, 2008 and May 31, 2010. This subsidy also applies to health care continuation coverage if required by states for small employers. Special circumstances may apply for workers who experienced cutbacks in their hours. The subsidy would terminate upon offer of any new employer-sponsored health care coverage or Medicare eligibility.

For qualified former employees who were downsized due to trade considerations, the Health Coverage Tax Credit is a refundable credit that can cover 65% of health care costs for the former employees and their families when participating in health insurance plans. Qualified persons are defined by Trade Adjustment Assistance (TAA) or Alternative Trade Adjustment Assistance (ATAA) requirements for former employees and retirees aged 55 and older whose pensions were taken over by the Pension Benefit Guaranty Corporation (PBGC). To determine eligibility for monthly payments, a taxpayer can contact the HCTC. File Form 8885, Health Coverage Tax Credit, with the tax return to claim the credit which can give a refund even when no tax has been withheld.

Taxpayers with unreimbursed medical expenses in excess of 7.5% of their adjusted gross income can pay the excess amount with early withdrawals of funds from a 401(k) or IRA account without paying the 10% additional tax. This is done by reporting the appropriate exception number on Form 5329, Additional Taxes on Qualified Plans (Including IRAs) and entering the amount of the distribution that qualifies for the exception.

The tough project of looking for employment may provide a tax break for job seekers who can itemize. Documenting the costs of a job search may deliver a tax break whether it results in a new position or not. This applies for persons looking for a change within their current profession. Job search expenses may be deductible when, totaled with employee expenses and other miscellaneous deductions, they exceed 2% of adjusted gross income. These are reported on Schedule A Itemized Deductions which is filed with Form 1040. The IRS allows the following job-hunting expenses:

Employment and out placement agency fees
Costs of resume printing
Costs of typing, printing and mailing resumes
Legal fees related to doing and keeping your job
Some travel expenses to and from job interviews

There may be other job expenses due to layoffs. If a taxpayer incurs legal expenses to fight a non-compete clause, these expenses may be claimed as a job-related expense.

Homeowners experiencing “short sales” and foreclosures will get an extended break for “debt-forgiveness” tax consequences. Instead of treating cancellation of debt as taxable income on the foreclosure of a principle home, no taxes will be levied on discharges of indebtedness of up to $2 million dollars for married taxpayers filing jointly and of up to $1 million dollars for a married taxpayer filing a separate return through tax year 2012.

About Liberty Tax Service

Liberty Tax Service is the fastest growing retail tax preparation company in the industry’s history. Founded in 1997 by CEO John T. Hewitt, a pioneer in the tax industry, Liberty Tax Service has prepared over 8,000,000 individual income tax returns. With 41years of tax industry experience, Hewitt stands as the most experienced CEO in the tax preparation business, having also founded Jackson Hewitt Tax Service

Liberty Tax Service (www.libertytax.com) provides computerized income tax preparation, electronic filing, refund loans, and online filing through eSmart Tax at www.esmarttax.com. Each office offers customers audit assistance, a money back guarantee, and free tax return checking.

Earned Income Credit Amounts Rise for 2010

2011-01-17T15:25:00.000-08:00

Liberty Tax Service
515 Ponce de Leon Ave, NE
Atlanta, GA 30308

(678) 949-9933

Over 24 million people claimed the Earned Income Tax Credit (EITC) during 2009, and more may be eligible due to job losses and reduced incomes this year. Liberty Tax encourages low income wage earners to familiarize themselves with the qualifying conditions and changes on the horizon. The EITC amounts have increased again, and greater benefits for taxpayers with three or more qualifying children remain in effect for filing a 2010 tax return. After December 31, 2010, taxpayers will no longer be able to get the Earned Income Credit as an “advance” in their paychecks.

Those eligible for the federal EITC may reap additional tax benefits on their state tax returns. Eleven states and even some cities offer a refundable tax credit modeled after the federal EITC. They are Kansas, Maryland, Massachusetts, Michigan, Minnesota, Nebraska, New Jersey, New York, Rhode Island, Vermont, Wisconsin, plus the District of Columbia, and the cities of New York and San Francisco.

Because the EITC is a refundable credit, it can reduce or eliminate tax liabilities for eligible wage earners with and without children. Welfare benefits, food stamps and low income housing eligibility are not affected or forfeited if the taxpayer claims the EITC.

The adjusted gross income (AGI) limits for the earned income credit and maximum available refund amounts for 2010 are:

$43,352 for taxpayers with three qualifying children, ($48,362 for Married Filing Jointly): $5,666 maximum
$40,363 for taxpayers with two qualifying children, ($45,373 for Married Filing Jointly): $5,036 maximum
$35,535 for taxpayers with one qualifying child, ($40,545 for Married Filing Jointly): $3,050 maximum
$13,460 for taxpayers with no qualifying children, ($18,470 for Married Filing Jointly): $457 maximum amount

“The IRS has extended the nontaxable combat pay election for active duty military regarding EITC for years after 2007. Active duty military who served in a combat zone this year may elect to include combat pay in earned income to figure the earned income tax credit, if this increases their benefit,” said Kesha Haley, Franchisee/Owner, of Liberty Tax Service. “This does not make combat pay taxable.”

The maximum amount of investment income for eligibility is $3,100 in 2010. To claim children for the purposes of claiming EITC, the child must be your child, stepchild, eligible foster child, adopted child, brother, sister, half brother, half sister, stepbrother, stepsister, or a descendant of any of them (for example, your niece or nephew) who has lived with you for over half the year. They must also meet the age qualification. A child of a live-in boyfriend/girlfriend is not a qualifying child for EITC.

About Liberty Tax Service

Liberty Tax Service is the fastest-growing retail tax preparation company in the industry’s history. Founded in 1997 by CEO John T. Hewitt, a pioneer in the tax industry, Liberty Tax Service has prepared over 8,000,000 individual income tax returns. With 41 years of tax industry experience, Hewitt stands as the most experienced CEO in the tax preparation business, having also founded Jackson Hewitt Tax Service.

Liberty Tax Service provides computerized income tax preparation, electronic filing, refund loans, and online filing through eSmart Tax. Each office offers customers audit assistance, a money back guarantee, and free tax return checking.

Hi!

2010-12-04T13:21:00.000-08:00

It's been a VERY long time since I've been here. My plate has been FULL. Scratch that, I've had more than one FULL plate in front of me over the last year. So here it is:

I took AUD in April. FAIL. Because of that fail, I had to retake BEC in July. PASS (of course). Then, I retook AUD in August. FAIL. Sigh. At this point I felt like giving up completely. Something in me told me to stick with it. So, I took a week-long vacation to Dubai to clear my head. Yes, Dubai. As in the United Arab Emirates. As in 27+ hour travel time (three different flights) one way. It. Was. AWESOME! I didn't want to come back home.

Anywho, when I returned stateside, I switched studying tactics. This time I ordered an online self study system from CPAexcel. I retook AUD on October 13. A little over one month went by before my score was posted on NASBA.

80!

I passed!!! It's been a loooong time coming. Exactly two years between the time I first passed BEC and the time I finally passed AUD. I am THROUGH with the CPA exam! So what have I been doing since, you ask? Celebrating? I WISH!

Like I said, I've had quite a few full plates in front of me. I began teaching the Basic Income Tax Preparation Course for Liberty Tax Service for the upcoming tax season. I began studying for a real estate license back in October. I've always been interested in real estate and I have plans to become an investor. I was persuaded to take the Special Enrollment Examination (SEE) to become an Enrolled Agent, a professional enrolled to represent taxpayers before the IRS. The SEE is much like the CPA exam except there are only three exams instead of four and it's not *quite* as difficult. I took my first part yesterday and passed. I take the second part next Friday.

Finally, I started my own company (along with my business partner, my mother) to own and operate a number of Liberty Tax Franchises. It's been a week since I decided to go for it and I've been running in five hundred thousand directions ever since. Since my mom is in Iraq I have to do most of the legwork myself. Luckily, I'm fortunate enough to have worked for a great family who already own a few Libertys and who happen to be the Area Developers so they've been helping A LOT! (Thanks and much love to the LINDERS!)

So, anywho, that's what's been going on with me since October. My life's been thrown into high gear and I love it!

2010-02-27T14:22:00.000-08:00

Soooo I know it's been QUITE a while... but I wanted to share the news...:

I retook Regulation in January. I didn't fail it in November, the computer at the testing center malfunctioned and I had to reschedule the exam. I checked my grade today at Nasba and...

86!

That means I only have ONE more exam to go: Auditing. That one's coming back up in April.

Well, I have a lot of studying to do for a test in my Forensic Accounting class on Monday. I'll definitely get back on here to provide details about what's been going on and what I'm looking forward too after Monday!

:[...

2009-11-19T15:10:00.000-08:00

I viewed my grade for my Audit score yesterday and was definitely disappointed in the number I saw on the screen: 70. 5 points away from passing. I've already gone ahead and registered for another NTS and I plan on retaking Audit in the first few weeks of January, depending on what I will have going on at work. Unfortunately, I think that the disappointment of the Audit grade has put a damper on my confidence going into Regulation, which I take tomorrow. This will be my second time taking Regulation and I was excited all the way up until yesterday. Now, I'm sloppy on my multiple choice questions and second guessing all of my simulation answers. I am already planning to put my next $300 towards registering for Regulation again after tomorrow so that I will be able to take it in late January/early Feburary. I lose credit for BEC in April, and I don't want to have retake that one. :sigh: Nothing left now but to try a few more multiple choice, work some simulations, and get up tomorrow and take the test.

5 days left to study...

2009-11-15T19:26:00.000-08:00

I sit for my Regulation exam on Friday, November 20 which is 5 days away from right now. I got a little behind in my studying. I just finished the Becker Self-Study for Regulation and so I will have to go through the Final Review rather quickly. I will be taking my Wiley study books with me everywhere I go this week (even class) and I will use all time at home to complete study and test sessions on my Gliem software. I am pretty anxious about this test, although I feel pretty good about the material. This will be my LAST test to study for and hopefully I won't have to have another blog entry about studying - at least not for the CPA exam!

What's next? I'm still waiting for my Audit score, hopefully I will receive it sometime this week and hopefully it mirrors my BEC and FARE scores of 80+ (but I have no problems accepting a grade of a 75-79!). Over the next few weeks I will be wrapping up this semester at school and preparing for my last semester at Kennesaw State University since I'll be graduating in the Spring. I will also be preparing for the tax season - teaching a few more classes between now and opening day at the IRS. I am contemplating whether or not I should begin sitting for EA (Enrolled Agent) designation in December, or wait until maybe the summertime, or even if I want to go that route at all. Decisions, decisions, decisions. I will also be searching for a second job since my schedule is going to be pretty open aside from working - I only have one class to take next semester - so my next few blogs will probably be about the trials and tribulations of job hunting.

Still Waiting...

2009-11-12T13:06:00.000-08:00

I got an e-mail from Becker today saying that they've received notice that my scores for Audit have been posted. I got a little excited and rushed to the NASBA website to see what my grade is. I covered my eyes as I hit the submit button and when when the anticipation building up inside of me was too great to bear, I peeked through my fingers and saw...

Error. Score not found.

:Sigh: Maybe tomorrow.

31 days to [REG]...

2009-10-19T13:47:00.001-07:00

...And I haven't studied AT ALL yet. :[ It's been a while since I've posted and quite a bit has happened. I started teaching a basic income tax preparation course. My house got broken into but nothing was stolen. The teenage delinquents were caught and taken to jail. I got my score back for FARE (as I mentioned in another post), and I passed :] (FINALLY). I took Auditing on October 1 and I'm feeling pretty confident about that, just waiting for the scores. I participated in a weekend leadership retreat to mountainous North Georgia (Dahlonega, GA). Now, back to reality and back to the CPA exam!

How I'm studying:

I decided to re-purchase the Becker CPA Review Self Study as well as the Becker Final Review for Regulation. Although I haven't actually cracked the spines on those books yet, I know that they are going to provide me with a lot of material but will fall short when it comes to practicing for questions.

For questions, I have the Gleim software. This software has THOUSANDS of questions for each part of the exam. I used it for Auditing and it really helped a lot. With the software I can do a "study session" and I can choose how many questions I want from which sections of the Regulation material. I can also do a "test session". The difference between the two is that in a study session I get immediate feedback and on the test session I don't. I may purchase the Wiley CPA Review again because I don't want to use the book that I had last time. I already did alot of writing in it and I don't want to have the answers there as a crutch.

I will probably more than likely start studying tomorrow, since I have an exam tonight in my Reporting Theory class. With the Becker system, I plan to go through at least three chapters this week and four next week. That will give me roughly another two weeks to do the Final Review and Gleim questions.

How I'm feeling:

PANICKED! Like I said, I haven't studied for this exam at all yet. I originally planned this exam for November 25 (the day before Thanksgiving) but they decided to shut the testing center down that day so I had to reschedule for an earlier date. My NTS expires in December and we all know the testing window is closed in December. Hopefully this will be the last time I have to schedule an exam!! My BEC credit expires in April so I definitely want to get these done so I don't lose that one!!!

Thoughts?

I PASSED!!!

2009-09-26T08:55:00.000-07:00

So I just got my score back from the FARE exam I took in August. I PASSED! Second time's a charm. I got an 83 this time!!! Now if only I can do that on my AUD exam that's coming up in a few days.

It's over now...

2009-08-16T17:17:00.000-07:00

...at least until October 2.

So I took the FARE exam on Friday (Aug 14) after a month and a half studying for it, and I have to say that, although I've taken it before, I didn't realize how hard it would be. I've come to terms with the fact that I'll be retaking it in January or February. That'll give me two or three months to study this time. Oh well, I suppose I can't cry over spilled milk. It's on to studying for the Auditing exam I have on October 2. And school starting back up tomorrow won't help my studying schedule.

Is it just me?...

2009-08-03T11:56:00.001-07:00

So it's 11 days until the FARE exam and I can't find the will to study :[. I'm going over Governmental Accounting now and all I can think about is how complicated it is. UGH. I have about 50 more questions in the Wiley book and then it's back to Becker for a review of Non-Profits. At least these don't have simulations with them.

I keep telling myself I only need to do two or three points better than the last time. It's hard to focus when people keep asking me to go hang out with them, and I have to turn them down, and then I think about how much fun they're having while I'm here reading about GASB 34. Am I the only one who did NOTHING all summer??

3 weeks away...

2009-07-25T11:39:00.000-07:00

So my FARE exam is a smidget less than 3 weeks away (20 days to be exact) and I am completely torn when it comes to how I'm feeling about it. On one hand I don't feel that I've prepared enough (which seems silly because 20 days is ways away) and that I'm nowhere near close to where I should be. I don't know if I'm really underprepared or if it's just my pessimism kicking in. On the other hand, during my breaks, I've been keeping up with the blog that's written a few CPA candidates in NJ and it has completely motivated me to do my best. We shall see. If (God forbid) I have to retake this exam for a THIRD time, I'm going to be crammed because I lose credit for BEC in April. :big sigh: I'm definitely just going to put these worries into the Lord's hands and study my behind off. Welp... break's over.

[FARE] And the Countdown Begins!...

2009-07-20T18:11:00.000-07:00

Actually, I suppose it's already begun. Anyhoo... my FARE exam is less than a month away and all I can remember is that before you close those books, your debits better equal your credits. :|

No, seriously though... I'm behind in my studying. Or maybe I'm over-thinking it and I'm actually where I need to be right now. No, I'm definitely behind.

How I'm studying:

I bought the Becker Final Review - which is actually pretty helpful, they lump material into related groups, which makes more sense, so Chapter 6 could be spread out over different parts because certain sections of Chapter 6 may go with a certain section of Chapter 4 - because I took the Becker CPA Review for FARE last summer so I needed a little bit of a refresher. The Becker system (class, flash cards and final review) helps to re-learn the material and/or jog your memory, but not so much when it comes to questions to practice with. All of the questions show up over and over again, so it's not so much applying yourself to actually understand how to tackle a certain question as it is memorizing the answer since you've already seen it four times. And it's hard to really apply yourself when you know the answer, even if you don't understand the mechanics behind the question. No, Becker is definitely not the way to go if you want thousands of different questions.

For that I have the Wiley CPA Review books. They have other products too, but I bought mine at Barnes and Noble and all they had were the books. Now, these books are designed for intense study, not teaching. They have an outline of and HUNDREDS of questions and at least two simulations for each topic (except for a few) but you won't learn the reasoning behind the answers from this system. Even the explanations will sometime have you saying to yourself, "Ok, you're telling me this is the answer and it's calculated this way... but WHY?" Sometimes the why's are essential to you remembering for the exam. Another downside with this book is that it doesn't come with software (software is available separately), so you have to do all of the simulations by hand. And that can get annoying and repetitive when you have to write out an income statement or statement of cash flows (they suggest setting it up in Excel, but that's time consuming also).

How I'm feeling:

Hmm... this is my second time taking this portion and last time I had two asthma attacks brought on by panic (oh, Lord... if my interest in accounting wasn't enough, now I REALLY look like a nerd). So far, no panic attacks but I am sort of freaking out. I missed it last time by two or three points and I don't want to have to take it again. What if I over-study the wrong thing and miss what I should have done better on? If I don't have this book open, I feel like I'm being unproductive. I take it to work with me and work on it at lunch. I sit in the same spot on weekends and work through several sections of material. If I don't get the answer correct I worry that this is the type of question I'll get on the exam.

All of this stress is CRAZY! I know I'm not alone. It pays off in the long run though... and you know what they say, if it's worth having it's worth working hard for... or something along those lines. I'm just gonna do my best and put the rest in God's hands. Hopefully this is the last time I'll visit this book and I can move on to AUD with a peaceful mind.

What's next?

I passed BEC back in October, but didn't pass any of the rest (actually I showed up a week late - yeah, a whole week late - to AUD January so I never got to take it. So after FARE "take 2", I will prepare for Audit during September and take it in October. Then I'll take REG "take 2" in November. If all goes well I will be completely finished this year. If not, I only have until April 17, 2010 or I lose my BEC credit!

Thoughts?

Fair Share

2009-07-18T15:31:00.000-07:00

"Nobody likes paying taxes but sometimes you have to suck it up and do what you have to do. I know that in order to reap the benefits of living in this country, I have to pay taxes. I may moan and groan every other Friday after seeing that Uncle Sam has dipped his hand into my purse once again, but I pay the taxes. Point blank. And I only make $9 an hour for 36 hours each week. The people that have no choice in whether or not they pay taxes are the people who need that money to stay in their paychecks the most. The people who get away with paying relatively little to no taxes are the people that can afford it. And that's ridiculous..."

I wrote the above comment after reading a few blogs about the increase in Federal income tax rates that will become effective at the end of next year. The top rates may climb as high as 45% (39.6% income tax and 5.4% surcharge) and will apply to taxpayers with more than $1,000,000 taxable income (income after deductions and exclusions). The rates will decrease from there with the next lower bracket being taxpayers with more than $500,000 up to (and including) $1,000,000 taxable income, and the third highest bracket will include taxpayers with more than $350,000 up to (and including) $500,000 taxable income. The proposed surcharges added to the enacted statutory rates are an effort to fund the healthcare reform plan that President Obama has been pushing since his candidacy.

I think the idea of higher income earning individuals having to pay more taxes makes absolute sense. It's supposed to be all about "fair share", right? You don't have to be a tax expert to know that the more money you make, the less a certain percentage of it means to you. If I only had $10 in my pocket, it would be harder for me to give you $1.08 than it would if I had $1,200 and you asked for $398. It would be easier still for me to give you $818 if I had $2,400 right now. Now, if you asked for half, we might have some issues. Now multiply all of those numbers by 1,000 and let's talk taxes.

Like I said above, the people who need to keep their money in their pockets are the ones who are paying. People with the means to pay are paying relatively little to no tax on the money they are making... how?... they're "minimizing" their liabilities by paying lawyers and tax accountants a lot of money to find loopholes in the tax law. It doesn't take a pronouncement from FASB to understand that that's unfair. If I have to be "burdened" with paying taxes, then so should the multi-millionaire and he should have to pay at a higher statutory rate than somebody making $400,000, because 35% of $400,000 is worth a whole lot more than 35% of a couple million dollars.

The blogs that inspired this one:
TaxProf Blog: http://taxprof.typepad.com/taxprof_blog/2009/07/bartlett-robin-hood.html
TaxProf Blog: http://taxprof.typepad.com/taxprof_blog/2009/07/cbpp-house-surtax-on-wealthy-is-fair-.html
TaxProf Blog: http://taxprof.typepad.com/taxprof_blog/2009/07/house-democrat.html
Roth & Co, PC: http://www.rothcpa.com/archives/004951.php

The Great Debate at Kennesaw State

2009-07-18T11:33:00.000-07:00

This past Spring, one grad student at Kennesaw State University's Coles College of Business overheard a conversation that he felt was offensive. A few days later, he decided to share his feelings on "The Vent", the anonymous discussion board that enables graduate students in the business school to rant about different issues, ie, fees, lack of alumni support, et cetera. The post described the "situation" he found himself in when he overheard three Black students discussing membership in KSU's Black MBA Association. He felt that the only reason he was excluded from the conversation was because of the color of his skin (yes, that's what he said). The post went on to describe how he felt that racially-motivated student organizations were "offensive" and "racist" and that people who participated in these groups were "self-segregationists". He went on to say that although he had never lived in anybody else's shoes, he understand that Blacks had been treated unfairly... in the past. He offered his hopes that things will change in the future and then quoted the highly inspirational slogan of President Obama's Presidential campaign: "Yes, we can". The call of his post was this: "Is there a need for a Black MBA Association?"

In the weeks that followed the original post, several business students have decided to speak up and speak out either in support for or against the original post, albeit that most people were not as brave as the original author was and decided to keep their post anonymous. Someone even posted (anonymously):

"Often wondered about such things...NAACP, United Negro College Fund, Ebony Magazine, etc...

Change any of those to caucasian/white and you are violating someone's civil rights...but leave it as it is and it is perfectly acceptable. I never understood that."

Toward the end of the thread, the discussion turned to another unacceptable inequity - "reverse" discrimination.

Now, even though I clearly have access to this discussion board, I had never entered nor did I care to read what others were saying. One day, I decided to go in and see what kind of things people were talking about. Naturally, this discussion (titled "White MBA Association" - the author opened the post leading readers to believe that the roles had been reversed and that three white students were discussing membership to the [fictitious] White MBA Association, and then asked why is some racism acceptable when some clearly isn't) caught my eye and I couldn't resist. I was completely baffled. How can someone even suggest that there is no need for organizations targeted toward the social, political, and educational benefit of minorities? How can someone, even after being advised repeatedly throughout the thread, continue to believe that "racially-motivated" organizations are segregationist. How could someone not see that inequalities still exist today between the "majority" and the "minority" and that people are still being treated unfairly in this country TODAY? I couldn't simply exit and accept their ignorance. Hesistant to fire back right then, I took a few days to cool down and think about my response (I didn't want to come off as the "angry Black woman"). This morning, I revisited the discussion and took my time (almost four hours) carefully crafting my reply. Here, I share with you my reasoning behind, and justification of, the necessity of minority media (ie, Ebony, Essence, Jet), professional (ie, AAMBAA, NABA), social (ie, NCNW, NAACP, NPHC), and educational (ie, UNCF, HBCUs) organizations. It kind of long - remember it took me almost four hours to finish. Please feel free to comment. Any feedback is appreciated! Enjoy!

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Title: What EXACTLY is "reverse" discrimination?

*In this post, I make frequent use of the word "you". This use of "you" is not aimed at anyone in particular. It is used as "you" in the collective: anyone who agrees that minority organizations are racist, offensive, and self-segregation.

I would personally like to know how discrimination and racism can be "reversed"...? When I look up the definition of discrimination and racism on the Merriam-Webster website (www.m-w.com) I see:

Discrimination:

1 a: the act of discriminating b: the process by which two stimuli differing in some aspect are responded to differently 2: the quality or power of finely distinguishing 3 a: the act, practice, or an instance of discriminating categorically rather than individually b: prejudiced or prejudicial outlook, action, or treatment

Racism:

1: a belief that race is the primary determinant of human traits and capacities and that racial differences produce an inherent superiority of a particular race 2: racial prejudice or discrimination

I don't see anything in either one of those entries that says that discrimination and/or racism can ONLY go one way, which is what is implied by inserting "reverse" before either when talking about discrimination against a certain set of people (white people, more-so white men). Discrimination is discrimination and racism is racism, regardless of who is on the receiving end.

The funny thing to me is that this phrase shows up in a post that was originally about how student, professional, and community organizations targeted toward minorities are "self-segregating", "racist" and offensive, when the sole intent of those very same organizations is to UPLIFT, EMPOWER, and PROMOTE minorities in places where they are vastly under- or misrepresented: universities (especially graduate programs), corporate America, media. It's uncanny to me how you don't understand that point when, at the very school you attend, ethnic minorities only make up (approximately) 20% of the student body. Included in that 20% are people from over 141 different countries (http://www.kennesaw.edu/aboutksu.shtml). Sure, when you look at "141 different countries", it seems to be a lot... but imagine going to a school, or even into a workplace, where very few, if any, of the other students/employees resemble you. I'm sure you can't.

You say that African-Americans were treated unfairly in the past... so, what... now that we all have "equal rights" we should just get over it? How can we when we're reminded of it every single day? There were white people who did not vote for Barack Obama, not because of his platform, but because they were "afraid if he wins, the Black will take over" or because a "nigger running for President... [is] definitely a second stringer" or a "wolf in sheep's clothing", not because he's qualified (http://www.youtube.com/watch?v=Tid_QkTkgdc). That was nine months ago... you mean to tell me that everything has changed and is all hunky-dory now? What planet do you live on?

And how dare anyone question the motivations of long-standing minority organizations such as the UNCF, NAACP, Ebony Magazine, and even Historically Black Colleges and Universities (HBCUs) and Black fraternities and sororities (NPHC) when these organizations were started because Black people didn't have access to higher education by way of resources (thanks, UNCF) or because whites simply did not want Blacks in their schools (thanks, HBCUs). Blacks weren't accepted into the social clubs of whites (thanks, NPHC). If there were any images of Blacks in the media, they definitely weren't positive (thanks, Ebony, Essence, Jet). And even AFTER Blacks were declared "equal" on paper, there was still a huge need for advocacy for "the political, educational, social and economic equality of minority group citizens" (thanks, NAACP). Were they supposed to just disappear after we all became "equal"?

Although some minorities may not have the necessity for an organization dedicated towards them (but, open to others which is important), many do. There are societal influences everywhere that prove that organizations such as these are still necessary even after (only) 45 years since the Civil Rights Act was passed. Influences such as the words you use when talking about certain issues. A Black man doesn't get a job he's qualified for and he's a victim of discrimination. A white man doesn't get a job he's qualified for and he's just been a victim of "REVERSE" discrimination... like it's just NOT supposed to happen to him. Influences are even apparent at retail and grocery stores. How come when I walk into Wal*Mart to buy a book I have to walk past the "Romance" and "Best-Sellers", and head to the "African-American Authors" section that doesn't even categorize by genre? Try to tell me a Black person made that up. And once I've left the segregated book stand, I move over to health and beauty to find some shampoo and conditioner to wash my hair and I have to go to the "Ethnic Hair Care" section (which is rather small compared to the "Hair Care" section - notice it isn't labeled "Caucasian Hair Care"). I'm pretty sure if my shampoo was on the shelf with all of the other shampoos I would be able to find it just the same. It doesn't stop there, because apparently if the person that designed the grocery aisles didn't think of the bright idea to separate the soy sauce from the other sauces, nobody would have ever found it. Thank God for the "Ethnic Food" section. And no matter how much it is argued, minorities still do not have the same access to the same educational resources at the grade-level as whites. Sure, some do, but the overwhelming majority do not. The worst schools in cities across the country are heavily populated with underprivileged minority children whose under-paid teachers couldn't care less about the success of their students than they could about whether to have chicken or fish for dinner. On second thought, they probably care more about dinner. Many of those same minority children won't go to college, and many of the ones that do won't finish. Those are the minorities that you will never see at Kennesaw or your workplace. Sure, there's a chance that a few of them might get lucky and become successful somehow, but the harsh reality is that most of them won't. Most of these children don't have businessmen and women to look up to and aspire to emulate. Most of them don't have parents telling them to do something productive with their lives. All too often the role model in the eyes of these children are athletes and entertainers, and no one tells them to have a backup plan because, more likely than not, they're going to have to use it. So if there have to be organizations that target minorities in order to ENCOURAGE them and SUPPORT them throughout their college and professional careers, so be it. I'd rather see MORE of these organizations than I would struggling minorities.

Go to your Economic and Finance Club meetings, your Beta Alpha Psi outings, your Society for Human Resource Management events and observe how many minority member faces you see. Do the members of these organizations fairly represent Kennesaw State, or are there far less than 20% minority members? How many of those minority members are Black? Now think about Corporate America. How many minority CEOs, CFOs, COOs, and other executives do you imagine? THAT is the purpose of these organizations targeted toward minorities and THAT is why they are still necessary today. Minority clubs and organizations aren't racially exclusive as you would like to believe they are. As iterated previously in this discussion, everyone is welcomed and invited to attend, join, and participate.

I'm not ashamed to say that I am a PROUD member of the National Association for the Advancement of Colored People, National Council of Negro Women, and the National Association of Black Accountants. I'm also proud to say that during my undergrad career at Georgia State University I was a member of Softer Touch, an organization dedicated to community service centered around underprivileged young Black women. Also, now that I know it exists, I will be researching information on the African American MBA Association. I'm happy to have been so blessed throughout my life to have the resources to be in college, I'm obligated to be a good role model for the generations to come and to support and encourage the Black youth to get on and stay on the right paths in their lives. Getting into college isn't the last step and it doesn't mean it will get easier, these organizations are only making sure that minorities have the resources, support, and guidance needed to be the best person they could possibly be in life.

I am also puzzled at how you feel that "racially-motivated" organizations are a problem, but I didn't see mention of the "gender-motivated" organizations. Would it be okay to belong to a professional organization targeted at women, as long as it doesn't target ethnic minorities? Seems to be a double standard to me.

As for how discrimination can be "reversed", I'm still completely confused.

Kesha H.
MAcc '10

Welcome!

2009-07-18T11:31:00.000-07:00

Well, I finally decided to start a blog. The purpose of this blog is to express my thoughts on everything that has anything to do with accounting. Here I will try to post blogs on what I have read in magazines and journals, heard in classes, or seen on the news that pertains to the accounting world. I will also, from time to time, include posts about my life, family, and friends as well as other issues and events that I feel are important. Have fun and happy reading! Enjoy!