taxgirl » just for fun

My Anniversary

Kelly — Wed, 28 Oct 2009 17:34:29 +0000

About a year ago, I was notified by the ABA Journal that my blog was nominated as one of the top 100 legal blawgs for 2008. I was, needless to day, extremely honored.

One of my colleagues in Pennsylvania, Neil Hendershot, wrote about my nomination, including some really kind commentary. He also suggested his own “ask the taxgirl” question:

Kelly, how do you find the time to do all this while practicing law and mothering three kids?

I promised him that I would answer. And so, a few months (*ahem*) after the fact, I’m finally getting around to it.

There’s a method to my madness. You see, today is my anniversary. I’ve been married for 9 years (really? that long?). I’ve also managed a law firm for 9 years. That’s not coincidental.

This isn’t to say that I don’t work hard. Or that I couldn’t do it on my own. Because I think I could manage. But it wouldn’t be nearly as much fun. Or nearly as wonderful.

Earlier this year, Sandra Bullock said something that really resonated with me. Speaking to Parade, she said: “You know, I complete me. I’m just lucky that after I completed myself, I met someone who could tolerate me.”

And that’s exactly how I feel about my husband. Not exactly the stuff of anniversary cards, I know. But it’s true.

When I suggested to Chris that he drop Reed Smith and start a firm with me (I had just quit my prior lawyer gig), he didn’t roll his eyes and say no. Well, maybe he rolled his eyes. But he also said okay. He knew that we could do it. And we did.

When I started writing this little tax blog – on a subject that completely disinterested him – he humored me. He pretended to listen to my posts and my articles. And I pretended to listen to his feedback.

In between it all, we managed to have some pretty amazing kids. They’re smart and funny and of course, Phillies fans (I said smart, right?).

So when it comes to finding time for the things that are important, I have to say that I can do it because I have a family (and friends) who support me in fabulous, wonderful ways. And I have a husband who understands me (well, as much as anyone can) and helps me work out all the details – like deadlines and schedules and meetings. But mostly, he tolerates me. And that counts for a lot.

Happy anniversary, Chris… and you’re working on that World Series title for my present, right?

Love is much nicer to be in than an automobile accident, a tight girdle, a higher tax bracket or a holding pattern over Philadelphia. ~ Judith Viorst, Redbook, 1975 Similar Posts:

Driver Kidnaps Tax Officials to Avoid Paying Tax

Kelly — Mon, 26 Oct 2009 12:02:22 +0000

Here’s a novel way to avoid paying tax: kidnap the tax collectors.

In what may be the oddest tax news I’ve read recently, the online paper, Sindh Today, has reported that an Indian man may be charged with kidnapping after he allegedly attempted to abduct two excise officers. According to reports, the driver slowed at the toll barrier in Patiala’s Rajpura to talk with the officials. He then reportedly pushed the tax officials into his car and sped off (no, I can’t figure out how he did it, either). There was no report as to his plans for them.

The driver eventually lost control of the car and ran into a tree. All of the occupants were taken to the hospital.

Charges are pending against the driver, and the investigation continues.Similar Posts:

More Sunday Mailbag

Kelly — Mon, 26 Oct 2009 01:56:44 +0000

That yellow ball in the sky this morning threw me for a loop. They say it’s called the sun. At any rate, I was thrilled to see it. I grabbed a cup of coffee and cozied up to the computer for another edition of “Sunday Mailbag.” Here’s a couple of “nontax” ask the taxgirl questions that I’ve recently received – enjoy!

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Taxpayer asks:

Can you recommend tax software for me? I am single, a homeowner and have a few other deductions. Nothing too complicated.

taxgirl says:

I think most tax software programs are fairly similar. I don’t know that you can pick a “bad” package especially with a situation like yours that sounds largely simple. But when it comes to what I use, I don’t mind saying that we use TurboTax, largely because it works well with Mac (no paid endorsement, folks, just the truth).

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Taxpayer asks:

A lot of tax stuff is very political. I was wondering which president you think was the best for taxes?

taxgirl says:

Hmm, the best, you say? That’s a tricky question.

I’m going to disregard all presidents prior to Eisenhower – not because there were not significant tax events during those times but because it’s difficult to compare tax policies under those systems to those of today. And, after whittling off nearly a couple hundred years, it makes my answer much easier.

I don’t know that I can point to a president who was the “best” for taxes but in terms of a real change in terms of our modern tax policy, I’d say Reagan. Whether you embrace Reaganomics or not, it was a huge shift in terms of how we viewed taxes in America. Marginal rates in the early 1980s were quite high with the top rate hitting 70% on unearned income and 50% on wages – those rates were reduced dramatically. The so called “marriage penalty” was relaxed to reflect a changing demographic. And the increase in the home mortgage deduction is probably the most utilized of Reagan’s tax changes to this day for most Americans.

Perhaps most significant in terms of tax policy, Reagan did something that our recent partisan presidents would never do: he switched course when things weren’t working as hoped. It wasn’t called flip-flopping. His party didn’t abandon him. In fact, he received wide support when he tweaked his 1981 cuts in 1982, 1984 and 1986. Reagan, either through public opinion or his advisors, realized that the 1981 plan was a bit overly ambitious considering the economic climate of the country and rolled back.

The changes under Reagan were so dramatic that the Tax Code was renamed the Internal Revenue Code of 1986 – the first such retitling since Eisenhower. You’ll still see it written that way today.

While I don’t necessarily agree with each and every one of Reagan’s tax decisions, I just think if you had to choose a president who served during some of the most notable changes in modern tax history happen, I don’t see how you couldn’t choose him.

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Taxpayer asks:

I’m a tax lawyer, too, and also a mother. I have one child which I had before I started working (I was a nontraditional law student) and am considering having another. You mention your children in your blog from time to time. I was wondering how many children you have and whether you think that having children has been a hindrance in your career.

taxgirl says:

Ooh, here’s where I say things that manage to tick off everyone at the same time…

Um, I’ll start with the easy question. I have three fabulous kiddos. They are all aged 7 and under. I know, it is insanity.

I absolutely believe that being a mother in the legal profession is a hindrance. Law is predominately a male profession, even now. According to law.com, while women start out in approximately equal numbers to men as law school grads, women account for only about 20% of partners at big firms. I think it’s because the expectation is that women will become mothers and be less effective lawyers.

I got my first taste of that bias when, as I mentioned on #22twts, on one of my first job interviews for a law job, I was asked whether I intended to get married and have kids. Yes, now that I’m older and wiser, I realize that the interviewer wasn’t allowed to ask that question but as a soon to be law school grad, I just wanted a job. And I answered the question. I said yes (PS – it happened twice and I was offered the job in spite of the question on one occasion).

At any rate, fair or not, having a child is often viewed as an intrusion upon your availability as a lawyer. It is one of the reasons that I’ve chosen to be my own boss (although I didn’t have children until after I started my own firm). I work long, long hours because you have to in this profession. I’m typically up around 5am and I go to sleep close to midnight. I do this deliberately because I try to schedule my work around my family and not the other way around. That isn’t to pass judgment on anyone who does it differently, it’s just how I’ve chosen to manage my career.

But your career is really what you make it. There can be roadblocks – and, yes, honestly, pregnancy is one of them in the legal profession. How you handle it is up to you. Sandra Day O’Connor has three children. Ruth Bader Ginsberg has two. Clearly, having kids doesn’t end your legal career.

I do think there are certain areas of the law that are easier for moms and tax would be one of them. It requires little in the way of court appearances (if you play your cards right) and generally speaking, your busy times are expected. Summer tends to be the quietest, which works out well when the kids are home or for purposes of planning a vacation. My busiest times are early spring and the end of the year. That kind of stinks because it coincides with the holidays but again, not unexpected so that I can plan.

A little longer answer than I originally planned. It’s a tricky question that really can’t be fully developed in a couple of paragraphs. So let me leave you with this: Could I have been a partner at a big firm if I wanted? Yes (I’ve been headhunted plenty). Could I make a lot more money doing things differently? Yes. Do I get a little envious when I see my single peers climbing up the career ladder? Yes. Would I give up my current life for any of that? Not for a second.

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Taxpayer asks:

I imagine that you’re pretty excited about the Phillies, huh?

taxgirl says:

You have no idea! Go Phils!

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As always, thanks for writing in!Similar Posts:

Comment for the Cure

Kelly — Mon, 19 Oct 2009 10:34:16 +0000

It’s October, which means that it’s Breast Cancer Awareness month. Last year, on the blog, I promised to donate a dollar for every unique comment on my cancer post.

This year, I’m doing it again.

I saw, on twitter, and elsewhere criticisms of similar campaigns, asking why it’s necessary to ask for comments: why not just donate?

To be clear, I do donate. I give my dollars and my time to the work of various cancer and breast cancer organizations. In fact, I’m running again in May, as Team Captain, for Komen’s Race for the Cure in honor of my grandmother (you can make a tax deductible contribution here).

This is a cause that I am passionate about. And I do *get* the criticisms about making it a spectacle. But here’s why I do it: I want to make a spectacle. I want to cause a commotion. I want you to think about cancer.

Last year, I was particularly struck by this an article written by Karen Heller of the Inquirer, critical of the whole Pink for October campaign. I wrote her a letter in response, which I’m posting here (edited for brevity):

I read your column each week and often agree with your observations about children, commercialism and culture. However, this week, I feel compelled to write to you because I think you missed the mark in your article on breast cancer.

My grandmother died of breast cancer. You’re right in saying that it is not a pretty disease. My grandmother’s cancer spread to her lungs. I watched her die. Literally. My mother and I were with my grandmother in her house when she took her last breath. It was a horrible, terrible way to die.

…

You are not the first person that I have heard criticize the "pinking" of October. I’ve heard it a lot, and I respectfully disagree. Is it commercial? Of course it is. This is, after all, America, and if a capitalist can find a way to make a buck no matter what the occasion, he or she will. It has become "cool" to wear Lance Armstrong Foundation bracelets and AIDS ribbons. At the end of the day, does that take away from the good that it does? I don’t think so. …I don’t think that you can be too aware. And, despite your statements in your column, I do think it promotes awareness.

Every time that I see my pink ribbon, I think about my grandmother… And then I think about the fact that more than 200,000 women will be diagnosed with breast cancer this year alone. They are grandmothers, mothers, sisters, daughters, family friends… As a woman and as a mother of three children, how can I not promote awareness of a detectable, and often curable, disease that affects women in such huge numbers?

So, at the end of the day, while I agree with you that there’s a whole lot of pink going on, I don’t think that’s a bad thing. Awareness might mean that one more woman gets a mammogram, or asks the doctor what that lump is. And it might save a life. Isn’t that worth a little pink now and again?

With that in mind, here’s my little bit of pink on the blog today. Like last year, for October, in honor of my grandmother, I’m making a donation to Susan G. Komen For the Cure. I’ll donate $1 for every unique comment (meaning, not spam) on this post. You can just say hi, ask me a tax question, chat about tax policy or leave the name of someone close to you that was diagnosed with breast cancer – heck, you can even tell me how much you love the Phillies! (Actually, after the game last night, you can especially tell me how much you love the Phillies!)

Technorati Tags:
breast cancer, Komen

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Finding a Life/Work Balance: tweet, tweet!

Kelly — Mon, 12 Oct 2009 22:45:26 +0000

Last Friday, I had the opportunity to participate in the first 22Tweets Roundtable. 22Tweets is a real time interview on twitter. The theme for the inaugural roundtable was life/work balance (yes, there is such a thing). If you missed it, you can catch all of the participants’ answers here. Thanks to Lance Godard for inviting me!

And if you’re already following me on twitter, here’s the link. But consider yourself warned: I tweet about much more than taxes. There’s some law stuff, some kid stuff and for October, Phillies galore.Similar Posts:

Art Imitating IRS

Kelly — Mon, 12 Oct 2009 17:12:07 +0000

Apparently, I’m not the only one who thinks that tax – and related stories – are pretty funny. Dan Rosandich actually does illustrations about tax for a living. And you thought I was a tax geek.

You can check out his tax cartoons at his site (he also does custom cartoons – no person or profession is safe!). If you’re looking for some art for your web site, book, presentations, etc., be sure and pop over and check him out.

(Quick word: Just to clarify, as I’ve said before, I don’t post reviews or anything on my site for compensation. Dan didn’t pay me or otherwise give me anything in exchange for mentioning this on my site. I just thought his stuff was pretty funny.)Similar Posts:

Sunday Mail Bag

Kelly — Sun, 11 Oct 2009 14:03:42 +0000

It’s a chilly Sunday morning here in Philadelphia. I thought a bit of housekeeping might be in order, so I’m opening up the ol’ taxgirl (e)mailbag. I have a bunch of non-technical tax questions which were submitted as “ask the taxgirl” questions but I thought it made more sense to answer them in one big post. So grab a cup of coffee and pull up a chair!

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Taxpayer asks:

Dear taxgirl, why did you decide to become a lawyer? I’m thinking about going to law school this fall and I’d love your thoughts.

taxgirl says:

I watched a lot of TV. Seriously. I didn’t really know any lawyers growing up so I based most of my impressions of lawyers on what I saw on TV or read in books. I was a big fan of Perry Mason and, of course, Nancy Drew’s dad, Carson (what girl didn’t have a crush on him?). But mostly, I loved the idea of doing something that made a difference. Remember that great scene in To Kill a Mockingbird?

I wanted to be able to stand tall like Gregory Peck (the tall never happened) and say things that mattered, take a stand for justice. Of course, that’s not exactly what happens in the legal profession – it took me awhile to figure that out. But at the end of the day, despite the lawyer jokes and bad press, I love what I do. I help people. And that matters to me.

That said, the legal market is really tough now. Law school can be expensive (I’m still paying off my loans) and jobs can be hard to come by. Make sure that you really want to go – and you’re not just going because your parents want you to (we had a lot of that in law school) or because you’re a smart kid and don’t know what else to do (we also had a lot of that in law school).

If you’re not completely sure, my advice is to talk to a bunch of lawyers: small firm lawyers, big firm lawyers, government lawyers. Intern in a law office. Sit in on a law school class or two. Then make your decision. Good luck!

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Taxpayer asks:

Have you ever filed your taxes late or owed taxes? I’m just wondering.

taxgirl says:

Yes and yes. Our tax system, as it exists, is self-governing. That means there’s no one standing over you screaming at you to file and pay every year – or every quarter in the case of small businesses and those who owe estimated taxes – and I’ve been both. Sometimes the mistake is on the employer side (as when I was first in Philly, my NJ boss didn’t withhold wage tax) and sometimes the mistake is on the employee side (as when you just get overwhelmed and forget a deadline). Mistakes happen. I always tell clients that there’s no shame in it: just fix them.

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Taxpayer asks:

I’m a 2L and am thinking about classes for next semester. Which tax classes do you recommend? Any to avoid?

taxgirl says:

I loved Federal Estate and Gift Tax and Tax Policy, hated Partnership Tax (though it is handy). I’d recommend starting off with baby tax (federal income tax) and seeing which aspects of tax law appeal to you. I also recommend taking some non-tax courses, too. I never intended to be a tax lawyer but I really enjoyed a class that I signed up for just because it fit my schedule and it wasn’t litigation-related. So don’t stack up on tax in the beginning, you never know. Try a bit of everything.

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Taxpayer asks:

You talk a lot about living in Philadelphia but you call yourself a Southern girl. What am I missing?

taxgirl says:

Easy. I grew up in North Carolina. I’ve lived in Hampstead (early years), Durham (high school) and Raleigh (college). I moved to Philadelphia to go to law school and loved it so much that I stayed.

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Taxpayer asks:

What’s the strangest deduction that you’ve ever seen on a tax return?

taxgirl says:

Hmm. I’ve seen some odd things. But one that jumps out at me is pet therapy – as in therapy for a pet. While I understand that pets are like children (we joke that our dog is our first born), you can’t claim pets or related expenses on your tax return.

And then there’s flat out lies like the guy who claimed his Disney cruise was a business expense (he ran a car dealership).

One thing you can say about tax law: it’s never boring.

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Taxpayer asks:

I see you practice with your husband. Do you talk tax at home? Just curious.

taxgirl says:

Yes, but he doesn’t listen. My husband isn’t a tax lawyer, he practices international and corporate law. But that doesn’t stop me.

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Taxpayer asks:

I saw this and thought of you: http://www.abajournal.com/magazine/the_25_greatest_legal_tv_shows What’s your favorite TV law show? Are there any tax lawyers on TV?

taxgirl says:

I did see it, thanks. Um, my favorite? I used to love LA Law – what a great cast! I also used to watch Perry Mason reruns with my grandfather and Matlock since it was filmed in my hometown. In law school, I watched Ally McBeal and The Practice even though they were completely unrealistic. I actually don’t watch any legal shows now that I practice, they drive me nuts.

I can’t think of any tax lawyers on TV off the top of my head. My guess is that the work doesn’t seem glamourous enough. “Watch me research this deduction!” It just doesn’t have the same on air appeal as, say, defense work. But hey, Hollywood, I am available.

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That was fun and the mailbag is a little bit lighter now… Thanks for writing in!Similar Posts:

I’m Dancing As Fast As I Can

Kelly — Fri, 09 Oct 2009 20:27:16 +0000

It has been a crazy week. I’m waiting for things to eventually settle down, which should be, er, sometime soon?

In the interim, I’ve been lucky enough to be asked to write for some cool sites. This week, I’ve been posted on WalletPop and on Type-A Mom. (That cheering you hear in the background is from Colombian coffee growers – they did well this week, trust me.)

Today, on WalletPop, I tackled the issue of Jenny Beth Martin, co-founder of the national Tea Party movement and her half million dollar tax bill.

On Type-A Mom, I offered some tax advice for widowed moms.

Enjoy!Similar Posts:

No You’re Not Seeing Double

Kelly — Thu, 08 Oct 2009 14:12:46 +0000

I’m a little all over the map these days. I’ve been lucky to be asked to write guest posts for a number of high quality sites. I’ve really enjoyed it because writing about tax is just so much fun for me (hey, stop laughing).

So, it was extremely flattering and very exciting to be asked to write for AOL’s finance site at walletpop.com. I’ll be the new girl over there, plugging an occasional tax post. It will still be focused on tax but not exactly the same kind of bloggity-goodness that you’ll find here. So, definitely pop over to AOL and take a look around (you’ll find my first post here) and check out my new digs. But no need for concern, taxgirl.com isn’t going anywhere.Similar Posts:

Making a Guest Appearance

Kelly — Tue, 29 Sep 2009 16:52:55 +0000

I made a guest appearance on AOL’s lemondrop today. The good folks over there were kind enough to ask me to write something up about saving on your taxes. I gave them a list of 10 ways to save. Check it out!Similar Posts: