Now that you have made it through yet another tax season it is time to start thinking about what to do next. Is it too soon to start preparing for next tax season? Should you start looking for new clients? Here is a list of great things to take advantage of the post-tax season time […]
Displaying: Tax
Campaign Finances: What Your Clients Need to Know
During the 2012 presidential election, the Obama and Romney campaigns received over $4 billion from individual donations, political parties, action committees and congressional candidates. The total amount comes to over $4 billion, which is less than the 2012 GDP of Sweden, Austria, Chile and other small countries. Of that $4 billion, almost $602 million […]
What CPAs Can Learn from Arabian Horses
Written by Guy Schmitz J.D., LL.M. Code §183(a) generally disallows any deduction attributable to an activity “not engaged in for profit.” The section prevents those indulging in a hobby from offsetting their hobby losses against taxable income from other sources. See a recent case, Henry J. Metz, et ux. v. Commissioner, TC Memo 2015-54, which […]
Staffing Cutbacks Lead to Unpaid Taxes by Millionaires
With tax season coming to a close, millions of dollars are going unpaid in Texas. Taxpayers owing $100,000-$999,000 in unpaid taxes are going unnoticed due to the short-staffing in revenue agents, revenue officers and criminal investigators. Five thousand fewer positions that go after the millionaire tax cheats have been dissolved in the state, leaving 1,000 […]
Last Minute Tax Season Considerations
President Obama’s 2015 budget proposal includes several items that would affect how individuals are taxed. As you’re preparing last minute taxes for individuals and families this season, take just two minutes out of your day to get ready for questions from your clients about these proposed changes. Under the proposed budget, the following changes […]
Who Are You?
“Who are you?” said the Caterpillar. — Alice’s Adventures in Wonderland “Who are you?” is an often-asked question. We may hear it from philosophers, psychiatrists, psychologists, social scientists, Homeland Security, the FBI, the CIA, the NSA, and practitioners. But we will let them tend their gardens while we tend ours. A related question […]
The Vocabulary Lesson
Written by Guy Schmitz J.D., LL.M. The Code is comprised of over 3.8 million words. A sequence of some of these words gives us bright line tests: a 3-year statute of limitations (generally) for income tax returns; a 90-day letter from the IRS, which is the ticket to the Tax Court—if that ticket is […]
Tag! You’re It: Transferee Liability under the Internal Revenue Code
Written by Guy Schmitz J.D., LL.M. Clients know little or nothing about transferee liability. If the need arises, it’s your job to give them advice about transferee liability, assumedly not the kind of advice the taxpayers got in Feldman, et al. v. Comm., 115 AFTR 2d 2015-xxxx (7th Cir. 2015). Feldman The Facts: William […]
Catch Up On Estate Tax Changes
Under the proposed budget for 2015, President Obama would implement changes that would significantly affect estate taxes. The key estate tax-related proposals include: A new $3.5 million state tax exemption and a one million dollar gift exemption Non-taxable annual gifts would be limited to $50,000 per donor Step-ups would not be allowed on intangible […]
Limited Liability Companies Electing Status as S Corporations: The Unstable Hybrid
Written by Guy Schmitz J.D., LL.M. When advising on choice of entity, practitioners will sometimes recommend that a client form a limited liability company, which then elects to be taxed as an S corporation. There are good reasons for this recommendation, all touching upon state taxation. Whether the federal election is automatic at the […]