Written by Guy Schmitz J.D., LL.M. We all recognize the importance of substantiating expenses, but it still helps to remind ourselves of that importance (from time to time) so we can remind our clients. Clients bemoan the complexity of the Code, and they are right. A review, however, of any of the daily or […]
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More Than an Extender Act
Written by Guy Schmitz J.D., LL.M. Commentators have wisely emphasized the extender provisions of the recently passed federal tax legislation because the extender provisions are the bread and butter of any tax practice. There are, however, other provisions that merit attention, including a new savings provision designed to meet the financial needs of disabled persons […]
The Trust Fund Tax — The Scary Tax
Written by Guy Schmitz J.D., LL.M. We can probably agree that there are Code sections that are stupid, too complex, or wondrously ambiguous (leaving us with wiggle room), but there is a combination of Code sections that is truly scary. Taken together, these sections equal the trust fund tax. The Code Combination Under […]
Three Little Words
Written by Guy Schmitz J.D., LL.M. The constant concern of practitioners is a new client who wants to start a new business. The business plan may be a jewel beyond compare, but the client may know nothing about running a business. Practitioners cannot speak to issues such as hiring and firing because such issues […]
Are You Scared to Talk to Your Clients About Charitable Giving?
By Jack Surgent, CPA There is an embarrassing fact that CPAs don’t like to talk about: many of our wealthy closely-held business owner clients give very little to charity. While you may think that this reflects negatively on the character of the client, don’t jump to that conclusion. The truth is that most of […]
Congress Passes Tax Extender Legislation
On Tuesday, the Senate passed a bill that would retroactively extend more than 50 expired tax provisions though 2014. The bill was passed by the House of Representatives on Dec. 3 and is now awaiting a signature from President Barack Obama. Earlier proposals to permanently extend some of the expired provisions or to extend […]
The Adage Is Right. There Really Is No Free Lunch
Written by Guy Schmitz J.D., LL.M. The IRS has decided to look at tax-exempt meals offered by Google (and other companies) to its employees. Once again we have an example of the core of tax law (and all law for that matter): the application of a general principle to specific facts. See below. […]
Recapitalization of a Company—Gift Tax
Written By: Guy Schmitz, J.D., LL.M. Consider advising your clients that all transfers potentially have tax consequences. Clients know that if they sell stock for a purchase price in excess of basis, there will be gain (assuming no offsetting losses). They will recognize quickly (if you tell them) that the transfer of services for money […]
No Groundhog Day This Time?
Written By: Guy Schmitz, J.D., LL.M. Is there anything worse than the Congressional ritual of letting temporary provisions expire and then resuscitating them, nominally retroactively? While the members of Congress undoubtedly trumpet their extender legislation as an accomplishment to save these important tax benefits, the fact was that the taxes that affect decisions on […]
Full Disclosure: Don’t Be Afraid of Form 8275
Surgent founder and veteran CPE instructor Jack Surgent shares why he's not afraid of filing Form 8275, and why you shouldn't be either!