“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 […]
Displaying: Tax
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 […]
Substantiation 101
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 […]
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 […]