Author: Tony Novak
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How we handle tax fraud
I wrote this comment tonight to a young Enrolled Agent struggling with a client committing tax fraud who described herself as naïve about the human behavior behind it. “XXXXXXX, this is a general comment and not in any way meant as a negative personal thing. I would suspect that anyone putting the massive time and…
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Top 8 tax myths
1. Paying taxes is voluntary. 2. Students don’t need to pay taxes. 3. If I can’t pay my taxes I could go to prison. 4. An LLC helps convert personal expenses to business expenses. 5. Estate tax isn’t a big deal and doesn’t affect many people. 6. I don’t have to report income if I…
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Explanation: When there is no agreement on fees for this tax season
My professional practice is based on the principle of providing high value low cost services to working class clients. Most all of my clients have household incomes under $1 million and consider themselves “working class”. As a result, most of my fees tend to fall range of 1% to 2% of a client’s gross annual…
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America Competes Act could bring tax changes
America Competes Act is not intended as tax reform legislation. Yet some tax advisers are talking about the impact it could have on individuals and businesses. First, we should consider that the probability of this proposal becoming law is high. This status is far different from the many rumors and massive amount of tax reform…
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Taxes are complicated!
Tax legislation is certainly complex. But, in reality, tax legislation is only about a million words in total. That’s about the length of seven novels. It would be manageable it that was all we had to consider. But tax law includes a lot more than just the legislation. A tax professional must have an understanding…
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Confusion over tax return due dates
Here is the simple scoop you need to know: Partnerships and S-corporations are due March 15. The reason these are filed first is that the information reported must flow through and be used as input to prepare other types of tax returns to follow. This is why tax geeks refer to them as “flow through…
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Top 10 IRS audit triggers and what you should do about it if you are at risk
Here are the top 10 IRS tax audit triggers, as compiled and published by The Wall Street Journal1 on March 5, 2022:1. Education tax credits2. Small businesses3. Child tax credit4. Cryptocurrency5. Earned income tax credit6. Large charitable deductions7. Rental income8. Home office deductions9. Early withdrawals from IRAs and 401(k)s10. Health premium tax credit If you…
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Nontaxable gasoline reimbursement plan
The sudden rise in gasoline prices is causing employers and nonprofits to ask whether reimbursing gasoline expenses to employees and volunteers will help them continue efficient operations. This video overviews the major points to consider and offers practical tips on how to start a plan. Relevant tax code sections are 61 (gross income), 62 (exclusions…
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Should a small charity file 990N or 99EZ? It might depend on your goals
An accountant’s general rule is to provide as little information on a required filing as the law requires. But the opposite may be true for small charities. I’d love to hear your experience.
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Does an LLC need to report a change in ownership?
This is part of a series of short videos on Limited Liability Companies.