Author: Tony Novak
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Don’t get angry, get tax free
A wave of recent media reports indicates that a large number of taxpayers are angry this filing season. Some people point out that the public reaction is illogical because the total amount of income taxes actually is actually lower for most people. Yet there may be good underlying reason for that anger. Originally we read…
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Why are taxpayers so angry this year?
We are exactly one week into the first tax filing season under the new rules of the Tax Cuts and Jobs Act and I’ve already heard or read more than a hundred complaints from individual taxpayers about their federal income tax results. All but one of my clients so far are frustrated with the amount…
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Should I convert from an S Corp to C corp?
The majority of my business-oriented blog posts here take on a complex topic and re-frame the subject it in more simplistic terms for the purpose of opening a discussion from the perspective of small business management. This is exactly the purpose of this blog post. There is no attempt here to capture or even summarize…
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How to grow a tax practice
Today a group of online tax professionals across the country discussed the ways they’ve built their tax practice. I am interested because with two recently added excellent staff members, we could handle several hundred more tax returns. The clear #1 source of business is referrals. I recently published a blog post for clients and friends…
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Robocall response II
Last year I appeared on a short segment on the NBC national news and the Today Show about how robocalls have disrupted the traditional role of my business telephone. In the NBC interview I said “I like to talk to customers, strangers, clients, but it actually made me hesitant to even want to pick up the…
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Four taxpayer reactions as the realities of new tax law hit home
Of the first 5 individual income tax returns that I prepared this week, 4 had unexpected problems and complications. Other tax preparers report unexpected and disturbing taxpayer reactions. Income tax filing season opened four days ago on January 29. Day by day now the real impact of the new federal tax law is hitting home…
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Six basic rules for handling a tax audit
Everyone hopes to avoid a tax audit but sometimes it happens anyway. An audit always starts with a written notification by mail from the IRS, state, or local tax authority. It might just be triggered by a simple computer-generated “mismatch” error or it might be the beginning of one of the more rare types of…
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Platinum Level QuickBoooks ProAdvisor
Did you see the episode of ABC sitcom “Modern Family” where Jay and the family visit Mandalay Bay? In the story line, Jay learns there is an even better high level accommodation than the resort penthouse suite he booked so he becomes obsessed with trying to upgrade, only to learn that there are still higher levels…
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Five tax deductions you will miss this year
The Tax Cuts and Jobs Act eliminated some of the tax deductions that helped some taxpayers reduce their taxable income. These are the five you are most likely to notice when you file your 2018 return: Personal exemptions Employee business expenses Tax preparation fees Investment advisor fees Mortgage interest and property taxes above $10,000 Talk…
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A quick peek at 2018 income tax results
Here is an interesting observation of an early filer, a married client with about $170,000 total income: This chart shows marginal and effective overall tax rates for 2016, 2017 and 2018. Note the steady decline in tax rates, first in 2017 due to tax planning and then in 2018 due to the change in tax…