Category: Taxes
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Our broken tax system
This isn’t the type of tax blog post that I normally write. But after decades of writing and over 2,000 tax-related posts, columns and other publications, I sense that our tax system is spinning out of control, pulling our nation into a death spiral. It is time to speak out. Almost three decades ago I…
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Tax preparers in trouble with IRS
How do tax preparers get into trouble with the IRS? In 2018 the Office of Professional Responsibility, under the Internal Revenue Service, investigated over 2,600 cases of tax preparer misconduct. According to the Office’s latest report, the three most common problems were: Claiming false credentials on Form 2848 (Power of Attorney) or using that power…
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Accounting for volunteer services provided to a nonprofit organization
The accounting treatment of services donated to a nonprofit frequently comes up in conversation. This blog post is meant to simplify three of the most common scenarios if those discussions: Should a nonprofit include the value of donated services in its reported revenue? No, unless the contributed service either: 1) creates a new non-financial asset,…
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Changing address with IRS
I would guess that half of the IRS client tax dispute matters I handle involve some form of failed notification in the storyline. The most common cause is a failure to record an appropriate change of address. Changing address with IRS is simple: Complete a form 8822 (8822-B for businesses) and mail it in. Here…
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Initial thoughts on tax season wrap up and where to go from here
Initial thoughts on the wrap up of tax season: 1. OVERALL: It was the roughest tax season in my 30+ years, yet it was not as bad for me as many others tax professionals reported. Tax accountants’ online discussion groups are filled with stories of excess stress, it’s health impact, and threats of retirement from…
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Legal requirements to release the tax returns of candidates for public office
In the aftermath of revelations about the president’s financial scandals, a number of states are moving forward with bills that would require all candidates for public office to release tax returns in order to be listed on the ballot. This blog post does not attempt to list the states, the bills or their status. We…
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Update on accounting business practices
In the normal course of business it is necessary to periodically update for changing trends, technology and legal and industry standards. This month I made the following six changes that will be reflected in future engagements: 1. Elimination of fax communications. Fax is just outdated, often insecure and inefficient. Instead, I encourage the use of…
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Five reasons that you don’t know about tax-free stocks
Our government taxes most kinds of income. The exceptions list of tax-free income is short. One of the least known sources of tax-free income is gains on qualified small business stock ownership. Gains on qualified small business stock is completely exempt from tax. So why haven’t you heard this before? Here are five good reasons:…
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Goodbye miscellaneous tax deductions
These miscellaneous tax deductions were eliminated a year ago (effective January 1, 2018) by the Tax Cuts and Jobs Act but some people are just leaning about the change now: Appraisal fees Casualty and theft losses for personal property Expenses incurred in performing services as an employee Clerical help for investments Office rent for investments…