Gambling As a Profession Tax Implication
The thrill of a slot machine jackpot is exhilarating. Waiting for a casino attendant to come and do the legendary “hand pay” (paying the taxpayer at the machine) gets taxpayers’ hearts racing. Most taxpayers get so caught up in the moment that the tax consequence of their winning is a distant thought. It is so distant, in fact, that many taxpayers forget they even received that W2-G and leave it off their tax return. However, when the... Tracy L. Bunner, EA
Preparing For The New IRS Partnership Audit Rules
Partnerships and entities taxed as a partnership, such as certain limited liability companies (LLCs), have become a popular entity choice for doing business over the past 50 years. This tax structure offers business owners significant benefits, including taxation at only the partner level. Another benefit that often goes unnoticed is that very few partnerships are audited by the IRS. Moreover, when the IRS engages in a partnership audit, t... Travis Greaves, JD, Josh Wu, JD
Strategies for Avoiding CP2000 Notices
Let’s start at the beginning. What is a CP2000 Notice, and when is it generated? Here’s what happens. The IRS Automated Underreporter Unit (AUR) matches income reported on individual tax returns with the income that is reported to the IRS from various third parties (e.g., employers, financial institutions, and banks) and recorded in its wage and income transcript file. If there is a difference, the IRS “flags” the tax ... Bill Nemeth, EA
The Adoption Tax Credit and Foster Care Adoptions
Do you have clients who are foster parents? Do you have clients who have adopted from the foster care system? If you have answered yes to either of these questions, you need to know about the Adoption Tax Credit. Many taxpayers who are adoptive parents have been told they do not qualify for the Adoption Tax Credit because they had no expenses. As tax professionals, we often hear our clients say, “My friend told me something different.” Wi... Becky Wilmoth, EA
Using Your Website and Social Media to Gain Clients
Websites and social media are great ways to attract younger clientele to your business. In our digitally interconnected age, it is imperative to have a website that is more than an online business card. Here are five tips for an effective website: 1. A modern website must be mobile-friendly. In a world where there are more mobile devices than there are people on Earth, it is essential that your website be mobile-friendly. What e... Jennifer Brown, EA
When Can A Noncustodial Taxpayer Claim a Dependency Exemption?
William E. Lowe and Tess Lowe, Petitioners v. Commissioner of Internal Revenue, Respondent T.C. Memo. 2016-206 Filed September 26, 2016 RC Sec. 151(c) authorizes a taxpayer to deduct an exemption for each individual who is a dependent of the taxpayer for the taxable year. A dependent is defined as eith... Steven R. Diamond, CPA
Your Brand
We talk frequently about what it means to be a tax professional in general, and more specifically, what it means to be an enrolled agent, which this organization has rather cleverly branded as “America’s tax expert.” Jeff Bezos (of Amazon CEO fame) once famously quipped, “Your brand is what other people say about you when you’re not in the room.” True for a multibillion-dollar, game-changing from and true for us, too. ... Robert Kerr