A New Opportunity for Nonresident Aliens: Ownership in an S Corporation Introduction
Changes to U.S. tax law brought about by the 2017 Tax Cuts and Job Acti (TCJA) have affected many longstanding tax planning tools. One favorable change amends the rules regarding the persons who can own shares of an S corporation. Historically, the S corporation election was ... Rusudan Shervashidze, JD; Stanley C. Ruchelman, JD
Books to Tax in a Snap
When clients hands over a QuickBooks (QB) file at income tax time, the expectation is you have what you need and tax preparation will be a breeze. Depending on the client, you are either elated or you want to cringe; there is not much in between. It is important for tax preparers to feel ... Geri Bowman, EA, CPA, USTCP
Does IRS Refusal of a Taxpayer’s Proposed Offer for an Installment Agreement Constitute an Abuse of Discretion?
Kenneth Pitner, Petitioner v. Commissioner of Internal Revenue, Respondent T.C. Memo 2016-237 | Filed December 29, 2016 The IRS will pursue collection activities if a taxpayer has an unresolved outstanding debt with them. If the taxpayer disagrees with the amount of tax the ... Steven R. Diamond, CPA, USTCP
Impact of Tax Reform on Choice of Entity
The tax reform legislation known as the Tax Cuts and Jobs Act that was passed by Congress and signed by President Trump on December 22, 2017, has significantly changed how many businesses and their tax advisors approach the choice of entity decision. When deciding on how to be cla... Timothy C. Smith, JD
Mitigating Penalties for Filing Incorrect Forms W-2
Forms W-2 were filed with the Social Security Administration (SSA) by January 31, 2019, but that is the end of the story only if all those Forms W-2 are correct. While 100 percent accuracy is always the goal, it is rarely achieved. So, the second part of the year-end pro... Alice Gilman, Esq
Once More Unto the Breach, Dear Friends, Once More: NAEAs GR Objectives for 2019 and Beyond
With the close of the 115th Congress and the pomp and circumstances surrounding the opening of the new Congress, it is a good time for NAEA’s Government Relations (GR) team to assess our strategic plan, adjust and then, of course, march back up that hill again. ... Jeff Trinca
Positive Professionalism
I usually begin my president’s letters with a quote. I am not going to this time because this letter is about what should not be written. I recently attended a cocktail party where I was introduced to a friend of a friend. When our conversation reached the point of careers, I learned that his career is that of a professio... Jean Nelsen
So You Want to Buy a Tax Practice
Many tax professionals may start their career working in a tax office gaining experience while others start out completely on their own. Either way, you may eventually ask yourself the question, “How do I grow my practice?” There is definitely no right, wrong, or easy answer... Twila D. Midwood, EA, NTPI Fellow®
Tax Season Is Phishing Season
As the tax deadline approaches, work hours increase and more time is spent going through emails. This is the time when it is important to be extra vigilant when answering emails, and fulfilling client email requests. However, cybercriminals are a constant threat and once the new... Linda Hamilton, MFA
The Cruelest Month
T.S. Eliot once famously wrote April is the cruelest month—one would think him a tax professional and not a poet. In our business, March, though, vies for the title. And this March, as we roll up our sleeves and put last year’s Tax Cuts and Jobs Act (TCJA) continuing education to w... Robert A. Kerr, EA
The enrolled agent’s life is one to live! Pick a life and jump in.
My enrolled agent career started in 1987 when I received my master’s degree in accounting and finance from Regis University. Working at my own practice, JCP Financial, Inc., has been a wonderful ride of helping people with the many questions that arise on how to file their ... Carlton P. Johnson, Jr., EA, MBA
Sales Tax Nexus: South Dakota v. Wayfair, Inc. – The Facts
On June 21, 2018, the Supreme Court of the United States ruled on South Dakota v. Wayfair, Inc. The Supreme Court was asked to examine the physical presence precedents it set in two prior cases: Quill Corp. v. North Dakota (U.S. Supreme Court, No. 91- ... Alyssa Marchand, MST
The Gig Economy
The gig economy is a growing income sector in the world and a growing niche for tax professionals to harvest. Before jumping into this market, it is necessary to know some things about this area of practice. Let’s start with the definition of a gig, per Merriam-Webster: “a job usually for ... Kathryn M. Morgan, EA
Typical Payroll Tax Issues Amid Changes in the TCJA
After processing 2018 year-end payroll, employers may see the need to reevaluate processes, procedures, and tax configurations in the payroll system to ensure compliance amid the substantial changes created by the 2017 tax reform known as the Tax Cuts and Jobs Act... Joan Vines
The Tax Cuts and Jobs Act Moves the U.S. Closer to a Territorial Tax System
The Tax Cuts and Jobs Act (TCJA) fundamentally changes the taxation of outbound activities of U.S. corporations and foreign corporations doing business in the U.S. and moves the U.S. international tax regime closer to a territorial system on par with other developed countrie... Sean Clancy, JD; Frank Emmons, JD; Shahzad Malik, JD
Sales Tax Nexus: The Unintended Consequences of South Dakota v. Wayfair, Inc.
On July 24, 2017, the U.S. House Judiciary Committee held a hearing to discuss the implications of the South Dakota v. Wayfair, Inc. Supreme Court ruling. The Supreme Court overruled the physical presence nexus in this case, in favor of allowing the states to impose economic nexus standards... Alyssa Marchand, MST
Your Questions Answered
Question: Several of our clients are Canadian or Mexican citizens who live and work in the U.S. and file U.S. resident alien tax returns. Their families live in Canada or Mexico. In the past, they were able to claim exemptions for their dependents. What tax benefits will these clients qualify for, now tha... Jackie Perlman, CPA