Feature Article

As the nation’s tax experts, enrolled agents (EAs) crucially influence taxpayers’ financial well-being and compliance with tax laws and regulations. A critical aspect of this role includes confirmin... Jeremy Wells, EA, CPA

Feature Article

Editor’s note: Fees are a hot topic currently in the tax industry since there is high demand for our services but limited capacity in our firms. Circular 230 does cont... Jeremy Wells, EA, CPA, and Sarah Moessinger, EA

Feature Article

Visit social media or Google these days and you will most likely see advertisements for tax planning. But many taxpayers (and even tax professionals) are confused about the differences between tax planning... Dominique Molina, CPA

Tax News Briefs

Employee Retention Credit Guidance for First and Second Quarters of 2021 The Internal Revenue Service (IRS) has now released guidance to address changes made by the Consolidated Appropriations Act, 2021, for... TheTaxBook

Feature Article

Being a real estate professional has its tax advantages, And the average landlord does not want to pass it up. But misusing the classification can unravel expected tax consequences. Investing in rental real estate can be a l... Thomas J. Williams, EA, and Iris K. Palma, JD

Feature Article

Cash-Intensive Businesses A cash-intensive business is one that receives a significant amount of receipts in cash. Think of as many businesses as you can that deal in cash such as hair salons, pizzerias, restaurants, laundromats, ... Jo-Ann Weiner, EA, NTPI Fellow®

Feature Article

The COVID-19 pandemic is impacting global supply chains – and, as a result, international tax transfer pricing policies – at alarming speeds. Amid this chaos, companies risk making impulsive, short-term decisions with long-term effects. In order to successfully prepare for sign... Kevin Croy, CPA

Feature Article

The spread of COVID-19 is impacting businesses around the world. As entities consider the effects of COVID-19 on their global operations, careful consideration is needed in understanding the accounting implications of these developments. The many ramifications of the curr... April D. Little, Ciro Buttacavoli, and Adam Lehmann

Feature Article

Foreign corporations (FCs) often have varying degrees of U.S. business activities which in turn subject them to varying degrees of U.S. tax exposure. Anthony (“Tony”) Malik, EA

Payroll Corner

Reimbursing Employees’ Business Expenses after the TCJA The Internal Revenue Code does not require employers to reimburse employees’ out-of-pocket business expenses. Employees were not completely out-of-pocket if their employers chose not to reimburse those costs. The... Alice Gilman

Feature Article

I read Gil Charney’s analysis of the application of §199A to a rental activity in the September/October 2019 edition of EA Journal (“Your Questions Answered,” pp. 12-13) and I do not agree with it. In that case, I believe the taxpayer clearly qualifies to take the §199A deduction on th... Thomas A. Gorczynski, EA, CTC, USTCP

Feature Article

The 2017 Tax Cuts and Jobs Act (TCJA) created a 20 percent qualified business income (QBI) deduction for non-C corporation businesses. On August 16, 2018, the IRS, as part of the rulemaking process inherent to administrative law, opened the proposed ... Christine Kuglin, EA, JD

Feature Article

Reconstructing Vehicle Mileage LOGS By Bill Nemeth, EA Most examinations of personal tax returns involving Schedule C self-employment request information on car and truck expenses. IRS recommends contemporaneous mileage logs per IRC §1.274-5T(c)(1), but does not require them. The code makes the point that the records should be created in “close” proximity to the time of the activity. Adequat... Bill Nemeth, EA, NTPI

Feature Article

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

Feature Article

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

Practice Builder

It seems that every time I talk to other tax professionals, they are worried about the changes in our industry and what is coming on the horizon. I know of four seasoned professionals who have retired primarily because they do not want to deal with the tax code changes i... Jennifer Brown, EA

Feature Article

This topic can easily occupy several hours. So, what is all the hype about? Qualified business income (QBI) qualifies a small business to deduct up to 20 percent off its net income. This is income that normally gets reported on Form 1040. This includes sole proprietors, andlords, farmers, p... Ben A. Tallman, EA, USTCP

Tax Court

Generally, a taxpayer may correct an error in a tax return without incurring interest or penalties by filing an amended return and paying any additional tax due on or before the due date (last day prescribed for filing). An amended return filed after the due date may be accepted, rejected, or ignored by the IRS in its sole discretion. It has been held that where the taxpayer files a false or fraudulent tax return but later... Steven R. Diamond, CPA, USTCP

Feature Article

An executor administering an estate with undisclosed foreign accounts is exposed to substantial risks that may not be apparent. The following discussion is intended for executors and administrators who wish to understand and avoid those risks.1 A Typical Scenario A taxpayer dies. An executor is appointed and learns of foreign accounts: Tose foreign accounts hold investments. The ... Frank Agostino, Esq., Nicholas R. Karp, EA, USTCP

Feature Article

U.S. persons frequently own legal entities abroad to pursue a variety of economic interests. Common U.S. ownership scenarios include expatriates forming foreign entities to locally operate businesses, U.S. residents forming foreign entities to capitalize on expansion opportunities, and entrepreneurial immigrants coming to the U.S. More often than not, these foreign entities default to corporate status à la the tax law’s default classification... Anthony (“Tony”) Malik, EA

Feature Article

Often, tax practitioners ignore or are unaware of limitations that exist for deducting losses on taxpayers’ returns. Some of the more overlooked areas in this regard are those of basis and at-risk limitations. "is article will shed some light on what may be confusing issues for practitioners dealing with these topics. S Corporation Basis Basis for an S corporation should in theory be easy to determine. An S corporation's sharehol... David Woods, EA

Feature Article

With the devastating impacts of Hurricanes Harvey, Irma, and Maria still fresh, we need no reminder that August through October is the peak of the Atlantic hurricane season (which occurs from June 1 to November 30). High winds, heavy rain, tornadoes, and subsequent flooding can all wreak havoc on coastal residents, including destroying billions in property every year for individuals and businesses alike. Taxpayers who live far from the oc... Stephen Mead

Feature Article

With today’s hot real estate market and rapidly escalating property values, many clients are engaging in real estate investing and house flipping. Indeed, there are many reality TV shows and real estate networks dedicated to glamorizing the quick profits that can be made in these activities. What these programs fail to mention are the tax consequences of these transactions. As tax professionals, that’s where we come in... Keith A. Espinoza, EA

Feature Article

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

Feature Article

In 1954, Congress enacted a temporary research and development (R&D) credit codi!ed by Internal Revenue Code (IRC) Sec. 174. "e purpose of the credit is to encourage inventors and companies to pursue research and development of new technologies. Although simple in theory, there have been problems with its implementation. Critics have argued that the credit is confusing as to which expenses qualify as “quali!ed research expenses.”1Darshan Wadhwa, CPA, and John Leavins, CPA

Feature Article

There are many ways our clients seek to get money for their businesses, inventions, or new endeavors. They apply for bank loans, ask family members, dip into personal savings, or in some circumstances, seek the help of venture capitalists. As with most things in life, each option has its plusses and minuses. But now there is a new kid on the block: crowdfunding. What is crowdfunding? According to Oxford Dictionaries.com, it is defined as ... Jeffrey A. Schneider, EA

Feature Article

EACH YEAR, the NAEA National Conference delivers high-quality tax education to enrolled agents and other tax professionals. This year will be no exception! Once again, seekers of top-notch representation and tax preparation education will gather in Las Vegas, NV, at the Cosmopolitan Hotel August 1–3. To give you a sip of the action, we’ve chosen to showcase some of the outstanding education on tap this year. In the following... Theodore (Ted) A. Sinars, JD

Feature Article

An elementary question in business international taxation involves ascertaining the classification of foreign entities for U.S. tax purposes. This question emerges whenever a foreign business pursues U.S. economic activity or when a U.S. person establishes a business outside the U.S. While foreign entities enjoy definite classification under the laws of their respective countries of organization, their classification under U.S. tax law may be... Anthony (Tony) Malik, EA, MPAcc