Three Rules for Asking Great Tax Return Questions
Asking clients great questions is central to ruthlessly efficient workflow (REW) management. Great client questions can save hundreds of hours of time during tax season and prevent projects from falling behind schedule. Here is an example of questions done badly. ... Frank Stitely, CPA
Common Ethical Issues in a Tax Practice
The nature of tax practice presents a number of unique ethical issues. Tax practice requires compliance with multiple ethical frameworks. This creates ambiguities and raises complex questions. Courts have even questioned whether certain regulatory... Ryan Dean
Your Questions Answered
1. Question: My client is a J-1 visa holder from France attending medical school in the United States to be a pediatrician. She first came to the U.S. in 2017 and began working as a medical researcher in the graduate medical program. In July 2019, my client began her medical residen... Brittany J. Benson, JD
There’s No Crying in Tax Prep
Our readers fall into two buckets, those who read the March/April issue when it arrives and those who catch up later in the year. The magazine reflects this reality as well, as does this message. For those of you reading this when it falls on your doorstep (as the son of a postman, I have a rather romantic notion of mail delivery), the message is this: What gift are you going to give your future self? You are learning things during this fi... Robert A. Kerr
It’s Deja Vu All Over Again: New Tax Forms for 2019
Form 1040 changed significantly for the 2018 tax season. It is changing again for the 2019 tax year. It appears that the 2017 and 2018 forms had a baby — the 2019 form. In other words, the pendulum is swinging back a bit. Beth Logan, EA. 1040 and 1040-SR The cha... Beth Logan, EA
Minimum Standards for Return Preparers
Ten years ago this December, IRS Commissioner Doug Shulman announced the creation of a program to regulate paid tax return preparers. After years of pushing and advocating, IRS had finally picked up the ball and scored a touchdown. Rebecca Hawes
The Ins and Outs of Day-Care Provider Taxes: Part 1
The Ins and Outs of Part Day-Care Provider Taxes Part 1 By Laura Strombom, EA As the profession adapts to the changes under the Tax Cuts and Jobs Act of 2017, those who prepare primarily basic returns, such as a 1040 with only a Schedule A, may need to add additional areas to their practices. One strategy is to specialize in an area that will continue to demand expert preparation services.... Laura Strombom, EA, MBA, NTPI
The Ins and Outs of Day-Care Provider Taxes: Part 2
IRC Section 162, Trade or Business Expenses Section 162(a) states: In general there shall be allowed as a deduction all the ordinary and necessary expenses paid or incurred during the taxable year in carrying on any trade or business... . In a home daycare, many of the expenses have personal and business elements. Te Audit Technique Guide for child-care providers (ATG for CC) states: The examiner needs to evaluate in a fair a... Laura Strombom, EA, MBA, NTPI Fellow®