Business Strategies Archives - Think Outside the Tax Box

Business Strategies

By Lewis C. Taishoff

TAX COURT ROUND-UP – January 2023

I'm new here, but I know enough not to try to do what everyone else does. I won't try to cover the wider tax picture. I cover United States Tax Court on my blog, so here's a brief round-up on what went on in Tax Court during the last month that I think is of interest to the tax planner and practitioner...

READ MORE

Live Webinar Event: The DeFi & Digital Asset Taxation Course

Join nationally recognized speaker and educator Matt Metras, EA, as he guides you through the ins and outs of mining, staking, forks, airdrops, DeFi swaps, yield farming, liquidity pools, NFTs, and more. With little guidance in these areas, you'll learn how to apply existing code sections to cryptocurrency situations, with a focus on finding tax-saving opportunities. We'll also cover how to extract transactions from the blockchain and introduce you to a number of helpful tools. This two-hour course is packed with valuable information, but it’s more than just information - we're also offering continuing education credits to qualifying attendees, courtesy of the American Institute of Certified Tax Planners.

Read More

Using S Corporations to Minimize FICA And Medicare Tax

When United States Tax Court Judge Paris issued the opinion in the case of Ryan Fleischer in 2016 , it caused quite a stir in the tax blogosphere. And from what I have been able to gather off the record it remains of interest. The Fleischer decision makes it very difficult, if not impossible for some financial professionals to use S corporations to mitigate self-employment tax. Rather than attack on reasonable salary, the IRS took an assignment of income approach, which succeeded throwing planners for financial professionals like Fleischer into a bit of an uproar...

Read More

Live Webinar Event: Qualified Plans with Unique Options

The IRS is deploying technology and big data to combat compensation under-reporting. What does this likely mean for you and your S Corps? That Reasonable Compensation challenges will likely occur outside the traditional exam process. A challenge may come from the ongoing Employment Tax Program or the recently launched CIP. From our polling, we find most tax advisors and their S Corp clients are dangerously unprepared for an IRS reasonable compensation challenge. If you are working with S corps, here’s the news you need to know...

Read More

The Safeguards Rule — Are You Compliant?

Tax professionals must take measures to prevent unauthorized access to customer information. For example, you should limit access to customer data to only those employees who need it for their jobs. Also, outsourcing tax preparation in your firm can impact this security. In October 2019, the IRS added a new question about data security responsibilities to the form to obtain or renew a PTIN. As a tax professional, it’s important to understand what the Gramm-Leach-Bliley Act requires and how you can comply. Keep reading to learn what steps you can take to help protect the confidential information of clients and ensure GLBA compliance.

Read More

Inflation Reduction Act — Up to $40,000 in Tax Credits with Clean Commercial Vehicle Credit

First, you need to get an EIN, then get an LLC, establish business credit, and then you can buy a car in your business name. That process may get you a new car but that does not make it a business expense or eligible for a credit. Friends, that is not how this works; that is not how any of this works. I’ve noticed a recent obsession in the online business world with writing off car expenses. Especially clean vehicles since President Biden signed the Inflation Reduction Act in August. There is a correct way to do so, and then, there are a variety of ways to do it incorrectly. If you don’t believe me, just scroll through TikTok and Instagram, it will make your head hurt. Misinterpretations of Section 179 have set the internet ablaze. That is why I want to make sure we set the record straight on how the clean vehicle credit can benefit businesses. That is if your client follows the guidelines set by the IRS. *Hint, hint: It requires more than buying the car in your business name using your business credit. Let’s look at the amendments and additions to the IRC that make this credit valuable to business owners too. You have an opportunity to help your clients save $7,500 to $40,000 when they buy a qualifying clean commercial vehicle from now until December 31, 2032.

Read More
Client Alert

IRS Tech Targets S Corp Officer Compensation

The IRS is deploying technology and big data to combat compensation under-reporting. What does this likely mean for you and your S Corps? That Reasonable Compensation challenges will likely occur outside the traditional exam process. A challenge may come from the ongoing Employment Tax Program or the recently launched CIP. From our polling, we find most tax advisors and their S Corp clients are dangerously unprepared for an IRS reasonable compensation challenge. If you are working with S corps, here’s the news you need to know...

Read More

Live Event! Reasonable Compensation for S Corps Webinar

A TOTTB Live Webinar Event sponsored by our friends at RCReports! For two decades the IRS has been preparing an assault on reasonable compensation for S Corps. Their arsenal is now fully locked and loaded. In it, there is everything from commonsense tools to obscure memos. We will explore key court cases, IRS guidelines, preparer penalties and some of the obscure weapons the IRS has put in place. We debunk common myths and fiction on how reasonable compensation should be calculated and replace it with facts and methodologies that the IRS relies on.

Read More

Just Good Business – Review and Shop Your Financial Accounts

The fourth quarter just started and it's time to have your clients take a look at their financial services game plan. With interest rates approaching historic highs now is the time to review financial accounts to ensure high returns on cash investments, optimize reward-bearing accounts, and minimize interest paid and fees for financial products and accounts. The goal of this review is to ensure that investments and rewards programs are tuned for optimal results and to minimize interest and fees throughout next year. I won’t be providing much in the way of specific, prescriptive advice. I am not a registered investment advisor or a certified financial planner, nor do I recommend specific products, services, or institutions (other than a subscription to this publication). Rather, I will be providing a framework for the review, encouraging you to ask good questions about the goals for the various accounts, and reminding you to consider the big picture as well as the role each part plays in it. Let’s get started!

Read More
1 2 3 10
  • NOT A MEMBER YET?

    SUBSCRIBE TO GET ALL OF OUR
    GREAT ARTICLES AND RESOURCES!

  • Scroll to Top
    error: Alert: Content is protected !!