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Billionaires And Millionaires: Wanting Tax Expertise

Billionaires And Millionaires Needing Tax Expertise

Over the past few months, TaxConnections has been approached by our members for referrals to the very best tax and financial planning expertise outside of their own areas of technical knowledge. They are smart enough to understand when they need tax and legal professionals with expertise that spans multiple states, countries and cross border issues.

Every day we are approached for referrals to experts who can handle a wide range of tax and financial issues. The purpose of this post is to clarify the referral network we have for our members and visitors to www.taxconnections.com. The best way is to give you examples as our referral network very interesting.

Business Professionals Who Contacted Us For Referrals

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Fighting Section 6654 Penalties – Are Your Circumstances Unusual Enough?

Fighting Section 6654 Penalties—Are Your Circumstances Unusual Enough?

The year 2020 has seen some very unusual circumstances and events—the Australian wildfires, the COVD-19 pandemic, the presence of murder hornets, a contentious presidential election—and the year is not over yet! Throughout this year, taxpayers may have missed estimated tax payments or underpaid their estimated taxes. This can have consequences come tax filing season next year. The year 2021 (which everyone hopes will be better than 2020) may already have certain types of tax penalties waiting for taxpayers.

Section 6654 Penalties, Generally

The Internal Revenue Service (“IRS”) may assess failure-to-pay-proper-estimated-tax penalties based on I.R.C. Section 6654. According to I.R.C. Section 6654(a):

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How To Select A Financial Advisor: The Least You Should Know (Part 14 In eBook Series)

How To Select A Financial Advisor: The Least You Should Know (Part 14 In eBook Series)

Chapter 13: Bonds and Bond Funds

Most individual investors include bonds as part of their investment portfolios. Typically, bonds are the “safer” (or less risky) part of the portfolio. Essentially, bonds are loans to the government or a corporation, which are then paid back to the lender or bondholder over time. To simplify, a buyer of a bond has a contractual right to interest payments on a regular basis, and then the return of the principal. An exception would be a zero coupon bond (zeros), which has no coupon. Zeros are purchased at a discount to the par or face value. Upon maturity, the bonds are worth par or 100. The difference between 100 and the purchase price is your return. By purchasing bonds from highly-reliable issuers, a bondholder can have a very safe stream of income in the future.

Bondholders are protected. Usually, if a corporation goes bankrupt, bank debt is paid first, then secured bondholders, then unsecured bondholders. Only after those obligations are paid will excess funds be distributed to the holders of preferred and finally common stock.

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Expensive Problems Related to New IRS 1040 Rules For S Corporation And Partnership Basis Calculation Attachments

Expensive Problems Related to New IRS 1040 Rules For S Corporation And Partnership Basis Calculation Attachments

How to Avoid Annoying & Expensive Problems Related to New IRS 1040 Rules for S Corporation and Partnership Basis Calculation Attachments

What You’ll Learn
Why IRS is now forcing tax preparers to include S Corp & Partnership basis information on Form 1040How to calculate basis for S corps and partnerships for purposes of filling out Form 1040

What to do when the client has no idea what his basis is, cannot understand why you need such a thing, you never asked about this before, and so forth and so on, a.k.a. “Yada Yada Yada.”

How tax preparers can turn basis problems into income earning opportunities

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What You Need To Know About Long-Term Impacts Of The Pandemic On Online Retailers

What You Need To Know About Long-Term Impacts Of The Pandemic On Online Retailers

In the last 10 months, much of daily life has been turned upside down. Large events have been canceled, schools have switched to distance learning and many workplaces are still depending on remote setups for employees.

One of the many other consequences of the pandemic is the temporary closure of in-person retailers. Between this and understandable safety concerns, many consumers have turned to online shopping as their default.

This has offered many retailers the lifeline they needed to stay afloat during the pandemic, but it’s also creating problems for those that were unprepared for the complex tax burdens associated with online retail.

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The Tax Court in Brief: Freeman Law

Freeman Law | The Tax Court in Brief

Freeman Law’s “The Tax Court in Brief” covers every substantive Tax Court opinion, providing a weekly brief of its decisions in clear, concise prose.

For a link to our podcast covering the Tax Court in Brief, download here or check out other episodes of The Freeman Law Project.

The Week of October 10 – October 16, 2020

Jesus R. Oropeza v. Comm’r, 155 T.C. No. 9 | October 13, 2020 | Lauber, J. | Dkt. No. 15309-15

Short Summary:  The case involved the issuance of a notice of deficiency without the proper written supervisory approval provided by I.R.C. sec 6751(b)(1).

The IRS opened an examination to review Mr. Oropeza’s (the “taxpayer”) tax return for the 2011 tax year. The period of limitations for 2011 was set to expired on April 15, 2015.

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Gig Economy And Your Taxes: Things To Know

Gig Economy And Your Taxes: Things To Know

What do driving for a ride-sharing company, renting out a room through a rental service, and working for a company that outsources errands and tasks have in common? These are all examples of the gig economy. Just like any other office job, money earned through the gig economy is taxable.

As a gig economy worker, it’s your responsibility to keep track of the money you make and report it on your tax return.

This means if you receive income from a gig economy activity, it’s generally taxable even if you don’t receive a Form 1099-MISC, Form 1099-K, W-2 or other income statement.
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IRS On Medical And Dental Expenses And Deductions

IRS On Medical And Dental Expenses And Deductions

If you itemize your deductions for a taxable year on Schedule A (Form 1040 or 1040-SR), Itemized Deductions PDF, you may be able to deduct expenses you paid that year for medical and dental care for yourself, your spouse, and your dependents. You may deduct only the amount of your total medical expenses that exceed 7.5% of your adjusted gross income. You figure the amount you’re allowed to deduct on Schedule A (Form 1040 or 1040-SR).

Medical care expenses include payments for the diagnosis, cure, mitigation, treatment, or prevention of disease, or payments for treatments affecting any structure or function of the body.

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Business And Tax Climate: Focus on New Mexico

Business And Tax Climate: Focus on New Mexico

New Mexico, nicknamed as “The Land of Enchantment,” is located in the Southwest part of the United States. The state was admitted to the union as the 47th state on January 6, 1912. It is one of the mountain states and shares the Four corners region with Utah, Colorado, and Arizona.

The dramatic climate, a sharp diversity of people, and famous landscapes are some of the things that make New Mexico a unique state. The state’s climate is generally semiarid to arid, though portions of the state have a continental and alpine climate, and its terrain is mostly covered by mountains, high plains and desert. The state is home to prospering art communities, colleges, and historic sites that inspired many influential early artists.

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A Gift For You: 250+ Tax Jokes, Tax Quotes, Fun Tax Forms

FREE - A Gift For You: 250+ Tax Jokes, Tax Quotes, Fun Tax Forms

Congratulations On Finishing The Tax Season Of The Century!

We have a free gift for all tax professionals today! TaxConnections gives our complimentary eBook to every tax professional. Enjoy a compilation of more than 250+ tax jokes and fun tax forms with this complimentary download.

We want to give you something to remind you to take a moment today to enjoy your life with laughter! There are many known health benefits to laughter including: lowers blood pressure, reduces  stress hormones, improves cardiac health, boosts T-Cells, triggers the release of endorphins, and produces a general sense of well-being. Laughing is also very good for you! Add more laughter to your life today!

Request your complimentary copy:

250+ Best Tax Jokes, Tax Quotes, Fun Tax Forms.

Conservation Easement Deductions: A Primer On Key Provisions

Conservation Easement Deductions: A Primer On Key Provisions

The IRS has been focused on enforcement efforts targeting conservation easement transactions.  And IRS data indicates that more enforcement efforts lie ahead.  The Senate Finance Committee, which has been engaged in a years-long investigation into the tax play, recently released a report noting a “significant increase in conservation easement transactions,” and its chairman expressed concerns about what he characterized as the “serious and persistent abuse of the syndicated conservation easement program.”  The IRS, in virtual lockstep, has used similar rhetoric, vowing to use “[e]very available enforcement option . . . including civil penalties and . . . criminal investigations” to carry out its “pursuit of everyone involved in the creation, marketing, promotion and wrongful acquisition of artificial, highly inflated deductions” associated with syndicated conservation easement transactions.  See here.

This enforcement focus has given rise to newfound interest—both from politicians and the public—in conservation easements, though they are anything but a new phenomenon.  And while the concept and focus has given rise to a fair amount of public fodder and rhetoric, the truth is that the tax-compliance aspects of conservation easements are quite complex.  In this article, we will canvass a number of the fundamental tax provisions with respect to conservation easement deductions.

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Ask Ed: Financial Planning Questions And Answers

Ask Ed: Financial Planning Questions And Answers

Once I read Ed Mahaffy’s book titled “How To Select A Financial Advisor: The Least You Should Know”, interviewed him, reviewed his video library, I knew we had the right person for this special financial planning series. On Fridays, TaxConnections presents questions often asked of a Financial Planner.

Ask Ed:  Special Financial Questions 

Question: The financial challenges of Covid 19 can no doubt cause reductions in retirement contributions. This makes cutting retirement plan expenses even more important. Let’s assume Annual expenses amounting to 0.75%. This may not sound like much but cutting this expense can make a huge difference over time. How much?

Answer: Assume $10,000 annual contributions for 40 years earning a 6 % annual return. Reducing fees by 0.50% could save this participant well over $100,000. It pays to stay on top of your plan expenses.

Question: Is the 60/40 (stock/bond) portfolio asset allocation portfolio still viable with interest rates so low?

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