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Don’t Tell My Clients About This Case

I always tell my clients to keep good records.  Often, I tell them again and again annoyingly.  It is my experience, and I daresay the experience of most other tax practitioners, that a taxpayer’s failure to keep good books and records will almost always result in a bad experience, if the taxpayer has to tangle […]

That Makes Me Smart

Of course, I watched the presidential debate on Monday night.  It was great entertainment.  Captivating reality TV.  Better than “The Apprentice.”  Better than “Naked and Afraid.” To me, the highlight of the show was Donald Trump’s blurting out a response to Hillary Clinton’s conjecture that he may not be releasing his returns because he may […]

A Trillion Here, A Trillion There . . .

I ended my last blog with a quote attributed to the late Senator Everett Dirksen:  “A billion here, a billion there, pretty soon you’re talking real money.” How about:  “a trillion here, a trillion there . .  .”? Relatively quietly, the Inspector General of the U.S. Department of Defense released a report on July 26, […]

The Gig Economy – Another Problem for the IRS

Today, the IRS released on its website a “Sharing Economy Tax Center” (“SETC”).  The IRS cautions therein that if you receive income from a sharing economy activity, you’ve got income that should be reported on your tax return and that may result in taxable income, after taking into account allowable deductions and exemptions.  The SETC […]

Analysis of Trump Tax Plan versus Clinton Tax Plan – One Day Shelf Life

This quick analysis is subject to change and is possibly accurate as of August 15, 2016.  If there is anything wrong with it, there are a few possible reasons.  For example, the blog may have been misstated by the “disgusting and corrupt media.”  Alternatively, somebody – probably Russian operatives – may have hacked my email […]

How Would You Like to Win a BRAND NEW… Tax Bracket?

Carrie Reese, CPA, guest blogs today while I am lounging in Northern Michigan on the shores of Grand Traverse Bay.  Carrie is a valued member of our tax department, an up-and-coming leader in the Dallas Society of CPAs, and a new mom.  She’s pretty funny, too. Earlier this year (two days after the tax deadline […]

When in Doubt, Fill it Out

Some of the most draconian financial penalties levied by the U.S. Treasury are associated with the Foreign Bank and Financial Accounts Report (“FBAR”).  This report is made on FinCEN Form 114 by U.S. persons having a financial interest in or signature authority over foreign financial accounts, if the aggregate value of the foreign financial accounts […]

Aw, the IRS has a heart

Today, the IRS issued Announcement 2016-25:  Tax Treatment of Payments made on Behalf of or Reimbursements Received by Residents Affected by the Southern California Gas Company Natural Gas Leak. Let’s refresh our memories.  The Aliso Canyon gas leak (also called the Porter Ranch gas blowout) was a massive gas leak from a well that was […]

Hey Vance, can I deduct my car expenses?

That’s not an unusual question.  The exchange continues often like this. Vance:  Do you have contemporaneous records that document (1) the amount of the expense; (2) the time and place of the travel or use; and (3) the business purpose of the expense? Client:  Well . . . Vance:  How about an after-the-fact reconstruction of […]

OUCH!

I agree with the IRS’ and Tax Court’s interpretation of the law, but Mr. Udeobong sure paid through the nose – twice, to be exact.  I’ll save you the gory details.  In fact, they might make you a little less sympathetic.  In any case, Mr. Udeobong still took a lickin’.  Here is the summary and […]

Psychometrician ≠ Tax Expert

Professor Emeritus Lawrence M. Aleamoni is a psychometrician.  I am not exactly sure what that means, but I assure you that it does not mean “tax expert.”  Actually, it seems that one may not have to have taken a single accounting course to be a psychometrician. Professor Aleamoni many years ago established a corporation in […]

Caught Twixt a Rock and a Hard Place: The IRS and Hobby Losses

I’ve blogged about hobby losses a few times.   Section 183 of the Internal Revenue Code generally disallows business tax deductions for activities “not engaged in for profit” – hobbies.  The regulations under Section 183 provide a nonexclusive list of nine factors used to analyze a taxpayer’s profit objective with respect to an activity.  In the […]

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