Tax Lawyer's Blog

Eric Dunmyer writing for Law.com says there are five things every plaintiff’s lawyer needs to know about taxes:
While tax law may seem dull and irrelevant to most attorneys’ day-to-day practice, in order to better serve their individual clients, plaintiffs attorneys should always keep the following five basic tax laws in mind, and advise their clients [...]

Bookmark & Share:

[Read more →]

Taxgirl Kelly Phillips Erb has been on top of the BP oil spill story like white on rice.
Here’s her most recent post on the tax consequences to recipients of BP compensatory payments:
Congressional leaders (while being slow to actually do anything about the spill) are taking their first steps towards economic relief for victims of the spill. [...]

Bookmark & Share:

[Read more →]

Here’s a little list I put together to remind you of what needs to be done today:

Make sure you understand every entry on your return before you sign it;
Sign your return (both spouses must sign a joint return);
Make sure your preparer has signed your return and your copy of the return;
Retain the signed copy of your [...]

Bookmark & Share:

[Read more →]

We didn’t need it, but here is more evidence that self-employed individuals should incorporate or form an LLC.
WebCPA reports that the IRS is intensifying it’s scrutiny of Schedule “C” filers (i.e. sole proprietorship):
Estimates by the IRS show that $68 billion of the $345 billion tax gap in 2001 was due to the underreporting of income by sole [...]

Bookmark & Share:

[Read more →]

There have been many changes in the tax laws over the last year, but most of the tax code is the same.
Here are 7 tax advice articles I wrote last year that apply equally to this year:

7 All Time Tax Concepts
S Corporations Wages and Distributions: Basic Tax Planning
Taxes 101: What Filing Status Should You Use?
5 Rules for Keeping Your Tax [...]

Bookmark & Share:

[Read more →]

Tax Preparer and economist Mary O’Keeffe of Bed Buffaloes in Your Tax Code warns tax preparers about the dangers of failing to properly report income shown on Form 1099-Misc:
Most 1099-MISC forms that we see at our VITA site are actually self-employment income that needs to be reported on Schedule C-EZ or Schedule C.
The title of [...]

Bookmark & Share:

[Read more →]

Because of the prolonged recession we expect to see many businesses report losses from their 2009 operations. Losses from S Corporations are deductible on a taxpayer’s Form 1040 only to the extent of the shareholder’s stock plus debt basis.
Tax preparers should maintain the following two worksheets (courtesy Small Business Taxes and Management) for each of their S [...]

Bookmark & Share:

[Read more →]

Kathy Kristof of Tribune Media Services offens advide on how to hire a tax preparer:
Check credentials: There are four types of tax preparers — tax attorneys, CPAs, enrolled agents and preparers.
The one designation that’s difficult to check is enrolled agents, who are licensed by the IRS. However, many join professional groups that have lists of members.
Ask questions: [...]

Bookmark & Share:

[Read more →]

Currently unenrolled, soon to be licensed (I ass-u-me), tax preparer Robert Flach in a blog post advising taxpayers on how to choose a tax preparer trots out this old saw:
 When you assume you make an ass out of u and me.

He offers two pieces of blanket advice:

Don’t assume that because a person has the initials “CPA” after his [...]

Bookmark & Share:

[Read more →]

The Sun-Herald.com reports that Greatland, one of the country’s leading providers of W-2 and 1099 products for business, has released its top W-2 and 1099 filing “pitfalls” to watch out for this tax season:
Paper filing
While many businesses are electing to e-file their W-2 and 1099 forms with the Social Security Administration (SSA) and / or the [...]

Bookmark & Share:

[Read more →]