In sports, plays drawn up in the coaching room are designed to work 100% of the time. There’s only one catch: plays executed on the playing field are faced with opponents, adverse weather, et al, which significantly bring the success rate of said plays down. Such an analogy squares well with your own tax practice, making self-reflection, evaluation and calibration of your work processes vitally important to making improvements after each filing deadline. In the upcoming webinar Actionable Steps to Maximize Growth and Profit in Your Tax Preparation Business, Shannon Bond, VP, Preparer Segment a ..read more

Question: Paul, Ringo, George and John are attorneys with their own separate law firms, each lawyer owning 100% of their respective company. One of the companies is a C corporation, the other three are Schedule C disregarded entities. The four law firms form a partnership and purchase a building with four floors, each entity owning a 25% partnership interest in the partnership, and each law firm renting one whole floor in the building. The building will be the sole partnership asset. The lawyers would like to qualify for the qualified business income (QBI) deduction with their new rental partn ..read more

Now that the 2024 tax season is over, it’s time for tax pros to start looking forward to 2025. We understand that over the past few months tax preparers have been focused on looking back at the 2023 tax year while preparing returns. However, the past few months have also seen several notable developments that will impact your clients and your practice during the 2024 tax year and beyond. Below is a roundup of recent tax items that tax pros and their clients need to be aware of. Taxpayers still have time to withdraw unprocessed ERC claims While the IRS’s program allowing taxpayers to voluntaril ..read more

As National Small Business Week approaches, we’re excited to showcase the diverse and dynamic tax offices that make up the National Association of Tax Professionals (NATP) community. From bustling urban hubs to quaint small-town storefronts, our members’ tax offices serve as vital pillars of support for entrepreneurs and small business owners across the nation. In celebration of their dedication and expertise, we called upon our members to share insights into their unique offices, highlighting the personalized services, industry specialties and community connections that set them apart. Join u ..read more

Reporting information from a partner’s Schedule K-1 (Form 1065) or a shareholder’s Schedule K-1 (Form 1120-S) can be a challenging task for preparers. In a three-part webinar series, we will debunk the process of reporting pass-through items on the owner’s return. Below, you’ll find a few of the top questions from a recent webinar on the topic and their accompanying answers. If you choose to attend the on-demand version of this webinar, you can access the full recording and the entire list of Q&As.    Q: What is an example of use of capital? Can you define that and how it differs from a pa ..read more

Question: Aaron is 25 and serves as a member of the Army Reserve. He was ordered to active duty for 190 days. One month after being ordered to active duty, he took a distribution of $10,000 from his 401(k) retirement plan. The distribution was entirely allocable to elective deferrals, and Aaron met all of the requirements to take the qualified reservist exception to the 10% early distribution penalty. One year after his active-duty period ended, he decided he wanted to put the $10,000 back into his retirement account. Can Aaron repay the distribution, or will it be considered a new contributio ..read more

With the ever-changing landscape of tax laws and regulations, there has never been a better time to invest in your education and expertise. A Master of Science in Taxation (MST) could be your ticket to unlocking new opportunities and advancing your career in this dynamic field. Here are three compelling reasons why pursuing an MST might be the right move for you: 1. Meeting the industry’s demands The taxation industry is in constant flux, with frequent updates and revisions to tax laws both domestically and internationally. As such, there is a pressing need for tax professionals who possess sp ..read more

Since Schedule C is the primary method through which sole proprietors report their earnings, tax pros catering to clients who own small businesses must be adept in its preparation. It’s a cornerstone of tax compliance for this demographic, requiring attention to detail to accurately reflect the financial activities of the business. Below, you’ll find a few of the top questions from a recent webinar on the topic and their accompanying answers. If you choose to attend the on-demand version of this webinar, you can access the full recording and the entire list of Q&As.    Q: Is it true you ca ..read more

Question: Lina filed Form 990, Return of Organization Exempt From Income Tax, by May 15, 2024, which is the due date for Alley Cats Rescue, a tax-exempt organization filing on a calendar year basis. Shortly after, the Form 990 was returned to her along with IRS Letter 2694C indicating there was information missing from her submission. She immediately called the IRS and found out that when information is missing from the Form or Schedules are omitted, the return is sent back to the filing organization and considered “not timely filed” – hence the letter to spur a correction. When she reviewed h ..read more

With the IRS resuming its campus collection operations, it is more important than ever for you to be able to help clients who owe back taxes or have a balance due with their 2023 tax return. More and more taxpayers now owe the IRS back taxes and an increasing number of taxpayers are filing with a balance due. The data After over four years of pandemic-affected operations, the IRS now has over 24 million taxpayers who owe back taxes. If that number is not startling enough, the number of taxpayers who are not in a collection agreement on their back balances is astonishing. Almost 83% are not in ..read more