How the Richest Entrepreneurs Spread the Wealth
No one has more to lose than the world’s wealthiest individuals. Their specific asset protection tools may not directly correlate to someone with more “average” wealth. However, the general strategies can provide estate and succession planning inspiration for us all. Forbes recently highlighted a few of these noteworthy case studies, starting with Nike founder Phil […]
Is C-Corp to S-Corp a Smart Move?
Reaching C-Corporation status can feel like the realization of a dream, and it can be the best structure for many businesses. However, sometimes it makes more sense to elect an S-Corporation filing status. Just don’t do it hastily: There are important considerations to be made. The C-Corp business structure is unique in that it turns […]
Dangers of TikTok Tax Advice
Are you a TikTok fan? Love someone who is? Many on the social media platform swear it’s a great way to pick up practical lifehacks, including valuable little nuggets of tax advice. But is it all it’s cracked up to be? According to a study by Personal Capital, more than half of TikTok users turn […]
Education Tax Credits: What You Need to Know
It’s back-to-school season, so what better time to talk education tax credits? Taxpayers claiming the credits are often flagged by the IRS, usually due to a simple-to-fix form mismatch. There are two education tax credits that students—and parents of students—can claim: The American Opportunity Tax Credit (AOTC) and the Lifetime Learning Credit (LLC). The IRS […]
Claiming an Adult Child on Your Tax Return
We’re often asked how long a young adult can be claimed as a dependent on their parent’s tax return. Navigating taxes on their own is a rite of passage that most would prefer to put off as long as possible, after all. Most young adults can do just that and remain as dependents on their […]
Employer Tax Breaks for Student Loan Assistance
COVID-era repayment and interest moratoriums on student loans are ending. If you’re an employer, you no doubt have employees who are affected (you may be personally affected as well). Here are some insights on how employers can help while receiving tax breaks in the process. Acknowledge the Situation Repayment requirements start in October, but interest […]
You Can’t Beat the IRS with a Dead Horse
Some people seem to think the IRS will overlook just about anything. But a dead horse? That’s hard to miss. When a California-based horse enthusiast and IT business owner’s last horse died in 2008, being horseless didn’t stop her from continuing to claim business deductions for her horse-related endeavors. The IRS noticed and took a […]
What Is Reasonable Compensation?
Business owners and shareholders have some leeway on their compensation structures, to a point. The IRS has long held a standard called “reasonable compensation” that it uses to determine if, like Goldilocks, you got it just right. The trick to acing reasonable compensation, however, involves the same inherent challenge as many other IRS rules: it’s […]
Crypto Tax Investigations Ramp Up
The IRS claims its Criminal Investigation (CI) division can trace any crypto transaction and has used those capabilities to double crypto seizures. Among those cases, about half are tax related. Things started to heat up in 2022 when the IRS announced it was building “hundreds” of cases. For the first time, the IRS began using […]
IRS Can Peek at Certain Bank Accounts Without Notice
The U.S. Supreme Court has unanimously ruled that the IRS can, without notice, review the bank accounts of third parties associated with delinquent taxpayers. The decision was part of Polselli v. Internal Revenue Service, a case involving an underpayment of more than $2 million in federal taxes over several years. After failed attempts to receive […]