by Leif Jensen | Mar 22, 2017 | General |
We just signed a new client. They were a referral from our banker. Apparently they were given two names and numbers, but the other CPA, could not even give the prospect the curtesy of a return call to let them know that they are not taking on new clients. They were...
by Leif Jensen | Mar 21, 2017 | General |
Those ads that claim you can pay the IRS pennies on the dollars are not really true. But that should be no surprise to most. The advertised Fresh Start program from the IRS has three components; it addresses tax liens, installment agreements and finally OIC....
by Leif Jensen | Mar 20, 2017 | General |
The Dirty Dozen represents the worst of the worst tax scams. Compiled annually, the “Dirty Dozen” lists a variety of common scams that taxpayers may encounter anytime but many of these schemes peak during filing season as people prepare their returns or hire someone...
by Leif Jensen | Mar 15, 2017 | General |
College students across the United States continue to be targeted in a common employment scam. Scammers advertise phony job opportunities on college employment websites, and/or students receive e-mails on their school accounts recruiting them for fictitious positions....
by Leif Jensen | Mar 14, 2017 | General |
In a recent court case, it was confirmed that legal fees paid in a job-related lawsuit are not deductible business expenses. After a bank executive was fired, the bank filed suit against her to recover a bonus it had paid her earlier in the year. She then...
by Leif Jensen | Mar 13, 2017 | General |
According to the Tax Court, a 100% penalty for failing to collect or pay payroll taxes isn’t deductible. Federal penalties are never deductible. After an S corporation did not pay its employment taxes and later went out of business and had its corporate...
by Leif Jensen | Mar 8, 2017 | General |
I am currently working with a couple who both lost parents last year. The differences between the couple’s two parents are striking. For the first one the family knows where all of the assets are and the documents are current. But there are special...
by Leif Jensen | Mar 7, 2017 | General |
The simplest way to help protect yourself from tax-related identity theft this tax season is to file your tax return early. Thieves who are using stolen identities to seek refunds on fraudulent returns typically file the fake returns early in the filing season...
by Leif Jensen | Mar 6, 2017 | General |
An employee who earned an MBA degree gets good news from the Tax Court. The cost can be deducted as an employee business expense on Schedule A. A man who worked as a product marketing manager decided to get an MBA degree with a focus on management and finance....
by Leif Jensen | Mar 1, 2017 | General |
A taxpayer has a scheme to avoid paying overdue taxes backfires for a corporation. On the day a company that owed back payroll taxes decided to close shop, its president and 40% owner formed a new firm to conduct the same line of business with the same workers....
by Leif Jensen | Feb 28, 2017 | General |
In a recent tax court case it was revealed that taking a large bad debt deduction leads to IRS scrutiny in this case. Through his S corporation, an investor advanced funds to small companies in return for financial control and a minority equity interest. (I am...
by Leif Jensen | Feb 27, 2017 | General |
Apparently suffering financial hardship does not let you tap your IRA penalty-free, according to the Tax Court. A taxpayer under age 59½ who lost her job and took payouts from her qualified dollars to assist in supporting her family. Afterwards the IRS...
by Leif Jensen | Feb 23, 2017 | Case Study |
I started working with a transportation company when they were looking for someone to train them on QuickBooks (QB). They were looking to replace their bookkeeper and wanted me to train another employee on how to use QuickBooks, they also wanted this done discreetly....
by Leif Jensen | Feb 22, 2017 | General |
With all the talk and it is currently only talk, there is a question of what will happen with the gift tax? Most expect it to stick around in some form or another. It is considered to act as a backstop to help prevent income shifting from donors in high...
by Leif Jensen | Feb 21, 2017 | General |
Last Year I meet with a young man who was a financial advisor. I was impressed by how he presented himself but also how he described his process of working with his clients. It was not materially different from others I have worked with, but a certain earnestness...
by Leif Jensen | Feb 20, 2017 | General |
The Federal Reserve will be under tremendous pressure for the next few quarters to raise its benchmark lending rate faster than is has recently. Which will then have the trickle effect on higher costs on lines of credit, HELOC’s, mortgages, credit cards and down the...
by Leif Jensen | Feb 15, 2017 | General |
A couple of years ago, a couple of family members suggested going back to Disney for our vacation. So being the dutiful husband and father, I looked into it and the costs of a Florida trip and they were terrifying! The airfare and hotel costs were over double what a...
by Leif Jensen | Feb 14, 2017 | General |
The minimum wage continues to be a major issue to politicians as well as small business owners. But I was reading recently that in a 2014 study from the nonpartisan Congressional Budget Office, it was found that raising the federal minimum wage to $10.10 an...
by Leif Jensen | Feb 13, 2017 | General |
I have spent some time in the past quarter working with clients on their first business budget. They are looking to grow to the next level and a budget is a good tool for the assistance for this measure. But, drilling down a budget to its essence is really...
by Leif Jensen | Feb 8, 2017 | General |
Over my professional life I have run into a number of people who complain that they are successful, but are not happy. I sit and listen to them, but I have learned to keep my mouth shut. Because they obviously are not successful. They are successful by a measure...
