Roger Russell

There weren’t a lot of surprises in the President’s Budget, set at $3.9 trillion for fiscal year 2015, which was released on March 4.

If the tax reform proposal unveiled earlier this week by Ways and Means Committee chairman Dave Camp is really “dead on arrival,” as some have suggested, why has virtually every organization with a stake in the tax process made an effort to comment on it? After all, it’s just a discussion draft.

Although audits are a fact of taxpayer life, they're not particularly pleasant, and they can take up a lot of otherwise free time. So what should preparers say to their clients about audits?

Businesses often take a risk in the development of new products and processes.

While President Obama mentioned taxes a number of times in his State of the Union speech last night, the details were scant.

While many taxpayers look forward to filing season as the time they can get “free money” in the form of their tax refund, those with more complex returns are focused as well on avoiding situations that might lead to an audit.

One of the indicators of a reviving economy—purchases and sales of small businesses—is picking up steam. According to the just released BizBuySell Insight Report, the number of business exits by small business owners was up 49 percent in 2013 compared to 2012.

There are already numerous studies attempting to peg the effect of tax rates on economic activity. There will undoubtedly be more, as politicians, economists and tax experts seek the magic formula to maximize both economic activity and government revenue.

An additional tax of 10 percent is charged on premature withdrawals from a qualified retirement plan, SIMPLE plan or IRA. The additional tax is 10 percent of amounts withdrawn that are includible in gross income. The rules and exceptions are intricate enough that they don’t need to be complicated by things like fraudulent withdrawals by a soon-to-be former spouse. But that’s what happened to Andrew Roberts, whose wife withdrew funds from his IRAs without his knowledge.

“It’s never too late for tax planning,” a wise CPA once told me. “You’ve got till the ball drops to take action, and if you do it later than that, then you’ve got an early start for next year.”

As we come down to the wire for the beginning of busy season, it’s important to review some of the things we may already know, or think we know, about reporting and filing requirements.

The increasing globalization of the economy is resulting in more small and medium-size businesses seeking to expand internationally. While companies are extending their products and services across borders, many don’t consider the compliance and planning issues that come with doing so.

Last week I moderated an Accounting Today Webinar, sponsored by SurePayroll, on the 2014 Tax Season Toolkit.

If you’re an accountant who loses money, and your spouse is a real estate agent who makes money, can you combine your business with your spouse’s in order to calculate self-employment tax?

It’s the time of year to again start thinking about expiring tax provisions. Usually the first thing that comes to mind is the alternative minimum tax, but this particular issue was “fixed” in January of this year by the fiscal cliff bill. That still leaves a number of expiring provisions, according to Robert Kerr, senior director of government relations at the National Association of Enrolled Agents.

Worker classification is an ongoing issue that affects accountants and their clients.

The majority of the U.S. government, including the U.S. Tax Court, shut down on October 1. Late this past Wednesday, Congress voted to reopen the government through January 15 of next year. Despite the shutdown, the statutory deadline of 90 days for filing a petition in the Tax Court cannot be extended. Yet during the shutdown, the Tax Court was not accepting hand delivery and very likely was not opening its mail.

Although most accountants prepare taxes, that’s not the only reason that professional liability claims against accountants are most frequent in the tax area.

“Oh what I’d give to get a good night’s sleep.” We’ve heard that before, maybe even said it ourselves, especially during tax season. But tax preparer Joyce Linzy was prepared to spend money to make it happen.

How comfortable should you be when you’re asked by a client for a “comfort letter”?