Roger Russell

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”?

The Supreme Court’s recent DOMA decision raised a number of questions regarding its tax implications.

The Tax Code giveth and the Tax Code taketh away. The depreciation and expensing provisions in the Tax Code allow taxpayers to recover the cost of property through an annual allowance. As a result, many businesses have taken advantage of the opportunity to write off expenses of equipment and other tangible property by making purchases toward the end of the year, driven as much by the tax advantage it gives them as by the actual need for new equipment. But many of these business owners forget that when they sell an asset, the IRS can take their depreciation allowance back, often at the highest possible tax rate. Taxpayers use depreciation to write down the cost of assets, both tangible assets like capital equipment and real property, and intangible assets such as patent costs and goodwill. But if those assets are sold at a profit, the IRS can recapture the full amount that was depreciated.

With all the noise about Americans renouncing their citizenship and paying an exit tax just to be freed from what they consider an oppressive tax regime, it’s nice to know that it’s a two-way street.

Under some circumstances, the provision of services by a corporation to its shareholders is “property” within the meaning of Code Section 317(a), which can result in the IRS finding that there was a constructive dividend to the shareholder.

Among the many tax reform issues to be resolved in the months ahead is whether or not to produce a comprehensive tax reform bill or simply one limited to corporate reform.

Tax reform talk is heating up. Support is growing for bipartisan efforts to rewrite the tax code, with committee chairmen and ranking members in both the House and the Senate jumping aboard the effort.

Last week, one of the “girlie” cable channels had a weeklong Christmas-in-July event, where they showed Christmas movies the whole week. (In case you’re wondering, it’s my wife, not me, who watches this particular channel). But the thought occurred that if it’s time to start thinking about Christmas, then it’s also time to begin considering end-of-year tips and planning strategies to offer clients as we approach the beginning of fall.

Captive insurance companies, once the exotic plaything of large corporations, are now open and advantageous to much smaller companies. But most accountants don’t know enough about captive insurance companies to advise their business clients on the advantages of starting their own, according to Brian McCormick and Jerry Messick of Elevate Captives LLC.

There’s more to estate planning than simply trying to minimize taxes under the provisions of a will and various trusts, as criticism over the will of the late James Gandolfini attests. A number of estate experts have weighed in the provisions of the will, which was filed last week in Manhattan Surrogate’s Court.

The National Taxpayer Advocate submits two annual reports to the Ways and Means Committee and the Senate Finance Committee each year.