2018 November/December EA Journal Exam

4.57 (23 votes)

IRS Program Number X9QQU-T-00539-18-S

The Ins and Outs of Day-Care Provider Taxes Part II
By Laura Strombom, EA
This article picks up where part 1 left off. It is an in-depth article that gives preparers the information they need to assist day-care providers with their taxes or in case of an audit, with the main focus being expenses and deductions. Issues covered in this article include §162, the codified economic substance doctrine, §274(d) and Regulation 1.2745-T, mileage deductions, food program deductions, day-care supplies, etc.

Five Secrets to Building Client Wealth with IRAs
By Thomas A. Gorczynski, EA, USTCP
However, to be the most effective tax professional possible, and the best advocate for their clients, enrolled agents must move beyond compliance and form preparation to proactive tax planning, specifically building wealth using IRAs. This article discusses five strategies for doing just that. Topics include required minimum distributions, back-door Roth IRAs, Roth IRA conversions, traditional IRA distributions, substantially equal periodic payments.

2018 Tax Law Changes
By David Mellem, EA
This article covers many of the components of the Tax Cut and Jobs Act of 2017. Enrolled agents should be familiar with all the topics covered including the new tax rates, capital gains and qualifying dividends, itemized deductions, mortgage interest, listed property, equity indebtedness and a host of other issues. 

International Representation: What You Should Know
By Mary Beth Lougen, EA
Return preparation and representation of clients with offshore accounts and assets has become one of the hottest and fastest-growing areas in tax practice. Before taking on a taxpayer with foreign ties, enrolled agents should know what needs to be filed, when it needs to be filed, and what defines “filed.” The article covers various subjects germane to international representation such as first-time abatement, international information returns, reasonable cause relief, and various strategies that will help enrolled agents deal with the IRS.

Fraudulent Tax Returns, Penalties, and Amended Tax Returns
By Steven R. Diamond, CPA, USTCP
Generally, a taxpayer may correct an error in a tax return without incurring interest or penalties by filing an amended return and paying any additional tax due on or before the due date (last day prescribed for filing). An amended return filed after the due date may be accepted, rejected, or ignored by the IRS in its sole discretion. It has been held that where the taxpayer files a false or fraudulent tax return but later files a nonfraudulent amended return, a tax may be assessed at any time, even if more than three years have expired since the filing of the amended return. This article discusses what happened when a taxpayer filed a fraudulent tax return and then went back to amend it (T.C. Memo 2018-89).