2019 March/April EA Journal Exam

3.88 (8 votes)

IRS Program Number: X9QQU-T-00548-19-S
4 CE

Sales Tax Nexus: South Dakota v. Wayfair, Inc. – The Facts
By Alyssa Marchand
This article provides an overview of the historic Wayfair case, which decided whether online retailers have to collect sales (or use) tax for online purchases.

Sales Tax Nexus: The Unintended Consequences of South Dakota v. Wayfair, Inc.
By Alyssa Marchand
This article discusses the unintended consequences of the historic Wayfair case, which decided whether online retailers have to collect sales (or use) tax for online purchases.

The Gig Economy
By Kathryn M. Morgan, EA, USTCP, NTPIF
The gig economy is a growing income sector worldwide and a growing niche for tax professionals to explore. The author discusses what it is, who makes up this sector, and why tax professionals should tap into this area of tax preparation and representation to grow their businesses.

Books to Tax in a Snap
By Geri Bowman, EA, CPA, USTCP
Many small business owners use QuickBooks to create invoices and track expenses. When clients hand over a QuickBooks file at income tax time, the expectation is tax professionals already have what is needed and tax preparation will be a breeze. This article examines common errors clients make using QuickBooks and highlights how those errors can affect income tax reporting if left unadjusted.

Impact of Tax Reform on Choice of Entity
By Tim Smith
The Tax Cuts and Jobs Act (TCJA) has significantly changed how many businesses and their tax advisors approach the choice of entity decision. When deciding on how to be classified for tax purposes, most businesses are treated as either C corporations, S corporations, or partnerships. Prior to tax reform, partnerships were practically considered to be the default choice of entity. This article examines several provisions in the new law that make C corporations a much more attractive entity choice once again.

A New Opportunity for Nonresident Aliens – Ownership in an S Corporation Introduction
By Rusudan Shervashidze and Stanley C. Ruchelman
The Tax Cuts and Jobs Act (TCJA) has affected many longstanding tax planning tools. One favorable change amends the rules regarding the persons who can own shares of an S corporation. Historically, the S corporation election was terminated if a foreign individual became an owner. This article discusses how, under the TCJA, a foreign individual may now utilize an electing small business trust (ESBT) to obtain an interest in an S corporation.

The Tax Cuts and Jobs Act Moves the U.S. Closer to a Territorial Tax System 
By Frank Emmons, Shahzad Malik, Sean Clancy, and Praveen Ayyagari
The Tax Cuts and Jobs Act (TCJA) has fundamentally changed the taxation of outbound activities of U.S. corporations and foreign corporations doing business in the U.S. This article discusses how the TCJA has moved the U.S. international tax regime closer to a territorial system on par with other developed countries.  

Tax Court: Does IRS Refusal of a Taxpayer’s Proposed Offer for an Installment Agreement Constitute an Abuse of Discretion?
Kenneth Pitner, Petitioner v. Commissioner of Internal Revenue, Respondent
T.C. Memo 2016-237
Filed December 29, 2016
By Steven R. Diamond, CPA 
The IRS will pursue collection activities if a taxpayer has an unresolved outstanding debt with them. If the taxpayer disagrees with the amount of tax the IRS claims he/she owes, the taxpayer may request a collection due process (CDP) hearing to stop any pending collection activities. Under the Internal Revenue Code, the taxpayer has a right to a hearing before an impartial officer to determine the amount of tax, if any, that is owed.