CONTINUING EDUCATION FOR TAX & FINANCIAL PROFESSIONALS

All New and Current customers who purchase the Premium, Plus, or Core (Total Value Package) 2021 Federal Tax Update or the 2021 Federal and California Update will get the Tax Advisory Complement Bundle for free.

NOTE:

  • New Federal Tax Update customers will get an immediate email with a coupon code for the free course once their Tax Update purchase is complete.
  • Current Customers that purchased the Premium, Plus, or Core (Total Value Package) 2021 Federal Tax Update will get an email with a coupon code to get the Tax Advisory Complement Bundle for free.

Taxpayer Will Remember 2019 Memorial Day – from Behind Bars June 4, 2019

Taxpayer Will Remember 2019 Memorial Day — from Behind Bars


Richard Spencer owns RS Sewing, a company that makes American flags and sells them to veterans’ groups and large retailers throughout the country. Spencer was convicted of failing to withhold taxes from workers he knowingly and willfully misclassified as independent contractors. For workers classified as W-2 employees, Spencer failed to pay over to the IRS taxes the company withheld from its employees’ wages. Judge Patricia Gaughan of the US District Court in Cleveland sentenced Spencer to two years in prison and three years of supervised release. In addition Spencer must pay restitution of $197,040,

“Richard Spencer did not have any problems with earning income from manufacturing the American flag, but he did have problems with paying employment taxes to the IRS that he withheld from his employees,” William Cheung, acting special agent in charge for the IRS’s Cincinnati Field Office, said in the press release.

– US Attorney’s Office, Northern District of Ohio – May 6, 2019

Misclassifying employees. Business clients often complain about the high cost of treating workers as employees — employment taxes, workers’ compensation insurance and benefit plans. But for Mr. Spencer, who had been warned about his misclassification of workers in a prior IRS audit, his cost was not just money but his freedom.Trust fund withholdings. The IRS takes seriously its role in collecting withheld taxes from the business. If the business is out of money, the IRS can use §6672 to collect trust fund taxes from the responsible person who willfully failed to pay over the money to the IRS. Section 6672 skirts around any liability protection provided to the individual owner by a corporate or LLC structure for purposes of trust fund withholdings.Who’s responsible and who’s willful?

  1. responsible person – one who had a duty to collect and pay over the taxes. The following have been held to be responsible: board members, corporate officers, managers, payroll check signers, and payroll report signers.
  2. The responsible person must have acted willfully in failing to pay and collect the taxes. “Willful” can be nothing more than knowing the liability exists and paying another creditor.

Tax classes at Western CPE’s resort conferences cover payroll tax developments as well as updates and news for individuals, businesses and real estate investors.

Sharon Kreider, CPA, has helped more than 15,000 California tax preparers annually get ready for tax season. She also presents regularly for the AICPA, the California Society of Enrolled Agents, CCH Audio, and Western CPE. You’ll benefit from the detailed, hands-on tax knowledge Sharon will share with you—knowledge she gained through her extremely busy, high-income tax practice in Silicon Valley. With her dynamic presentation style, Sharon will demystify complex individual and business tax legislation. She’s a national lecturer for business and professional groups and consistently receives outstanding evaluations. In 2014, she was awarded the prestigious AICPA 2014 Sidney Kess Award for Excellence in Continuing Education.

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DIG DEEPER:

How The $3.5 Trillion Budget Blueprint Could Impact Your Clients

The new reporting requirements on brokers are addressed in Section 80603 of the bill. “Broker,” by definition in Sec. 6045 (c)(1), is expanded to include “any other person who (for a consideration) regularly acts as a middleman with respect to property or services…A person shall not be treated as a broker with respect to activities consisting of managing a farm on behalf of another person.” In turn, the bill defines a “digital asset” as “any digital representation of value which is recorded on a cryptographically secured distributed ledger or any similar technology as specified by the Secretary.