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What you don't know will hurt you
August 14, 2008
Written by:
Doug
(Williston Park)
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Sid Kess, Esq.,CPA, may be the most influential practitioner, having lectured to more than 700,000 practitioners.Lance Wallach is a prolific writer, leading authority, and the National Society of Accountants Speaker of the Year. Easy to read and eye opening; I did not know that we could be subject to a $200,000 fine if our client is in what the IRS calls a listed transaction. Even a retirement plan can be listed, and many are!There are thousands of insurance people, and others,selling retirement and insurance plans to our clients. Some 401k plans and Roth conversions can be listed transactions. If the accountant or her client does not file disclosure forms with the IRS, the penalty can be $200,000.It taught me to think twice.I also learned more about practitioner competence,written advice,best practices,client problems, and many real life stories. Also covered are abuses in utilizing insurance retirement and welfare benefit plans, 419 and 412i plans, abusive tax avoidance transactions, 401k problems, health insurance, college funding ideas, HSAs, common accounting mistakes, whether or not you should be licensed to sell products, life settlements, premium financing, competency, malpractice, and related ethical issues. Succession planning, ethical dilemmas, and a lot more was also covered. I called one of the co-authors, who graciously answered a question and emailed me more information. Amazing! I really liked the published articles throughout the book. His phone number was left on, maybe by mistake, but when I called him he answered my question, and even did additional research for me. He would not accept payment. The IRS has made it difficult for us to help our clients , and many of us will pay a large price if we continue as we have in the past.I never thought that any of my clients would be in an abusive tax shelter, or any reportable or listed transaction.I know that there is a good chance that some of my clients could owe hundreds of thousands, but so might I.
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Job Type:
Government/Not-for-Profit
Job Title:
Professor/Teacher
Experience with this Topic:
Beginner
Are you a CPA?:
No
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Avoiding Circular 230 traps, etc., by Sid Kess
August 14, 2008
Written by:
Robert S
(New York)
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This reader found the presentation of the course to be timely and topical, and left with several ideas that he feels will improve profitability and otherwise enhance his practice. Even the articles were preceded by summaries, though they were called commentaries. All of these features combine to create a very user friendly text.
The detailed discussion about Circular 230 in Chapter 1 was an eye opener. The chapter pretty much lays out what the practitioner really has to know to comply in good faith and to avoid possible disciplinary and other professional problems. It can also be helpful, in certain situtations, in determining whether it is all worth it. The discussion about the penalties connected with failing to disclose certain transaction was stunning. In several cases, after reviewing files, I determined that clients should file. Whether I saved anyone penalties or other trouble is impossible to know, but it is a nice thing not to have to worry about.
Chapter 2 was topical because I have in fact been approached numerous times by clients about the plans discussed therein, the Section 419 and 412(i) insurance plans. I used to kind of reflexively try to dissuade people, saying that none of those things are any good. Now I am more adept at distinguishing the valid, legal, beneficial plan from the others. This is all the more important, especially with respect to 419 plans, in light of the late 2007 IRS action in that area.
The other parts of the book that the reader
found particularly beneficial were the part of Chapter 3 about college funding, and the material at the beginning of Chapter 4 about the danger and inappropriateness of "dabbling". I am trying to determine whether to become insurance licensed, so that discussion was invaluable, as were the balanced discussion about life settlements and the discussion and example highlighting problems connected with the sale of annuities, particularly to seniors.
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Job Type:
Tax/Financial Planning
Job Title:
Manager
Experience with this Topic:
Intermediate
Are you a CPA?:
No
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