Many of our clients have been receiving notices from the FTB assessing a penalty for underpayment of estimated tax. Many of these notices are unwarranted, and it seems the FTB is taking the stance that it is the taxpayer’s responsibility to prove they don’t owe a penalty that should never have been assessed! Read more
The Tax Court rejected a taxpayer’s argument that their use of TurboTax to prepare their returns caused them to misstate their income, which resulted in an IRS assessment and an accuracy related penalty. In the case Aileen Yat Muk Lam , TC Memo 2010-82 (Tax Ct.) the wife argued that they consistently filled out their tax returns using TurboTax and she consistently confused capital gains and losses with ordinary income and expenses. The court rejected her argument noting that “tax preparation software is only as good as the information one inputs into it.” Just one more reason to use a professional tax preparer!
Divorce can be an uncomfortable topic to discuss, especially with your accountant, but forensic accountants can play a key role in a marital dissolution. Although not required for all marital dissolutions, many of the more complicated cases can greatly benefit from the services of a forensic accountant. Read more
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One of the most difficult tasks for small business owners is finding money to start and grow their business. A lack of sufficient capital is also the number one reason for the failure of most small businesses. Despite the large bank bailouts and stimulus money, credit is still tight for small business. Being prepared with a package that is comprehensive and anticipates most common lender questions can drastically improve your chances of obtaining the funding you need to make your business prosper. Read more