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Ed Zollars' Tax Update Podcast

edzollarstaxupdate@gmail.com

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An update from time to time on various tax issues presented by Ed Zollars, CPA and designed for tax professionals. Users are cautioned to do their own independent research to verify any conclusions stated on this podcast--I do not claim to be infallible, but just to bring up issues to consider.
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The Road to Greatness is a new podcast designed to highlight how the best-of-the best in their field became great. During these engaging interviews, guests will be asked to pull the curtain back and share their practice routines, rituals, superstitions, and other preparation activities they used to make it to the top, as well as highlight what they continue to do to stay the best.
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🚀 **The Road to Greatness is bringing the heat this Q4!** 🚀 In Season 2, Episode 5, I take a leap into the future by letting AI lead the interview! Imagine this: just two months to hit those year-end targets, and in reality, only five full selling weeks remain. I break down urgency into three unique types—natural, program, and contract urgency—armi…
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I am 100% against scripting. Don't script your sales pitch, introductory presentations, conversations. Period. Why? Because if you think about it, how much of YOUR life is scripted? Yet so many teams feel the only way to teach a product, communicate with prospects, or develop a relationship is with a strictly adhered to script. We're making a big a…
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This week, we sit down with the dynamic Shari Spencer, the First Lady of MMA, who has blazed a trail from international finance to managing MMA champions and now thriving as a CFO! 💼💥 Shari shares her fearless approach to life—taking risks, saying “yes” first, and figuring out the “how” later. 🛤️ She talks leadership, trust-building when the odds a…
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She went from salesperson to CEO all before the age of 50. How'd she get there? You'll have to my interview with Health Management Academy CEO Renee DeSilva. We talk about:  Leadership  Recruiting and retaining top talent,  Career pivots,  Asking for what you want and so much more. If you have the ambition to get more out of your career, you do…
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Would you like to go from $0 to nearly $1M in 10 months of starting a business...WITHOUT having to make a single cold call? Do you want to get better at generating inbound leads from your activities on LinkedIn? If you answered yes, to either of the above it is imperative that you listen to the first episode of Season 2 of The Road to Greatness. Fo…
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There's so much to look forward to in this season. Listen for Pro Tips on: Sales Leadership Funding your startup Recruiting top talent Executive communication Breaking Barriers Career pivots Hear from CEOs, coaches, television personalities, top salespeople and more! It's a great season to talk about, starting October 1st.…
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As we close out the first season of The Road to Greatness, we’re bringing you the most powerful insights and memorable moments from our incredible lineup of guests. This episode isn’t just a recap—it’s a masterclass in mental agility, the secret ingredient that turns good into great in the fast-paced, ever-changing marketplace. Join host Karlyn Kie…
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Get ready for an exhilarating episode of The Road to Greatness! This week, we're thrilled to welcome Lee Child, the legendary author behind the bestselling Jack Reacher series. Lee shares exclusive insights about the highly anticipated third season of the Amazon Series, Reacher. He opens ups about his thoughts on Tom Cruise's portrayal of Reacher i…
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As the world turns its eyes to the Olympic Games, the power of sport to unite and inspire is on full display. This week, join us for an inspiring conversation with Ed Foster-Simeon, the dynamic CEO and President of the U.S. Soccer Foundation, who has dedicated his career to harnessing the unifying power of soccer to drive social change and youth de…
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Everyday is a winding road…so is the path to negotiation! Whether you’re in sales, a buyer, in a relationship, or raising kids, guess what…you’re negotiating every…single…day. Join me and globally recognized negotiator Josh Weiss as he gives substantive action steps on how to be a great negotiator. Dr. Joshua N. Weiss is a renowned negotiation and …
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This week's episode is a must-listen for tennis enthusiasts and anyone aspiring to excel in their career! We’re thrilled to have Nicole Kankam, the Managing Director of Pro Tennis and Entertainment at the USTA, join us to delve into leadership, the importance of finding a mentor, and how mental agility can drive success. Nicole also shares some exc…
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In this exciting episode of The Road to Greatness, we're joined by Sid Nazareth, Principal of Strategic Accounts at AWS and one of the top sales leaders in the technology space. Sid's impressive journey to the pinnacle of sales success is a masterclass in mindfulness, relationship building, and flexibility. Tune in as Sid shares his secrets to grea…
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In this electrifying episode of The Road to Greatness, we sit down with the legendary Jackie Kallen, a true trailblazer in the world of boxing. Known as the "First Lady of Boxing," Kallen has managed over 40 fighters, including world champions like James "Lights Out" Toney and Thomas "Hitman" Hearns. Her inspiring journey from a showbiz journalist …
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Ready for a wild ride? Tune into Episode 4 of "The Road to Greatness," where we dive into the art of relationship building with Jeff Harrison, EVP of Revenue at the International Tennis Hall of Fame. Jeff shares secrets to becoming a master business matchmaker and a jaw-dropping story involving Billie Jean King, Sir Elton John, and a rainstorm! Don…
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Ready to unlock the secrets to greatness? Join us on the Road to Greatness Podcast as we sit down with the extraordinary Bennie Wiley, founder of The Partnership and CEO of the Wiley Group. She's a Harvard Business School Senior Fellow, and proud Howard University alumna! 🌟 From breaking barriers and making history to building powerful relationship…
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Get ready for the latest episode of The Road to Greatness Podcast. This week features Nathan Hunter, the man I call the AI Jedi! We're talking about how he got his AI expertise, how he has CEOs asking him to show them how he makes THEIR products work better, and how you can get on the road to find your own super powers! Don't wait to listen to Mess…
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Have you ever watched an improv performance and wondered, how do they come up with things so quickly? Or, how do they all know what to do at the same time? The answer is letting go of control and increasing mind agility. In our inaugural episode, we'll speak with Keisha Zollar, an improv artist, actress, writer and producer who connects improv to b…
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This week's presentation is based on a presentation I made for the Virginia Society of CPAs' 8th Annual Industry Conference in Williamsburg on May 28, 2009 on gadgets and gizmos. The presentation includes a look at: Novatel's Mifi Apple's Airport Express Apple iPhone 3G Blackberry Bold, Pearl and Storm Apple iPod Touch Netbooks The slides can be im…
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Education incentives have been a favorite of Congress in recent years, but this week we look at the old favorite of education as a business deduction, a provision covered by regulations last updated back in 1967. The Tax Court had cause to look into this in the case of Ray v. Commissioner, TC Summary Opinion 2009-71.Materials for this week's podcas…
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Last year there was lots of discussion regarding the changes to §6694 and how tax professionals were to apply the standards there against return positions. However, while the standard to be applied may have changed, there were standards in place before and this week we look at the case of a CPA that ran afoul of the lower standards. In the case if …
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The IRS has issued a revised ruling on the use of a net operating loss under the new rules Congress added in February. The new ruling, Revenue Ruling 2009-26, updates and liberalizes the guidance previously given in Revenue Ruling 2009-19 issued on March 16. The new guidance allows taxpayers to simply file a carryback for the appropriate number of …
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The definition of an employee is this week's key issue--and we look at the matter in the case of Maimon v. Commissioner, TC Summary Opinion 2009-53. Dr. Maimon attempted to argue that he was not an employee of the professional corporation he worked in (and owned some shares in), but rather was an independent contractor. He was interested in holding…
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The Tax Court recently decided a pair of cases related to the innocent spouse provisions of §6015 and time limits on filing for relief. In the case of Mannella v. Commissioner, 132 T.C. No. 10 the Tax Court held that even if the notice of intent to levy and rights under the innocent spouse provisions were never seen by the taxpayer, the two year pe…
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The IRS has shown recent interest in disputing whether real estate agents meet the requirements to be treated as real estate professionals that can use the rules of §409(c)(7) to treat rental real estate under the standard passive activity rules rather than having such items automatically treated as passive. The IRS position is that since the law r…
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Can nonexistent cattle be overvalued? The Ninth Circuit, disagreeing with the Tax Court and other circuits, says it cannot be in the case of Keller v. Commissioner, 2009 TNT 37-17 reversing on this issue the Tax Court's decision in TC Memo 2006-131.The materials for this podcast can be downloaded at http://www.edzollars.com/2009-03-02_Cattle.pdf .T…
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This week we look at a case dealing with the trust fund recovery penalty under §6672. In the case of Richard A. Smith v. United States, 2009 TNT 30-6, CA10, (http://ca10.washburnlaw.edu/cases/2009/02/07-4210.pdf) the Tenth Circuit refused to overturn the holding in the US District Court of Utah that Mr. Smith was a responsible person, even though h…
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The new American Recovery Reinvestment Act of 2009 has a number of tax provisions, and this week's podcast looks at the small business net operating loss provisions of the Act. This provision will require action for some taxpayers within 60 days after the bill is signed into law, as well as giving us a "sliding" window for when we start using a net…
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Housing problems are all over the news (and with some of our clients), but today's story is a housing problem of a different sort. We look at a case where lots of things went wrong in building a taxpayers' dream home where the taxpayers attempted to claim a casualty loss on their tax return. In the cases of Grief v. Commissioner and Bui v. Commissi…
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What if a customer tells you they are going to reduce what they pay you for the work you just delivered to them because you owe them to fix for a bad job you did on an earlier contract? If you are on the accrual basis, can you reduce your accrued receivable or record an expense if you are disputing that claim? That is the issue being dealt with thi…
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This week I look at a case involving a Northwest Airlines mechanic who was laid off and ended up using his "bumping" rights in other cities while hoping to return to his original home base. The question of whether the taxpayer could deduct the expenses of working in the various locations is considered by the Seventh Circuit Court of Appeals after t…
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Last year when Congress added the first-time homebuyer credit found in Section 36, they included the ability for unmarried individuals who jointly acquire a residence to allocate the credit among themselves, and gave the IRS the ability to write the rules to allow this to happen. In Notice 2009-12 the IRS has outlined those rules, and they proved t…
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The new year opens up with a podcast based on a topic that was part of a panel I was a part of at the Arizona Forum for Improvement of Taxation's winter conference. I spoke with attorney Tracy Essig of Phoenix regarding these matters. The materials can be downloaded at http://www.edzollars.com/ForeclosureDebtandTaxes.pdf .The podcast is sponsored b…
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Medical expenses were the issue this week in the case of Magdalin v. Commissioner, TC Memo 2008-293. In this case the taxpayer had paid expenses for obtaining eggs and the services of a surrogate mother, and argued that these expenses should be treated as deductible medical expenses, pointing to the IRS's 2003 private letter ruling (PLR 200318017) …
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After a bit of a break while I was out speaking in the past couple of weeks in Nevada, California, Ohio and Virginia we return to a Thanksgiving Day podcast dealing with self-employment taxes and employee status. We look at the Tax Court's ruling in McWhorter v. Commissioner, TC Memo 2008-263 where a taxpayer argued he was not subject to self-emplo…
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The podcast this week is based on a presentation I made Thursday at the Arizona Tax Institute on the current state of Section 6694. The session was scheduled back a few months ago, but proved timely given recent tax law changes. A copy of the slides can be downloaded at:http://www.edzollars.com/2008-11-09_6694Slides.pdf .The podcast is sponsored by…
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We continue with issues related to S Corporation debt and the many ways to end up not being able to use debts to deduct losses flowing through. This week we look at the Tax Court's opinion in the case of Russell v. Commissioner, TC Memo 2008-246.The materials for the podcast can be downloaded from http://www.edzollars.com/2008-11-03_SDebt.pdf .The …
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The IRS has issued final regulations on S Corporation open account debt that will change the way that many clients have to deal with their loans to the corporation. These changes are effective immediately, so we have to understand how these rules work. The podcast is being recorded this week while I'm at the Hilton Garden Inn in Owings Mills, Maryl…
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Another taxpayer found out well after filing his return with less than stellar results from his trading activities that there had been an option to file an election under §475(f) to use mark to market accounting which also converts the transactions from short term capital gain/loss to ordinary gain/loss. Since the taxpayer had over $90,000 in net l…
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This is a "travel" podcast of sorts this week--the materials were prepared on a Southwest Airlines 737 flying from Phoenix to Baltimore, and recorded in the Hotel Roanoke in Roanoke, Virginia. This week's topic doesn't deal with any of that--rather it deals with the issue of a CPA that got "creative" in planning with himself and his clients, and in…
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We look this week at a difference in application of IRC §162(k) between the Ninth Circuit Court of Appeals and the United States Tax Court given the Tax Court's decision in Ralston Purina v. Commissioner, 131 TC No. 4 that dealt with the taxpayer's attempt to claim a deduction for dividends paid to participants in its ESOP when it had to redeem cer…
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The Ninth Circuit Court of Appeals this week affirmed the Tax Court's decision in the case of Johanson and Melzig v. Commissioner, TC Memo 2006-105 involving alimony. In its original decision, the Tax Court expressed exasperation at having to yet again decide an issue the parties could have resolved in the decree itself-whether the payments would c…
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Accounting issues we often run into involve the differences between tax and GAAP treatment of items, and this week we look at one such case involving the time for recognizing an expense. In this case, the matter involved rebates and we look at a Chief Counsel Memorandum (ILM 200834019) outlining the IRS's view on why the taxpayer in this case could…
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We review the requirements found in the regulations for obtaining the required support for a tax position, concentrating on the methods outlined in Reg. §1.6662-4(d) in the definition of "substantial authority" which are cross referenced multiple times when considering other levels of authority.The materials can be downloaded from http://www.edzoll…
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This week we look at the Recent United States Court of Federal Claims decision in Fisher, Trustee v. United States, 2008 TNT 154-7 where the court sided with the taxpayer and held that the proper treatment of amounts received in lieu of shares in the demutualization of Sun Life were to be treated under the open transaction doctrine rather than trea…
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The IRS issued new proposed regulations to explain the reduction of the NOL substitute in an S corporation setting when cancellation of debt is excluded from the S corporation's income under Section 108. While the regulations are in proposed form only, the "deemed NOL" rules have existed in the IRC since 2002, and Section 108 is likely to be an iss…
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This podcast is the sequel to a November 2006 podcast on the same case--that of Kadillak v. Commissioner where an individual who was caught by the "dot bomb" crash of the technology stock of his former employer attempted to mitigate the damage caused by his ISO exercise and 83(b) election made at the height of the craze. A year later, Mr. Kadillak …
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In a special podcast, we look at the just passed American Home Rescue and Foreclosure Prevention Act of 2008, taking a detailed look at a few tax provisions in that bill of interest. We look at the new, refundable first time homeowners credit, the property tax deduction for nonitemizers and the soon to start restrictions on the ability to get a ful…
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In the past year we've talked a lot about the preparer standards and tax return positions. This week, in the case of Wadsworth v. Commissioner, TC Memo 2008-171, we see a real world situation where a tax professional decided a position was not one that he could accept and what happened when the client decided to find another person who would take t…
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