Discussion:New Guy from KY
From TaxAlmanac
Discussion Forum Index --> User Introductions --> New Guy from KY
| 16 November 2007 | |
| Hi everyone, I'm Greg and I began working for a small local firm in Lexington, KY after finishing my master's degree for accounting(tax emphasis) in July 2007. I got some decent research experience in school, so I get most of those projects in my office, as well as a lot of s-corp and partnership work. I have been enjoying this site for about a week now - almost exclusively the tax questions forum - and having a blast. I'm extremely grateful that there is a community of people out there willing to share their knowledge base and I hope to be able to contribute my fair share. When I'm not working, I am with my wife and little girl or out playing music. Thanks again for the amazing resource, I look forward to getting to know everyone. Also, I'm here to learn and help when I can, so if I get totally of the reservation on something, let me know. I'll be expecting your wisecracks about KY anytime. | |
Doug Phillips (talk|edits) said: | 16 November 2007 |
| No wisecracks here. Have family member who has a vacation home on KY lake.
I love it there. | |
Proptaxguy (talk|edits) said: | 16 November 2007 |
| Welcome aboard.
Why would you expect wisecracks from a group of professionals like us here on this board. Ok, I'll start it.... How can you tell if a Kentuckian is married? There's dried tobacco spit on both sides of his pickup truck. Have a good weekend everyone. | |
| 16 November 2007 | |
| How do you know Jesus was not from Kentucky?
Couldn't find three wise men or a virgin. And let me apologize in advance for that whoopin the KY Wildcats will receive tomorrow at the hands of the GA Bulldogs. Good luck Greg. I have some clients in Kentucky. Now I have someone to tell me how bad I'm screwing up their state returns, since I just push the button in Pro Series and hope for the best. | |
| 16 November 2007 | |
| OH, good, we get to pick Greg's brain about the reasonable compensation and S. Corps. | |
| 21 November 2007 | |
| Those are some good ones...fortunately there are a number of other states that I can insert and use the jokes myself! TaxNerd was right, we felt bad about last year so... I'm not sure, but the last post might have been just before the Cats' totally embarrassing loss against the 'gimme' team in their preseason tournament. The thing is set up to pair 4 top-twenty teams in the semi's, but..well Billy Guillespie must not have gotten the memo. Hope the rest of the season turns out better.
I'll give a quick few seconds ot reasonable compensation and S-corps. I think if you can estimate an industry-average salary (something that is not difficult to do) then you have a strong place to begin. Go up from there and you are playing very safe, go down and you are obviously getting more aggressive. I have not read the more recent cases on this issue but it doesn't seem like there is much good guidance. I can say, however, that not one client of ours has ever been taken to task on the issue. There are people out there that have been filing S-corp returns with zero salaries (before they got to our office of course) and have never been looked at. That is what to me makes the planning difficult. It seems like there is not a lot of enforcement which creates aggressive tax positions and a general inconsistency in views across our entire industry. I say start with the industry average, then according to the wishes of your client and their tax strategy, move up or down accordingly within a range you feel comfortable as a tax professional. Until we get the magic test, I think that is all we can do. See you in the discussions! Greg | |
Umeshsagta (talk|edits) said: | 28 November 2007 |
| All the best Greg! | |
| 13 December 2007 | |
| Hi Greg!
I am also in Lexington (Tates Creek / Man-O-War area). The posters missed the best KY joke didn't they ? Q - What do tornadoes and divorces have in common in Kentucky? A - In both cases, someone is losing a trailer. ba-da-boom-boom! So, you are an S-corp tax expert eh? hmmmmmm. I may be calling you in the near future! Howard | |
| 22 December 2007 | |
| At the risk of sounding dumb - what's the easy way to determine the industry average salary?
I have a small practice, in a small, resort town, with about 40 S-corps (and I'm sweating "reasonable compensation" in light of the new preparer penalties. The business nature of the corps run from interior decorator (lots of liability THERE) to construction to restaurants. Thanks, Greg (and you can insert Alabama for KY in any of those jokes....anyone up for some Auburn/Alabama jokes? | |
| 22 December 2007 | |
| Belle, Stop Sweating!
According to this article, only aprox. 176 preparers had penalties for each of the previous 3 years. That makes it about 3 1/2 preparers per State. Lets pray that the numbers will go down. Are you losing sleep over the new IRS penalties?? http://www.usatoday.com/money/perfi/taxes/2006-06-21-irs-usat_x.htm | |
| 23 December 2007 | |
| DZCPA - I'm not losing sleep (yet) and I'm not concerned about the past three years. I'm concerned about the NEW penalties, and the irrational approach of holding us preparers to a higher standard than the taxpayers. | |
Bottom Line (talk|edits) said: | 24 December 2007 |
| I believe the rational of holding us to a higher standard is that we claim to be experts and taxpayers pay us to be experts. I'm not losing any sleep over this. I believe that these new penalties will be applied to the real extreme cases. | |
| 28 December 2007 | |
| Zonker -
Very nice, that's a new one on me! Certainly not an S-corp. expert, but getting more pracitce everyday, always willing to help though. In regards to the preparer penalties, keep watch on HR 4318 and maybe we won't have to worry about it soon. | |
| 28 December 2007 | |
| Zonker -
LOL! I read your profile AFTER my previous post. I will qualify my comments by stating that while I am no expert, the partner for whom I work is! Leave me a message with your phone number or email and I'll give you a shout. Greg | |
