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Forbes
5 days ago
- Business
- Forbes
Tax Breaks: The All Work And A Little Bit Of Play Edition
Las Vegas, Nevada, USA at the Welcome to Las Vegas Sign at dusk. getty I started to write this week's newsletter while I was in Las Vegas—it was the last stop on my multi-conference tour. (If I owe you a return call or an email, this is totally why.) There were so many highlights—from speaking about the One Big Beautiful Bill Act to sharing details about my volunteer income tax assistance experience (VITA) in Alaska and other pro bono opportunities like the Chester County Mobile Home Assessment Project to co-hosting a fun tax trivia game (newsletter readers would have been at a clear advantage in that one). The biggest thrill, of course, was meeting so many tax professionals (including current and former IRS employees), taxpayers, and readers. I'm often asked where I can get my inspiration for my articles, and that's the answer—it's you. Whether you're a tax professional getting a fingerprinting notice or a taxpayer struggling to understand a collection notice, you're likely not the only one on the receiving end of that issue. And as the IRS shrinks (more on that in a moment), it will be up to us as a community to make sure not only that we share more information with each other, but that we share the best, timeliest, most accurate information possible. That's what I try to do each week. It's not lost on me that you have a lot of choices, and that your time is valuable. It means a lot to me that you choose to click through our newsletter. Thank you. Now, let's get into it. Increasingly, companies have been asking (or demanding) that employees return to the office, claiming that it fosters a stronger company culture and enhances productivity. To woo employees back, or to make sure they're not angry/hangry when ordered back, companies have been expanding perks such as on-site gyms, childcare facilities, and, of course, free food and beverages. Beginning January 1, the food part will be more expensive for employers, meaning more of them could revert to B.Y.O.S. (Bring Your Own Snacks). Congressional Republicans, who extended so many other tax breaks (and added some new ones) in the One Big Beautiful Bill Act (OBBBA) President Donald Trump signed on July 4th, decided they would allow a current deduction for employers who provide meals and snacks to expire—except that is, for certain employees, such as those working in restaurants and in Alaskan fishing vessels and fish processing facilities. (No, we're not making it up. The fishy part was one of the concessions Alaska Senator Lisa Murkowski extracted from her Republican colleagues for her crucial support.) Another perk at work—but one that's not going anywhere—is a retirement account. The rules surrounding retirement accounts? That's another story since they are constantly changing. Retirement account owners above a certain age are required to take annual distributions from their accounts, known as required minimum distributions (RMDs). Failure to take the full distribution can incur a penalty. But there's some good news: the penalty was recently reduced. Thanks to a recent law, the penalty is now only 25% of the amount that should have been distributed but wasn't, instead of the longstanding 50%. In addition, the penalty can be reduced to 10% if the mistake is corrected in a timely manner, and the penalty can be avoided completely by convincing the IRS to waive it because you had a reasonable cause for missing the RMD. As you can tell, RMDs from IRAs and 401(k)s can become a major tax burden during retirement—but you may be able to turn the tables and change RMDs from burdens into opportunities. But it takes planning. There are strategies to optimize your RMDs, including taking your RMD as a qualified charitable distribution, which would reduce taxable income. The QCD is usually the best way for those older than age 70½ to make charitable gifts. You can find more strategies (for traditional retirement accounts, not Roth accounts) here. Speaking of retirement, Forbes has posted its list of the Best Places To Retire Abroad In 2025. The list of top 24 countries from Albania to Thailand, includes 96 recommended spots, based on costs, amenities, health care, language, crime, climate risk, and whether U.S. retirees are welcome. (Did your favorite spots make the list? Let me know!) If you're not sure about making a move, check out the Forbes guide to planning a foreign retirement, with real-life examples, including Baltimore-reared Larry Swift, who, at age 59, relocated with a partner to Thessaloniki, the second largest city in Greece, 300 miles north of Athens. The rent on his large three-bedroom apartment is almost $4,000 a month, but he has a view of the Aegean Sea, was able to get rid of his car, and finds the overall cost of living manageable. Plus, he says, 'The food is great.' Of course, you don't have to move abroad to save on taxes. Just ask In-N-Out CEO Lynsi Snyder, who is relocating to Tennessee and taking a brand-new In-N-Out corporate office with her. According to Fortune, Snyder broadly references the business environment that In-N-Out faced in California as tricky to navigate. On the flip side, Forbes ranks Tennessee as the 7th most business-friendly state in the U.S. Here's a look at three key tax benefits of In-N-Out's move to Tennessee. Fun fact: I've never been to an In-N-Out. We didn't have one in my hometown, and I believe I'm legally required to only frequent Wawa while in Pennsylvania. I'm always fascinated by the kinds of goods and services that we frequent—loyalty can take you pretty far. A 2024 survey found that 80% consumer communities (like students, teachers, or the military) identify more strongly with their community than they do with their age group, political affiliation, or where they live. I get that. My tax community—that's you—is where I'm most comfortable. Our goal at Forbes is to continue building that community, and we have a few plans in motion to make that happen. Keep an eye out in future editions of the newsletter—we'll share those details as soon as we're able. Enjoy your weekend, Kelly Phillips Erb (Senior Writer, Tax) Questions You may be able to deduct your gambling losses. getty This week, a reader asked: I'm really interested in the people who are complaining about gambling limits in the new tax law. I didn't even know that you could deduct your losses at all! How does that work? Casual gamblers—those who aren't in the trade or business of gambling—must report and pay taxes on any winnings. Winnings include those from lotteries, raffles, horse races, and casinos. It includes cash winnings and the fair market value of prizes, such as cars and trips. Under current law, you can also deduct your gambling losses, but only if you itemize your deductions on Schedule A. The amount of losses you deduct can't be more than the amount of gambling income you reported on your return. Importantly, you must keep a record of your winnings and losses. Here's an example. Let's assume you have winnings of $50,000 and losses of $50,000. You can deduct all of your losses. (Professional gamblers—those who consider gambling to be their trade or business—report their gambling activity on Schedule C. Professional gamblers have the benefit of deducting ordinary and necessary business expenses in addition to losses. Any net income is subject to self-employment taxes.) Under the One Big Beautiful Bill Act, beginning in 2026, you can deduct only up to 90% of the amount of your losses during the taxable year (you can still deduct your related business expenses if you were a professional gambler). Here's an example: Let's assume you have winnings of $50,000 and losses of $50,000. You can only deduct $45,000 in losses (90% of $50,000). That means you are paying tax on $5,000 of income even though you broke even at the slots/table/casino. You can see why high-dollar gamblers in particular, are incensed: this has the potential to add thousands (or more) to their tax bill. As noted in a previous newsletter, members of Congress are already walking the provision back. Rep. Troy Nehls (R-Texas), who voted yes on OBBBA, is cosponsoring legislation to reverse the provision. Do you have a tax question that you think we should cover in the next newsletter? We'd love to help if we can. Check out our guidelines and submit a question here. Statistics, Charts, and Graphs The IRS workforce dropped from 103,000 employees in January 2025 to approximately 77,000 in May 2025 (a 25% reduction). Those numbers, which have been previously reported, have now been confirmed by the Treasury Inspector General for Tax Administration (TIGTA). According to IRS records, more than 25,000 employees either separated, accepted a deferred resignation program offer, or took some other incentive to leave. These departures represent 25% of the IRS's workforce—and some job positions were impacted more than others. For example, approximately 27% of tax examiners (they review and process tax returns) and 26% of revenue agents (they conduct audits) left the agency. IRS employee reductions, by business unit. Kelly Phillips Erb Business units at the IRS were impacted at different rates. The top six business units affected by the cuts are: Small Business/Self-Employed (SB/SE) helps small business and self-employed taxpayers understand and meet their tax obligations. SB/SE reported a 35% reduction. The Human Capital Office (HCO) supports IRS employees with Human Resource topics. HCO reported a 28% reduction. Information Technology (IT) supports IRS employees by delivering IT services and solutions. IT reported a 25% reduction. Tax Exempt & Government Entities (TE/GE) helps taxpayers with pension plans, exempt organizations, and government entities comply with tax laws. TE/GE reported a 25% reduction. Taxpayer Services (TS) helps taxpayers understand and comply with tax laws. TS reported a 20% reduction. Large Business and International (LB&I) helps corporations and partnerships with assets greater than $10 million to comply with tax laws, including emerging international issues. LB&I reported a 19% reduction. Every state and the District of Columbia and Puerto Rico have been impacted by the reductions. A Deeper Dive U.S. shareholders with interests in controlled foreign corporations may see a change to tax bills after the One Big Beautiful Bill Act. getty While several individual income tax provisions of the One Big Beautiful Bill Act (OBBBA) like 'no tax on tips' have been in the headlines, a set of notable changes to the existing Global Intangible Low-Tax Income ('GILTI') inclusion rules have largely been overlooked—even though they could impact individual taxpayers. GILTI is part of the international tax system. Before the enactment of the Tax Cuts and Jobs Act of 2017 (TCJA), many U.S. shareholders with interests in controlled foreign corporations ('CFCs') could defer income tax on the CFC's non-passive or 'active' trade or business income. A CFC is a foreign corporation registered and operating in a jurisdiction different from that of its controlling owners. In the U.S., this means a company where at least half of its shareholders are U.S. shareholders, based on voting power or the total value of the company (other rules may apply). Before the TCJA, instead of paying income tax on the CFC's business income each year, U.S. shareholders paid income tax only when the funds earned from the CFC's business were repatriated to them in the form of a dividend. The TCJA modified the deferral rules, requiring U.S. shareholders to report most active business income of a CFC as a GILTI inclusion, even if the funds were never repatriated to the U.S. (If this sounds familiar, it's related to the repatriation tax provisions raised in a recent Supreme Court case, Moore v. U.S.) OBBBA makes several important revisions to the GILTI framework. As an initial matter, it eliminates the GILTI inclusion reduction for a net deemed tangible income return (NDTIR). Because foreign corporations no longer receive an NDTIR for eligible depreciable assets, U.S. shareholders may see an increase in Net CFC Tested Income and as a result, an increase in tax. OBBBA also permits U.S. corporate shareholders (or individual shareholders with a Code section 962 election) to claim a deemed foreign tax credit with respect to the Net CFC Tested Income amounts—these shareholders may claim an increased 90% of the foreign taxes allocable to the income. You're likely getting the sense that the U.S. tax rules associated with CFCs are complex and nuanced. That's certainly true. If you have an interest in a CFC, be sure to consult with your tax advisor to find out how these changes might impact you. Tax Filings And Deadlines 📅 September 30, 2025. Due date for individuals and businesses impacted by recent terrorist attacks in Israel. 📅 October 15, 2025. Due date for individuals and businesses affected by wildfires and straight-line winds in southern California that began on January 7, 2025. 📅 November 3, 2025. Due date for individuals and businesses affected by storms in Arkansas and Tennessee that began on April 2, 2025. Tax Conferences And Events 📅 July 28-30, 2025. Tax Summit 2025. Grand America Hotel, Salt Lake City. Registration required. 📅 August 5-September 16 (various dates), 2025. IRS Nationwide Tax Forum in New Orleans, Orlando, Baltimore and San Diego. Registration required (discounts available for some partner groups). 📅 September 17-18, 2025. National Association of Tax Professionals Las Vegas Tax Forum. Paris Hotel, Las Vegas, Nevada. Registration required. Trivia Which Las Vegas casino opened on December 26, 1946, followed by a three-story hotel on March 1, 1947, and is now considered the oldest continuously operating resort on the Strip? (A) Caesars Palace (B) Flamingo (C) Sahara (D) Tropicana Find the answer at the bottom of this newsletter. Positions And Guidance The IRS issued a memorandum highlighting changes aimed at reducing case cycle times for corporate taxpayers. The Interim Guidance Memorandum (IGM), Reinforcing the Customer Focused, High Efficiency Large Business & International Examination Process, provides guidance for phasing out Acknowledgement of Facts (AOF) information document request process in examinations by 2026; expanding use of Accelerated Issue Resolution (AIR) to large corporate cases; and a stronger review of Fast Track Settlement (FTS) denials. The changes will be implemented in 2025 and 2026. The IRS and Security Summit partners continue to warn tax professionals to be wary of evolving phishing emails and other schemes to steal sensitive taxpayer data and offer steps tax pros can take to protect sensitive taxpayer information. This is the second in the five-part Protect Your Clients; Protect Yourself summer series, organized annually by the Security Summit, which includes tax professionals, industry partners, state tax agencies, and the IRS. The public-private partnership has worked together since 2015 to protect the tax system and taxpayers from identity theft and fraud. The IRS has published Internal Revenue Bulletins 2025-30 and 2025-31. The IRS reminds Business Tax Account (BTA) users that Designated Officials must revalidate their accounts by July 29 to maintain access. Designated Officials who do not revalidate their accounts by July 29, 2025, will need to request access to the account again, either as a Designated Official or as a user of another type. Noteworthy Thirty-seven percent of Americans have experienced fraudulent activities after being personally and/or professionally impacted by a natural disaster, according to a recent survey conducted by The Harris Poll on behalf of the American Institute of CPAs (AICPA). The most common activity reported was identity theft. In a recent survey conducted by The Harris Poll on behalf of the American Institute of CPAs (AICPA), Americans were asked which type of tax filing and payment relief would be most helpful after experiencing a natural disaster. Thirty-five percent say it would be helpful to have the IRS further extend the tax relief (i.e., extension on filing taxes and payment) beyond what was initially provided when the state of emergency was declared. If you're considering buying an electric vehicle (EV), you may want to act soon. The federal tax credit of up to $7,500 for new EVs and up to $4,000 for used EVs expires on September 30, 2025. Taxpayers are reporting that the IRS is sending out late filing notices even when taxpayers are on extension. This includes taxpayers in federally declared disaster areas where tax relief includes automatic extensions. The IRS has been notified of the issue. SolomonEdwards, a professional services firm focused on solving critical business challenges for companies undergoing growth, change or compliance-driven events, announced the promotion of Carissa Robb to managing partner of its Banking & Financial Services (BFS) practice. Katten announced that Loren R. Lembo has joined as a partner in the firm's Transactional Tax Planning practice based in the New York office. Lembo focuses her practice on domestic and international tax matters in the financial services space. The Tax Law Center is launching a project focused on rebuilding and remaking the federal tax administration system, following significant losses in IRS workforce and leadership, broad deregulation efforts benefiting special interests, violations of taxpayer privacy, and attempted interference in audits. The project will provide analysis, recommendations, and blueprints in areas including improving legal structures and norms to protect taxpayer privacy, strengthening IRS funding levels and mechanics, engaging in guidance on the new tax law, and responding to deregulatory actions. — If you have tax and accounting career or industry news, submit it for consideration here or email me directly . In Case You Missed It Here's what readers clicked through most often in the newsletter last week: You can find the entire newsletter here. Trivia Answer The answer is (B) Flamingo. neon sign for Flamingo hotel, Las Vegas, NevadaThe Flamingo Las Vegas is the oldest hotel and casino still in operation on the Strip, followed by the Sahara (1952), Tropicana (1957) and Caesar's Palace (1966). The Flamingo was launched by Billy Wilkerson, founder of The Hollywood Reporter, who financed the project with mobsters, including Benjamin "Bugsy" Siegel. Siegel was killed by an unknown shooter in June 1947 while he was at his girlfriend's home. His girlfriend at the time was Virginia Hill (an urban legend suggests that her nickname was "Flamingo" due to her long, thin legs, which led to the name of the hotel, although this has been largely discredited). A few years after Siegel's death, in 1954, a grand jury indicted Hill on four counts of tax evasion—she was accused of not paying $227,000 in tax ($2,721,983.16 in today's dollars). She fled to Europe to avoid jail. Feedback How did we do? We'd love your feedback. If you have a suggestion for making the newsletter better, submit it here or email me directly.
Forbes
13-07-2025
- Business
- Forbes
AI In Tax: Using LLMs To Work Smarter With Spreadsheets
Spreadsheet illustration concept. Despite the growing presence of AI and large language models (LLMs) within tax departments, spreadsheets continue to play a central role in the daily work of tax professionals. While tax departments are embracing digital transformation, many interim processes—like extracting data from ERP systems or reconciling values—still flow through spreadsheets. And despite the promise of intelligent tax tools, this reality isn't going away anytime soon. But with great reliance comes significant risk. High-profile cases have shown that spreadsheet errors can cost companies millions. A comprehensive academic study found that a staggering 94% of financial spreadsheets contain errors. These aren't just innocent typos but often result in compliance breaches, miscalculations, and flawed reporting. LLMs may offer real help in managing spreadsheets. To use them effectively and responsibly, tax professionals must understand both what these AI tools can do and where they fall short. How LLMs Process Spreadsheets While most LLMs can read common spreadsheet formats like CSV or Excel and answer questions about the data, they differ in two important ways: how much data they can handle at once (known as the context window) and how they process the data. GPT‑4o has a context window of 128,000 tokens, which limits how much information it can process in a single interaction. When you upload a spreadsheet to ChatGPT powered by GPT‑4o, the model doesn't read the file directly. Instead, it uploads the file to a secure, temporary environment that includes tools like Python and data science libraries. In this setup, GPT‑4o behaves like a Python programmer: it writes and runs code to explore your spreadsheet. It then turns the results of that code into clear, human-readable explanations. If you ask for a chart, GPT‑4o generates the code to create it and shows you the result. Claude 3.5 Sonnet takes a different approach. It reads spreadsheet content directly as text, interpreting headers, rows, and columns without writing or running code. It currently doesn't support chart generation or code execution, but it has a much larger context window—up to 200,000 tokens—which allows it to handle larger datasets in a single session and generate longer, more detailed responses without losing earlier information. Based on their characteristics, GPT‑4o may be the better choice for tasks that involve complex data manipulation, calculations, or visualizations. Claude, on the other hand, is excellent for exploring and interpreting large, text-based tables, identifying patterns, and summarizing structured data, especially when working with large volumes of content that don't require advanced computation. But What About Limitations? LLMs have some limitations when working with spreadsheets, and the most significant hurdle is context window constraints. Think of an LLM's context window as its short-term memory or the amount of information that can be processed in a single interaction. This information is measured in tokens, which are not the same as words. A token typically represents a few characters or parts of words. For example, 1,000 tokens is roughly equivalent to 750 words of English text. Each LLM has a different context window size. GPT‑4o, for instance, has a context window of 128,000 tokens. Now consider a large spreadsheet with 10 columns and 100,000 rows—that's 1 million cells. If we estimate an average of 3 tokens per cell, the total token count would be around 3 million tokens, which far exceeds the capacity of any current model, including GPT‑4o. Even uploading a portion of such a file can push the model beyond its limit. For example, 10 columns × 20,000 rows equals 200,000 cells. At 3 tokens per cell, that's approximately 600,000 tokens, not even counting the extra tokens needed for headers, formatting, or file structure. Since GPT‑4o can only process 128,000 tokens at once, only a small fraction of that spreadsheet can be 'seen' and processed at any given time. When you upload a spreadsheet to GPT‑4o, the model can only interact with the data that fits within the active context window. It doesn't see the entire file all at once but just the portion that fits within that token limit. For example, if you ask, 'What is the deductible VAT amount listed in row 7,000?' but the model only received the first 5,000 rows, it won't be able to answer because it never saw that row in the first place. It's also important to understand that the context window includes the entire conversation, not just your current question and the data. As the session continues and more prompts and responses are exchanged, the model may start dropping earlier parts of the conversation to stay within the 128,000-token limit. That means key data, such as the original file content, can be silently dropped as the conversation grows. This can lead to incomplete or incorrect answers, especially when your new question relies on information the model has already "forgotten." Another limitation is that LLMs are sequence-based models. They read spreadsheets as a linear stream of text and not as a structured, two-dimensional grid. That means they can misinterpret structural relationships and cross-sheet references between cells. LLMs don't automatically recognize that cell D20 contains a formula like =SUM(A20:C20). Similarly, they may not realize that a chart on "Sheet1" is pulling data from a table on "Sheet2,' unless this relationship is clearly described in the prompt. Finally, LLMs don't truly 'understand' tax law. While they've been trained on large volumes of publicly available tax-related content, they lack the deeper legal reasoning and jurisdiction-specific knowledge that professionals rely on. They can easily make obvious mistakes like not flagging penalties or entertainment expenses as not eligible for input VAT deduction because they are not aware of country-specific rules, unless such rules are explicitly stated in the prompt. As a result, they can produce plausible but incorrect answers if relied on without expert review. How to Use LLMs Effectively with Spreadsheets When using LLMs to work with spreadsheets, you'll get the best results by running them within platforms designed for data tasks, such as Python notebooks, Excel plugins, or Copilot-style interfaces. These tools allow the LLM to interact with your spreadsheet by generating Excel formulas or Python code based on your instructions. For example, you might say: 'Write a formula to pull client names from Sheet2 where the VAT IDs match those names." The tool then generates the appropriate formula, and the spreadsheet executes it just like any standard formula. When dealing with large spreadsheets, another effective strategy is to break the data into smaller, manageable sections and ask the model to analyze each part separately. This approach helps keep the information within the model's memory limits. Once you've gathered insights from each section, you can combine them manually or with the help of a follow-up AI prompt. Another powerful method is to ask the LLM to write code to process your spreadsheet. You can then run that code in a separate environment (like a Jupyter notebook), and feed just the summarized results back into the model. This allows the LLM to focus on interpreting the findings, generating explanations, or drafting summaries without being overwhelmed by the raw data. Spreadsheets Are Here to Stay Spreadsheets aren't going anywhere. They are too flexible, too accessible, and too deeply ingrained in tax operations to disappear. AI and LLMs will continue to transform the way we work with them, but they won't replace them. Looking ahead, we can expect smarter tools that make spreadsheets more AI-friendly. Innovations like TableLLM and SheetCompressor are paving the way. Though still in the research phase and not yet integrated into mainstream commercial tools, they signal a promising future. TableLLM is a specialized language model trained specifically to understand and reason over tabular data. Unlike general-purpose LLMs that treat tables as plain text, TableLLM recognizes the two-dimensional structure of rows, columns, and cell relationships. SheetCompressor, developed as part of Microsoft's SpreadsheetLLM project, uses AI-driven summarization techniques to drastically reduce spreadsheet size before passing the data to an LLM. It results in up to 90% fewer tokens, while preserving the original structure and key insights. Beyond TableLLM and SheetCompressor, the field of spreadsheet-focused AI is expanding rapidly. Experimental tools like SheetMind, SheetAgent, and TableTalk explore everything from conversational spreadsheet editing to autonomous multi-step operations. As these technologies mature, AI-powered tax departments won't move away from spreadsheets but will use them in smarter, faster, and more efficient ways. The opinions expressed in this article are those of the author and do not necessarily reflect the views of any organizations with which the author is affiliated.
Forbes
02-07-2025
- Business
- Forbes
Getting To Know You Tuesday: Nicole Davis, CPA
Nicole Davis, CPA Nicole Davis When you think about tax professionals, you may assume that they are simply number crunchers. Nicole Davis, CPA, explains that her job entails much more. 'I help businesses, medium and small, redesign their business processes by reducing or automating non-value added tasks and focusing on improving productivity and quality,' she explains. Put another way, she advises business owners on operations and accounting. Davis leads Conscious Accounting and Delite Payroll with the expertise that earned her a place on the Forbes Top 200 CPAs in America. Away from the office, she trades spreadsheets for saucepans and reality TV (a guilty pleasure), and proves her motto that it doesn't cost to have a good accountant, it pays. Here's what else Nicole had to say: Where are you now? Currently, I am in transition. We purchased two firms last fall so merging and integrating the two into our larger firm has not come without its challenges. We are also rebranding from Butler-Davis to Conscious Accounting. What's your job title, and what does it mean? I'm the CEO and, yes, Chief Hello Officer at Conscious Accounting. The CHO badge fits because my focus now is building client relationships, so every day kicks off with a friendly 'hello' that sets the tone for everything that follows. Tax, law, and accounting are such broad topics. What's your area of special interest? My heart is in accounting since I spent most of my corporate career in this field. Yet, I've become known as a tax expert but that's because I didn't start in tax and had a lot of catching up to do. I had to get up to speed fairly quickly with tax laws, preparing returns, and offering tax advice as a service. What's the first thing you typically do while at work? The first thing I typically do at work is take off my heels or flats and slip on my compression socks and fuzzy slippers. I get really comfortable. If you had an extra couple of hours open up in your day—outside of work—what would you do? If I had an extra couple of hours in my day, I would probably take more ME time. More walks, more massages, more doing something that is not work related. What's one tool or resource that you couldn't live without at work? I could not work without my cell phone. I can practically run my firm from my cell phone. This is why it's always glued to my hands. If you weren't working in the tax profession, what would your dream job be? I'd probably be a chef at an international restaurant. I love Italian food, so I'd study how to make hand rolled pasta in Bologna and open a restaurant focusing on that. What's the best tax or financial advice that anyone ever gave you? The best money advice anyone has ever given me was to don't loan money to anyone unless you are OK not getting it back. It saved so many relationships with friends and family. What books or magazines are on your nightstand? I don't have any on my nightstand. However, on my desk are 'Think Like a Monk' and 'Praying the Names of God for 52 Weeks.' Who has been the biggest influence on your career? Oh, this is a hard one. I would say it was my manager at the Federal Home Loan Bank of Atlanta. My time there was extraordinary. My boss was a Black CPA and before meeting her, I had no intention of becoming a CPA or working in a public accounting firm. That encounter changed everything. What would I be surprised to know about you? My first name isn't Nicole. It's Laphilia (LUH-FEEL-YUH) and it's as unique as me. I dare you find some other person alive with that name. If you had the opportunity to make one change in the tax code tomorrow—an extra credit, a disallowed deduction, whatever—what would it be and why? I'd create a refundable credit for healthcare that covers out of pocket expense for healthcare, childcare, or eldercare. What was the best tax conference, continuing education (CE), or continuing legal education (CLE) event that you ever attended? AICPA ENGAGE but I may be a bit biased since I am on one of the planning committees responsible for programming. What has been the biggest change that you've seen in the tax profession in the last five years? The biggest change has been how compliance is pretty much a tech product now. We are no longer chained to keyboard cranking out returns. Our job now is reading the story behind the numbers, then translating that into action steps on cash flow, entity tweaks, deal timing, and wealth plays. Firms that buddy-up with the bots and lean harder into human smarts? They're sprinting past the pack. What are you most concerned about or excited about with respect to the profession moving forward? I am most excited about the possibilities in this profession. There are so many people that see a path to career expansion without being a part of Big 4. Generative AI will speed this up for many since we don't have reinvent the wheel. If Uncle Sam handed you a huge refund check right now, what would you do with it? I'd probably spend it on grocery shopping and have a big dinner party. I love to shop for food and cook. You can find Nicole on LinkedIn—you can also find her on our Forbes Best in State Top CPAs List. This article is part of our Getting To Know You Tuesday series—a chance to get to know all kinds of tax professionals and understand that the field of tax is bigger than April 15. If you'd like to nominate tax professional to be featured, send your suggestion to kerb@ with the subject: Getting To Know You Tuesday. Forbes Getting To Know You Tuesday: Arielle Tucker By Kelly Phillips Erb
Globe and Mail
28-06-2025
- Business
- Globe and Mail
TaxHub Launches Empire Builder Program, Empowering Entrepreneurs to Launch Their Own Branded Tax Software
TaxHub announces the launch of its groundbreaking Empire Builder Program, allowing aspiring tax professionals to create and own their own branded tax software, revolutionizing the tax industry. Houston, Texas--(Newsfile Corp. - June 28, 2025) - TaxHub, a leading tax technology and education company founded by entrepreneur Stephanie Dioguardi-Fields, is revolutionizing the tax industry with the launch of its Empire Builder Program. This new program enables aspiring tax professionals and entrepreneurs to create their own branded tax software, further solidifying TaxHub's commitment to providing comprehensive support to individuals looking to build and scale their own tax businesses. TaxHub Launches Empire Builder Program, Empowering Entrepreneurs to Launch Their Own Branded Tax Software To view an enhanced version of this graphic, please visit: TaxHub's Empire Builder Program is the first of its kind, offering a unique opportunity for tax professionals to not only offer tax preparation services but also create and own their own software brands in the competitive tax industry. Through this program, participants will gain access to white-labeled software, mentorship, and all the tools needed to develop a successful tax software business under their own brand. TaxHub's Empire Builder Program is part of a larger movement to transform the way people enter and thrive in the tax business. The program is designed to help individuals who are not just interested in tax preparation but in creating their own tech-driven businesses. Aspiring entrepreneurs are provided with the tools, resources, and mentorship to bring their own tax software brands to life, establishing themselves as leaders in the industry. Beyond Tax Prep: The Path to Creating a Software Brand Unlike traditional tax service companies, TaxHub focuses on building scalable businesses that go beyond the seasonal nature of tax preparation. With the Empire Builder Program, participants can launch year-round operations, including the development of tax software that aligns with their business goals and values. This shift toward tech entrepreneurship helps tax professionals diversify their income streams and create lasting value. "TaxHub isn't just teaching people how to file taxes; we're showing them how to scale a tax business into something much bigger—an entire brand, complete with its own software platform," says Dioguardi-Fields. "The future of the tax industry isn't just about providing services; it's about providing ownership opportunities, and that's exactly what we're doing with this program." The Empire Builder Program offers a full suite of tools, including tax software development, white-labeling options, and business coaching to ensure participants succeed in building their brands. The program is tailored to individuals of all experience levels, from newcomers to seasoned professionals, with a focus on hands-on support and community-driven growth. TaxHub Launches Empire Builder Program, Empowering Entrepreneurs to Launch Their Own Branded Tax Software To view an enhanced version of this graphic, please visit: Empowering Underserved Communities: A Commitment to Generational Wealth One of the core missions of TaxHub is to provide ownership opportunities, particularly to women, minorities, and underserved communities. Dioguardi-Fields has long been committed to creating pathways to financial independence through tax entrepreneurship. "I built TaxHub to make sure that anyone, regardless of their background, has the opportunity to succeed in the tax industry," she says. "This is about more than taxes; it's about creating generational wealth through ownership." Through its innovative approach, TaxHub is not just offering a side hustle; it's providing individuals with the opportunity to create long-term businesses that generate steady income throughout the year. With a focus on empowering its partners, the company is fostering a new wave of tech-driven tax professionals who are ready to shape the future of the industry. TaxHub's Empire Builder Program is now accepting applications for new partners. Entrepreneurs interested in taking part in the program can visit TaxHub Solutions for more information and to apply. About TaxHub TaxHub is a technology-driven company that empowers aspiring entrepreneurs to launch their own tax businesses, even with no prior experience. Founded by entrepreneur Stephanie Dioguardi-Fields, TaxHub offers comprehensive support, including mentorship, white-labeled tax software, and a mobile app to ensure the success of its partners. Through its partnership programs-Launch, Empire Builder, and Elite-TaxHub is reshaping the future of tax entrepreneurship and helping individuals build businesses that generate long-term wealth. Learn more at
Forbes
24-06-2025
- Business
- Forbes
5 Things You Should Know About The IRS BBA Partnership Audit Rules
BBA Partnership Audits Partnerships are an enigma under federal tax law. Although the partnership files an annual income tax return (i.e., Form 1065), the partners report their allocable share of the partnership's tax items on their income tax returns (e.g., Form 1040). Due to the complexity inherent in partnership income tax reporting, Congress has historically struggled in attempting to find an appropriate examination tool to provide to the IRS to audit partnerships. After more than three decades under the Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA), Congress changed the partnership audit and collection rules through passage of the Bipartisan Budget Act of 2015 (BBA). Under the BBA, the IRS must generally audit the partnership unless the partnership qualifies for and makes a timely election out of the BBA centralized partnership audit regime. Significantly, the BBA audit provisions also allow the IRS to collect taxes directly from the partnership unless the partnership makes a timely election to 'push out' the adjustments to its partners. The new BBA partnership audit rules are complex and provide ample opportunities to mess up, including missing an election. This article discusses five components of the BBA audit provisions that every tax professional should recognize and understand. BBA Partnership Audit Notices The IRS generally issues four notices during a BBA partnership audit. These notices include: (i) notices of selection for examination; (ii) notices of administrative proceeding (NAP); (iii) notices of proposed partnership adjustment (NOPPA); and (iv) notices of final partnership adjustments (FPA). To commence a BBA examination, the IRS issues the partnership a notice of selection for examination. Roughly thirty days after this notice, the IRS issues the NAP. After the NAP is issued, neither the partnership nor its partners may file an administrative adjustment request or notice of inconsistent statement, either of which often seeks to change the partnership's income tax reporting. If the IRS examiner concludes that adjustments are necessary to the partnership return, the agency will issue a NOPPA that contains and details the proposed partnership adjustments. As discussed more below, the IRS will first allow the partnership an opportunity to an administrative appeal prior to issuance of the NOPPA. After issuance of the NOPPA, the partnership has a 270-day window to request modifications to the proposed partnership-level tax, which is known as an 'imputed underpayment.' Generally, the partnership representative makes the modification requests by electronically filing an IRS Form 8980, Partnership Request for Modification of Imputed Underpayment Under IRC Section 6225(c). If the partnership and the IRS continue to disagree on the proposed adjustments, the IRS issues an FPA. The FPA triggers two important deadlines. First, the partnership representative may elect to 'push out' the FPA's adjustments to the partners if an election is made within 45 days of the FPA. Second, the FPA starts a 90-day deadline for the partnership representative to contest the FPA's determinations in federal court. BBA Partnership Push-Out Election A timely push-out election can significantly reduce overall income tax. If the partnership representative makes the election, any proposed adjustments resulting in an imputed underpayment are pushed out to the reviewed-year partners, i.e., the persons who were partners for the year under IRS scrutiny. Because a push-out election results in a higher applicable interest rate, however, partnerships should consult with their tax advisors to determine the impact of the push-out election prior to making it. Given the 45-day deadline, there is not much time here to make the analysis—so tax advisers should be engaged early on after the IRS issues the FPA. A partnership representative makes a push-out election by completing and electronically filing an IRS Form 8988, Election to Alternative to Payment of the Imputed Underpayment – IRC Section 6226. In addition to filing this form, the partnership representative must provide the partners with certain information concerning the push-out adjustments. These push-out statements must be provided to the partners generally within 150 days of the FPA if the partnership representative accepts the proposed adjustments and does not seek judicial review. If the partnership representative files a timely petition for readjustment in federal court, the push-out statements must generally be provided to the partners within 60 days from the date the court enters its final decision. In either instance, the partnership representative provides its partners with IRS Forms 8985, Pass-Through – Statement Transmittal / Partnership Adjustment Tracking Report (Required Under Sections 6226 and 6227), and 8986, Partner's Share of Adjustment(s) to Partnership-Related Items(s) (Required Under Sections 6226 and 6227). If these statements are not provided timely, the IRS may attempt to revoke the push-out election. BBA Partnership Audits And Deposits A BBA partnership dispute can last a long time—even more so if the partnership representative contests the proposed adjustments in federal court. If the partnership representative makes a push-out election and ultimately loses on the merits at federal court, the partners may be responsible for significant interest on the resulting income taxes. Section 6603 of the Code, which governs deposits, may be helpful here. When a taxpayer makes a deposit, it stops interest from accruing on potential taxes owed. BBA partners can make deposits of tax to stop interest, but they must follow special rules. Under IRS guidance, a BBA partner can make a section 6603 deposit by submitting a payment of the estimated tax and submitting a statement to the IRS designating the payment as a deposit. In the statement, the partner should include: (i) the name and TIN of the partnership under examination; (ii) the reviewed year of the partnership under examination; (iii) the audit control number of the partnership under examination; (iv) a statement of the amount and basis of the disputable tax; and (v) the partner's estimated allocable share of the adjustments and the tax, interest, and penalty computations. IRS Appeals Rights In BBA Partnership Audits The IRS Independent Office of Appeals (IRS Appeals) provides taxpayers with an impartial administrative forum to resolve their tax disputes with the IRS. IRS Appeals hears non-docketed cases and docketed cases. Non-docketed cases are those, as applicable to BBA partnership audits, where no petition for readjustment has been filed. Docketed cases are those pending in a federal district court. Generally, the IRS will issue a '30-Day Letter' to the partnership representative after the conclusion of the examination. The 30-Day Letter notifies the partnership of the proposed partnership adjustments and offers the partnership a right to appeal the adjustments with IRS Appeals. To request an appeals conference, the partnership representative must submit a timely protest. In addition, IRS Appeals will only accept cases where there is sufficient time remaining on the statute of limitations for the IRS to make an assessment. Accordingly, the IRS often asks for a statute of limitations extension waiver from the partnership representative in these circumstances. If the partnership representative submits a timely protest, the partnership has an opportunity to discuss disputes associated with the proposed adjustments with IRS Appeals. These disputes can relate to issues of fact or law. IRS Appeals reviews the parties' contentions to determine whether a settlement may be reached without judicial intervention. Regardless of settlement, IRS Appeals issues the NOPPA at the conclusion of the appeals conference, which as mentioned above triggers the 270-day modification period. If the partnership representative requests modifications and the IRS refuses to grant them, the case may be forwarded again to IRS Appeals solely to review the modification requests. Thereafter, IRS Appeals issues the FPA. Similar to non-docketed cases, IRS Appeals seeks to resolve disputes between the partnership representative and the IRS in docketed cases. BBA Partnership Audits And Judicial Review When the agency issues an FPA, the partnership representative has 90 days to file a petition for readjustment with the proper federal court, which is either the U.S. Tax Court, the district court in which the partnership's principal place of business is located, or the Court of Federal Claims. Partnerships do not have to pay the imputed underpayment prior to filing a petition in the U.S. Tax Court. But for a federal district court or the Court of Federal Claims to have jurisdiction, the partnership must make a deposit of the proposed imputed underpayment with the IRS on or before the petition filing date. By statute, the partnership must also pay any proposed penalties and 'additional amounts.'
