Tax Warrior Chronicles

VLOG - Tax Tips for Law Firm Partners

Posted on Mon, Jan 27, 2020

By: Irina Moyseyenko, CPA, MT

 

In our first vlog of 2020, Irina Moyseyenko, CPA, MT, gives three (3) important tax and cash-flow planning tips for newly dubbed law firm partners.  The way you are now paid is different and you need to plan accordingly. Click on the image to view. 

 

 

 

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The Basics of Becoming a Business Partner

Posted on Thu, Mar 16, 2017

By: Irina Moyseyenko, CPA, MT and Kim Racer Robinson, EA

 

You’ve been offered an opportunity to invest in a partnership; or perhaps you’ve been  promoted to partner at your law, accounting or architectural firm.  After spreading the good news to everyone, you come to grips with the great unknowns. What does it mean to be a partner? How will my financial life change? Below, we review a few things to consider before signing on the dotted line.

 

Know the Financial Shape of the Entity

If you buy into a business partnership, you become an owner.  As a potential owner, you should know what the business owns, how much it owes, and how it generates cash flow.  Review the partnership’s books and

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IRS Rules Post-Retirement Payments Are Subject to Self-Employment Tax

Posted on Tue, Feb 21, 2017

By: Tiffany Diaz, CPA

 

In a perfect world, retirees would receive post-retirement payments from former employers tax-free. However, a recent IRS letter ruling puts a damper on that notion. In this short blog, we give an overview of the details and the only exception to the rule regarding post-retirement payments.

 

The IRS letter ruling 2016-0081 determined a retiree’s payments from a former employer were subject to the self-employment tax, since the payments were earned as a result of the retiree’s 34 years of service to the company and were not being treated as wages subject to payroll taxes. The IRS used Section 1402(b) of the Internal Revenue Code ("the Code") to analyze the

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Active Members of an LLC are Subject to Self Employment Tax

Posted on Thu, Feb 26, 2015

Attention all limited partners and limited liability members: if you think that you can escape self-employment tax, the IRS may disagree.  A limited partner may be subject to the IRS’s expanded view of the self-employment tax obligation for limited partners under a recently issued Chief Counsel Advice (“CCA”) 201436049.

 

The CCA involves a limited liability company (“LLC”) taxed as a partnership for federal tax purposes. The LLC was a general partner in an investment fund limited partnership, serving as its fund manager. The LLC’s member activities included investment and portfolio management services, legal services and all other management services. Under the LLC’s operating agreement

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