Tax Tips


What is a Partnership Capital Account?

A Partnership Capital Account is a distinct account that shows the equity in a partnership that is owned by specific partners. This account typically exists as an item that is shown in a business’s financial and accounting records rather than as an actual bank account, although this depends on business practices. Businesses may choose to create separate…

Form 1041 Schedule K-1 FAQs

What is the K-1 Tax Form?Schedule K-1 (Form 1041) – Beneficiary’s Share of Income, Deductions, Credits, Etc. is an informational tax form that shows the beneficiary’s share of an estate or trust. The share may include income, credits, deductions, and profits. This form shows the pass-through of tax responsibility from the estate or trust to the person…

Form 1040X vs. Form 1040

Errors on tax returns are common, even when filing as a professional. Form 1040X allows tax preparers like you to modify information that was incorrectly submitted on your client’s return.If a client fails to disclose information like a W-2 or a side gig, you will need to amend their return. We’ve compiled some tips for a straightforward amendment…

IRS Reform: How the Protecting Taxpayers Act Impacts Tax Preparers

More than half of all taxpayers in the US rely on a professional service to help them prepare and file their taxes. These individuals use accountants, CPAs and other tax preparation services like you to get their tax records and forms in order. Like any industry that deals with money or income, there are some discrepancies when it comes to the validity of practicing…

New Tax Reform: What You Need to Know

The Tax Cuts and Jobs Act of 2017 made several significant alterations to the IRS tax code that could affect you and your clients. While this is nowhere near a comprehensive list of changes, here are some notable modifications you need to be aware of that will have lasting effects.   Certain tax deductions are no longer availableOne of the main objectives…