strategies-init Archives - Page 74 of 75

Issues for Startups – Privacy, Privacy Protection, and Data Security

April 23, 2026September 30, 2013 by Brotman Law

Another key issue for startups when it comes to data security is ensuring compliance the Federal Trade Commission “disposal rule.” Originally implemented as a means as for combating identify theft of information stored on large corporate servers, the Disposal Rule is part of the Fair and Accurate Credit Transactions Act of 2003. In a nutshell, companies are required to implement certain safeguards when destroying electronic files so that these files cannot be read or reconstructed by unauthorized users. As it would pertain to startups, any customers lists, credit reporting data, medical information, and any sensitive financial information or confidential customer communications (relating to online communications companies) should be appropriately safeguarded and disposed of in a prudent fashion.[21]

Key Takeaways

Another key issue for startups when it comes to data security is ensuring compliance the Federal Trade Commission “disposal rule.
Two of the other key areas startup companies should be vigilant in dealing with privacy issues, and where most occur, are with employees/independent contractors and outside vendors.
When dealing with third parties, startups should be especially prudent in the area of privacy protection.

IRS Transcripts – Part Two – W&I and Return Transcripts

April 23, 2026September 30, 2013 by Brotman Law

IRS Transcripts – Wage and Income Transcripts

These types of IRS transcripts are a record of all of the wage and income data provided to the IRS by 3rd party providers including your employer, banks, financial institutions, brokerage houses, other government agencies, corporations, casinos, and a few others. All W2s, W2-Gs, 1099s, 1098s, 5498s, K1s, and other records of income on file for your social security number will be listed. Wage and income transcripts are most beneficial when preparing past returns because they are a quick and easy listing of income that you may have earned for that tax year. However, wage and income IRS transcripts should be checked for potential errors and compared with the information that you have in your records. 3rd parties can and frequently do make mistakes. Also, equally important, is to check your wage and income transcript for instances of identity theft. Wage and income transcripts are also an excellent provide insight into what information the IRS has on file for you. Although hopefully you will be able to prevent adverse collection activity before it occurs after reading this book, wage and income transcripts can give some idea of what they may come after (and how quickly they will be able to find it) if collection activity does occur.

Key Takeaways

It is also important to note that wage and income IRS transcripts are not always complete for the current year, as the IRS is still receiving and processing information from 3rd parties.
Return transcripts are itemized line by line records of your individual income tax return (Form 1040, 1040a, 1040ez) as it was filed and processed by the IRS. When the IRS receives a tax return, it breaks it down into bits of data that it can more easily use.

IRS Transcripts – Part One – IRS Account Transcripts

April 23, 2026September 30, 2013 by Brotman Law

To assist taxpayers and practitioners, the IRS will provide taxpayers with transcripts of the information that the IRS has on file. There are three main types of IRS transcripts that taxpayers should be aware of before checking their account. These are IRS account transcripts, IRS return transcripts, and IRS wage and income transcripts.

Key Takeaways

To assist taxpayers and practitioners, the IRS will provide taxpayers with transcripts of the information that the IRS has on file. There are three main types of IRS transcripts that taxpayers should be aware of before checking their account.
The most important transcript for checking activity on your account for any given year.
IRS account transcripts should be reviewed thoroughly to ensure that all information is correct on your account. The first thing that you should check for is to make sure that your return appears on this transcript as being filed.

Checklist For Choosing a Tax Preparer

April 23, 2026September 30, 2013 by Brotman Law

I have prepared a list of tips to help you chose a tax preparer and to make sure they are doing the job that you hired them for.

Key Takeaways

I have prepared a list of tips to help you chose a tax preparer and to make sure they are doing the job that you hired them for.
– Do check credentials, ask for references, and read online reviews. In the age of the internet, it is increasingly easy to research an individual’s reputation well in advance of meeting them.
– Do not listen to promises about someone being able to “save you thousands in tax” based on a few simple deductions to your return.

What if I Cannot Pay an IRS Balance Due?

April 23, 2026September 30, 2013 by Brotman Law

In the tax world, to quote Benjamin Franklin, an ounce of prevention is worth a pound of cure. Almost all taxpayers can engage in some level of tax planning to their benefit prior to a return being filed. As a practitioner, I like to perform a mid-year check with my clients to review their current tax situations and to make sure they are on track with where we have identified they need to be. Although particularly helpful with self-employed individuals and those with small businesses, to ensure that they are making proper tax deposits, it can also be helpful for W2 employees who want to adjust their withholdings during the course of the year. In addition, I would recommend checking in with a tax professional to understand the tax consequences of any major life events. Getting married, having a child, changing jobs, getting a raise, buying a house, moving, caring for another individual, and a variety of other changes can all impact your future tax situation. It is always better to be able to be aware that you may have a balance due at the earliest possible juncture in order to try and minimize your liability.

Key Takeaways

In the tax world, to quote Benjamin Franklin, an ounce of prevention is worth a pound of cure. Almost all taxpayers can engage in some level of tax planning to their benefit prior to a return being filed.
If tax planning cannot mitigate the liability, usually it is best to file the return as soon as you can.
Although filing a return may put the IRS on notice of the liability sooner, filing the return has two principal advantages.

Tax Liability Resolution Options

April 23, 2026September 30, 2013 by Brotman Law

Key Takeaways

Go to Brotman Tax Resolution Services
Go to The Brotman Virtual Law Office
Go to Resource Blog Homepage

Once an IRS tax liability has become final, the taxpayer has a few options for dealing with an IRS liability. Each of these options carries its own advantages and disadvantages and taxpayers should take the opportunity to learn fully about the different ways of settling their balances before proceeding with one option or another. As a helpful guide to assessing what exactly the consequences of each action are, I have put together a short list of some of the advantages and disadvantages of each option.

How to Choose an IRS Tax Return Preparer – Part Two

April 23, 2026September 30, 2013 by Brotman Law

In addition, I wanted to discuss IRS tax return preparers that I will identify as “others.” This would include enrolled agents, bookkeepers, and national tax preparation chains. Let us be clear from the outset: I know several of these individuals who are excellent and who I would trust with my own return (if the need for someone else to prepare my return ever arose). These people often make a great living or have a decent side business from preparing returns and are quite knowledgeable. Experience is the number one thing to look for when choosing an IRS tax return preparer.

Key Takeaways

In addition, I wanted to discuss IRS tax return preparers that I will identify as “others.” This would include enrolled agents, bookkeepers, and national tax preparation chains.
However, I will say that many of these individuals do lack a formal tax education, which is something that I feel has been invaluable to my own tax return preparation practice.
To conclude, I want to give you an additional word of caution. Through my experience as an attorney, I have run into multiple instances of people who were victimized by unscrupulous tax preparers.

How to Choose an IRS Tax Return Preparer – Part One

April 23, 2026September 30, 2013 by Brotman Law

Introduction to Choosing a Tax Return Preparer

Tax return software, although extremely popular, is often only as smart as its user. I have amended numerous returns for individuals who have made serious errors using tax software. These have ranged from a family member missing out on a $2,000 refund due to sales tax deductions they did not report to a client who missed out on over $200,000 due to failing to properly account for net operating losses. It is important not to be pennywise and pound foolish. For anyone with more than a single W-2, who itemizes their deductions, has a Schedule C business, makes stock trades, or has had other complexities in the life that they may believe impacts their tax returns, please, please, please make the investment in order to have a professional tax return preparer prepare your taxes.

Key Takeaways

Tax return software, although extremely popular, is often only as smart as its user. I have amended numerous returns for individuals who have made serious errors using tax software.
With respect to tax return preparers, I also know that not every tax return preparer is created equal.
Also, just because someone is an accountant, does not mean they are qualified to prepare individual tax returns. I know high ranking, Big Four accounting firm partners who do not know the first thing about tax.

Tax Season Survival Tips

April 23, 2026September 29, 2013 by Brotman Law

Introduction

Every tax season, many fear the tax return preparation process. Preparing and filing your taxes can be complicated and costly; not to mention the impending fear of owing money to the government. Tax season should not be this stressful though. With a little advanced planning and by following a few simple tips, you can make tax season painless as possible. Here’s how to make it through your annual filing obligation and save yourself both time and money.

Key Takeaways

Every tax season, many fear the tax return preparation process. Preparing and filing your taxes can be complicated and costly; not to mention the impending fear of owing money to the government. Tax season should not be this stressful though.
I see more people get themselves into trouble with the IRS because they fail to plan ahead. W-2 employees will sometimes misstate their withholding allowance on their W-4 in order to have less taken out of their paychecks.
For many, the task of keeping track of receipts and proof of purchases is a hassle, but is ultimately the best way to ensure you are getting every dollar for deductions that you are entitled to.

IRS Allowable Living Expenses – Part Two

April 23, 2026September 29, 2013 by Brotman Law

Continued from IRS Allowable Living Expenses – Part One