IRS Exams: How To Defend Trader Tax Breaks And Win (Recording)

25 Jun

Jun 25, 2014 at 1:00 pm EST


Recording

Join CPAs Robert A. Green and Amanda Smitson, and tax attorney Mark Feldman.

IRS tax notices often question trader tax status (TTS) and the right to deduct trading business expenses on a Schedule C for individuals or pass-through entity tax returns. The IRS figures it can force limited investment expense treatment on Schedule A and a capital loss limitation instead of unlimited Section 475 MTM ordinary business losses which are conditional on qualifying for TTS.  The IRS has recently been victorious against traders Assaderaghi, Nelson and Endicott in tax court, so we prepared some tips for other traders facing an exam. In this Webinar, we will cover:

* How to file a trader tax return without red flags.

* How to reply to tax notices.

* How to keep an IRS exam limited in scope and under control for winning. 

* Big issues like trader tax status, a Section 475 election, cost-basis accounting and IRS matching tax returns with 1099Bs from brokers.   

* How to stay in bounds on tax filings so you don’t invite scrutiny. 

* When to “agree to disagree” with your IRS agent and move on to appeals, where you may have a much better chance of success.   

* How to write a winning appeals letter. 

* The pros and cons of tax court. 

* Learn how to file a petition for a tax court “small case”, and attempt to negotiate a settlement back in appeals. 

* Who should represent you in tax court. 

* The consequences of not filing tax returns, filing late, installment payment agreements and not dealing with IRS collections. 

Handling tax compliance right significantly reduces your chances of having problems with the IRS. 

Questions and Answers.

Testimonials

For 25+ years prior to 2013 I used TurboTax to do my own tax returns. When I started trading options as my primary source of income, however, I attended a presentation by Bob Green at Traders Expo and realized that there were significant advantages to trading within an LLC/partnership legal entity. I also realized that this made my tax return situation more complicated, so I started with GreenNFH for the tax year 2013 since they specialize in tax returns for active traders. Since I live in California, all my interacting with the staff has been through email, and the easy-to-use secure file upload/download facility they use. I have found the entire process to be very efficient and the fees to be quite reasonable. I recommend GreenNFH to other traders whenever the topics of trading entities and tax returns come up.

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