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Craig Smalley

Craig W. Smalley, MST, EA, is the Founder and CEO of CWSEAPA, PLLC. He has been admitted to practice before the Internal Revenue Service as an Enrolled Agent and has a Master’s Certificate in Taxation from UCLA. In practice since 1994, Craig is well-versed in U.S Tax Law and U.S. Tax Court cases, and specializes in individual, partnership, and corporate taxation for high-net-worth clients; entity structuring and restructuring; and representation before the IRS regarding negotiations, audits and appeals. Craig is currently a columnist for CPA Practice Advisor and AccountingWEB and has had 12 books published. His articles have been featured in publications including the Wall Street Journal, The New York Times, and Christian Science Monitor, and he has been interviewed and appeared as a featured guest on numerous radio shows and podcasts. Craig can be reached at craig@craigwsmalleyea.com.

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Legislation

A Tax Accountant's Analysis of the Cannabis Industry

In 28 States and the District of Columbia, cannabis is legal in one way or another. The problem is when you are dealing with the Federal Government. Cannabis is an illegal Schedule I Narcotic. That being said, when it comes to cannabis, legal ...

Grantor Retained Annuity Trusts (GRAT) Are in the News Again

Before we get into the nuts and bolts of a recent District Court Case, let’s take a moment to discuss GRATs. First of all, with the new tax law the estate tax exemption is $11.2 million. If you are married, and elect portability, then the exemption is ...

Legislation

A Lesson in Tax Basis Taught to us by Almond Trees, of All Things

I keep in touch with an ex-bookkeeper that I sort of mentored. She decided to take the Enrolled Agent Exam but ended up failing Part I and must take it again. When I asked her what she got wrong, she mentioned basis. Basis is a hard concept to ...

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Technology

Estate Planning Under the New Tax Reform Guidelines

With the estate tax that has risen to $11.2 million, and if married and you elect portability the exemption doubles to $22.4 million. You might be asking yourself, why do you need to know about estate planning? Very simply, gift tax still exists, as well

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The Passive Activity Rules

The rules on how to determine a passive activity are pretty straight forward. In a nutshell, a taxpayer that spends less than 750 hours in an activity has passive income or loss. That works out to approximately 15 hours a week. In my aforementioned ...

Small Business

The National Association of Enrolled Agents (NAEA) Reminds Taxpayers About Small Business Week

`What can get lost to us professionals is Small Business Week. The Internal Revenue Service has produced You Tube Videos depicting Small Business Deductions. Not to be outdone the National Association of Enrolled Agents (NAEA) has released their own ...

The Power of 529 Accounts

The new tax law has opened so many tax planning opportunities, that it isn’t funny. We have created a situation where we can not only pay for and deduct our own health insurance, we can have Health Reimbursement Accounts (HRA), which we can put as much...

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S-Corporation Revocation

We have all had that discussion with our S-Corporation clients come tax time. They always say that they never took any distributions from their S-Corporation, so why do they have to pay tax? The simple answer is; you are taxed on profits and not ...

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The Disconnect Between Tax Professionals and Trusts

There is a major disconnect between tax accountants and trusts. Some people think that it is the best taxable situation for a client, and others think that all trusts protect assets, which couldn’t be further from the truth. The information that I am ...

Apparently There is No Point to an IRS Central Authorization File

Whether it’s budget cuts, or whatever, it doesn’t explain the TAS. When Nina Olsen gives her report to Congress every year, she should add that her organization is dropping the ball, and refusing to do what the office was designed to do.

The Best Advice You Can Give

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Why are Barbers Regulated, But Tax Preparers Aren’t?

In the State of Florida, the Department of Business and Professional Responsibility (DBPR), licenses barbers, beauticians, and other professions. The fact of the matter, is that someone that handles sensitive information, like Social Security Numbers ...