Tax Guru – Ker$tetter Letter

This is a follow-up to this earlier conversation.

Subject: Re: just starting out on my own…

 

Kerry,

I took your advice and started a blog.  My blog is http://glgcpa.blogspot.com and I just posted my first article this morning.  I think I’m going to like blogging.

I have also tried to contact the editor of our local newspaper to see if she is accepting any freelance articles, but she has not gotten back in touch with me. 

I contacted our Chamber of Commerce and evidently their treasurer is a CPA and was the contact person and said that if they needed anyone to speak he would do it.  I had no idea it would be so hard to give away free information 🙂 .

The good news is that I do have a handful of clients and one of them is a gem.  They have already referred me to two other people who I am hoping will become clients.

Thanks again for your help and any advice you have to give me on my blog or whatever I appreciate it.

Gina

My Reply:

I’m impressed that you got onto that so quickly.  It looks very nice.

You should go into the “Site Feed” tab in your Blogger settings and set up for your blog to produce an RSS feed, and then post the link for that on your blog.  That is the most efficient way for people to read blog posts.  You can see the ones I subscribe to here.
 
You can slowly add other features as you see fit and after you check out what looks good on the blogs.  Almost all of the blog tools I use are free; so check those out.

Your articles are very good.  If you run out of ideas, you may want to consider giving some real life examples  of how you helped real life clients solve various tax problems, without revealing any client identities of course.  That will show people the areas in which you have experience.  I have also found that people appreciate real life stories of how the tax laws work more than the theoretical examples used by most academics.

You can also invite readers to submit questions, which could very easily turn into paying clients.  I literally receive half a dozen requests each week from my readers to take them on as clients, often after they have submitted a few questions that I have posted on my blog.  As far as I know, the only blogs that currently address reader questions are mine and Eva Rosenberg (www.TaxMama.com)  who actually answers her questions in her podcasts.

Congratulations on getting started.  Keep up the good work.

Kerry

 

In a recent Jay Nordlinger column, he mentions this little warning about the current status of the estate tax law.

The estate-tax issue is multilayered, but I’d like to stress the macabre: A friend was saying the other day, “You know, there are people — not necessarily bad ones, either — who are kinda sorta hoping that their parents will die in 2010. They have to die sometime, goes the reasoning, and if they’re going to kick off — why not in 2010, when the estate tax is zero?” Another friend joked, “If you’re wealthy, be sure to protect yourself from your children, during 2010! Watch that they don’t put something in your Metamucil!” Certain heirs will feel like they hit the jackpot, four years from now.

A sick tax, this death tax — really.

 

Q-1:

Subject: Clients

 

Are you taking clients? I have the tax bug bad!

A-1:

I wish I could help you fight your tax bug; but I already have too many clients to take care of; so we are still trimming back on the difficult clients and are not accepting any new ones at this time. 

Unfortunately, we don’t have anyone to whom we could refer you. If you haven’t already done so, you should check out my tips on how to select the right tax preparer for you.:

I wish I could be of more assistance; but I wish you the best of luck.  

Kerry Kerstetter

Q-2:

Thanks for your response Kerry. I was reading your tips on selecting the right preparer when I suddenly realized I needed one, or at least one like you where describing. Congratulations on your success and I can see from your web page and how you handle others why you’re so busy. I bet you feel like one crying in the wilderness “there is a better way” I speak to others about these tips and tactics and they act as if I am giving them a virus. I don’t think people relate tax savings to real money or that is my perception.

 

There is one thing you could help me with if you have any spare time. There is a company online called www.drewmiles.com who offers one year of coaching on aggressive tax strategies, tips and lawsuit protection. I listened to the audio version, which peaked my interest and then spoke with a representative. His ideas have weight and validity and now I am contemplating purchasing personal coaching and I would be interested in any opinions you may have about this move. It is fairly expensive (3,995.00) however the tax savings for me could be substantial (he has a 110% money back guarantee if I don’t save at least $30,000.00 my first tax year) Have you ever heard anything about this company or this individual?  Thanks for your time and keep up the good work! It is our constitutional right to minimize taxes or at least the Supreme Court agrees it is.

A-2:

I am familiar with Drew Miles.  Several months ago, another CPA sent me some of his promotional material.  Here is my reply to him.

“That’s just another one of the many so-called tax experts who claim to be the only ones who know how to help people lower their taxes; when in actuality every one of his ideas is something that I and many other tax pros have been using for decades for our clients.  It is insulting that he feels a need to belittle us CPAs in an effort to make himself sound smarter.  Nothing new.”

 After that, I made the mistake of signing up for Drew Miles’ email alerts and now receive a dozen or more high pressure emails each and every day. 

My opinion is still the same.  Drew Miles’ ideas are valid, but are nothing unique that any competent and creative tax advisor can’t accomplish for much less cost.  For example, I do those exact same kinds of things for my clients for much less, and I am one of, if not the, most expensive CPA in the area (an intentional but unsuccessful way of limiting the size of my client base).

While those of us in the tax practitioner community who believe it’s our duty to do everything legally possible to help clients minimize their taxes are obviously in the minority, there are enough of us to be able to service those clients who desire our services.  If you are diligent in your search, you should locate such a person.

Good luck.

Kerry Kerstetter   

 

Q:

Subject: Tax Guru-Ker$tetter Letter: Setting Up Corp

 

Kerry,

Since an LLC can choose to be taxed as a Corp and is a simpler form of organization that a C corp, doesn’t the LLC provide the most flexibility?

 

Blog: Tax Guru-Ker$tetter Letter
Post: Setting Up Corp
Link: http://www.TaxGuru.net/2006/06/setting-up-corp.html

A:

Choosing the method of taxation is only one of many aspects to be considered when deciding on the appropriate business entity to work with. 

It is also something that is generally only available for the first year of operation.  If you were under the impression that you could switch back and forth each year, that is not how it works.  Changing the classification has some very messy requirements, often resulting in immediate taxation of certain types of gains; so it is not to be done without the careful consideration of competent professional advisors.

Kerry Kerstetter

 

Jeff Parnell, a congressional candidate up North of us in Missouri, is also a singer song-writer. He has some funny political songs available for download on his website. The one called “Red State Blues” is very funny, making good use of the widely known insane screams by the head DemonRat, Howard Dean.

The song that most caught my attention is obviously the one addressing the current state of our tax system, “Perhaps We Need A Tea Party Again,” which I first heard about from some of the FairTax supporters, who have this song playing on their website, as well as available for MP3 download. They also have the lyrics, which make a lot of sense.

“Perhaps We Need a Tea Party Again”
Lyrics and music by: Jeff Parnell

One night in Boston Harbor, the tea flew overboard.
They said, “We don’t owe King George a thing, we answer to our Lord.”
They built this land of freedom, but things have changed since then.
Perhaps we need a tea party again.

They passed the 16th amendment, and the income tax was law.
But it punishes achievement, and that’s just one of many flaws.
Then along came withholding, we don’t know what we pay in.
Perhaps we need a tea party again.

There’s a better way to pay the bills, and the Fair Tax is its name.
We can fully fund this government, and end these silly games.
We can save Social Security, and Medicare it’s true.
And the Congress needs to hear all this from You.

Career politicians love the power of tax and spend.
And it’s time that all of us take a stand and reign them in.
This country is worth saving, and I’m telling you my friends,
“Perhaps we need a tea party again.”