Taxgirl Podcast

The pandemic has brought on many changes in the last few years, and these changes have impacted the tax season in 2022.

What challenges and updates should people be aware of this tax season?

On today's episode of the Taxgirl podcast, Kelly is joined by Amber Gray-Fenner to talk about challenges impacting taxpayers and tax professionals this filing season.

Amber is an Enrolled Agent and owner of Tax Therapy, LLC, in Albuquerque, New Mexico. Amber considers herself a tax "general practitioner" who prepares returns for individuals and (really) small businesses and represents individuals before the IRS and, occasionally, the U.S. Tax Court (as a non-attorney practitioner admitted to the Tax Court bar). Amber is also a tax writer whose passion is translating "taxspeak" into English for taxpayers and tax practitioners. She writes to dispel myths with facts and to explain “the fine print” behind seemingly simple tax concepts. Amber is a contributing writer at Forbes.com covering individual tax issues and IRS developments, a contributing writer for ThinkOutsidetheTaxBox.com, and one of the authors of The Most Common Tax Mistakes Made by Small Businesses (Lily Tran, author/editor).

Listen to Kelly and Amber discuss this tax season’s challenges:

• What does Amber think are the challenges people will face this year regarding tax struggles or filing difficulties?
• Kelly and Amber discuss the ways that the IRS's slow and often inefficient processes may cause challenges for taxpayers and professionals this tax season.
• How would refund check delays impact the lives of people who rely on tax refunds? Would the IRS be to blame for these impacts?
• Does taxpayers' time to file their returns influence how soon they will receive their refunds? How can taxpayers find a balance between filing early to avoid risks like ID theft vs. waiting patiently to file a correct return?
• In what ways are taxpayers at risk of being taken advantage of?
• Amber and Kelly discuss how the IRS is under-resourced and how this could have long-term consequences to the tax process and the taxpayer's trust in the system.
• What can taxpayers and tax professionals do this season to make their lives easier? Amber discusses some of the options available to taxpayers to aid them in the filing process this season.
• How can taxpayers best prepare and organize their information when filing with a tax professional?
• In what ways can tax professionals be better at determining whether a relationship with a potential client would be a good fit? How should the price that tax professionals charge factor into this practice?

More about Kelly:

Kelly Phillips Erb created and hosts the Taxgirl podcast, your home for tax news, tax info, and tax policy. In each episode, she shares conversations about taxes, money, and the choices we make. Kelly is a tax attorney who works with taxpayers and tax practitioners like you every day. She helps folks out of tax jams, and hopefully, keeps others from getting into them.

You can find out more about Kelly here and you can follow her on Twitter, Facebook, Instagram, and Linkedin.

To subscribe to the podcast (it’s free!) using Apple, Spotify, or your favorite listening app, click here.

Links:

Kelly’s Website – Taxgirl

Amber’s Website – Tax Therapy 505

Amber’s Twitter – @taxtherapist505

Amber's book - The Most Common Tax Mistakes Made by Small Businesses

The past year has taken a huge toll on both tax professionals and taxpayers, something Taxgirl talks about frequently. According to a 2021 survey from Robert Half, more than 44% of employees say they are more burned out on their jobs today than they were a year ago. Employers and employees are seeking all kinds of solutions to burnout and the labor shortage.

“People want to work in peace, not in pieces.” In today’s age of workplace burnout, retaining happy and healthy employees is more important than ever.

On today’s episode of the Taxgirl podcast, Kelly is joined by Iralma Pozo to discuss how tax professionals can prioritize their wellbeing to curb burnout. Iralma is an independent consultant with more than 15 years of financial expertise, and an adjunct lecturer in Accounting at John Jay College in New York. She is an active member of the New York State Society of CPAs, and most of her experience is in the not-for-profit sector, having held financial leadership and public accounting related roles. She has also worked for the IRS, and has experience working with entrepreneurs, small businesses, and the real estate and insurance sectors.

Listen to Kelly and Iralma talk about burnout and workplace wellbeing:

• What does Iralma think the tax code and related provisions can offer taxpayers, and how can tax professionals remain fulfilled and excited about their careers?
• Working from home (and spending more leisure time at home) means we are sitting more often than we used to. Iralma and Kelly talk about how standing desks, the benefits of carpet, and going for walks can all impact a person’s mental wellbeing and productivity.
• How much of an employee’s wellbeing falls on the employer? What items, practices, or trainings are truly “essential” to efficient and healthy remote work?
• What are the tax credits and/or benefits available to businesses to help them make employees most comfortable and prepared in such trying times? So many businesses say they’ve already accommodated everything they thought could be useful, so what else is there to help put their employees at ease?
• What are some things employers can do to turn things around for their employees? Iralma references Section 139, to start. Kelly says, happy employees are productive employees.
• Where does mental health and mental illness factor into employee wellbeing? Iralma talks about the remaining stigma with mental health, and what employers can do to bridge that gap.
• Iralma says, “Employers should be looking at supporting the whole person.” What does that mean for all aspects of an employee’s work? Does it mean cutting down on meetings, covering therapy costs, offering more flexible hours? How can companies take into account “modern day living,” as Iralma calls it, and what can be done to ease the pressure on employees?
• Some companies like Bloomberg have started to offer anonymous tiered benefits (such as therapy) that have levels available to the employee without cost out of pocket. How are these services impacting the employee’s wellbeing, for better or worse? How are these services being communicated?
• How can employers simplify their accommodations and benefits to their employees? So many employees say they weren’t aware of certain benefits or didn’t know they could submit a certain expense. Whether it’s regular emails or an annual follow-up, HR departments can remind their employees of the benefits available to them.
• “Employers need to start incentivizing people by the results and the value, not just the utilization rates and the facetime,” Iralma says. People have new priorities these days, and when employers don’t respect those, it contributes to stress and burnout.
• How can employers reshape the notion of “fun” or “perks” into self care, while maintaining the same level of priority and respect for employees that desire those aspects?
• Ultimately, employers are dealing with real people. Different people have independent priorities and expectations of their employers. Iralma says, there will be a lot of residual stress in the coming years, but we also have the tools to help aid that stress.
• For small and medium sized businesses, what does Iralma recommend for getting started when creating tools and options for employee’s wellbeing? Agency and education go a long way; Iralma says it’s key to give their employees a voice. Bring in a consultant to start things off.
• Financial stress is the enemy of health and wellbeing. An employer has a responsibility to be mindful of their staff’s health, and to appreciate the perspective they have on their employee’s lives.

More about Kelly:

Kelly is the creator and host of the Taxgirl podcast series. Kelly is a practicing tax attorney with considerable experience and knowledge. She works with taxpayers like you every day. One of the things that she ...

When you hear the words “company culture,” what comes to mind? Workplace culture is a hot issue these days, especially as it relates to jobs and the so-called “Great Resignation.” What do employees really want: freedom, tangible perks, a more inviting company culture? CEO and Entrepreneur Jay Steinfeld shares his story of success and expertise when it comes to corporate culture.

“If you want to do things of consequence, if you want to build consequential things, I think you must first help people become consequential.” - Jay Steinfeld, on improving company culture.

On today’s episode of the Taxgirl podcast, Kelly is joined by Jay Steinfeld to chat about corporate culture and the impact it can have on a company’s workforce. Jay was the founder and CEO of Global Custom Commerce, which operates the world’s number one online window covering retailer, blinds.com. Jay bootstrapped the company in 1996 from his garage with just $3,000; Global Custom Commerce was acquired by The Home Depot in 2014. Jay remained the company’s CEO, and later joined The Home Depot’s Online Leadership Team.

After stepping away from these roles in early 2020, Jay has increased his involvement in numerous private company boards and serves as a Director of the public company, Masonite. He also teaches Entrepreneurship at Rice University’s Jones Graduate School of Business, and supports numerous charities. Jay is an Ernst & Young Entrepreneur of the Year, and has earned a Lifetime Achievement Award from the Houston Technology Center.

Listen to Kelly and Jay talk about company culture and the Great Resignation:

• How did Jay start his business, how did it grow, and how did he make a name for himself in the booming world of tech and entrepreneurship?
• Jay says he frequently tells entrepreneurs to “experiment without fear of failure.” Experimentation is necessary and key to evolving and growing any venture. When he began his company in the 90’s, it was before even Amazon was born. He built his business one step at a time, and gave himself permission to fail.
• The idea of failure can be terrifying for small businesses because of the heavy stakes on the line. How does Jay advise small or startup businesses to experiment and take risks with confidence?
• What does Jay wish he’d known before he started his business in the 90’s?
• How did Jay approach hiring decisions while growing his business? How can business owners know when to expand hiring, even when finances are tight?
• Did dynamics change when Jay sold his business to Home Depot? Jay shares how the transition went: the CFO said they’d expected him to get tired of them and quit after 90 days, but Jay stayed on for 7 years after the acquisition.
• Jay explains the idea of business “love languages” and how to find harmony with team members of different strengths, disciplines, and personalities.
• When Jay’s company reached significant milestones over the years, how did they impact the company (and the way Jay ran the company)? Jay details his definition of success and the way it informs his strategic choices in both workplace culture and business operations.
• Kelly asks Jay to describe the moments when he “felt” successful along the journey of growing his business. He shares he felt many of those moments over the years, though sometimes the impact of his success came to him retroactively.
• As the head of a growing business, Jay says he often felt he was seen as intimidating or scary, which greatly bothered him because he genuinely wanted everyone’s voice and feedback.
• How does Jay feel employee’s thoughts on their superiors plays into today’s Great Resignation? What advice does he have for companies to make their management teams more approachable and receptive?
• Jay says what people want most is autonomy. Why not give more generosity to employees? More traction, more upward mobility? More transparent conversations? More training?
• Conversations on workplace culture and employee benefits are happening in board rooms all over the country. Does Jay think the focus should be more on internal culture shifts, or on concrete employee perks?
• What is Jay up to now that he’s stepped down from The Home Depot? He says, “I’m not retired, I’m rewired.” He’s released a new book, Lead from the Core: The Four Principles for Profit and Prosperity. He’s teaching Entrepreneurship, he’s on many company boards, and he’s a grandfather.

More about Kelly:

Kelly is the creator and host of the Taxgirl podcast series. Kelly is a practicing tax attorney with considerable experience and knowledge. She works with taxpayers like you every day. One of the things that she does is help folks out of tax jams, and hopefully, keep others from getting into them.

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We all think we understand sin taxes, but do we really? Sin taxes are typically excise taxes that target behaviors that we want to discourage. Common examples include taxes on booze, sugar, and cigarettes.

Do we legalize certain activities and substances just so we can tax them? What’s the intention behind sin taxes, and are they really working as intended?

On today’s episode of the Taxgirl podcast, Kelly is joined by Thomas Shohfi to chat about the nuances of sin taxes. Thomas is an assistant professor in the Lally School of Management at Rensselaer Polytechnic Institute. He recently conducted a study on sin taxes with some surprising results.

Listen to Kelly and Thomas talk about the consequences of sin taxes:

• What are the details of Thomas’s research on sin taxes, and what were some of the interesting highlights that came from the study? The study focuses on New York City taxi drivers, and under which circumstances they add certain rates to their fares.
• When it comes to cigarettes, how might the difference in taxation on a single pack vary from state to state, and how can that alter a smoker’s behavior? What are the governmental implications and social consequences of this particular sin tax?
• Thomas speculates that there are many unintended consequences and “third party effects” that stem from sin taxes, and that much more research into the subject is needed. For addiction-related issues in particular, such as gambling and cigarettes, there are many potential disruptions and unseen consequences that may come from long term implementation of sin taxes. Does making the cost of gambling higher actually help a gambling addict to get help? Does increasing the cost of a pack of cigarettes really dissuade a lifelong smoker?
• What about marijuana? Many sin taxes are placed on substances and activities that are currently legal today, that didn’t used to be (such as booze). We legalize it, we tax it. But what is the right amount of taxation? Is it a paradox to legalize a substance, only to slap on a tax meant to discourage the use of that substance?
• Governments can easily put together calculated projections for taxes based on sales of particular goods. But long term research and statistics on sin taxes can become far more complex. How does Thomas suggest researchers pitch these studies, and how might they be organized or funded in the future?
• How might the existence of sin taxes affect people’s opinions on the activities and substances themselves? What do people think about people who partake in those behaviors, what do people think about a government that classifies certain things as taxable “sins,” and how do they draw ideological lines in the political sands?
• What behaviors does Thomas think may be taxed in the future? Kelly and Thomas discuss sex work, on OnlyFans in particular, and what a sin tax on the platform might look like.

More about Kelly:

Kelly is the creator and host of the Taxgirl podcast series. Kelly is a practicing tax attorney with considerable experience and knowledge. She works with taxpayers like you every day. One of the things that she does is help folks out of tax jams, and hopefully, keep others from getting into them.

You can find out more about Kelly here and you can follow her on Twitter, Facebook, Instagram, and Linkedin.

To subscribe to the podcast (it's free!) using Apple, Spotify, or your favorite listening app, click here.

Links:

Kelly’s Website – Taxgirl

Thomas’ Website – Shohfi.com

Thomas’ Papers – Papers

Thomas’ Sin Tax Piece – Do Sin Tax Hikes Spur Cheating in Interpersonal Exchange?

Roger White’s Papers – Papers

The Taxgirl Podcast discusses tax news, tax info, and tax policy. With so many taxation-related rules, facts, and updates, it's easy to be left with questions about tax processes. Luckily, the Taxgirl mailbag allows readers and listeners to submit their tax questions for Kelly to address.

What questions do listeners want to ask the Taxgirl?

Can people make money "under the table" that is not reported to the IRS or recorded as a form of employment? Is this wrong, and what are the repercussions of choosing not to report this income?

• How do Social Security taxes, Medicare taxes, and income reporting work for freelancers or self-employed people?
• What are the disadvantages to "working under the table" regarding benefits, retirement contributions, employment records, and payment conflicts?
• How are annual loss limits applied to losses and gains in the stock market? Are there annual losses that you can carry forward to later years after you've exhausted your capital gains?
• If you receive money as gifts, do you need to report the money to the IRS? Is there any scenario where this money could be excluded?
• Can people receive money gifts over $15k in multiple payments so that it is not taxed, or would this be considered structuring payments? What tax issues can accompany actions taken with the intent to avoid tax payments?
• How are monetary gifts taxed? How often does gift taxing affect middle-class taxpayers?
• How do reporting requirements affect cash deposits into bank accounts? If someone were to make a deposit of over $10,000, would the bank report it, and what would happen?
• Why might someone be denied a tax refund advance loan? If someone is turned down, can they reapply elsewhere?
• Can social media influencers/creators write off their college tuition as a deductible expense related to their business? What qualifiers make a business expense deductible?

More about Kelly:

Kelly is the creator and host of the Taxgirl podcast series. Kelly is a practicing tax attorney with considerable experience and knowledge. She works with taxpayers like you every day. One of the things that she does is help folks out of tax jams, and hopefully, keep others from getting into them.

You can find out more about Kelly here and you can follow her on Twitter, Facebook, Instagram, and Linkedin.

To subscribe to the podcast (it’s free!) using Apple, Spotify, or your favorite listening app, click here.

Links:

Kelly’s Website – Taxgirl