Tax in Action: Practical Strategies for Tax Pros

By Jeremy Wells, EA, CPABusiness Education

Tax in Action: Practical Strategies for Tax Pros episodes

October 14Substantial Authority: What Actually Counts in Tax Research
Clients increasingly show up with tax positions backed by blog posts, podcasts, social media, and AI, but how much of that actually counts? Jeremy walks through the closed list of sources the regulations recognize as authority, from the Code and Treasury regulations to court cases and revenue rulings, and explains why IRS publications, form instructions, and even other tax professionals’ opinions don’t make the cut. He also covers how to weigh supporting and contrary authorities against each other, and why that matters for the Section 6662 substantial understatement penalty.
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(00:00) - Client Research Challenge
(01:42) - Episode Roadmap
(05:50) - Circular 230 Framework
(10:20) - Substantial Understatement Basics
(15:43) - Avoiding the Penalty
(17:48) - Confidence Standards
(24:50) - What Counts as Authority
(36:18) - Non Authority Sources
(38:06) - Disclosure and Forms
(42:29) - Diligent Research Workflow
(45:22) - Donna Case Study
(52:06) - Conclusion and Next Steps

Connect with Jeremy
https://www.linkedin.com/in/jwellstax
https://www.steadfastbookkeeping.com
Subscribe on YouTube
https://www.youtube.com/@TaxinAction
Earn CPE for Listening to This Podcast
https://www.earmark.app/
This podcast is a production of Earmark Media
57 min
September 30 Break Even at the Casino, Still Owe Tax
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Thomson Reuters - http://taxshow.promo/taxautomation

Connect with Jeremy
https://www.linkedin.com/in/jwellstax
https://www.steadfastbookkeeping.com
Subscribe on YouTube
https://www.youtube.com/@TaxinAction
Earn CPE for Listening to This Podcast
https://www.earmark.app/
This podcast is a production of Earmark Media
55 min
September 16The Qualified Overtime Deduction, Fact vs. Fiction
Jeremy unpacks the "no tax on overtime" deduction created by the One Big Beautiful Bill Act, explaining why the name is misleading since qualified overtime compensation is still taxable income subject to withholding, FICA, and (in most states) state tax. He walks through how to isolate the FLSA overtime premium from gross overtime pay, calculate the deduction on the new Schedule 1A, and apply the filing status caps and MAGI phaseouts through real client examples. He also flags the reporting changes coming in 2026, when employers must correctly report the amounts on Form W-2, Box 12, Code TT, and the relaxed 2025 transition rules disappear.
Sponsors
Thomson Reuters - http://taxshow.promo/taxautomation

(00:00) - No Tax On Overtime Intro
(01:44) - What You Will Learn
(03:11) - Where It Lives In The Code
(07:27) - Deduction Not An Exclusion
(09:25) - Caps Phaseouts And MAGI
(13:09) - Defining Qualified Overtime
(16:20) - Workweek Rules Under FLSA
(26:30) - Exemptions And Who Qualifies
(30:23) - SSN And Filing Status Limits
(33:40) - 2025 Transition Relief
(36:29) - 2026 Reporting Box 12 TT
(41:22) - Examples And Calculations
(51:37) - Schedule 1A Walkthrough
(52:39) - Key Takeaways And Wrap Up

Connect with Jeremy
https://www.linkedin.com/in/jwellstax
https://www.steadfastbookkeeping.com
Subscribe on YouTube
https://www.youtube.com/@TaxinAction
Earn CPE for Listening to This Podcast
https://www.earmark.app/
This podcast is a production of Earmark Media
56 min
September 02 Beyond 7216: The FTC Safeguards Rule, SOC 2, and Your Firm's WISP
In part two of his series on protecting taxpayer information, Jeremy shifts from who can see client data to how firms actually have to secure it. He walks through the Gramm-Leach-Bliley Act, the FTC Safeguards Rule, and what a written information security plan needs to cover, then explains how SOC 2 reports help firms vet software vendors. He closes with the IRS Office of Professional Responsibility's new AI guidance under Circular 230, and what it means to treat AI like a junior staff member rather than an unsupervised practitioner.
Sponsors
Thomson Reuters - http://taxshow.promo/taxautomation

Connect with Jeremy
https://www.linkedin.com/in/jwellstax
https://www.steadfastbookkeeping.com
Subscribe on YouTube
https://www.youtube.com/@TaxinAction
Earn CPE for Listening to This Podcast
https://www.earmark.app/
This podcast is a production of Earmark Media
58 min
August 19Section 7216 and the Rules for Sharing Taxpayer Information
Jeremy opens a two-part series on taxpayer confidentiality by breaking down IRC Sections 7216 and 6713, the rules that govern how tax professionals can use and disclose tax return information. Using a case study of a solo firm owner weighing seasonal hires, an outsourced bookkeeper, and a possible merger, he walks through what actually counts as tax return information, when taxpayer consent is required, and the exceptions that let firms share data without it. He also covers what a tax return preparer and auxiliary service actually mean under the regulations, since those definitions decide whether consent is even needed in the first place.
Sponsors
Thomson Reuters - http://taxshow.promo/taxautomation

(00:00) - Client Data Privacy
(03:26) - Case Study Grady
(06:45) - 7216 Overview
(10:24) - Key Definitions
(19:37) - What Counts as Info
(26:12) - Use vs Disclosure
(30:18) - Consent Rules
(37:44) - Firm Sharing Limits
(43:33) - Other Exceptions
(47:35) - Applying to Grady
(53:50) - Key Takeaways
(55:54) - Next Episode AI

Connect with Jeremy
https://www.linkedin.com/in/jwellstax
https://www.steadfastbookkeeping.com
Subscribe on YouTube
https://www.youtube.com/@TaxinAction
Earn CPE for Listening to This Podcast
https://www.earmark.app/
This podcast is a production of Earmark Media
57 min
August 05Partnership Exits: Basis, Liabilities, and Hot Assets
Jeremy closes out his partnership series by tackling outside basis, how partnership liabilities affect that basis, and what happens when a partner exits. Using a case study of two LLC members with mounting losses, he walks through abandonment, a buyout by the remaining partner, a partnership redemption, and a sale to a third party, comparing the tax results of each. He also covers Section 751 hot assets and why unrealized receivables and appreciated inventory can turn part of a capital gain into ordinary income.
Sponsors
Thomson Reuters - http://taxshow.promo/taxautomation

(00:00) - Series Wrap and Big Topics
(01:43) - Case Study Setup Lighthouse LLC
(03:29) - Outside Basis Basics
(07:39) - Tracking Basis and Proof
(13:36) - Loss Limits and Suspensions
(19:53) - Basis Ordering and Distributions
(26:01) - Liabilities Under Section 752
(32:33) - Recourse vs Nonrecourse Debt
(37:49) - Excess Distributions and Exits
(40:34) - Abandonment and Hot Assets
(46:56) - Jessica Exit Options Compared
(55:55) - Key Takeaways and Next Series

Connect with Jeremy
https://www.linkedin.com/in/jwellstax
https://www.steadfastbookkeeping.com
Subscribe on YouTube
https://www.youtube.com/@TaxinAction
Earn CPE for Listening to This Podcast
https://www.earmark.app/
This podcast is a production of Earmark Media
59 min
July 22Cash, Property, Sweat Equity: Structuring Partner Returns
Jeremy breaks down how partnerships can divide profits among partners who contribute very different things — cash, property, or just time and effort — without running afoul of federal tax law. Using a hypothetical partnership as a running example, he covers what makes an allocation legitimate versus a tax dodge, and why the IRS cares so much about the difference.
Sponsors
Thomson Reuters - http://taxshow.promo/taxautomation

(00:00) - Meet Lighthouse LLC
(01:17) - Investor Payback Goals
(04:32) - Course Roadmap
(05:40) - Pass Through Basics
(08:47) - Baisey Case Lesson
(14:18) - Separately Stated Items
(20:39) - Partner vs Partnership Tests
(23:22) - Unreimbursed Expenses
(27:27) - Property Contributions 721
(32:01) - 704c Built In Gain
(36:37) - Capital Accounts Explained
(42:04) - Substantial Economic Effect
(52:05) - Drafting The Waterfall
(55:55) - Key Takeaways Next Steps

Connect with Jeremy
https://www.linkedin.com/in/jwellstax
https://www.steadfastbookkeeping.com
Subscribe on YouTube
https://www.youtube.com/@TaxinAction
Earn CPE for Listening to This Podcast
https://www.earmark.app/
This podcast is a production of Earmark Media
59 min
July 08Limited Partner or Not? Why Courts Are Split on Your Tax Bill
Jeremy digs into what actually makes someone a partner for federal tax purposes, tracing the definition back to the Supreme Court's Tower and Culbertson decisions and the "hypothetical liquidation" test for capital interests. From there, he unpacks the messier question of self-employment tax on partnership income: the undefined "limited partner as such" exception under IRC Section 1402(a)(13), and the current circuit split between the Tax Court's functional analysis (Renkemeyer, Soroban) and the Fifth Circuit's state-law approach in Sirius Solutions, with Denham Capital Management still pending at the First Circuit.
Sponsors
Thomson Reuters - http://taxshow.promo/taxautomation

(00:00) - Partnerships Recap Goals
(01:27) - LLC Members Case Study
(03:17) - Are Partners Equal
(05:11) - Who Counts As Partner
(10:14) - Tower Case Principles
(14:48) - Culbertson Intent Test
(17:30) - Congress Defines Capital Interest
(26:26) - Capital Interest Explained
(28:47) - General Versus Limited Partners
(30:18) - Self Employment Tax Basics
(33:19) - Limited Partner Definition Fight
(36:06) - Key Court Cases Split
(48:47) - New Cases Jurisdiction Issues
(52:12) - Back To LLC Example
(55:02) - Takeaways Next Episode

Connect with Jeremy
https://www.linkedin.com/in/jwellstax
https://www.steadfastbookkeeping.com
Subscribe on YouTube
https://www.youtube.com/@TaxinAction
Earn CPE for Listening to This Podcast
https://www.earmark.app/
This podcast is a production of Earmark Media
57 min
June 24When Does Co-Ownership Become a Partnership
Two friends sharing a short-term rental, a married couple flipping houses, siblings splitting the income from a property they own together: any of these could be a partnership for federal tax purposes, often without the owners realizing it. This episode works through how federal tax law defines a partnership, when one actually forms, and why mere co-ownership does not automatically create one, drawing on Subchapter K, the regulations, and foundational cases like Tower and Culbertson. It also separates two regimes that frequently get conflated, the qualified joint venture under Section 761 and the community property LLC exception under Revenue Procedure 2002-69, and closes with a framework for making the call.
Sponsors
Thomson Reuters - http://taxshow.promo/taxautomation

(00:00) - Rental Friends Scenario
(01:36) - Why Partnership Status Matters
(02:28) - Aggregate Versus Entity
(04:22) - Goals For This Episode
(05:51) - IRS Partnership Definition
(09:12) - Mere Co Ownership Tests
(14:10) - LLCs And Entity Rules
(17:20) - When A Partnership Forms
(23:22) - Supreme Court Guidance
(27:45) - Court Factors Checklist
(33:50) - Electing Out Of Subchapter K
(39:41) - Spouse Exceptions Explained
(49:08) - Two Step Decision Framework
(54:31) - Case Study Short Term Rental
(57:01) - Key Takeaways And Wrap Up

Connect with Jeremy
https://www.linkedin.com/in/jwellstax
https://www.steadfastbookkeeping.com
Subscribe on YouTube
https://www.youtube.com/@TaxinAction
Earn CPE for Listening to This Podcast
https://www.earmark.app/
This podcast is a production of Earmark Media
59 min
June 10Cracking Open the Shell: How S Corp Asset Sales Actually Work
A buyer who wants a business but not its liabilities will often buy the assets instead of the stock, and that one decision reshapes how the entire deal gets reported. This episode breaks down the S corporation asset sale from the ground up: allocating the purchase price across seven asset classes using the residual method under Section 1060, reporting it on Form 8594, and handling goodwill and other Section 197 intangibles. It also covers why each asset's character drives the gain that passes through to shareholders, and what documentation has to be locked down before you prepare a single return.
Sponsors
Thomson Reuters - http://taxshow.promo/taxautomation

(00:00) - Stock vs Asset Sales
(03:32) - Course Goals Overview
(06:04) - Lighthouse Example Setup
(13:16) - Why Buyers Prefer Assets
(16:29) - Section 1060 Basics
(25:36) - Residual Method Classes
(32:17) - Goodwill and Going Concern
(40:45) - Personal Goodwill Cases
(42:57) - Form 8594 Reporting
(47:53) - Elections 338 and 336
(50:08) - Due Diligence Checklist
(53:18) - Workflow and Wrap Up

Connect with Jeremy
https://www.linkedin.com/in/jwellstax
https://www.steadfastbookkeeping.com
Subscribe on YouTube
https://www.youtube.com/@TaxinAction
Earn CPE for Listening to This Podcast
https://www.earmark.app/
This podcast is a production of Earmark Media
58 min

About Tax in Action: Practical Strategies for Tax Pros

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Join Jeremy Wells, EA, CPA, as he breaks down the complexities of tax law into practical guidance you can apply immediately. Each episode focuses on a specific tax strategy, credit, or compliance…