Fighting His Way Out of IRS Penalties. Literally.

BoxingIRS penalties and fees have caused a fair amount of consternation among taxpayers in the past, but in what might be a bout for the record books, we could witness the first time a taxpayer literally fights to pay what they owe and reduce penalties.

Floyd Mayweather, widely regarded as one of boxing’s greatest, apparently owes the IRS unpaid 2015 taxes. The boxer’s recent tax court petition seeking an installment agreement with the IRS might represent his first foray into the super heavyweight category.

Mayweather’s 2015 fight against Manny Pacquiao reportedly earned him as much as $220 million, and likely represents a significant portion of his income to which the taxes are due. The $22 million Mayweather reportedly owes is tiny relative to his estimated net worth, but net worth doesn’t need to be liquid. And as penalties and interest accrue over time, it’s a safe wager the bill could amount to a knock-out blow.

The boxer has requested in his petition that the IRS await payment until his August 26 fight with Conor McGregor, which he claims will provide the liquidity he needs to meet his tax obligation: the fighter’s guaranteed purse from the 2015 Pacquiao fight was $100 million, and his upcoming fight with McGregor is expected to earn him a similar amount. Again, keep in mind, that’s the guaranteed purse—win or lose. The final amount to the winner is a composite of various factors that could boost Mayweather’s take as high as $400 million.

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Tips for Eclipse 2017

EclipseOn Monday, August 21, a total solar eclipse will move across 14 states of the country. The last time this was visible in the United States was on February 26, 1979. The next won’t happen until October of 2023. Given their rarity, it’s understandable why a total eclipse has people excited and even taking time off from work to watch.

Even if you’re not in the path of the total eclipse, you’ll at least be able to see a partial eclipse from most places in the U.S. Below are some tips to prepare for the event and make the most of your experience.

Check what you’ll see in your location.

Take a look at this website prior to the eclipse to see what percentage of the eclipse you’ll be able to view. The website recommends looking at multiple zip codes around you to make sure you get the best view possible. This will also determine if you want to make travel arrangements or stay put.

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3 Tips for Millennials Who Want to Give Back

Almonte David 01As a young accountant who recently passed the Exam, things are going very well for you. You have gotten into a rhythm and you know the ropes. But, you’re looking to make a difference in your community – have you considered volunteering at a nonprofit?

David Almonte, CPA, CGMA and member of the AICPA’s National CPA Financial Literacy Commission, knows the merit of giving back. He was taught from an early age the value of education, a strong work ethic and volunteerism. Additionally, his skills as a CPA have given him the opportunity to make a difference in peoples’ lives. He frequently gives presentations across the country, many of them focusing on his main passion: financial literacy. By providing free and accessible resources from websites like 360finlit.org and feedthepig.org, Almonte hopes to break down the walls that very often lead to financial insecurity.

Like Almonte, you too can use the skills you’ve gained throughout your career to give back. Not sure where to begin? Here are three tips to jumpstart your community service:  

  • Brag a little. You’d be surprised by how many of your talents align with activities you genuinely enjoy. Write down your talents, then research various volunteer opportunities that utilize your skills. For example, are you a pro at creating a résumé, or know exactly how to nail an interview? Oftentimes, local homeless shelters seek out professionals to lead workshops that help clients get back on their feet. Or maybe you love writing – so find a small nonprofit that needs help keeping up its blog. Just as David uses his passion for financial literacy to give back, there are countless other needs in your community. All you have to do is look.

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6 Planning Ideas for Advising Entrepreneurs

Advising entrepreneursIf you work with entrepreneurs or small business owners, you likely have an appreciation of their vision, determination and work ethic.  You may also have run into some common hurdles that can derail their finances.  By focusing on the following planning considerations, CPAs and advisers serving entrepreneurs can keep their clients’ business and personal finances on track.

Choose an appropriate business form

Helping entrepreneurs evaluate key tax and nontax factors when selecting a business entity is not only important to the business’ financial success, but also the owner’s.

Should they operate as an S or C corporation, partnership, limited liability company or sole proprietorship? What are the classes of ownership, special allocations, basis, liability, elections and distributions for each structure and the impact of these factors on the owner? Navigating these complex decisions is crucial to getting their business off on the right foot. If you are an AICPA Personal Financial Planning Section member or CPA/PFS credential holder, see Chapter 18 of The Adviser’s Guide to Financial and Estate Planning for a comprehensive overview of entity selection.

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How Relaxation Can Improve Concentration

RelaxIt’s not surprising that National Relaxation Day (Aug. 15) is observed in the thick of summer because, for many, ideal relaxation involves lounging on a tropical beach and just feeling away from it all. For me, however, snowboarding is a great way to relax. When I’m carving down a beautiful snow-covered mountain, I’m able to allow my concerns to drift off into the background. From these two examples, it’s plain to see that perceptions of what constitutes relaxation vary.

Relaxation does not inherently require us to be inactive or unplugged from our normal routine. Perhaps you make room in your weekly schedule to take a morning run, practice yoga or spend some time in your garden. These activities may be great when we can engage in them, but how can we find other ways to help us relax the rest of the time, which is most often spent at work? One way to find some space and peace, no matter where we are, is through the practice of mindfulness.

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