Inside this issue..
 Put Your Business on Auto Pilot
with Systems
 Delegate Your Way to
More Time
 Annual CTC Reunion
 Summer Tax Planning Sweepstakes
Addressing the Needs of Certified Tax Coaches™
Giving Our Members the Edge they Need to Grow, Profit and Succeed!
Current Topics
Did You Know?
Federal
Spending
Washington’s spending has recently been
higher as a percentage of the nation’s
economic output than at any time since
World War II. But by the same measure,
Washington’s revenues are the lowest in
more than 60 years.
So does the U.S. have “a spending
problem,” as Republicans keep repeating
in the current debate over how to reduce
the nation’s record deficits? Or is the
problem that taxes are not high enough?
Those questions frame a long-running
partisan debate, and as usual we won’t
offer an opinion one way or the other. But
for those seeking their own answers, be
sure and check the CTC message boards
for facts to form your own opinion!
Agree to disagree? Discuss your opinion
on the CTC message boards!
Volume 2
Deep Fried Tax Returns?
What we can Learn about Systems from the County Fair
by Dominique Molina, CPA CTC
One of my summertime favorites is an
or fast food chain, any business
featuring repetitive tasks work well with
annual trip to the fair. Although the
systems. Can you think of a business
summer fairs generally feature the same
more repetitive than taxes? Same
attractions and exhibits year after year,
deadlines, same process, year after
the board of directors find new and
year. The biggest challenge in a tax
innovative ways to market a unique
business? Variables. Variables can kill
experience each July. The introduction
any carefully crafted system or
of unique, one-of-a-kind new taste
procedure without contingency plans.
sensations such as deep fried girl scout
The good thing about a tax business,
cookies, Baby Ruth filled jalapenos,
although chalk full of variables, we
deep fried jerky, and even deep fried
know, for the most part, what the
kool-aid satisfy the curiosity of over 1.4
variables are. One of the secrets of
million visitors.
designing effective systems are
To manage the demand of the masses, controlling the variables.
the traveling carni’s rely on the
Give it a try, and start with something
assistance of over 5,000 seasonal
simple – something fair-ish like food.
workers. With seeming ease, the
How about making coffee in the office?
operations run smoothly despite the fact
For fun, enlist the aid of your staff and
that most of the workers don’t know
lay out a system for making the coffee.
each other, aren’t familiar with the city,
Think of all the steps to make a good
and are typically inexperienced as they
cup of coffee every time, and write them
shift job assignments as needed. Why
down! And don’t forget about controlling
does it work so well? Two words:
the variables! You’ll see once you get
effective systems.
started, your very own deep fried 1040’s
Now before you object to this philosophy will be finished on auto pilot!
of systems dear readers and say to
yourself that “systems are fine for
carnivals, but won’t work for a tax
business,” hear me out. First, look at
why systems work well in other
environments. Whether the county fair,
The good thing about a tax business,
although chalk full of variables, we know,
for the most part, what the variables are.
One of the secrets of designing effective
systems are controlling the variables.
• Issue 7 • July 2011
Page 2 July 2011

The Case of the Inflated Tax Case Study of the Month

Background employment tax. The client mentioned

A new client who typically prepares their
own tax return each year was shocked to
discover they owed over $6,000 in taxes
for 2010. New business owners, the
husband and wife team purchased an
inflatable party rental business in 2009
which they’ve operated as a Schedule C.
They stated that they own the business
as 50-50 partners, yet just 1 Schedule C
was reported on the draft tax return
brought in for the meeting. The clients
have a fear of having sufficient cash flow
for the off season as well as saving for
retirement.
they project net income of $140,000 for
2011. They primarily earn income from
the rental of party inflatables, but they
also rent other party equipment as well
including cotton candy and snow cone
machines, and dunking booths. They
estimate they spend approximately
$3,600 each year in health insurance
expenses. It does not appear they are
deducting these costs on their self-
prepared tax return.
Result
The obvious option of entity choice
provides a great opportunity for savings.
business purpose for a separate entity.
Examining other functions of the business
may also provide alternate business
purposes. One function of the business is
the delivery and setup of the equipment.
Diverting separate functions of the
business will allow one spouse to own a
Sole Proprietorship, hire the other spouse
and implement a MERP to deduct $3,600
in medical expenses. Focusing on the
$10,000 plus of tax savings each year, in
addition to identifying the presentation
errors, should appeal to the taxpayer to
purchase a level II plan for at least $3,500
in tax planning fees.

Diagnosis By holding the business in a Schedule C

Looking at the 2010 self-prepared return
reveals several presentation errors.
Aside from various mathematical errors
on the first two pages, it was also noted
that the client deducted expenses listed
as “loan payments” on page 2 of the
Schedule C.
The net profit for the business in 2010
was $44,000. The majority of the tax
liability of $6,000 was created by self-
sole proprietorship, the client will pay
about $10,000 in self-employment taxes
they just don’t have to pay. Use of an S
corporation and splitting the earnings in
half could create enough savings to sell
the tax plan. Additionally, the client
appears to be able to benefit by
maintaining a Schedule C in an effort to
deduct medical costs. Perhaps looking at
the different types of party equipment as
a separate business may provide a

Major League
Baseball to
expand playoffs
in 2012
Baseball fans may be treated to more
playoff games next year.
MLB commissioner Bud Selig expects
the payoffs to expand from eight teams
to 10 for 2012. He said there are a
myriad of details to be worked out, but
10 is a fair number.
Speaking at the recent meeting with
Associated Press Sports Editors, Selig
emphasized that scheduling is the major
issue, including how many games the
new wild-card round will be. The two wild
cards in each league would meet, and
the winners would advance to play
division winners.
The plan has been discussed as part of
collective bargaining for a labor deal to
replace the one that expires in
December. Players want to make sure
the format doesn't cause lengthy travel
with little recovery time between games.
Resource Corner
Part of your monthly dues unlock the CTC Toolbox. Are you taking advantage of every tool
available? Here are a few key instruments to helping you build your dream practice!
CPE Certificates We now have the ability to
deliver and store your CPE certificates from live
academies and CYCE courses you’ve participated in Sudoku
right in your CTC Toolbox account! You can find
your certificates by clicking on your name in the
upper right corner of the member site. Using the
drop down menu, select messenger. Here you’ll see
message posts from CTC containing your certificates
in pdf. For each class you take, we’ll be updating
your files, so be sure to check back often!
Message Boards Avatar Show off your mug
on our message boards with your own avatar! So we
can get to know each other, be sure to upload your
headshot, (or other avatar) to your profile. It will
appear in your posts once uploaded. Just click on
your name in the upper right corner of the member
site. Using the drop down menu, select settings.
Once inside your profile editor, select profile. Look
for “change avatar” on the left side, and upload your
preferred image. “see” you soon! Answer shown in CTC™ Lounge under Sudoku section
July 2011 Page 3

7 Reasons Why Managers Don’t Delegate Zip through passport checks

when returning home
International fliers like the Global
Entry program that lets them use a
kiosk in one of 20 U.S. airports. At
It was famed business authority Peter the kiosk, travelers’ fingerprints are
Drucker who once challenged CEOs to scanned as a means of identifying
think about what they should be doing them and their passports..
and what they should not be doing.
It takes an average of 40 seconds to
Whether you are a solopreneur, or  The task has become habitual. Find a get a receipt at the kiosk. At that
someone with one or ten people better way to start your day. Tackle point, travelers don’t have to wait up
working for, it’s an important matter to the first item on your to-do list. to an hour to get their passports
think about. checked. To enroll in the Global
 You want to delegate the task but
Entry’s “trusted traveler” program,
Strategic planner Ole Carlson says don't think you have a competent
U.S. citizens and those with
failure to delegate involves one or person to handle it.
permanent-resident cards pay $100,
more of these causes:
Carlson, author of several business pass a government background
 You may think you are the only one management books, including his most check, and get fingerprinted.
suited to do the task. recent title, Aspire: 3 Powerful U.S. Customs says Global Entry
Strategies for Creating More of improves security by segregating
 You enjoy doing it or feel it is more
What You Want Now, says keeping a low-risk travelers who have given
expedient to do it personally, though
time log for a couple of weeks can be information from travelers who, in
it could be done by someone else.
enlightening. It will allow you see what theory, are higher risk.
 Doing it yourself is an avoidance percentage of your time is spent on
strategy. It keeps you from starting doing what is actually your job, rather
other projects.
Member Spotlight
than doing what someone else could
Here’s Your Chance to Win an ipad!
 It's a matter of being a control freak do.
It’s time for our Summer Tax Planning
who must be involved in everything. Thinking more about projects that only
Sweepstakes, and we’d like to
You must learn to trust someone you can handle, and less about incentivize you to sell more tax plans,
else. projects you could delegate will help and share your successes with us. For
 You think you are too busy to teach you rediscover lost time and get more the next 3 months, you’ll receive one
someone how to do it, but future time done! entry for every success story you post to
our message boards. Just tell us who
savings are the reward if you do.
you sold a plan to, how much you sold it
for, and what you did to close the deal.
Ask the Experts We’ll have our drawing at the CTC

Q
Reunion (see back page) and one lucky
I recently attended a conference where I was member will receive an ipad (or
discouraged from compensating the hired spouse something just as cool!)
of a Schedule C owner solely with a MERP. Ever wondered what it would take to sell
Is this illegal? $37,000 in tax plans in just 3 weeks? If
you think it’s not possible for you, think

A
Hiring the spouse in a Schedule C in order to deduct medical expenses again! Last year’s iPad winner Dean
through a MERP is an excellent tax strategy to shift after tax dollars to pre- Owen, dominated the sweepstakes with
tax dollars. Sometimes though, adding a spouse to payroll can create a 12 entries. Dean vowed at the June
CTC Academy he would take home the
cash flow burden on the taxpayer and unreasonable compensation issues
prize and immediately got to work. He
if you include both benefits and wages. Under Spelz vs. The IRS
went through his existing database and
Commissioner, the tax court ruled that the spouse of a Schedule C owner completed tax return diagnosis. Within 3
was reasonably compensated for his performance solely in exchange for weeks, Dean had sold over $37,000 in
employee benefits consisting of a MERP. This important case can be found tax plans and ensured victory with 12
in the MERP implementation guide in tax coach software. We get so many entries in the sweepstakes.
questions on this popular strategy, we’ve decided to feature a course just It only takes 1 to win, so get started and
on the topic of MERP’s. Don’t miss this class July 26, 2011 at 4pm EST. post your stories! Good luck!
Page 4 July 2011

A Word from our Members

“
Thanks for hosting and teaching the recent Certified Tax Coach
Academy. I have agreed with everything I have heard and read
since joining Tax Coach; from the weekly member call-ins, to the
Tax Coach Software website, to the materials and CD I received
when I signed up. But, I never took the first step to holding
myself out as a premier tax planning specialist. It was the CTC
Academy that gave me the confidence and training that I need to
take the plunge. I am now convinced that I have the tools to help

”
almost anyone pay less in taxes legally (and the confidence and
structure to charge them for my expertise).
– Aric Schreiner, CPA, CTC Shelton, CT

Don’t Miss. . .CTC Reunion

All the details are set, the chips are in, and the
tables reserved for our first annual CTC
Reunion. We’ve combined it with the Tax Coach
Fall Classic so you can stay for more
networking and fun! Join us September 21-23 in
Las Vegas at Planet Hollywood Hotel and
Casino. Wednesday will be an exclusive CTC
reunion where we’ll be hosting 3 workshops
designed to take your business to the next
level.
Beat the House! – Using Tax Projection
Software to Uncover Savings – in this live
case study, we’ll use real world tax plans to
demonstrate how tax projection software can
help you calculate tax savings
and manage trouble spots.
Let It Ride! Put Your Office
on Auto-Pilot with Systems – Ever wondered
what it takes to go on vacation during tax
season? The key is having a business that
works apart from you, not because of you. In
this workshop, you’ll identify what you need to
create systems in your practice that completely
support your business, whether you’re there, or
not.
Whatever Happens in Vegas Stays in Vegas!
Role Playing Clinic to Help You Close More
Sales – Who says there’s no such thing as a
little friendly competition? In this hands-on
workshop, you’ll “try on” different techniques to
take charge of the client interview and “close
the deal.” Once you get a chance to try your
hand at these foolproof methods to help you
overcome any objection, you’ll compete against
your peers and win cool prizes!
The best part about the CTC Reunion and Tax
Coach Fall Classic?
It’s comped! Your CTC dues include your
participation in this annual event, so don’t wait –
sign up today!

Contact us Coming soon…

American Institute of Certified Tax Coaches™ In the next issue
7710 Hazard Center Drive  What Social Media Says About You
Suite E-405
 Political Marketing
San Diego, CA 92108
 Tools You Can Use
www.CertifiedTaxCoach.com  Audit Proof Your Plan
877-MyAICTC