Corridor Consulting | CPA's

CPA-led guidance for business growth, tax clarity, IRS resolution & legacy planning. @ConsultCorridor

[Corridor Consulting | CPA's @ConsultCorridor]

Curious how your taxpayer & businesses data might be used in tax preparation by your accountant or tax professional?

Make sure your tax preparer is following the law to keep your information confidential.

[James Yochum, CPA @JTheAccountant]

AI CPE for accountants should always begin with a §7216 and FTC Safeguards Rule discussion. I've been to multiple now - and these issues are brushed over.

Client consent may authorize disclosure, but it does not eliminate the firm’s exposure if taxpayer data is mishandled.

[James Yochum, CPA @JTheAccountant]

So this is what happens when you let AI do your taxes?

I’m cooked 💀

[James Yochum, CPA @JTheAccountant]

If your spouse has passed away, do NOT automatically claim your own Social Security first.

There is an often overlooked Social Security survivor benefit strategy that could allow you to collect one benefit while letting another continue to grow.

A real-world example 🧵

[James Yochum, CPA @JTheAccountant]

Most of the business owners making these comments are amateurs, or they're running very lean, small, simple operations.

They're viewing bookkeeping as: What is revenue? What is an expense? What category does this go in?

Basically, classify the shoebox. AI can absolutely do that.

For their businesses, it may genuinely be immaterial where an expense is classified, or they may have no need to know where revenue came from beyond "revenue." So even if AI messes something up, the consequences may be irrelevant. There might not even be any material differences between how they recognize revenue and expenses on their books and how those same items are treated for tax purposes.

To which I say, AI is great. Use it. You don't need a CPA. We don't need to be paid professional fees to set up bank rules and classify your Home Depot transactions.

Business should be this easy. If you're a solo operator with simple revenue and expenses, you shouldn't need us.

But they also don't know what they don't know.

We have to do a better job explaining the value of what we do for larger businesses, and for the businesses that want to become larger. We have to frame the decision to use our services as an investment in setting up the foundation they need to do so.

If we let "bookkeeping is just transaction classification" remain their mental model, and we don't intervene in these conversations, it becomes a problem when they truly want to build a business.

Not so much if they want to stay where they're at, and frankly, most of them do. Most of them are successful and don't want to expand. To which I say, you probably don't need my expertise then!

Because most business owners don't have a business or accounting background. They may not know why the books need to distinguish revenue or costs by contract, customer, project, etc. They may not realize that information can tell them to change contract terms, pricing, or operations and ultimately change the value of their business.

Take a client meeting I had this week. We discussed their financials, a future S-election, accountable plans, per diem, compensation, cost accounting, contracts, bidding, margins, controls, expansion and delegating work off the owner's plate.

Every one of those conversations depends on the bookkeeping being accurate. To the point we're doing project based / customer based financials.

We'll use those same books for tax planning before quarter-end. Eventually those books become the starting point for the tax return, with tax adjustments reconciling back to the book records. Then we'll use that same information for personal tax and legacy planning.

It's all connected.

So when they say "AI can do my bookkeeping," I think what they often mean is "AI can classify my transactions."

AI can absolutely do that.

That's not necessarily the same thing as having accurate books you can actually use to run and build a business, or having access to the professional judgment that connects accounting, tax, business operations, and financial planning to help take you to the next level financially or operationally.

[James Yochum, CPA @JTheAccountant]

Business owners desperately need a course on boundaries.

I say this as a CPA who spends a lot of time advising them.

One of the most common problems I see has nothing to do with accounting:

They have absolutely no idea what their time is worth.

🧵

[James Yochum, CPA @JTheAccountant]

The hard lesson successful business owners often learn too late:

At some point, your priority has to shift from working IN the business to working ON the business.

But what does “working on the business” actually mean?

[James Yochum, CPA @JTheAccountant]

You can save $3,000 a year by hiring a cheaper accountant.

Then lose $40,000 because nobody noticed the tax problem, cash flow issue, or bad decision developing.

Accounting fees are easy to measure.

The cost of bad accounting usually shows up later.

[James Yochum, CPA @JTheAccountant]

There is a time and a place for doing this. I.E. if you are a target for a buyout. The one buying you mostly wants cash flow/economies of scale.

In most cases when you grow, thinking a solo operation is your competition that needs to be defeated for market share is not viable.

[Corridor Consulting | CPA's @ConsultCorridor]

https://t.co/SxOOWuA2Ik

[Corridor Consulting | CPA's @ConsultCorridor]

Curious how your taxpayer & businesses data might be used in tax preparation by your accountant or tax professional?

Make sure your tax preparer is following the law to keep your information confidential.

[James Yochum, CPA @JTheAccountant]

AI CPE for accountants should always begin with a §7216 and FTC Safeguards Rule discussion. I've been to multiple now - and these issues are brushed over.

Client consent may authorize disclosure, but it does not eliminate the firm’s exposure if taxpayer data is mishandled.

[Corridor Consulting | CPA's @ConsultCorridor]

https://t.co/FQEPnNhUca

[Corridor Consulting | CPA's @ConsultCorridor]

👇

[James Yochum, CPA @JTheAccountant]

That $300,000 tax bill may not have been inevitable.

The IRS has repeatedly allowed estate and trust fiduciaries to transfer IRAs directly into inherited IRAs for beneficiaries without triggering an immediate taxable distribution.

See the PLRs below and Rev. Rul. 78-406.

[Corridor Consulting | CPA's @ConsultCorridor]

🚫 “It’s the law—you have to sign a buyer agreement before I can show you the home.”

That’s what some Iowa agents are saying… but it’s not true.

Here’s what the new NAR rules and Iowa law actually say 👇

https://t.co/NqorhQc44O

[James Yochum, CPA @JTheAccountant]

Told to refinance your home to pay IRS tax debt? 🚨 That advice could cost you everything. The IRS allows for hardship relief—even if you have equity. Don’t fall for “pennies on the dollar” promises. Talk to a CPA firm first. https://t.co/FwfXM7m2ql

[Corridor Consulting | CPA's @ConsultCorridor]

https://t.co/Nu2MPaclMv

[James Yochum, CPA @JTheAccountant]

"My lender is asking for a comfort letter from my CPA. What does this mean?"

Translation: Something on your tax return doesn't make sense for loan qualification.

The issue isn't the lender—it's how your accounting and tax return was prepared.

[Corridor Consulting | CPA's @ConsultCorridor]

Burning NFTs and unsure how it impacts your taxes?

🧐 Learn how burn wallets and NFT losses can trigger IRS scrutiny and what steps to take to avoid penalties

💸 Don't miss these expert tips to protect your investments! 👇 #CryptoTax #BurnWallet #NFT

https://t.co/kwGRqMv70T

[James Yochum, CPA @JTheAccountant]

Even with the markets crashing, just remember:

The IRS still wants their money.

Reserve enough liquidity to pay your tax bills, on the income & gains you've had this year.

No one knows where the world is headed, protect yourself & your business.

[Smurf It Up Podcast @SmurfItUpShow]

Please add your questions/concerns to this tweet, please:

[James Yochum, CPA @JTheAccountant]

What frustrations do you face working with your accountant or tax preparer?

Can you give an example?

The most common issues I hear:

- Lack of communication
- Unwillingness to educate/jargon
- No tailored service offerings
- No proactive advice offered
- Fee Transparency

[James Yochum, CPA @JTheAccountant]

https://t.co/ZIMvMpQpYd