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2018 NATIONAL INCOME TAX WORKBOOK

Editor

Lori B. Miller

Assistant Editor

Sonia Carter

Assistant Editor

Nina S. Collum

Land Grant University Tax Education Foundation, Inc.

Land Grant University Tax Education Foundation

Land Grant University Tax Education Foundation

COPYRIGHT 9/8/2018 LGUTEF

Warning and DisclaimerThis publication is distributed with the understand-ing that the authors, publisher, and distributor are not rendering legal, accounting, IRS, or other professional advice or opinions on specific facts or matters, and, accordingly, assume no liability whatsoever in connec-tion with its use or with future rulings that may affect the material presented. The information provided is for educational purposes only and nothing herein con-stitutes the provision of legal advice or services.

Editor Lori B. MillerAssistant Editor Sonia CarterAssistant Editor Nina S. CollumManaging Editor Robert P. Achenbach, Jr.Production Editor/Page Layout Foti Kutil, Foti Publishing SolutionsCopy Editing Gabriela FultonIndexer Gabriela FultonProject Assistant Margaret HennenPrinter Integ, Inc., Waco, TX

2018 National Income Tax Workbook

©Copyright 2018 by Land Grant University Tax Education Foundation, Inc.

All rights reserved. No part of this book shall be repro-duced, stored in a retrieval system, or transmitted by any means, electronic, mechanical, photocopying, recording, or otherwise, without written permission from the publisher.Land Grant UniversityTax Education Foundation, Inc.735 N. Maple Hill RoadKelso, WA 98626www.taxworkbook.comPrinted in the United States of AmericaFirst Printing: September 2018

J C. Hobbs, ChairOklahoma State University, 316 E. Oxford, Enid, OK 73701, phone: 840.237.7677, fax: 840.242.1955, [email protected]

Guido van der Hoeven, President, Assistant Treasurer Nelson Hall, Room 3308, North Carolina State University, Raleigh, NC 27695-8109, phone: 919.515.9071, fax: 919.515.6268, [email protected]

Robert P. Achenbach, Jr., Chief Adminstrative Officer/Treasurer 735 N. Maple Hill Road, Kelso, WA 98626, phone: 360.200.5458, fax: 360.423.2287, [email protected]

Lori B. Miller, Vice President for Editorial Services Lori B. Miller, PC, PO Box 4955, Whitefish, MT 59937, phone: 406.730.2752, lori@ lorimillerlaw.com

Greg Bouchard, Vice President for Administration, Director Cornell University, 2676 County Road 47, Canandaigua, NY 14424, phone: 607.254.5102, fax: 607.255.1589, [email protected]

Connie Smotek, Secretary, Director Texas Extension Education Foundation, Inc., PO Box 946, College Station, TX 77843, phone: 979.845.2226, fax: 765.494.4241, csmotek@ tamu.edu

Virginia Uzendoski, Director University of Nebraska-Lincoln, 1520 N. 20th. Circle, Lincoln, NE 68588, phone: 402.472.9334, fax: 402.472.9688, [email protected]

William Klump, Director 1300 Gardiner Lane Suite 9, Louisville, KY 40213, phone: 502.479.8540, fax: 502.479.8542, [email protected]

Claire Twardy, Director Auburn University, OD Smith Hall, Auburn, AL 36849, phone: 334.844.3127, fax: 334.844.3101, [email protected]

C. Robert Holcomb, Director University of Minnesota Extension, 1424 E. College Dr., Suite 100, Marshall, MN 56258, phone: 507.337.2807, fax: 507.337.2802 , holcombr@ umn.edu

Land Grant University Tax Education Foundation, Inc. Officers and Directors


CONTENTS

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . v

Philip E. Harris Dedication . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . vi

Editors, Authors, Reviewers, and Contributors . . . . . . . . . . . . . . . . . . . . . . . . . vii

Cooperating Schools . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xv

1 New Legislation—Individual . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1

2 New Legislation—Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23

3 IRS Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .59

4 Ethics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .89

5 Retirement and Savings Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .127

6 Tax Practice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .157

7 Payroll and Estimated Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .205

8 Individual Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .235

9 Agricultural and Natural Resource Issues . . . . . . . . . . . . . . . . . . . . . . . . . .287

10 Business Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .329

11 Rulings and Cases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .381

12 Business Entity Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .445

13 New Legislation—Additional . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .487

14 Tax Rates and Useful Tables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .561

Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .591


Corrections for all chapters and the 2018 National Income Tax Workbook Update ( January 2018) are posted as they become available at www.taxworkbook.com (user name: class2018; password: class2018).


v

INTRODUCTION

Welcome to the 2018 National Income Tax Work-book. We usually take this opportunity to tell you about what to expect in this this book. But, as you can guess, this year there is a heavy emphasis on the new tax laws. The Tax Cuts and Jobs Act of 2017 is the biggest tax law reform since 1986, and it substantially changes how tax practitioners will prepare 2018 returns for individual and business taxpayers, as well as for trusts and estates.

There are new deductions and credits, and new rules for business losses and net operating losses. In addition, several familiar deductions and credits have been suspended or eliminated. This book provides a comprehensive explana-tion of the changes. It explains how they impact and interact with existing tax laws. This book also discusses planning opportunities under the new laws, including business planning with the new corporate tax rates and pass-through entity deduction, and planning for the individual tax-payer who may no longer benefit from itemizing deductions.

As practitioners work to comprehend all the changes, the IRS is also working to provide additional clarification and guidance. In August alone, the IRS issued proposed regulations for the new additional first-year depreciation rules (31 total pages), proposed regulations for the quali-fied business income deduction (184 total pages), and proposed regulations for the centralized

INTRODUCTION v

partnership audit regime (242 total pages). This book discusses issued guidance, and, where appropriate, this book points out issues that have yet to be clarified and where guidance is needed.

Decades after the 1986 tax reform, the IRS is still issuing guidance, and we expect that fur-ther regulations and procedures that clarify the new tax laws will be issued after this book is pub-lished. The IRS Tax Reform page provides links to news releases, fact sheets, and statements about the new tax law. It provides tax reform tips, fre-quently asked questions, videos, and links to legal guidance about the new tax law [www.irs.gov/newsroom/tax-reform].

We will publish updates and corrections to the 2018 National Income Tax Workbook on our website [www.taxworkbook.com]. We will also issue a 2018 National Income Tax Workbook Update to provide information on regulations, proce-dures, laws, and cases that are issued after publi-cation of this book.

The Land Grant University Tax Education Foundation, Inc. is pleased to provide this book to about 29,000 tax practitioners in tax schools taught in 32 states.

Lori B. MillerSonia Carter

Nina S. CollumEditors


vi DEDICATION

PHILIP E. HARRIS DEDICATION

Philip E. Harris was a quiet and caring man with a dedication to service and learning and an extraordinary knowledge of taxation in general, and agricultural taxation specifically. He died January 12, 2018, after a coura-geous battle with an aggressive form of multiple myeloma.

Phil was born on June 20, 1951, in Atlantic, Iowa. He grew up on a family farm and graduated with a degree in economics from Iowa State University. Phil earned a master’s in economics and his juris doctor degrees from the University of Chicago. Phil was a member of the Illi-nois, Iowa, and Wisconsin bars.

Phil was known for his national reputation among land grant uni-versity agricultural tax specialists. He wrote or coauthored numerous books, articles, and extension publications over his 37-year career at the University of Wisconsin–Madison.

Phil Harris represented Wisconsin and was a founding member when the Land Grant University Tax Education Foundation (LGUTEF) was organized in 2002. Additionally, until 2015, Phil served as lead edi-tor of the National Income Tax Workbook (NITW), which is published by LGUTEF. The NITW is used by 26 universities as the text in two-day income tax schools. Published annually, the NITW is used by approxi-mately 29,000 professional income tax practitioners, including attorneys, CPAs, enrolled agents, and others attending tax schools. Each year, under Phil’s leadership, the quality of NITW was increased by Phil’s continuing commitment to “getting it right and better,” so that the explanations were grounded in law and the examples were useful to tax school attendees in their work with and for their clients.

LGUTEF will greatly miss Phil Harris, his leadership, his humor, his tremendous knowledge of tax law and its application to common problems, his energy, and his unselfish willingness to give generously of his time and share his knowledge with others. We are honored to have known him and will continue to build upon the legacy of work that Phil leaves us all.


EDITORS vii

NINA S. COLLUMNina S. Collum, PhD, CPA, is an assistant pro-fessor in the School of Accountancy at Louisiana Tech University. She has previously written chap-ters on automobiles, construction contractors, natural resources, AMT, recapture, real estate issues, divorce, estate and gift taxes, trade or busi-ness, and related party issues, and she has assisted in the workbook editing process since 2005. Nina is the assistant editor of the 2018 National Income Tax Workbook.

EDITORSLORI B. MILLERLori Miller, JD, LLM in taxation, is an attor-ney in Whitefish, Montana. She is also licensed to practice in California and Washington. Her legal practice emphasizes tax law, estate plan-ning, and business law. She is the lead editor of the 2018 National Income Tax Workbook. She wrote the “New Legislation—Individual,” “New Legis-lation—Business,” and “Ethics” chapters, and she coauthored the “New Legislation—Additional,” “Business Issues,” and “Individual Issues” chap-ters, and several other chapters in the book.

SONIA CARTERSonia Carter, CPA, is a public accountant in Kalispell, Montana. She earned her master’s of accountancy from the University of Montana. Her work in accounting focuses on the areas of individual, business, and nonprofit taxation. She wrote the “IRS Issues” chapter and coauthored the “Business Entity Issues” chapter. Sonia is the assistant editor of the 2018 National Income Tax Workbook.


viii AUTHORS

AUTHORSROBERT P. ACHENBACH, JR.Robert Achenbach, JD, is the chief administra-tive officer of the Land Grant University Tax Education Foundation (LGUTEF) and owner of the Agricultural Law Press, for which he works as the publisher, writer, and editor of the biweekly newsletter Agricultural Law Digest, the Agricultural Law Manual, and Harl, Farm Estate and Business Planning. Robert has been a writer and editor for the 14-volume treatise Harl, Agricultural Law (Matthew Bender) for over 37 years. Robert is also now a writer and editor for Farm Income Tax Manual (Matthew Bender). He wrote the “Rulings and Cases” chapter and coauthored the “Agri-cultural and Natural Resources” and “Business Issues” chapters of the 2018 National Income Tax Workbook.

SETH ANDERSONSeth E. Anderson is in private practice as a princi-pal of Birch Tree Tax, LLC, located in Shelburne, Vermont. His practice focuses on the areas of indi-vidual tax preparation, business tax preparation, and financial analysis/planning for individuals and small businesses. He is an enrolled agent and coordinator of the University of Vermont Exten-sion Income Tax Schools. Seth coauthored the “Individual Issues” chapter of the 2018 National Income Tax Workbook.

KARI A. APELKari A. Apel, CPA, is the CEO and founder of Apel Associates, Inc. and Apel Financial Group of Prairie du Sac and Johnson Creek, Wisconsin, specializing in business, agricultural, and individ-ual tax and financial needs across generational aspects. Kari has coauthored and edited several tax and accounting publications, including the US Department of Agriculture Farm Tax Man-agement publication and multiple National Income Tax Workbooks. Kari specializes in small business and agricultural management, from tax law to strategic business planning. Apel Associates was named among the top three of the community’s small businesses of the year for 3 of the past 5 years, and Kari was awarded the Outstanding Alumni Award from her alma mater University of Wisconsin–Platteville. Kari coauthored the “Individual Issues” chapter of the 2018 National Income Tax Workbook.

GREGORY J. BOUCHARDGregory J. Bouchard is the director of the Cornell University income tax schools. He was formerly employed as a senior business consultant for Farm Credit East, ACA, where he was respon-sible for tax training as well as consulting directly with clients regarding their estate and business plans. Farm Credit is a major provider of tax services, and Greg’s specialty is partnership taxa-tion. He has been an instructor for the New York State Income Tax Schools for the last 20 years. Greg coauthored the “Agricultural and Natural Resources” chapter of the 2018 National Income Tax Workbook.


AUTHORS ix

WILLIAM T. KRIESELWilliam T. Kriesel, CPA/PFS, CFP®, AEP®, is partner-in-charge: financial planning in the regional New York firm Bowers & Company, CPAs, PLLC. Bill has been a presenter on many tax topics, particularly as related to partner-ship taxation and advanced asset transfer tech-niques. He has authored four published articles, each appearing in the CPA Journal. He has been a reviewer and author in previous years for the National Income Tax Workbook, and he wrote the “Retirement and Savings Issues” chapter of the 2018 National Income Tax Workbook.

NORMAN A. PROVVIDENZANorman A. Provvidenza, CPA, CGMA, is cofounder and a managing member of Prov-videnza & Wright CPAs, LLC, located in Pitts-ford, New York, a provider of financial, tax, and advisory services to the small and medium mar-ket. He has more than 20 years of experience in providing personalized financial, tax, and advi-sory services to closely held businesses and their owners, specializing in the agriculture, medical, real estate, and construction industries. He is an alumnus of the Leadership Academy of the New York State Society of CPAs and is a member of the American Institute of CPAs and New York State Society of CPAs. He is also a certified John Maxwell Team trainer and coach. Norm coau-thored the “Business Issues” chapter of the 2018 National Income Tax Workbook.

CLAUDE R. SCHWESIGClaude R. Schwesig, CPA, BComm, is a share-holder of Herrick Ltd., CPAs in Burlington, Vermont. His focus is on US compliance issues when dealing with foreign income and activities, including US citizens living abroad and foreign nationals with tax obligations in this country, and Canadian tax compliance and reporting for US citizens living in Canada. While many of his cli-ents are in Canada, he serves others in over 30 countries worldwide. He is also an instructor for the University of Vermont Tax School and an independent presenter of seminars related to foreign tax matters. Claude coauthored the “New Legislation—Additional” chapter of the 2018 National Income Tax Workbook.

CHARLES CUYKENDALLCharles Cuykendall is retired from Cornell Uni-versity in Ithaca, New York, where he was the income tax educational program director. He has been an instructor at the New York Income Tax Schools for the past 20 years. He specializes in tax law pertaining to small businesses and agri-culture. Charlie is the author of the “Tax Rates and Useful Tables” chapter of the 2018 National Income Tax Workbook. He has also reviewed all the chapters of this book for mathematical accuracy.

C. ROBERT HOLCOMBRob Holcomb is an enrolled agent who has been an extension educator with the University of Minnesota since 2004. Rob works on the devel-opment and delivery of educational programs in the area of agricultural risk management, with emphasis on farm analysis, business planning, and taxation. Rob has been an instructor for the Minnesota Income Tax Short Course since 2010, and in 2011, he began serving as the tax school faculty director. Rob coauthored the “Agricul-tural and Natural Resource Issues” and “Payroll and Estimated Tax” chapters of the 2018 National Income Tax Workbook.

ROBERT W. JAMISONRobert W. Jamison, CPA, PhD, is professor emer-itus of accounting at Indiana University, Purdue University, Indianapolis (IUPUI). His principal area of specialization is S corporations. He is the author of S Corporation Taxation and coauthor of Multistate Tax Guide to Pass-Through Entities, both of which are published annually by CCH, a Wolt-ers Kluwer business. He is curator of Wolters Klu-wer Answerconnect topic “S Corporations” and subtopics thereunder. He is the author of three CCH guidebooks on the Tax Cuts and Jobs Act of 2017. He is a regular contributor to the National Income Tax Workbook. He presents advanced and update S corporation seminars and consults on S corporation and other business entity issues. Robert coauthored the “Business Entities” and “Business Issues” chapters of the 2018 National Income Tax Workbook.


x AUTHORS

DANIEL S. WELYTOKDaniel S. Welytok is a shareholder in the Mil-waukee office of von Briesen & Roper, s.c., where he practices in the areas of exempt organiza-tions and employee plans, including nonprofit organization and planning, 501(c) operational issues, lobbying and compensation practices, cooperative and membership associations, and several other federal and state tax issues and tax controversy. He is the coauthor of Nonprofit Law and Governance for Dummies, a contributing author to the Wisconsin Guide to Nonprofits, past editorial board member of the American Bar Association’s Tax Lawyer, and editorial board member of The Cooperative Accountant. Dan has served in various leadership roles in national, state, and local bar associations, and chaired a liaison group with the IRS Tax Exempt/Government Entities Division. Dan coauthored the “Business Entity Issues” chapter of the 2018 National Income Tax Workbook.

SHIRLEY A. WOFFORDShirley Wofford, CPA, JD, retired from the IRS in September 2005, and is in private practice. Her practice includes representing clients before IRS Examination Division, IRS Appeals Office, US Tax Court, and US District Court. She has been an instructor for the Oklahoma State Tax Institute since 2011. She coauthored the “Payroll and Estimated Tax” chapter of the 2018 National Income Tax Workbook.

JAMES M. STRYKERJames M. Stryker, MBA, LLB, MSS, CPA, is cur-rently self-employed. He is a retired associate chief of appeals of the IRS. He was selected by the IRS Chief Counsel to train their attorneys on new tax law. He has done numerous TV presen-tations on tax law. He is a speaker and author for the State of Texas Advanced Tax Course. Jim coauthored the “Individual Issues” chapter of the 2018 National Income Tax Workbook.

KRISTINE TIDGRENKristine Tidgren, JD, is the director of the Center for Agricultural Law & Taxation and an adjunct assistant professor in Agricultural Education & Studies at Iowa State University. She is a frequent writer and speaker on agricultural law and taxa-tion topics. Kristine coauthored the “Business Issues” chapter for the 2018 National Income Tax Workbook.

PATRICIA UGOROWSKITrish Ugorowski retired from the IRS in 2012. During the last 5 years before her retirement, she served as a Large Business and International (LB&I) partnership technical adviser, providing guidance to IRS employees on partnership, pas-sive activity, and at-risk issues. Throughout her career, Trish was involved in training develop-ment and delivery for the IRS, the Michigan State University Tax Schools, and Lansing Community College. She is currently an enrolled agent. Trish wrote the “Tax Practice” chapter and coauthored the “Business Entity Issues” chapter for the 2018 National Income Tax Workbook.


REVIEWERS xi

KELLY H. MYERSKelly Myers is a consultant with Myers Consult-ing Group, LLC, providing seminars, tax plan-ning, consulting, and controversy services to clients across the United States. Kelly has spoken nationally both as a consultant and during his 30-plus-year career with the IRS (retired 2017). Kelly spent his last 20 years of his IRS career working for the Washington, DC, headquarters as a senior technical adviser. He has over 38 years of tax experience. He has developed efficient tax strategies in both preparation and controversy arenas and developed technical material for IRS staff. He has an MBA from the University of Tampa with an emphasis in accounting and taxa-tion. Kelly reviewed the “Business Entity Issues,” “Business Issues,” “Individual Issues,” “IRS Issues,” New Legislation— Individual,” “New Legislation—Business,” and “Tax Practice” chap-ters for the 2018 National Income Tax Workbook.

CAROL GREGORY WRIGHTCarol Wright, CPA, lectures on partnership taxation and continues to teach Michigan State University Income Tax Schools. Her IRS career covered 36 years, from tax auditor to senior team coordinator. While there, she taught all phases of training for agents. She developed several courses and coordinated partnership and tax shelter training. She authored “IRS Income Tax Audits” for the fifth edition of Tools and Techniques of Income Tax Planning in 2016. Carol reviewed the “Retirement and Savings Issues” chapter of the 2018 National Income Tax Workbook.

REVIEWERSL. LEON GEYERLeon Geyer is a professor emeritus of agricultural and environmental law at Virginia Tech. He has been the director of the Virginia Tech Income Tax Schools for 23 years and teaches the farm tax section in the schools. He has both written and reviewed chapters for the National Income Tax Workbook in the past. Leon reviewed the “Ethics” chapter of the 2018 National Income Tax Workbook.

SUSAN HARPERSusan Harper, treasurer of Pennsylvania Tax Institutes, Inc. (PTI), is an instructor of the National Income Tax Workbook for both PTI (since 2004) and West Virginia University (since 2000). Prior to PTI, she also instructed for Virginia Tech. She uses the National Income Tax Workbook to conduct seminars involving more than 1,500 students each year. Susan is also a fraud technical adviser, revenue agent for the IRS, where she has been employed since 1988. Prior to becoming an FTA, Susan served as a revenue agent in abusive-tax-avoidance transactions. She reviewed the “IRS Issues” chapter of the 2018 National Income Tax Workbook.

EDITH F. MOATESEdith Moates, CPA, JD, retired from the IRS in 2006 and is in private practice with Moates & Associates, a tax-oriented legal and accounting firm located in Norman, Oklahoma. She repre-sents numerous clients before the IRS Appeals Office and the US Tax Court. She has instructed the Oklahoma State University Tax Institutes since 1985 and has edited and reviewed numer-ous income tax chapters over the years. Edith reviewed the “Ethics” chapter of the 2018 National Income Tax Workbook.


xii CONTRIBUTORS

RAY FLUEGEMANRay Fluegeman is a registered CPA and a retired IRS revenue agent and fraud adviser. Over his 35 years with the IRS, he has instructed numerous training classes regarding income tax law for indi-viduals and businesses. He is a former instruc-tor of the Michigan State University income tax schools and former accounting and tax instructor for Lansing Community College.

CLARK GARLANDClark D. Garland is professor emeritus in the Agricultural and Resource Economics Depart-ment at the University of Tennessee. Prior to his retirement in 2011, he served on the University of Tennessee faculty for 40 years with responsi-bilities in extension, specializing in agricultural finance. He has been director of the University of Tennessee Income Tax Seminars for more than 20 years.

JENSEY GRAHAMJensey Graham joined the University of Massa-chusetts Amherst tax school in 2016. Now in her third program year with the UMass Tax School, she is the director of program administration and oversees the planning, development, and man-agement of the two-day tax seminars held annu-ally in the fall at eight locations across the state. She brings to the tax school her extensive expe-rience in educational program development and in higher education and the nonprofit sector as a high-level executive assistant.

CONTRIBUTORSCHRIS BIRDChris Bird is a national lecturer on individual income, corporate income, and real estate tax issues. His background includes more than 17 years of experience as an IRS agent in St. Louis, Missouri, and Springfield, Illinois, serving as a field agent, a branch manager, and a training director. He is a certified financial planner and is enrolled to practice before the IRS (EA). Chris has taught preparation courses for the registered tax return preparer and the enrolled agent exami-nations as well as courses on the Affordable Care Act. Chris previously was a contributor to the University of Illinois Tax School workbook and an instructor at the school’s seminars throughout Illinois. He uses the National Tax Workbook to con-duct seminars involving more than 1,600 partici-pants annually.

MARK BURCHMark D. Burch is an enrolled agent and managing principal of Burch & Associates, Inc., located in Lincoln, Nebraska. The family-owned tax prac-tice was established in 1971, and Mark joined his father in business in 1985 before graduating from the University of Nebraska College of Business Administration in 1989. His practice focuses on local and regional small businesses and individ-ual tax preparation and representation. He takes great pride in developing strong and caring rela-tionships with clients and delivering high-level service. Developing staff and using technology, along with practice management, are areas of great importance to him. In 2013, Mark joined the University of Nebraska Tax Institute, where he is currently the senior lead instructor.


CONTRIBUTORS xiii

WILLIAM R. KLUMPWilliam R. Klump, CPA, formerly a shareholder in Klump & Blandford, PSC, is a consultant pri-marily devoting his time to federal and Kentucky state income taxes. He has been an instructor for the income tax seminars sponsored by the Uni-versity of Kentucky since 1997 and has previ-ously been an instructor for income tax seminars in Arkansas, Louisiana, Mississippi, and Pennsyl-vania. Bill has participated in editing sessions for the National Income Tax Workbook for 17 years.

CHERYL MORSECheryl has been a tax practitioner since 1982 and an Enrolled Agent since 1996. She is the tax man-ager for Emerging Business Partners, Inc., which prepares over 1,500 tax returns in three offices in Massachusetts. Cheryl graduated Magna Cum Laude with a bachelor’s of science in accounting from Bentley College in Waltham, MA. In addi-tion to instructing for NATP, and the UMass Tax School, where she is the director of program cur-riculum, she educates taxpayers through a variety of community outreach events. She is a contribut-ing author for Forbes. She served on the Massa-chusetts Board of NATP as treasurer, represented the Northeast Region of the Taxpayer Advocacy Panel as chair, and is a contributor to the devel-opment of the IRS EA examination.

MARK RIBASMark Ribas was employed by the IRS for 38 years as a revenue agent assigned to the Large Business and International Division, where he conducted examinations of large corporations and partnerships. Mark is a CPA and has served as an adjunct professor of accounting for Fair-mont State University for several years. During the past 16 years, he has served as an instructor at the Virginia Tech, Texas A&M, and West Virginia University income tax schools. Mark currently is the president of Pennsylvania Tax Institutes, Inc., which conducts income tax seminars throughout the states of Pennsylva-nia, New Jersey, and Delaware.

J C. HOBBSJ C. Hobbs is an associate extension specialist in the Department of Agricultural Economics at Oklahoma State University. He is the coordi-nator as well as an instructor for the OSU Farm and Business Tax Institutes. His areas of interest include farm management, farm transition plan-ning, and income tax issues.

MARY JANE HOURANIMary Jane Hourani, MM, EA, NTPI Fellow, has a master’s of management from Walsh College of Accountancy and Business Administration as well as a bachelor’s of science in public admin-istration and organizational development from Eastern Michigan University. Mary Jane has been practicing since 1993. She worked at larger tax, accounting, and audit firms before opening her own practice in 2005. Her experience includes taxation of business and individuals, reconstruc-tion of books and records, tax audits, analysis and consultation, and litigation support. She is currently an instructor for the Michigan State University tax school and is a frequent speaker for other tax, accounting, and financial organiza-tions. Mary Jane is an IRS enrolled agent.

JOHN JONESJohn Jones is a faculty member in the Department of Agricultural, Food, and Resource Economics at Michigan State University. He is the manager of the Michigan State University (MSU) Telfarm Center and is co-coordinator of the MSU Income Tax School. His work concentrates on the cap-ture and analysis of farm management data in the areas of farm records, farm and income tax man-agement, and economic intelligence.

ADAM KANTROVICHDr. Adam J. Kantrovich is an extension associ-ate professor of agribusiness and director of the Clemson University Extension income tax school. He specializes in agricultural and timber taxation, agribusiness succession/transition and estate planning, farm financial and risk manage-ment, and policy issues.


xiv CONTRIBUTORS

GUIDO VAN DER HOEVENGuido van der Hoeven is an extension specialist/senior lecturer for the Department of Agricultural and Resource Economics at North Carolina State University in Raleigh. He is also the director of the North Carolina Income Tax School and is enrolled to practice before the IRS as an enrolled agent. He has instructed in the 2-day intermedi-ate tax school and several 8-hour introductory and agricultural tax programs across North Caro-lina and six other states.

BILL VAN EERDENBill Van Eerden is a registered CPA with a mas-ter’s in taxation. He recently retired from the IRS after over 42 years as a revenue agent. He taught numerous IRS training classes and tax classes at Grand Valley State University.

BARRY WARDBarry Ward is currently leader, production busi-ness management, and assistant professor in the College of Food, Agriculture, and Environmental Sciences at The Ohio State University (OSU). He serves as director of OSU income tax schools and provides leadership for OSU extension programs that provide managers of agricultural production businesses with tools, information, and analysis to manage their farms and firms. He delivers edu-cational programs for extension educators and industry clientele, conducts applied research, trains extension staff, and teaches undergraduate courses in farm business management.

MARY SOBBAMary Sobba is an agriculture business field spe-cialist with University of Missouri Extension. She is the coordinator for the MU income tax schools. Her areas of interest include farm management, estate planning and succession, farm leases, farm policy, and income tax issues. She teaches a variety of extension ag business classes and has written curriculum. She began working with LGUTEF in 2015, when she began coordinating the MU income tax school.

CONNIE SMOTEKConnie Smotek is an extension program special-ist in the Department of Agricultural Economics at Texas A&M University. She has planned and coordinated numerous continuing education pro-grams for tax professionals since 2001. In addi-tion, Connie provided administrative support to LGUTEF from 2002 through February 2009.

CLAIRE TWARDYClaire Twardy is the assistant director of confer-ences and professional programs at the Office of Professional and Continuing Education at Auburn University. She plans and facilitates numerous programs, courses, and conferences throughout the year. She began working with LGUTEF in 2007, when she assumed responsi-bility for the Auburn University Accounting and Tax Training Institute tax seminars in the states of Alabama, Arkansas, Georgia, and Mississippi. She graduated from the University of Georgia with a BFA in graphic design.

VIRGINIA UZENDOSKIVirginia Uzendoski is the senior assistant director of Professional Programs in the Col-lege of Business at the University of Nebraska–Lincoln. She oversees the development and management of distance learning professional education programs/conferences and continu-ing education accreditation standards, poli-cies, and procedures. She began working with LGUTEF in 2009, when she assumed responsi-bility for the Nebraska federal and state income tax institutes, with sites across Nebraska, now in its sixty-fourth year.


COOPERATING SCHOOLS xv

MissouriMary Sobba–University of Missouri Extension, University of Missouri, Columbia, Missouri

NebraskaVirginia Uzendoski–University of Nebraska–Lincoln, Lincoln, Nebraska

New HampshireKarina Drumheller–Professional Development and Training, University of New Hampshire, Durham, New Hampshire

New YorkGreg Bouchard–Cornell University, Ithaca, New York

North CarolinaGuido van der Hoeven–Department of Agricul-tural and Resource Economics, North Carolina State University, Raleigh, North Carolina

OhioBarry Ward–OSU Extension, The Ohio State University, Columbus, OhioBill Van Lokeren–College of Business, University of Cincinnati, Cincinnati, Ohio

OklahomaJ C. Hobbs–Cooperative Extension Service, Agricultural Economics Department, Oklahoma State University, Stillwater, Oklahoma

Pennsylvania /Delaware/New JerseyMark Ribas–Pennsylvania Tax Institutes, Inc., State College, Pennsylvania

South CarolinaAdam Kantrovich—Clemson University, Clemson, South Carolina

COOPERATING SCHOOLS

Alabama/Arkansas/Florida/Louisiana/NevadaClaire Twardy–Outreach Program Office, Auburn University, Auburn, Alabama

GeorgiaClaire Twardy–Outreach Program Office, Auburn University, Auburn, Alabama

IllinoisTom Muldoon–TaxSeminars.com, Niles, Illinois

IndianaMichael Langemeier–Department of Agricultural Economics, Purdue University, West Lafayette, Indiana

IowaKristine Tidgren–Center for Agricultural Law and Tax, Iowa State University, Ames, Iowa

KentuckyDr. Steve Isaacs–Department of Agricultural Economics, University of Kentucky, Lexington, Kentucky

MassachusettsDaniel Lass–Department of Resource Economics, Univers i ty of Massachuset ts , Amherst , Masssachsetts

MichiganLarry Borton–Department of Agricultural, Food and Resource Economics, Michigan State University, East Lansing, Michigan

MinnesotaC. Robert Holcomb–College of Continuing Education, University of Minnesota, St. Paul, Minnesota


xvi COOPERATING SCHOOLS

VirginiaTravis Mountain–Virginia Tech, Blacksburg, Virginia

West VirginiaBecky Casteel–Center for Agriculture and Natural Resources, WVU Extension Service, West Virginia University, Morgantown, West Virginia

WisconsinKaren Harris–Tax Insight, LLC, Madison, Wisconsin

TennesseeClark D. Garland–Extension, The University of Tennessee, Knoxville, Tennessee

TexasConnie Smotek–Texas AgriLIFE Extension and Department of Agricultural Economics, Texas A&M University, College Station, Texas

UtahTyler Bowles–Department of Economics and Finance, Utah State University, Logan, Utah

VermontSeth Anderson–Univers i ty of Vermont Extension, Shelburne, Vermont


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