Why is this “Hire Your Spouse using the Spousal Employment Contract” concept of tax reduction so under utilized and not well known, even among accountants and tax professionals?
There are at least 8 reasons: • Many “tax preparers” are not really accountants, nor are they CPA’s. Their training may be minimal, shallow, and limited to how to fill in the boxes on the tax forms. They are not even required to take 40 hours of continuing education courses annually, as CPA’s are required to do. • Many CPA’s prepare taxes as an accommodation to their clients. However, much of their time and attention is taken up by other parts of their practice, such as write-up work and bank reconciliations, compilations, reviews, audits, financial planning or other specialized areas. They may not be focused entirely in the specialized area of taxation, which is critical to their clients’ bottom line. • Most tax professionals respond to the current situation which reflects the past, rather than plan and structure the reality of the future. • To successfully implement the “Hire Your Spouse” strategy, the IRS requires the use of an employment contract. Most tax professionals are not com
