Utah Accountant Liability: Is Your Accountant Working for You or Not?

Million-dollar view from one of my favorite rocks in Farmington, Utah

Did you engage your accountant to work for your company (LLC or S Corp) or did you engage him or her to work for you personally? The reason that I ask this has to do with whether you can personally rely on your accountant’s advice or only your company can. This becomes important when holding your accountant responsible for his or her advice, including when filing taxes and making important business decisions. Let me explain:

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The Utah Supreme Court Again Requires Reasonable Conduct Under the Circumstances

Mountain biking in St. George, Utah

The Utah Supreme Court ruled against a debtor who asserted a novel defense to repayment of a $250,000 loan in default. The case is Crapo v. Zions Bank. The debtor claimed that once the bank sent him a Form 1099-C discharging his debt, the bank could no longer attempt to collect the bad debt from him. Failure to act reasonably by the debtor, however, ultimately barred the debtor’s defense. And, while the debtor’s defense appeared a bit stronger on its face than it actually was, you can see in details are below it appeared he was gaming the system by not getting more information before purportedly relying on the bank’s conduct. Continue reading “The Utah Supreme Court Again Requires Reasonable Conduct Under the Circumstances”

Important Tax Considerations in Starting a Business in Utah

Me fishing.

When you start a business in Utah, you are going to make money. When you make money, you will have to pay taxes. The type of business you create will determine how you account to the IRS for the money you make. The four business entities that an entrepreneur will typically encounter are partnerships (including limited liability companies), C corporations, S corporations, and disregarded entities. Continue reading “Important Tax Considerations in Starting a Business in Utah”