63 - The Tribal Tax Credit: What Every Advisor Needs to Know Before Recommending It
Disclaimer: Since we interviewed Nepsis, a request has been made for the IRS to conduct a criminal investigation into the tribal credit strategy and the vendor offering it. While opinions on its validity remain divided, offering this strategy at this time would be considered aggressive until the government completes its investigation. However, the podcast interview remains valuable for those who may have had clients utilize the strategy, providing guidance on the next steps.
In this episode, Dr. Jackie Meyer interviews Chad Koebnick, VP of Specialized Tax Services at Nepsis, about the innovative Tribal Tax Credit. They discuss the mechanics of the credit, its origins, and the skepticism surrounding it. Chad explains the due diligence required for tax professionals and taxpayers, the process of claiming the credits, and common misconceptions. The conversation also touches on the future of tax advisory services and best practices for tax professionals in navigating this new landscape.
🔗 Connect with Chad Koebnick
https://www.linkedin.com/in/chad-koebnick-tax/
https://nepsis.com/
🔗 Connect with Dr. Jackie Meyer
Jackie's LinkedIn at https://www.linkedin.com/in/jackiemeyercpa
Jackie on Instagram @jackiemeyerCPA
Jackie's work at https://www.jackiemeyercpa.com
This episode is brought to you by TaxPlanIQ:
https://www.taxplaniq.com
Join the TaxPlanIQ newsletter here ➡️ https://www.taxplaniq.com/newsletter-signup-listeners.
Make sure you head to https://www.taxplaniq.com/podcast for your listener exclusives!
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Takeaways:
- The Tribal Tax Credit is a federal income tax credit available to all U.S. taxpayers.
- The credit has a five-year carryover period if not fully consumed in the first year.
- Taxpayers purchase the credits rather than investing in a project.
- There is an insurance policy available to mitigate risks associated with the credits.
- The IRS has faced challenges in processing electronically filed returns related to the credits.
- Due diligence is crucial for tax professionals considering the strategy.
- The private letter ruling is expected to provide clarity on the credit's legitimacy.
- Tax advisory is becoming increasingly important in the CPA profession.
- Embracing technology can enhance the effectiveness of tax advisory services.
- Tax professionals should focus on being assets to their clients rather than mere accessories.
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