Back when I was traveling about, repeatedly trying to convince accountants and tax preparers to offer AgriPlan and BizPlan to their Clients,* invariably I would be asked, “Why should my Clients pay you to do this, when I can do it for them myself?” Along with my replies of “Not quite,” and “Not by a long shot,” of course I would talk with them about our expertise, our technology, and our experience. But the clincher? All I really needed to mention was our industry-exclusive Audit Guarantee. Case closed. Recently, we had a situation that reinforces the value of TASC’s Audit Guarantee.
Milo and Sharlyn Shellito operate a family farm in Kansas. Milo is the owner and operator of the farm, Sharlyn assists with many tasks related to the farm operations. In 2001, the Shellitos implemented an AgriPlan, and through the years they followed our Plan procedures very stringently. In 2004, the Internal Revenue Service (IRS) audited the Shellito’s Plan, questioning whether Sharlyn was a bona fide employee of the farm. On the advice of their AgriPlan Provider, the Shellitos rejected the IRS’ ruling and took the case to a local tax court. Unfortunately the local tax court agreed with the IRS. At this point, the Shellitos called on TASC and our Audit Guarantee.
Without hesitation or reservation, TASC appealed the case. Not once, but twice. Recently, the Tenth Circuit Court of Appeals unanimously reversed the Tax Court’s decision. It didn’t like the twisted reasoning the Tax Court had used to determine Sharlyn’s employee status. To be clear, the Tenth Circuit didn’t officially state that Sharlyn was Milo’s employee, instead it reversed the earlier decision that she was not Milo’s employee.
This case, as with others, clearly illustrates the value of TASC as a third-party administrator. Without our support, the Shellitos would have been railroaded into giving up their legally obtained deductions. Sharlyn Shellito put it perfectly when she said that without our support the case wouldn’t have gone as far as it did. “It meant a lot. Because we would have had to hire an attorney on our own and that would have cost us a lot of money, probably a lot more than we owed,” says Sharlyn.
Tax expert Vern Hoven takes it even further. “In Milo’s case, the reason he did so well in the Court of Appeals is due to the instructions, advice, and support from TASC,” he noted. “Most importantly to Milo, TASC also provided the legal defense of this IRS audit. This tax case didn’t cost Milo a dime!”
We back our Plan. We support our Clients. And we don’t give up. Add these three to the many other reasons to put your trust in TASC.
*Newly revamped as AgriPlanNOW and BizPlanNOW.
TASC CEO Blog 