Word of the day: AI

by | Aug 15, 2026 | Articles, Coffee Break, Insights, Technology

We don’t even call it “artificial intelligence” anymore.  Everyone simply says, “AI.”

You can’t read or listen to any platform today without hearing (or seeing) information about how AI is changing our lives.  There are the good things it can do along side the gigantic cost in terms of computing power and energy (associated words:  Data Centers).

This post is not going to repeat what is already out there in the digital world.  However, here are some observations gleaned over the past several months of reading and watching this space:

(1)  Assume AI is everywhere.  Images you see, articles you read, even music and videos.  I’ve been highly suspicious that several of the pharmaceutical commercials that invade whatever video I’m watching are AI-generated because they are “slightly off.”   A lot of of social media videos are obviously (and not-so-obviously) AI-generated.

(2)  Your professionals are using AI.  A growing number of attorneys are incorporating AI into their workflow system.  The smart ones (and the ones who abide by ethics rules) are using a siloed system that keeps client data out of the public stream.  Most case management systems have quickly adopted AI tools within their platform to provide this service.   AI-assisted research and language generation save a lot of time.  However, smart professionals use their highly trained brains to analyze and verify the information provided by AI.  (And judges and other attorneys know the difference.)

(3) We all get duped by AI.  Whether you know it or not, you have been duped by an AI image, video, or article.   AI has a lot of flaws, but if you are not paying close attention, you’ll miss the flaws, inaccuracies, and fakes.  There is some astonishing fake content out there.  [Side note:  Be particularly suspicious of a public figure who is portrayed on a video saying something that is completely out of character – “deep fake” videos to discredit a public figure are a growing evil use of AI tech.)

(4)  Support the real.  AI has its place, just like all technology has a place in our world.  However, don’t discard the importance of the human factor.  Learn the difference and the importance of human intervention in curating AI content, as well the importance of only-human content in art, literature, science, and all aspects of our lives.

(5)  This is an evolutionary step.  We humans are on a continuous journey.  It is up to us to determine how we grow and learn from the technology we develop.  Thirty years ago, cellphones were not smart, home computers were rare, and the internet was in its dial-up infancy.  Where will we be thirty years from now?

PS:  Other than spell-check and the AI generated image above, this post was entirely created by a human.

Do Farm Kids Need to File a Tax Return?

by | Apr 21, 2020 | Agriculture Law, Agriculture Law Articles, Tax Tips, Taxes

In many farm families, children help their parents with chores, caring for the animals, or tending the crops.  When they’re young, they often just want to help and “do what mom and dad do.”  But once they get old enough (and experienced enough) to perform more skilled or “grown-up” tasks, many farmers want to pay their children for their labor at a rate more in line with the fair market value of their labor.  When farmers start paying their children for work on the family farm, one general question invariably comes to mind:  “Do my kids need to file a tax return?”

Here are some frequently asked questions about when your children need to file taxes and paying them for work on the farm:

  • Q:  When do my children need to start filing taxes?
  • A:  Generally, you can assume that your child needs to earn the “standard deduction amount” before you must file taxes.  The standard deduction amount is $12,400 for a single person in 2020.  However, if your children have W2 income they might want to run the numbers to see if they qualify for a refund of the withheld taxes from that W2 income, in which case filing a tax return would be a good idea.
  • Q:  What if my child is an owner in the family farm and receives income through the family farm operation, or has income from dividends or interest on investments?
  • A:  If a minor has “unearned income” in excess of $1,100, then they will need to file a tax return, regardless of earned income.  A minor is taxed at their parents’ rate on any taxable unearned income.  For farm kids, this becomes an issue if they have an ownership interest in a pass-through farm entity and receive a K1.  If a child’s unearned income is only on bank account income, then filing a tax return is usually not necessary unless they approach the standard deduction amount in earned income.
  • Q:  How should I report my children’s’ farm income that I pay to them for their work on the family farm?
  • A:  It depends, based on how much that farm income is.
    • If your children’s total earned income for the year is under $600, then you don’t need to do anything.
    • If your children will likely be well within the $12,400 mark for their 2020 income but over $600, a 1099 is a good idea.  If their income is within the standard deduction amount then they won’t owe any income tax on earned income, and with a 1099 they won’t have to go through the process of filing a return to get a refund of withheld income.  On the other hand, YOU will be able to deduct the amount that you pay them as a legitimate farm expense.
    • If your children will be earning close to $12,400 mark and you are already issuing W2’s to other employees, then consider adding your children to the payroll system and issuing them a W2 as well. [NOTE – if you put your children on your payroll, remember that they are also subject to consideration in worker’s comp and unemployment reporting].
  • BONUS:  If you pay your child through normal payroll, your child has the opportunity to start funding an IRA.  While retirement years seem far, far, away for a minor, a small investment in a tax-deferred account can grow significantly over your child’s working life.

Keeping Track of Details on a Nonprofit Board

by | Jan 4, 2020 | Nonprofit, Nonprofit Law, Nonprofit Law Articles

The Execupundit has a great suggestion to help boards keep track of official action over time.  He notes (and I echo his experience) that Boards often do not remember official action previously taken – particularly if time has passed.

While it is every Board Member’s duty to be aware of the action taken at all Board meetings, we humans live “in the moment” and are not wired to stop and think about whether an issue has been previously addressed.  In my experience as an attorney who advises nonprofit (and other) boards, I have witnessed more than one occasion where a Board will take action directly opposite to action taken only a few meetings previously, for the simple reason that no one remembers.

Enter the Board Historian, as recommended by the Execupundit.  This person’s duties include keeping track of all official actions of the Board, and being ready, willing, and able to remind the Board of previous action taken.

I have worked with Boards that try to address the issue of “remembering official action” by keeping a running summary of all official board action, including the date, the action taken, and whether there were any dissenting votes.  This is a good idea for use by the Board Historian.

The duties of a Board Historian can be expanded to include matters of Board and Officer dates of office and terms (including when terms expire) as well as a historic list of past officers (and terms of service), as well as the basic history of the organization (when founded, when incorporated, with copies of important documents, such as the Articles of Incorporation, Bylaws (including historic copies), and Exemption documents so that they can be easily accessed if and when needed.

If this sounds a lot like part of the Secretary’s job, you aren’t wrong (Check your bylaws to see whether your definition of the Secretary’s duties include keeping track of historic information).  However, in practice the Secretary duties have been somewhat limited to just taking notes at meetings.   Expanding the role of Secretary to include Historian – or having the Historian as a separate Board Office – is a continuous reminder of the importance of both knowing and remembering official Board Action.

Thanks for the suggestion, Execupundit – terrific idea!

If you don’t read the writings of Michael Wade, The Execupundit, I recommend you add him to your list – he writes thoughtful and intersting posts.  I especially like his “First Paragraph” series and his “Find Something Beautiful Today” series.

Tax Code Roadmap

by | Jul 11, 2019 | Tax Tips

Thanks to Kelly Phillips Erb @ TaxGirl for this one.  She has an article in Forbes on the story behind the Roadmap:  Taxpayer Advocate:  You Literally Need a Roadmap to Navigate Our Tax System (So They Made One).

Note that this is not a roadmap to how to prepare your taxes (except for the upper left corner, where it lists various methods for having a return prepared)  – It’s a roadmap that follows your tax return through the process once it gets to the IRS.

 

Download a PDF of the map:

TAS_Roadmap_32x32_FINAL-2

Check out an overview video from the IRS Taxpayer Advocate Service:

If you don’t follow Kelly, you should – she has terrific tax tips and a sometimes hilareous twitter feed.