Surpluses and cuts; the CP80 mess; price of “pores and skin within the recreation;” and different highlights from our favourite tax bloggers.
Nice challenges
- Tax Basis (https://taxfoundation.org/weblog): Favourite opening of the week: “One of many best challenges of lawmaking is recognizing when a lovely idea should succumb to an unpleasant reality.” We dwell in a actuality the place advanced tax insurance policies that work nicely in idea can have a tough time when the rubber meets the highway.
- Options for CPA Agency Leaders (http://ritakeller.com/weblog/): You scrambled to rent sufficient certified of us to assist the agency by means of tax season. Now that you’ve got them, will you be capable to hold them? Unhappy to say, agency companions and managers don’t typically talk regularly, with readability, about an individual’s job efficiency.
- Institute on Taxation and Financial Coverage (https://itep.org/class/weblog/): Keep in mind that “Star Trek” the place they encountered one thing wondrous that was, actually, harmful? (Truly, they had been all like that…) Contemplate the elixir of non permanent income surpluses: A number of state legislatures are persevering with to push forward this 12 months with important tax-cut packages that might dramatically cut back revenues — and go away states in a nasty place for an additional sudden financial shock.
- TaxConnex (https://www.taxconnex.com/blog-): The way it’s extraordinarily higher to test gross sales tax legal responsibility earlier than a merger or acquisition.
- Taxable Speak (http://www.taxabletalk.com/): The IRS and FinCEN now allege that overseas on-line poker accounts are “on line casino” accounts that should be reported as overseas monetary accounts. Downside is, most of those entities don’t broadcast their addresses. Some people despatched e-mail inquiries to one in every of these playing websites and acquired politely worded responses (or not-so-politely worded) that mentioned that the tackle was none of their enterprise.
- The Wandering Tax Professional (http://wanderingtaxpro.blogspot.com/): Purchasers who’ve acquired the CP80 Discover telling them they’ve an excellent credit score for 2020 after they haven’t filed their 2020 return ask the blogger, “How can the IRS say I haven’t filed my return after they cashed my test?” Right here’s the story because the blogger understands it; fellow tax execs are welcome to appropriate him if he’s incorrect.
Stakes are excessive
- Tax Vox (https://www.taxpolicycenter.org/): Sen. Rick Scott, R-Florida, has proposed that every one People pay at the very least some revenue tax “to have pores and skin within the recreation,” including that proper now greater than half of People pay no revenue tax. The Tax Coverage Middle estimates that attaining Scott’s objective may enhance federal revenue taxes by greater than $100 billion in 2022 alone — totally on low- and moderate-income taxpayers.
- Turbotax (https://weblog.turbotax.intuit.com): Guess they don’t know the tax they’ll owe on playing winnings.
- HBK (https://hbkcpa.com/insights/): A doubtlessly favorable situation for hemp and CBD companies: an R&D tax credit score for firms participating in certified actions.
- Taxjar (https://www.taxjar.com/assets/weblog): Down close to the Large Uneasy, Louisiana is being sued for its overly advanced gross sales tax system.
Take the subsequent revamp
- CPA Progress Tendencies (https://www.cpagrowthtrends.com/): Google Tendencies has proven growing search reputation within the time period “ESG,” peaking most just lately on the finish of January. What does ESG imply? What’s governance in ESG? And the way can advertising and marketing assist an accounting agency attain governance objectives?
- Sovos (https://sovos.com/weblog/?area=united-states): A take a look at upcoming occasions to assist shoppers “revamp” their gross sales tax technique.
- Nationwide Affiliation of Tax Professionals (https://weblog.natptax.com/): On this week’s “You Make the Name,” a pair e-filed a married-filing-jointly return on Feb. 9, 2022. Every partner signed the return. In the event that they later determine to file separate returns for 2021, how lengthy have they got to make this variation?
- Wolters Kluwer (https://www.wolterskluwer.com/en/options/tax-accounting-us/industry-news): Taxpayers whose scholar loans had been discharged in 2021 typically received’t obtain a payee assertion to report the discharge. A take a look at how the IRS has directed lenders to not file a 1099-C or furnish payee statements.
- Tax Warriors (https://www.taxwarriors.com/weblog): A potential annuity workaround to the thorny tax downside of high-income charges and non-deductible charges of options and different more and more scorching investments.
- Boyum & Barenscheer (https://www.myboyum.com/weblog/): Congrats to new managing companion Charlie Metzig, 20+-year veteran of the agency.