Refunds directly in crypto; mergers and acquisitions and taxes; improve customer service; and other highlights from our favorite tax bloggers.
What’s at stake?
- National Taxpayer Advocate (https://www.taxpayeradvocate.irs.gov/taxnews-information/blogs-nta/): If a taxpayer calls the IRS in the woods and no one hears it, does it make noise? “Hello, is anyone there?” examines how taxpayers and practitioners continue to experience frustration with the department’s lack of phone, finally, service.
- Gordon’s Law (https://gordonlawltd.com/blog/): The internet is buzzing with reports that a Tennessee couple received a refund from the IRS for income tax on crypto staking rewards that were never sold or traded for the year. 2019 taxation. Unfortunately, this news does not mean that the IRS has changed its position on staking rewards, as many sources have claimed.
- Taxable conversation (http://www.taxabletalk.com/): With NFTs, DeFi, DAOs and “staking” (once upon a time we didn’t know what “internet” meant, either…) all the rage in crypto, there are a lot of questions about what all of these “words” mean for taxes. The blogger thinks it’s best to start this series of clarifications with the many types of staking.
- Turbotax (https://blog.turbotax.intuit.com): Turbotax and Coinbase now offer filers the ability to issue refunds directly in cryptocurrency.
- Sovos (https://sovos.com/blog/?region=united-states): Identifying “risk location” in the case of health insurance can be tricky, but failure to do so could result in underreported tax liabilities and potential penalties. A look at the situation from a European perspective.
- tax time (https://www.thetaxtimes.com): The headline says it all: “And yet another criminal lawsuit for non-payment of payroll taxes.” And we love the tagline: “Are you considering borrowing against your company’s payroll taxes?”
- National Association of Tax Professionals (https://blog.natptax.com/): This week’s “You Make the Call” looks at a tax preparation company that has been in business for about 25 years, where Mr. Bush was the sole owner and chairman since its inception. When electronic filing became important, he applied for and received an EFIN. It was issued to him after taking his fingerprints, verifying his suitability and any other requirements at the time. As the 2021 tax season approaches, Mr. Bush passed away suddenly. Over the years, meanwhile, the business has grown until some 1,200 returns are completed each year by four preparers. Mrs. Bush, who was vice president, intends to continue the business. Can she simply continue to use the EFIN issued to Mr. Bush?
You must comply
- HBK (https://hbkcpa.com/insights/): COVID-19 relief expires in all areas, and taxpayers should be aware that the Excess Business Loss Limitation is now in effect.
- tax jar (https://www.taxjar.com/resources/blog): With Peloton and a few airlines currently making the headlines for mergers and acquisitions, it is clear that the significant growth or sale of a business can make for exhilarating moments. As this entry in a series on company milestones notes, however, don’t forget in an agreement to check all the boxes regarding tax compliance.
- John R. Dundon II EA (https://www.johmrdundon.com): Navigating compliance to liquidate distributions from a partner’s interest in a partnership has three worthy considerations to avoid unwanted scrutiny.
- TaxProf Blog (http://taxprof.typepad.com/taxprof_blog/): A look at the new online “Realtime Inequality” calculator and how it allows you to compile information that may soon be released by the federal government.
- Federal tax crimes (http://federaltaxcrimes.blogspot.com/): In Ruesch c. Commissioner, the court upheld the Tax Court’s finding that Sec. The 7345 procedure was moot when the IRS withdrew the “seriously overdue tax debt” certification from the Secretary of State. Two points on this.
- Taxation (https://www.taxpolicycenter.org/): The Tax Cuts and Jobs Act changed the way parts of the tax code are indexed for inflation, moving to ‘is called chained IPC, or C-CPI-U. At the time, estimates said it would increase federal revenue by $134 billion over 10 years by reducing inflation adjustments for tax brackets and other elements of the income code. But the pandemic has blurred the effects of change in surprising ways.
- Institute on Taxation and Economic Policy (https://itep.org/category/blog/): Amazon’s latest annual financial report paints a stark picture of a company striving toward monopoly status, at the expense of U.S. taxpayers.
- AICPA Insights (https://www.aicpa.org/blog): The dwindling pool of candidates and the fallout from the Great Resignation have become headaches for businesses around the world, including, of course, accounting firms. Can a new Association of International Certified Professional Accountants apprenticeship program offer a path to CGMA — and an aspirin for the headache?
- Tax foundation (https://taxfoundation.org/blog): A recent study of the impact of the flavored tobacco ban in Massachusetts found, “unsurprisingly,” that the sale of flavored tobacco declined after the ban. Such a result would indicate that the ban was a success – except that the study omitted a very important piece of information.