Remember a reform expert; more suggestions for improving the IRS; fluffy nonsense; and other highlights from our favorite tax bloggers.
Feeling of discomfort
- Taxation (https://www.taxpolicycenter.org/): When the Senate added a new minimum corporate tax to the Cut Inflation Act, it almost added a clarification that private equity is a business that would be subject to the new tax (two lawmakers keys blocked clarification). Now, as the Treasury drafts regulations to accompany the new law, it must decide whether private equity is a business. The legal answer is easy, but the political answer is more difficult.
- Federal tax crimes (http://federaltaxcrimes.blogspot.com/): In United States vs. Schwarzbaum, the government proposed “for entry of a second amended judgment” for the FBAR voluntary penalty, a lower amount (still, $4,185,271 plus penalties and interest) than originally requested. Is this just a strategy to deflect the statute of limitations issue that the defense attorney has been clamoring about?
- Boyum and Barenscheer (https://www.myboyum.com/blog/): Nearly nine out of 10 American businesses are family businesses; some are probably your customers. And studies have shown that they are extremely vulnerable to professional fraud.
- TaxConnex (https://www.taxconnex.com/blog-): Sales tax audits are fun enough without spoiling one. First part of how not to fail an audit.
- sikich (https://www.sikich.com/insights/): Professional services are consolidating. Acquire or be acquired, that is the question.
- Sovos (https://sovos.com/blog/?region=united-states): Switzerland is one of the countries trying to support the automation of financial processes; in some cases automation has taken place through mandatory QR codes on financial documents. The QR invoice concept was already introduced in Switzerland in June 2020 — but is now changing business.
- Henri+Horne (https://www.hhcpa.com/blogs/): Has a client ever sent you a comfort (or “verification”) letter? They get them if they’ve recently applied for a loan or tried to refinance an existing loan: lenders and mortgage brokers ask them for information to ask you, their CPA. The letters ask for anything from checking a record to deciding whether a business will be affected if a sum of money is withdrawn – the latter ‘so ridiculous in nature that it shouldn’t even have been be requested”.
Beyond the Numbers
- Tax foundation (https://taxfoundation.org/blog): The life and work of Ernest S. Christian Jr., “one of the most distinguished and influential experts in the tax policy community”. Christian, who died Sept. 13, gave up a career in law and government to devote the past three decades to educating and promoting economic growth through tax reform.
- Palm Beach Accounting and Finance Department (https://www.pbafs.com/blog): Annuities are not for everyone, but they are for some people. Something to remind them of the basics.
- National Taxpayer Advocate (https://www.taxpayeradvocate.irs.gov/taxnews-information/blogs-nta/): If You Build It They Will File Dept.: Part Two of a series of recommendations on how the IRS can best use its recent massive transfer of money, from proper hiring and training to cleverly thought out digital enhancements.
- Institute on Taxation and Economic Policy (https://itep.org/category/blog/): The expansion of the Child Tax Credit led to a 46% drop in child poverty during the biggest economic disruption in most of our lifetimes. This underscores that thoughtful and decisive government action to address poverty works.
- Don’t Mess With Taxes (http://dontmesswithtaxes.typepad.com/): And here are these percentages converted to real children.
- AICPA Insights (https://www.aicpa.org/blog): In 2020, the suicide rate across the country was nearly double the homicide rate. An employer and workplace likely have a significant impact on mental health and quality of life, which is why companies need to start talking about suicide.
what you sow
- Solutions for CPA firm leaders (http://ritakeller.com/blog/): If your practice doesn’t have an administrator (practice manager), here’s why you’re missing out on huge savings.
- WCG (https://wcginc.com/blog/): Something to remind them (and maybe yourself) of the benefits of cost segregation.
- Current Federal Tax Developments (https://www.currentfederaltaxdevelopments.com/): The AICPA has again requested a further extension of the relief provided in Notice 2022-36 (https://www.irs.gov/irb/2022-36_IRB).
- Taxable conversation (http://www.taxabletalk.com/): IRS Identity Protection Verification Letters 4883C and 5071C have three main issues, including, as this example shows, tracking.
- National Association of Tax Professionals (https://blog.natptax.com/): This week’s “You Make the Call” looks at Dr. Erickson, whose practice has an EIN, with his business manager listed as the responsible party. When the business manager parted ways with the practice, Dr. Erickson thought she could simply change the responsible party linked to the EIN from the business manager’s name to her own. Can the good doctor do that?
- Rosenberg Associates (https://rosenbergassoc.com/blog/): “How to Be a Successful Employee” may seem aimed at staff, but it also gives a list for partners and managers to review, add and remove, and then use as a guide to advise workers.
- canopy (https://www.getcanopy.com/blog): What your firm should look for in a document management system.
- CPA Growth Trends (https://www.cpagrowthtrends.com/): Marketing ideas to ponder for 2023 include masterclasses for seasoned leaders and customer journey workshops for everyone.
- HBK (https://hbkcpa.com/insights/): An overview of accounting software available to cannabis businesses, including “seed-to-sale” inventory control.
- Taxed subjects (https://www.drakesoftware.com/blog): Help them (and yourself) prepare for hurricane season.
- tax jar (https://www.taxjar.com/resources/blog): October sales tax due dates.
- Tax Pro Center (https://proconnect.intuit.com/taxprocenter/): Says this blogger, “I’m not going to vomit up the fluffy nonsense you see in most personal branding articles.” Four lines later, the “nonsense” becomes “dobberish,” but his point is that when constructed well, tax professionals’ personal brands reflect values and convey unique viewpoints.