The rebate runaround; three ways to file; good, bad, ugly and the IRS; and other highlights from our favorite tax bloggers.
- National Association of Tax Professionals (https://blog.natptax.com/): The IRS “is aware” of questions involving special refunds or payments made by certain states related to the pandemic. A look at the latest guidance.
- Turbotax (https://Blog.turbotax.intuit.com): The IRS has further determined that “in the interest of sound tax administration and other factors,” taxpayers in many states will not need to report these payments on their 2022 returns.
- Procedurally Taxing (https://procedurallytaxing.com): How that announcement is a landmark “Action on Decision,” in that rather than expressing its views on a court ruling, the “IRS simply admitted that it will go along with what TurboTax and H&R Block have been doing for weeks.”
- Tax Foundation (https://taxfoundation.org/blog): Actually, the IRS has apparently decided that some states’ rebates are taxable. “This conclusion is defensible, but it is notable that the IRS was not similarly formalistic elsewhere.”
- Mauled Again (http://mauledagain.blogspot.com/): How, “given the exigencies of time, the need for guidance during tax season and the inability of the Congress to focus on practical problems in a consistent and efficient manner,” the IRS has done the best it can do.
- National Taxpayer Advocate (https://www.taxpayeradvocate.irs.gov/taxnews-information/blogs-nta/): Giving full credit that’s deserved much of the time, the Taxpayer Advocate maintains that the IRS does occasionally delay or fail to issue timely guidance and misses the boat. The rebates are one instance, the 1099-K another.
- Wolters Kluwer (https://www.wolterskluwer.com/en/solutions/tax-accounting-us/industry-news): Just put a bag over your head and hold off filing.
Rules rules rules
- HBK (https://hbkcpa.com/insights/): LIFO accounting for inventory can work well for the right business clients.
- Marcum (https://www.marcumllp.com/insights): “Set It and Forget It” won’t cut it anymore. New SEC proposed rules require investment advisors to monitor outsourced services.
- Global Taxes (https://www.globaltaxes.com/blog.php): FinCEN’s Notice of Proposed Rulemaking would implement provisions of the Corporate Transparency Act concerning access to beneficial ownership information.
- Federal Tax Crimes (http://federaltaxcrimes.blogspot.com/): In United States v. Lisenby, the government sued for recovery of FBAR willful penalties for multiple years. A look at the memorandum supporting Lisenby’s motion to dismiss, including the “interesting aspect” that Lisenby applied for the Offshore Voluntary Disclosure Program.
- Virginia – US Tax Talk (https://us-tax.org/about-this-us-tax-blog/): As the IRS continues cracking down on digital assets and taxes, controversial broker tax reporting rules for digital assets have been postponed. A look at the details, and at recent IRS guidance on crypto investors deducting losses on failed investments (“Spoiler alert — it’s not taxpayer-friendly.”)
- The Wandering Tax Pro (http://wanderingtaxpro.blogspot.com/): No penalty and no benefit: Why there should be only three filing statuses.
- Tax Pro Center (https://proconnect.intuit.com/taxprocenter.): How to pinpoint and market to advisory services clients — and in this as in all things, “prospects can spot an inauthentic personality right away.”
- Armanino (https://www.armanino.com/articles/): Your business clients can’t conceive that what they built isn’t worth a king’s ransom — or they might go too far the other way and sell their company way too cheap. Here are FAQs to help them strike the right balance.
- TaxConnex (https://www.taxconnex.com/blog-): By now your clients who sell online are probably painfully familiar with Wayfair and states’ sales tax obligations. What about all those local tax jurisdictions?
- Solutions for CPA Firm Leaders (http://ritakeller.com/blog/): Coaching means guiding by steps and degrees — as true now as it was four years ago.
- Summing It Up (http://blog.freedmaxick.com/summing-it-up): Succession plans need to do more than simply replace someone.
- Parametric (https://www.parametricportfolio.com/blog): Tax management isn’t the only reason to recommend direct indexing. A new report finds more.
The year ahead
- Taxable Talk (http://www.taxabletalk.com/): In one tax pro’s experience so far this season with the IRS, the good (“I’ve gotten through every time! Twice there was no wait!”), the bad (“… remains slow to respond to obvious issues…”) and the ugly (“… five years to rebuild the staffing…”)
- Tax Vox (https://www.taxpolicycenter.org/): In the wake of President Biden’s executive order advancing racial equity, the Treasury has developed a method to impute race and ethnicity to tax data. Will other organizations follow?
- CPA Growth Trends (https://accountingmarketing.org): The Association for Accounting Marketing now has “Digital Marketing Fundamentals,” the association’s second certificate program. Courses cover content strategy and execution, email marketing, lead generation, social media, search engine optimization, paid search advertising and analytics.
- Canopy (https://www.getcanopy.com/blog): The top 10 accounting conferences you should know about in 2023.
- Avalara (https://www.avalara.com/blog/en/north-america.html): Most states entered the year with full pockets and expect continued revenue growth for 2023. “Feeling flush,” many governors are proposing income tax or property tax cuts or new tax credits. Great, but what about sales tax this year?
- Surgent Income Tax School (http://www.theincometaxschool.com/blog/): Tips for newbie preparers entering their first season with their own business, from impressive credentials to the ever-tricky task of finding the right people.