Biggest offenders; problems with relief; what to do this year; and other highlights from our favorite tax bloggers.
- Taxable Talk (http://www.taxabletalk.com/): Time once more to name the Tax Offender of the Year — and in 2021 plenty of individuals, businesses and organizations strove for the prize.
- The Tax Times (https://www.thetaxtimes.com): FinCEN has amended a Bank Secrecy Act regulation to remove obsoleted civil penalty language.
- Sovos (https://sovos.com/blog/?region=united-states): Updates as they come in regarding the IRS adding the 1099 NEC to the Combined Federal State Filing program, with the intention of relieving the need to file 1099s directly with states.
- Taxing Subjects (https://www.drakesoftware.com/blog): Taxpayers who took advantage of some relief measures during previous dark days of the pandemic are reminded that it’s now time to pay up. For some, the part of their 2020 Social Security tax bill they were able to delay to 2022 was due Jan. 3 — and the IRS says the new deadline will apply even if an affected employer or individual didn’t get the IRS notice.
- HBK (https://hbkcpa.com/insights/): Hurry Hurry Dept.: The IRS has issued new filing requirements to reduce audits on the R&D credit by requiring taxpayers to report “specific and detailed” information. The grace period for this requirement continues until Jan. 10, with new requirements going into effect the next day. (Note: The requirements apply only for amended returns.)
- Current Federal Tax Developments (https://www.currentfederaltaxdevelopments.com/): A potential problem arose for S corporations that received Paycheck Protection Program loan forgiveness and which then had accumulated earnings and profits. How to classify the expenses paid with the PPP loan in the accumulated adjustments account? A Twitter post by CPA Dan Chodan points out that the IRS now has guidance on this issue.
- Taxjar (http://blog.taxjar.com/): “Seven Common Sales Tax Filing Mistakes to Avoid” kicks off with the words “late” and “not at all.”
- Don’t Mess with Taxes (http://dontmesswithtaxes.typepad.com/): The Biden White House says a recent executive order will make dealing with federal agencies easier — including, at least in theory, the IRS.
- Tax Vox (http://taxvox.taxpolicycenter.org): Just based on its sheer size and scope, the Biden Build Back Better agenda was always likely to shrink as it made its way through Congress. But for months Biden and congressional Democrats will be unable to reverse the rate cuts in the Tax Cuts and Jobs Act. How did rolling back President Trump’s signature TCJA, a big pillar of the Democratic platform, go by the wayside?
- Procedurally Taxing (http://www.procedurallytaxing.com/): One of the most significant tax cases of 2020 was Oakbrook Land Holdings, involving a challenge to regulations in a conservation easement deduction dispute. In Oakbrook, the Tax Court held that the regulation was properly promulgated. This guest blog by Monte Jackel of Leo Berwick discusses another case, Hewitt, out of the 11th Circuit, where the appellate court reached a different conclusion.
- CPA Growth Trends (https://www.cpagrowthtrends.com/): Marketing teams in professional service firms are riding a digital revolution. What used to often be more a sales support role for partners has morphed into a role responsible for attracting and qualifying new prospects. How it’s now key to get firm buy-in to support new and ongoing initiatives.
And we’re off …
- Solutions for CPA Firm Leaders (http://ritakeller.com/blog/): Time enough at last?
- Taxpro Center (https://proconnect.intuit.com/taxprocenter/): Three things you can do to start this season right, beginning with better communication with clients.
- Taxbuzz (https://www.taxbuzz.com/blog): What to remind them about unemployment and taxes.
- National Association of Tax Professionals (https://blog.natptax.com/): In this week’s “You Make the Call,” Jessica and Nathan, a divorced couple, have one child, Lillian, 4. Jessica and Nathan alternate tax years for claiming Lillian as a dependent. In 2020, Jessica claimed Lillian and received Child Tax Credit payments totaling $1,800 in 2021. When Jessica files her 2021 return, her AGI is $50,000 with a status of single, since she isn’t the custodial parent in 2021. She heard about the repayment protection and wants to know how much, if any, of the advanced CTC she’ll have to repay.
- AICPA Insights (https://www.aicpa.org/blog): Creating the inclusive office for hard-of-hearing accountants.
- Bloomberg Tax and Accounting (https://pro.bloombergtax.com/news-insights/): Tax professionals to follow on social media this year.
- Canopy (https://www.getcanopy.com/blog): A look at 10 accounting trade shows to hit this year.
- The Wandering Tax Pro (http://wanderingtaxpro.blogspot.com/): The year that was in general in taxes, part 2.
- TaxConnex (https://www.taxconnex.com/blog-): The year that was in sales tax, development by development.