Crypto accounting; DOJ still at it; IRS.gov problems; and other highlights from our favorite tax bloggers.
Abrupt changes
- Rosenberg Associates (https://rosenbergassoc.com/blog/): How much should new partners make? The variance between highest- and lowest-earning partners can be significant. Take a look at these data points from the 2021 Rosenberg Survey.
- Taxbuzz (https://www.taxbuzz.com/blog): In the recent Gonzalez v. Commissioner, it was ruled that vehicular expenses incurred for any “side hustle” are deductible under certain circumstances — a major ruling for the gig economy.
- Mauled Again (http://mauledagain.blogspot.com/): It’s not only cops who can come knocking on the naughty tax preparer’s door.
- Solutions for CPA Firm Leaders (http://ritakeller.com/blog/): “Sudden and abrupt change is not something CPAs embrace wholeheartedly.” If you need to make big changes in your firm and you’re getting pushback from partners, take baby steps.
- Tax Pro Center (https://proconnect.intuit.com/taxprocenter/): Some of accounting pros’ top challenges in crypto accounting, including blockchain’s new “ecosystem of tools.”
- Wolters Kluwer (https://www.wolterskluwer.com/en/solutions/tax-accounting-us/industry-news): No surprise that almost all firms in a recent survey said they plan to grow their business. But fewer than half (43%) cited increasing their marketing efforts to reach that goal. Tax and accounting isn’t an if-you-build-it-they-will-come environment. How to craft your message, among other moves.
- CPA Growth Trends (https://www.cpagrowthtrends.com/): A firm can refresh its marketing approach in many ways, starting with “buying personas” to help with personalization.
- Avalara (https://www.avalara.com/blog/en/north-america.html): Your handy state-by-state guide to the mushrooming taxability of digital products.
Added burdens
- HBK (https://hbkcpa.com/insights/): The economic nexus environment is changing mighty fast for manufacturers.
- Current Federal Tax Developments (https://www.currentfederaltaxdevelopments.com/): Alimony (sometimes a lot of it) continues to be a thorny issue of tax law for pre-2019 divorces. In Redleaf v. Commissioner, former spouses are disputing the treatment of $51 million.
- Turbotax (https://blog.turbotax.intuit.com): What to tell them about rising interest rates’ impact on their finances.
- Federal Tax Crimes (http://federaltaxcrimes.blogspot.com/): In United States v. Pate, the majority opinion sets up the issue decided in the opening paragraph: “Title 18 U.S.C. Sec. 1521 prohibits the filing of a false lien or encumbrance against the property of any officer or employee of the United States ‘on account of the performance of official duties.’ ” The majority and dissenting opinions then engaged over interpretation of a criminal statute.
- TaxProf Blog (http://taxprof.typepad.com/taxprof_blog/): No expenditure is deductible unless the taxpayer proves a statutory entitlement to a deduction. Clement Ziroli and Dawn M. Ziroli v. Commissioner shows how the burden of persuasion can have to swim against complexity of one deduction statute.
Plain speaking
- Procedurally Taxing (https://procedurallytaxing.com): Favorite opening of the week: “Well, the DOJ has done it again.” In a collection suit brought against a husband and wife where the latter has raised the innocent spouse relief defense, not only did the DOJ get the court to follow likely-incorrect district holdings that IRC 6015 relief cannot be raised in a collection suit, but the IRS persuaded the court that it would be too late for the taxpayer to file an 8857 seeking such relief.
- National Taxpayer Advocate (https://www.taxpayeradvocate.irs.gov/taxnews-information/blogs-nta/): “From the very beginning of their journey on IRS.gov, taxpayers face confusion and complexity.” A look at the homepage options’ “narrow application,” and that even the broader-sounding option, Get Answers to Your Tax Questions, answers only 59 pre-determined questions.
- Institute on Taxation and Economic Policy (https://itep.org/category/blog/): “Grasping for some way to criticize the popular Inflation Reduction Act as it approaches final passage, congressional Republicans have decided to attack its provisions that will reverse a decade of budget cuts to the IRS and instruct the agency to crack down on tax evasion by big corporations and individuals making more than $400,000.”
