In the blogs: Sense of discomfort

Remembering a reform expert; more suggestions for IRS improvement; fluffy nonsense; and other highlights from our favorite tax bloggers.

Sense of discomfort

• Tax Vox (https://www.taxpolicycenter.org/): When the Senate added a new corporate minimum tax to the Inflation Reduction Act, it almost added a clarification that private equity is a business that would be subject to the new tax (two key lawmakers blocked the clarification). Now, as the Treasury pens regulations to accompany the new law, it must decide whether private equity is a business. The legal answer is easy, but the policy answer is harder.
• Federal Tax Crimes (http://federaltaxcrimes.blogspot.com/): In United States v. Schwarzbaum, the government moved “for entry of a second amended judgment” for the willful FBAR penalty, a lower amount (still, $4,185,271 plus penalties and interest) than originally sought. Is this just a strategy to deflect the statute of limitations issue that defense counsel’s been loud about?
• Boyum & Barenscheer (https://www.myboyum.com/blog/): Almost nine out of 10 U.S. companies are family businesses; likely some are your clients. And studies have found that they’re extremely vulnerable to occupational fraud.
• TaxConnex (https://www.taxconnex.com/blog-): Sales tax audits are little enough fun without screwing one up. Part one of how to not tank an audit.
• Sikich (https://www.sikich.com/insights/): Professional services are consolidating. To acquire or to be acquired, that is the question.
• Sovos (https://sovos.com/blog/?region=united-states): Switzerland is among nations trying to support automation in financial processes; automation in some cases has been through mandatory QR codes on financial documents. The concept of a QR bill was already introduced in Switzerland in June 2020 — but now changes loom.
• Henry+Horne (https://www.hhcpa.com/blogs/): Has a client hit you yet with a comfort (or “verification”) letter? They get these if they applied for a loan recently or tried to refinance an existing loan: Lenders and mortgage brokers are requesting information from them to request of you, their CPA. The letters request anything from verifying a filing to opining on whether a business will be affected if an amount of cash is taken out — that last “so ridiculous in nature that it should not even have been asked.”

Beyond the numbers

• Tax Foundation (https://taxfoundation.org/blog): The life and work of Ernest S. Christian Jr., “one of the tax policy community’s most distinguished and influential experts.” Christian, who died on Sept. 13, gave up a career in law and government to devote the last nearly three decades to educating and promoting economic growth through tax reform.
• Palm Beach Accounting and Financial Service (https://www.pbafs.com/blog): Annuities aren’t for everybody — but they are for some folks. What to remind them about 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 huge transfusion of cash, from proper hiring and training to intelligently thought-out digital improvements.
• Institute on Taxation and Economic Policy (https://itep.org/category/blog/): The Child Tax Credit expansion led to a 46% drop in childhood poverty during the largest economic disruption in most of our lifetimes. That underscores that thoughtful, decisive government action to combat poverty works.
• Don’t Mess with Taxes (http://dontmesswithtaxes.typepad.com/): And here are those percentages converted to real kids.
• AICPA Insights (https://www.aicpa.org/blog): In 2020, the suicide rate across the country was nearly twice the homicide rate. An employer and workplace likely have a significant impact on mental health and quality of life, which is “Why Firms Need to Start Talking About Suicide.”

What you sow

• Solutions for CPA Firm Leaders (http://ritakeller.com/blog/): If your practice doesn’t have a firm administrator (practice manager), here’s why you’re missing out on huge cost savings. 
• WCG (https://wcginc.com/blog/): What to remind them (and maybe yourself) about the benefits of cost segregation.
• Current Federal Tax Developments (https://www.currentfederaltaxdevelopments.com/): The AICPA has again asked for additional expansion of the relief provided in Notice 2022-36 (https://www.irs.gov/irb/2022-36_IRB).  
• Taxable Talk (http://www.taxabletalk.com/): IRS Identity Protection Verification Letters 4883C and 5071C have three main problems — including, as this example shows, follow-up.
• National Association of Tax Professionals (https://blog.natptax.com/): This week’ “You Make the Call” looks at Dr. Erickson, whose practice has an EIN, with her business manager listed as the responsible party. When the business manager parted ways with the practice, Dr. Erickson thought she could just change the responsible party linked to the EIN from the business manager’s name to hers. Can the good doctor do that?
• Rosenberg Associates (https://rosenbergassoc.com/blog/): “How to Be a Successful Employee” may appear aimed at staff, but it also gives a list that partners and managers should review, add to and delete from — and then use as a guide to counsel workers. 
• Canopy (https://www.getcanopy.com/blog): What your practice should look for in a document-management system.
• CPA Growth Trends (https://www.cpagrowthtrends.com/): Marketing ideas to ponder for 2023 include master classes for veteran leaders and client-journey workshops for everyone.
• HBK (https://hbkcpa.com/insights/): A look at accounting software available to cannabis companies, including “seed-to-sale” inventory control. 
• Taxing Subjects (https://www.drakesoftware.com/blog): Helping them (and yourself) get ready for hurricane season.
• Taxjar (https://www.taxjar.com/resources/blog): October sales tax due dates.

Favs

• Tax Pro Center (https://proconnect.intuit.com/taxprocenter/): Says this blogger, “I’m not going to spew out the fluffy nonsense you see in most articles about personal branding.” Four lines later the “nonsense” becomes “drivel,” but his point is that when constructed well, tax pros’ personal brands reflect values and convey unique views.