Transforming Free File; what partner agreements omit; excuses, excuses; and other highlights from our favorite tax bloggers.
By the numbers
- Don’t Mess with Taxes (http://dontmesswithtaxes.typepad.com/): The IRS has been given millions to transform Free File from a partnership with private sector software into a system under the agency’s control. And last year the IRS received more than 152 million e-filed tax returns, some 44% of those digital 1040s direct from individual taxpayers. So far 2023 seems a repeat of prior seasons — but IRS weekly filing stats don’t dive into how the individually sent e-filings have been delivered.
- The Rosenberg Associates (https://rosenbergassoc.com/blog/): Partner agreements spell out how to handle the unforeseen. Yet many partnership or operating agreements from CPA firms lack clarity and detail in important provisions. Five common omissions.
- Tax Foundation (https://taxfoundation.org/blog): You’d Think This Would Be Great News Dept.: A month after California’s implementation of a flavored cigarette ban, tax-paid cigarette sales dropped more than 17%. Except that wasn’t all that dropped….
- Institute on Taxation and Economic Policy (https://itep.org/category/blog/): Tax dominos in state legislatures continue to be set up even as others fall. A big recent domino tumbled in Kentucky when the governor signed a bill that cut the state’s flat income tax from 4.5% to 4%.
- Wolters Kluwer (https://www.wolterskluwer.com/en/solutions/tax-accounting-us/industry-news): A new e-book examines three steps for firms to successfully implement software — including the before, during and after.
- Marcum (https://www.marcumllp.com/insights): “Five Cybersecurity Threats Affecting Businesses in February 2023” include one masquerading as Pokemon.
- Armanino (https://www.armanino.com/): Seven questions to help spot gaps in SALT compliance.
- Boyum & Barenscheer (https://www.myboyum.com/blog/): Unless 501s prove they’re publicly supported, the IRS assumes they’re private foundations. Steps for a nonprofit to pass this test.
- Avalara (https://www.avalara.com/blog/en/north-america.html): A new survey looks at common property tax compliance challenges across many industries. Three pain points stand out.
- Peisner Johnsonhttps://peisnerjohnson.com/blog/): Three keys to remind them about sales tax due diligence, capped by the ever-popular “How to Avoid Blind Spots.”
- TaxConnex (https://www.taxconnex.com/blog-): From pharaohs to Wayfair, the history of sales tax stretches back some 40 centuries.
- Sikich (https://www.sikich.com/insights/): Congrats to Sikich for making the CRN Managed Service Provider 500 list for 2023 — and the Elite 150.
- Summing It Up (http://blog.freedmaxick.com/summing-it-up): Some of your clients own a business, of course, — but it’s a good bet many of them don’t know exactly what it’s worth or even how its value fits into their overall net worth. What to remind them about business valuation.
- AICPA Insights (https://www.aicpa.org/blog): And all there is to like about forensic and valuation services and the institute’s Accredited in Business Valuation credential.
Virtual unknowns
- Gordon Law (https://gordonlawltd.com/blog/): What they (and probably you) need to know about filing Coinbase taxes.
- Virginia – US Tax Talk (https://us-tax.org/about-this-us-tax-blog/): The IRS is focusing on digital assets. Can FinCEN be far behind?
- Global Taxes (https://www.globaltaxes.com/blog.php): Does residency status under a treaty affect whether a taxpayer must file FBAR forms? An often-used “escape hatch” to avoid filing may be the subject of future litigation after a judge’s order.
- Procedurally Taxing (https://procedurallytaxing.com): Park v. Commissioner shows a bias in the Tax Court’s e-filing system that puts petitioners in time zones west of Washington, D.C., at a disadvantage.
- VonLehman CPA & Advisory (https://vlcpa.com/articles/): What to remind them about the perpetual motion deduction of charitable contributions, including the all-important CWA.
Important dates
- Canopy (https://www.getcanopy.com/blog): What to remind clients with big tax debt about how to use the collections expiration date.
- Mauled Again (http://mauledagain.blogspot.com/): A loyal reader raises tax questions concerning reports that Jane Fonda (worth roughly $200 million) went on a date with an Austrian “tycoon” who offered to pay her “quite a bit of money.” What are the state income tax consequences? What’s Austrian tax law on the matter? And will Fonda even get a W-2?
- Sovos (https://sovos.com/blog/?region=united-states): The Treasury and the IRS have released changes to e-filing requirements for information returns, including those for federal returns for businesses. The latter’s advised to update tech and processes.
Favs
- Tax Vox (https://www.taxpolicycenter.org/): Favorite opening of the week: “‘Yes, I’ve known for months that my taxes are due by April 18. But I’m changing tax preparers. And I’m really busy at work. And there was the pandemic. And my return is really complicated.’ That sounds a bit like the IRS’s recent admission that it missed its February deadline to complete a business plan for spending the $80 billion in new funding it got from Congress last year.”
- Solutions for CPA Firm Leaders (http://ritakeller.com/blog/): Lines of the week: “Many CPAs have (or have acquired) charm,” and “Do you have charisma?”
