Foreign gifts and penalties; FBARs and the Constitution; contention and confusion; and other highlights from our favorite tax bloggers.
Are we ready?
- The Tax Times (
https://www.thetaxtimes.com ): Will the IRS no longer automatically assess penalties for late reporting of large foreign gifts? - National Taxpayer Advocate (
https://www.taxpayeradvocate.irs.gov/taxnews-information/blogs-nta/ ): "By the end of the year the IRS will begin reviewing any reasonable cause statements taxpayers attach to late-filed Forms 3520 and 3520-A for the trust portion of the form before assessing any [IRC Sec.] 6677 penalty. This favorable change will reduce unwarranted assessments and relieve burden on taxpayers by giving them the opportunity to explain their situation before the IRS assesses a penalty." - Marcum (
https://www.marcumllp.com/insights ): October's big cybersecurity threats to businesses, including an assault on attendees of an upcoming U.S.-Taiwan defense industry event. - Armanino (
https://www.armanino.com/articles/ ): Three questions to remind clients concerning real estate investments, starting with whether everyone's ready for the potential estate tax changes from the sunset of the Tax Cuts and Jobs Act. - Withum (
https://www.withum.com/resources/ ): While Trump's tax proposals maintain many current provisions for individuals and businesses, the impact of the proposed tariff increases on the deficit, individual income taxpayers and the global economy remains unclear. A breakdown. - Parametric (
https://www.parametricportfolio.com/blog ): No doubt the candidates' and their tax and fiscal promises are far apart. Even in a unified government, legislative challenges and a thin majority can prevent campaign promises from becoming law. But gridlock is no panacea, as our divided Congress has produced historically high deficits. - Don't Mess with Taxes (
http://dontmesswithtaxes.typepad.com/ ): Nothing Good Lasts Forever Dept.: Nov. 1 is the deadline for taxpayers in eight states who were granted disaster-related filing relief.
Favorable changes
- TaxConnex (
https://www.taxconnex.com/blog- ): Dumping transaction counts and the obsolescence of today's tax system are two headlines from the most recent roundup of sales tax news. - HBK (
https://hbkcpa.com/insights/ ): Pennsylvania has released additional (and, given the topic, probably badly needed) sales tax guidance on software, digital goods, related services — and "areas of contention and confusion surrounding software and services." - Global Taxes (
https://www.globaltaxes.com/blog.php ): A circuit court has held that at least in part of one case FBAR penalties fall under protection from the Constitution. - Sovos (
https://sovos.com/blog/ ): When the Supreme Court ruled in 2018 that South Dakota's law imposing sales tax collection requirements on sellers without in-state physical presence was constitutional, states remained responsible for ensuring that their sales tax requirements were manageable and compliance costs reasonable. The two have been anything but, as many agree. Will that change soon?
Deep knowledge
- The National Association of Tax Professionals (
https://blog.natptax.com/ ): Clients should understand that the foreign earned income exclusion involves more than just filling out a form; it requires a deep knowledge of eligibility criteria, including the bona fide residence and physical presence tests. A few of the top questions from a recent webinar on the topic. - Gordon Law (
https://gordonlawltd.com/blog/ ): What to remind them about the intricacies of profit-sharing agreements. - Taxjar (
https://www.taxjar.com/resources/blog ): Technology seems to have opened nothing short of the whole globe as a marketplace for e-commerce clients. But the nuances — not to mention the tripwires — of international taxation aren't to be taken lightly. What to remind them of. - Boyum & Barenscheer (
https://www.myboyum.com/blog/ ): How clients can help external auditors prepare for audit season. - Turbotax (
https://blog.turbotax.intuit.com ): What to remind them about deferred compensation and how it's taxed.
