Rescheduling cannabis; the outsourcing question; medical deductions in retirement communities; and other highlights from our favorite tax bloggers.
Causes and effects
- The Wandering Tax Pro (
http://wanderingtaxpro.blogspot.com/ ): For years true inequities have existed in tax law, some that penalize taxpayers and some that erroneously benefit taxpayers. A look at how tax law and tax "reform" never seem to mention fairness and equity, only political agendas. - Procedurally Taxing (
https://www.taxnotes.com/procedurally-taxing ): The downside of the possible IRS two-year ban on the Earned Income Tax Credit. - Virginia – U.S. Tax Talk (
https://us-tax.org/about-this-us-tax-blog/ ): The IRS has apparently prevailed in the latest decision regarding the famous Farhy case — potentially a big loss for Americans overseas. - The Buzz About Taxes (
http://thebuzzabouttaxes.com/ ): Between the U.S. annual and lifetime exclusions for gifting, many people will never pay gift or estate taxes. But what if you have family donors abroad and you live in the U.S? - Boyum & Barenscheer (
https://www.myboyum.com/blog/ ): Even though the federal Volunteer Protection Act of 1997 provides some protection for workers at your nonprofit clients, volunteers do face the real risk of being sued for on-the-job actions. They also can become subject to tax liabilities. - National Taxpayer Advocate (
https://www.taxpayeradvocate.irs.gov/taxnews-information/blogs-nta/ ): The Treasury's FY25 green book proposes to essentially eliminate written supervisory approval for penalties.
Major issues
- Taxbuzz (
https://www.taxbuzz.com/blog ): Expiring federal refunds, increased IRS scrutiny on the wealthy and the impacts of moving and remote residents highlight the latest Top 5 tax issues. - Wolters Kluwer (
https://www.wolterskluwer.com/en/solutions/tax-accounting-us/industry-news ): By the way, the IRS thinks almost 940,000 Americans have unclaimed refunds for tax year 2020, totaling more than $1 billion. The window to claim is closing. - Withum (
https://www.withum.com/resources/ ): The Drug Enforcement Administration says it will initiate rescheduling cannabis from Schedule I to Schedule III under the Controlled Substances Act, effectively recognizing its medical value and opening the door for more research and legal access. The announcement has major implications for the cannabis industry — notably, IRC Sec. 280E, culprit of imposing onerous effective tax rates on industry operators, will no longer apply after such rescheduling. - Meyers Brothers Kalicka (
https://www.mbkcpa.com/insights ): A lot goes into preparing estate plan documents. A lot goes into their physical safeguarding, too. A look at common misconceptions and best storage ideas. - AICPA & CIMA Insights (
https://www.aicpa-cima.com/blog ): How to prepare clients for a serious health problem, from naming the family point of contact to staying clear of nasty squabbles. - TaxPro Center (
https://accountants.intuit.com/taxprocenter/ ): After the paucity of candidates, the ones who respond and never show for the interview and the ones who do show and ask for a humongous signing bonus, what to know about outsourcing your practice's accounting work.
Seeking clarity
- John R. Dundon II EA (
http://johnrdundon.com/ ): Some medical expenses paid by residents of retirement communities may be deductible — but neither the IRS nor the court has issued clear guidance. A look at Baker v. IRS Commissioner, where the IRS challenged residents who've taken a medical expense tax deduction for entrance and monthly fees. - The Rosenberg Associates (
https://rosenbergassoc.com/blog/ ): Partner income allocation is always a sensitive topic. The best system can propel growth and profits; a poor one will stifle both. Clarity about who determines partner income is an important first step to avoiding trouble. - Keller Advisors (
https://ritakeller.com/wordpress/ ): You're urged to contribute to the latest PCPS CPA Firm Top Issues Survey, which gathers insights from practitioners to identify the most pressing issues facing firms of all sizes. - TaxProf Blog (
http://taxprof.typepad.com/taxprof_blog/ ): Third-party litigation funding has grown in recent years, yet policy discussion on the tax treatment of the parties involved has fallen by the wayside. A recent panel examined tax issues in consumer and commercial litigation finance, including preferred tax position by the beneficiaries and the funders and the character and timing of income. - Taxjar (
http://blog.taxjar.com/ ): Does West Virginia charge sales tax on services? - Marcum (
https://www.marcumllp.com/insights ): What to tell your construction clients about business insurance. - Tax Vox (
https://www.taxpolicycenter.org/taxvox ): Local governments have long relied on property taxes as revenue. But with remote work, studies suggest that the value of office buildings could fall by half in many cities. The question facing policymakers isn't if this will affect local budgets, but when and how much? - Summing It Up (
http://blog.freedmaxick.com/summing-it-up ): Some of the changes likely to affect employment benefit plan fiduciaries this year. - Avalara (
https://www.avalara.com/blog/en/north-america.html ): Common questions about what a "communications tax" is.
