Biden’s plan; virtual currency question moves up; the magnificent seven audits; and other highlights from our favorite tax bloggers.
Changes upon changes
- Tax Vox (
https://www.taxpolicycenter.org/taxvox ): Conventional wisdom says Joe Biden’s ambitious tax agenda will die in the Senate, assuming the chamber remains under GOP control following two Jan. 5 run-offs in Georgia. But don’t be surprised if Congress approves at least some of Biden’s plan. - Bloomberg Tax (
https://pro.bloombergtax.com/news-insights/ ): What tax regs are on the block post-Biden win? - Wolters Kluwer (
http://news.cchgroup.com/ ): Draft instructions for 2020 Form 1040 include new details about virtual currency transactions. For starters, the virtual currency transaction question has been moved from Schedule 1 to page 1 of the 1040 itself, right under the address information. All taxpayers, not just those with Schedule 1 items, will be expected to answer. - Avalara (
https://www.avalara.com/us/en/blog.html ): Four states vote to legalize recreational marijuana. Along with the munchies will come the taxes.
Panning out
- Sagenext (
https://www.thesagenext.com/blog ): How cloud computing came to the rescue — and can continue to do so in evolving forms — when the world had to work from home. - National Taxpayer Advocate (
https://taxpayeradvocate.irs.gov/about/nta-blog ): In the pandemic, parents hiring pod instructors, nannies and similar household workers may be unfamiliar with tax filing and withholding requirements and must be careful of the employee/independent contractor tripwire. - Palm Beach Accounting and Financial Services (
https://www.pbafs.com/blog ): Some saved on dinners out, some watched income evaporate: With the timeline of the pandemic still unclear, now may be a good time to take another look at financial goals. - AICPA (
https://blog.aicpa.org/ ): Indeed, the time might be perfect to more formally incorporate financial planning into your tax practice. Four steps to take. - Tax Girl (
https://www.forbes.com/sites/kellyphillipserb/ ): It's not too late for college students to register for a stimulus check. - National Association of Tax Professionals (
https://blog.natptax.com/ ): This week’s “You Make the Call,” after a $60,000 qualified COVID-19 distribution from a qualified retirement plan, the recipient faces a choice: pay tax on the $60,000 on the 2020 return or pay the tax on $20,000 on the 2020, 2021 and 2022 return. Except a windfall’s coming in the third year. What’s best?
Playing the game
- TaxProf Blog (
http://taxprof.typepad.com/taxprof_blog/ ): Some 23,456 U.S. households reported income of $10 million or more last year (for the 2018 tax year). The IRS audited seven of them. - Taxable Talk (
http://www.taxabletalk.com/ ): Do Canadian professional poker players owe income tax? - Mauled Again (
http://mauledagain.blogspot.com/ ): This time in the world of TV courtrooms, an attempted car purchase, a borrowed driver’s license and a lawsuit for the taxes therein.
Clears things up
- Eide Bailly (
https://www.eidebailly.com/taxblog ): The Treasury says that partnerships and S corporations will be allowed to fully deduct entity-level state and local taxes on their federal returns even if the taxes are elective, and even if the entity owners get a credit on their state or local returns as a result. - Taxing Subjects (
https://www.drakesoftware.com/blog ): A look at new guidance for employers and employees with terminating 403(b) plans. - Sikich (
https://www.sikich.com/insights/ ): Two more KPIs — revenue trends and intangible resources — to formulate actionable plans for an association. - Tax Foundation (
https://taxfoundation.org/blog ): How European countries rank on consumption taxes via VATs.
