In the blogs: Fresh perspectives

An interesting state survey; Bozo moments; the importance of portals; and other highlights from our favorite tax bloggers.

Fresh perspectives

• TaxProf Blog (http://taxprof.typepad.com/taxprof_blog/): Recent reporting based on leaked returns of the ultra-rich confirms that for the wealthiest Americans, paying taxes is optional. Valuation is one problem, as it’s difficult to appraise complex or unique assets. A look at an article that floats a new approach.
• AICPA Insights (https://www.aicpa.org/blog): As the Great (What’s so “great” about it?) Resignation drags on, perks such as equity compensation can seem like a useful tool. These benefits can show appreciation and boost employee retention, but from a finance perspective they come with “high-level tax and accounting ramifications.”
• Bloomberg Tax and Accounting (https://pro.bloombergtax.com/news-insights/): Amid cries of chaos and calls for funding looms the idea that the IRS could have a key role in ensuring racial justice. Atinuke Adediran, professor at Fordham Law, suggests two ways that the IRS can improve data collection to track philanthropic funding to minority-led nonprofits and to give these groups more exposure for future funds.
• Institute on Taxation and Economic Policy (https://itep.org/category/blog/): Personal income tax cuts have straightforward consequences, such as inadequate funding for education and other priorities that directly affect everyone. But they also have a less visible consequence: escalating pressure for state and local governments to secure revenue via other means, often on the backs of low-income people.
• National Taxpayer Advocate (https://www.taxpayeradvocate.irs.gov/taxnews-information/blogs-nta/): A different kind of crypto: It’s long past time for the IRS to get rid of its “kryptonite” — paper.
• Eide Bailly (https://www.eidebailly.com/taxblog): All the news that fits on more hiring, more paper and more money.
• Tax Foundation (https://taxfoundation.org/blog): President Biden’s budget included a sensible message about the need for stronger economic growth and sound fiscal policy. The actual policies laid out in the budget, however, would reduce economic growth and create unsound fiscal policy — not to mention raise income tax rates to the highest in the developed world.
• Summing It Up (http://blog.freedmaxick.com/summing-it-up): Why is a business basic — ROI — ignored by higher-education schools that look to fill their classrooms?
• TaxConnex (https://www.taxconnex.com/blog-): Alike but different: Sales tax we know, but what is use tax?
• Procedurally Taxing (https://procedurallytaxing.com): Guest blogger Anna Gooch, research fellow at the Center for Taxpayer Rights, discusses a new survey of state tax administrations aimed at better understanding of taxpayer rights. (Unlike the federal government, states often operate under balanced budget requirements and cannot create money, so they rely heavily on tax collections. Lacking the same infrastructure for tax compliance as the federal government, they also rely on the IRS and use private debt collection agencies to a great extent, among other differences.) Some interesting preliminary data, plus volunteers are still needed to collect info in several states.

A-courtin’

• Federal Tax Crimes (http://federaltaxcrimes.blogspot.com/): On remand, “the brouhaha continues” in United States v. Schwarzbaum, including whether the District Court can retain jurisdiction.
• The Tax Times (https://www.thetaxtimes.com): A recent TIGTA report found that in FY20 the IRS used lien foreclosure suits more often than seizures when pursuing principal residences — and the former don’t provide the same legal protections as do seizures. (Also, see our story.)
• HBK (https://hbkcpa.com/insights/): Notice 2016-66 aimed to address concerns by the service that so-called “micro-captive transactions” had the potential for tax avoidance or evasion. A look at a U.S. District Court’s recent vacating of 2016-66 in its entirety, finding that the IRS failed to engage in required notice-and-comment procedures and that issuance of the notice was “arbitrary and capricious.”

Tools of the trade

• Taxable Talk (http://www.taxabletalk.com/): Bozo Tax Tips time again. This year’s top 10 dumb moves kicks off with clients who email their Social Security number.
• Canopy (https://www.canopytax.com/blog): The first client portals were clunky and barely more secure than a Hotmail account, stone-age e-tools that many practitioners lacked the time or tech know-how to handle. But client portals have come a long way, baby, and here are three reasons you need one now.
• Taxjar (https://www.taxjar.com/resources/blog): How your clients who sell online and encounter the sales tax wrangle can verify that all-important resale certificate.
• Rubin on Tax (http://rubinontax.floridatax.com/): Favorite opening of the week: “Ask many estate planners in the U.S. about Brussels IV, and you are apt to get the response ‘Brussels for what?’” In most circumstances, Brussels IV will not impact estate planning in the U.S. But if a U.S. citizen owns assets in the European Union, Brussels IV should always be on the radar of an estate planner.
• Boyum & Barenscheer (https://www.myboyum.com/blog/): Key business and employer deadlines for the second quarter of 2022.
• The Wandering Tax Pro (http://wanderingtaxpro.blogspot.com/): What to remind them about double-checking returns before filing, and some of the new stuff (virtual currency?) to look out for.
• Tax Pro Center (https://proconnect.intuit.com/taxprocenter/): The Intuit Tax Council is taking applications.

Friendly reminders

• Taxing Subjects (https://www.drakesoftware.com/blog): Now that the Internal Revenue Service has mailed Letters 6475 to all the taxpayers who got third-round EIPs, only one door remains ajar to those who didn’t get the full benefit of the stimulus payments: the Recovery Rebate Credit.
• Sovos (https://sovos.com/blog/?region=united-states): A look at the recent IRS fact sheet alerting taxpayers who received money through crowdfunding that they may need to pay taxes on that income.
• Henry+Horne (https://www.hhcpa.com/blogs/): What to remind them about taxes and household employees.
• Tax Warriors (https://www.taxwarriors.com/blog): The tax value of trusts.
• Turbotax (https://blog.turbotax.intuit.com): Correcting their misconceptions about deducting for health insurance.
• Don’t Mess with Taxes (http://dontmesswithtaxes.typepad.com/): If they’re sweating the deadline, remind them that Tax Day this year was extended for some but not for reasons anyone would want.