The pandemic and financial crimes; another provider leaves; why CRM and accounting don’t mix; and other highlights from our favorite tax bloggers.
Large unknowns
- Boyum & Barenscheer (
https://myboyum.com/blog/ ): How and why even bigger challenges loom when dealing with the IRS in the coming months. - Avalara (
https://www.avalara.com/us/en/blog.html ): A new report from Urban-Brookings Tax Policy Center reveals how COVID-19 is affecting the fiscal health of states. The subject has been on a lot of minds since California issued the nation’s first stay-at-home orders 16 months ago, and the answer keeps changing. - Eide Bailly (
https://www.eidebailly.com/taxblog ): All the recent news about IRS funding. (Our favorite phrase: “Outcomes largely unknown.”) - Summing It Up (
http://blog.freedmaxick.com/summing-it-up ): The pandemic has whipped up the perfect storm for financial crimes. Here’s how to pinpoint conditions where COVID-related fraud can flourish in an organization and suggestions on how to protect yourself. - Taxjar (
http://blog.taxjar.com/ ): Not so very long ago, if you wanted to sell your ideas or art, you created a tangible object like a book or painting and released it out into the world. How you send digital stuff into the world — and incur a whole different set of tax problems. - Tax Vox (
https://www.taxpolicycenter.org/ ): Are state tax cuts a sign of federal aid excess or success? More specifically, does a rob-state-Peter-to-pay-infrastructure-Paul idea have merit? Here’s what we know.
Business matters
- Don’t Mess with Taxes (
http://dontmesswithtaxes.typepad.com/ ): TurboTax won't be a Free File option when the 2022 tax filing season arrives — making Intuit the second major tax software provider to leave the Free File Alliance, the nonprofit coalition of tax software. - Procedurally Taxing (
https://procedurallytaxing.com ): In Citizens Bank, N.A. v. Nash, a lien priority fight occurred between the IRS and the bank holding the taxpayer’s mortgage. In many ways the bank’s problem reminded the blogger of problems that routinely plague the IRS in lien priority fights. - TaxProf Blog (
http://taxprof.typepad.com/taxprof_blog/ ): Federal audits of corporate tax returns have plunged in recent years, letting big companies claim elaborate tax breaks with less government scrutiny, according to a Washington Post analysis of company filings. - Tax Pro Center (
https://proconnect.intuit.com/taxprocenter/ ): Most useful passage of the week for biz advisors: “Drained after emerging from the uncertainty of the pandemic, small businesses now find themselves in the crosshairs of a juicy labor shortage. And, in an era of Zoom fatigue, many owners could use some ‘real’ versus ‘virtual’ thought partnership about how to tackle it.” - National Association of Tax Professionals (
https://blog.natptax.com/ ): This week’s “You Make the Call” looks at Zuri, who owns a small, non-farm business and asked you, as the tax preparer, whether the business was required to claim all expenses to show a lower self-employment income from the business. What do you tell Zuri? - Solutions for CPA Firm Leaders (
http://ritakeller.com/blog/ ): At one time the blogger’s firm “was on the leading edge when it came to new ideas, processes and software tools,” paperless early on but still patient to await a document management system that actually fit the profession. “One technology tool we never purchased and one that I hesitate to recommend for CPA firms is a CRM.” In agreement: CPA Gene Marks (“the famous guy you see on TV”). Why accountants make poor candidates for a CRM. - Wolters Kluwer (
http://news.cchgroup.com/ ): Once upon a time, the only tools tax pros had were a calculator, pencil and paper. Today, with so much technology at your fingertips, there’s no reason for firms to be working in the past — and that includes relying on outdated data to make decisions. - Current Federal Tax Developments (
https://www.currentfederaltaxdevelopments.com/ ): The skinny on the proposed new 7203, “S Corporation Shareholder Stock and Debt Basis Limitations.”
Some truths
- Federal Tax Crimes (
http://federaltaxcrimes.blogspot.com/ ): The difference between a doctor and a lawyer cheating on taxes is that the doctor will file a false return underreporting tax liability (a felony) whereas the lawyer will file no return (generally a misdemeanor). There may be some truth in that, but probably not as much as those acting on it by failing to file would like to hope. Enter the recent opinion in Ernest S. Ryder & Associates, Inc., APLC. v. Commissioner. - Palm Beach Accounting and Financial Services (
https://www.pbafs.com/blog ): Neither a borrower nor a lender nor a relative be. But if you must lend to family, here’s what to think about. - Turbotax (
https://blog.turbotax.intuit.com ): Congrats to the grant winners of the TurboTax LeadingConEducación program (in partnership with the Hispanic Heritage Foundation) to support Latino high school seniors and college students. - Surgent Income Tax School (
http://www.theincometaxschool.com/blog/ ): Completing CPE over the summer will free up your fall, so you can focus on the tax deadlines, meet with clients to offer value-added services and plan for the 2022 season. How to best tackle the three little letters during the lazy hazy days. - Canopy (
https://www.canopytax.com/blog ): Every time you take on a new client, that relationship should begin with an engagement letter for three big reasons.... - Taxbuzz (
https://www.taxbuzz.com/blog ): You Can’t Remind Them Enough Dept.: Another look at this year’s IRS “Dirty Dozen” scams.
