Size of this rescue; next season’s wrinkles; new blog on board; and other highlights from our favorite tax bloggers.
Re-relief
- Tax Foundation (
https://taxfoundation.org/blog ): Tax extenders are no stranger to hitching a last-minute ride on year-end legislation. This year they made another last-minute appearance, finding a hold in their own division of the 5,593-page bill to fund the government through the fiscal year and provide additional coronavirus relief through March. - Bloomberg Tax (
https://pro.bloombergtax.com/news-insights/ ): Dough-Ray-U.S. Dept.: The provisions in the latest relief bill represent the second-largest economic rescue package in American history, behind the $1.8 trillion virus relief package that was signed into law just nine months ago. It surpasses the $787 billion stimulus passed in response to the financial crisis in 2009. Together with the omnibus spending bill, the total package is worth more than $2.3 trillion. - Eide Bailly (
https://www.eidebailly.com/taxblog ): Favorite opening of the week: “It comes in at 5,593 pages; click here to see it, if you dare…” But it’s also confirmed: Paycheck Protection Program expenses are deductible in the new COVID deal. - Summing It Up (
http://blog.freedmaxick.com/summing-it-up ): Straight shooting: “Finally, and not a minute too soon, Congress appears to have come to their collective senses and provided businesses with the critical correction to the CARES Act, with the new stimulus bill… This means we can forget IRS Notice 2020-32, Revenue Ruling 2020-27 and other ‘noise’ that has permeated the consciences of business owners since not long after the enactment of the Paycheck Protection Program.” A look at other magical words, too (“But wait, there’s more…”) - Tax Vox (
https://www.taxpolicycenter.org/taxvox ): A look at this relief’s good, bad, and ugly tax provisions, some delivering important assistance to households and businesses damaged by COVID-19 and the economic downturn, some representing sensible long-term tax policy that has little to do with pandemic relief — and some just awful special interest-giveaways. - Taxing Subjects (
https://www.drakesoftware.com/blog ): A short list of how Congress intends to direct funding in the aid package, touching on the tax provisions and the financial strain of “surprise medical bills.”
Interesting changes
- Tax Warriors (
https://www.taxwarriors.com/blog ): Incentive stock options are granted each year as part of compensation packages for many executives and key employees. Once stock options are granted, though, execs are left with a decision that requires consideration: When is the right time to exercise my options? With possible tax rate changes on the horizon, that question has become more difficult than ever. - Boyum & Barenscheer (
https://myboyum.com/blog/ ): What to tell nonprofit clients about endowment spending rules. - Wolters Kluwer (
http://news.cchgroup.com/ ): Forecasts call for online sales during the entire holiday shopping season to hit $184 billion, a 30-percent increase from last year. A look at a recent Tax Foundation analysis of the sales tax regimes in states around the country that ranked them in terms of the impact of sales and excise taxes on the business climate of each state. (The highest-scoring states were those without a state sales tax.) - TaxProf Blog (
http://taxprof.typepad.com/taxprof_blog/ ): Revenues ravaged by the pandemic, states might consider expanding sales taxes to services.
Meanwhile…
- Canopy (
https://www.canopytax.com/blog ): Four COVID-inspired tax changes to remind them of for next season. - Taxbuzz (
https://www.taxbuzz.com/blog ): What to remind them about the CARES $300 charitable contribution deduction for 2020. - The Wandering Tax Pro (
http://wanderingtaxpro.blogspot.com/ ): Remind them that the second Economic Impact Payment of $600 per person, like the first, won’t be taxable. - Turbotax (
https://blog.turbotax.intuit.com ): For unemployed (a.k.a. “furloughed”) clients, here’s a new multi-language center discussing filing for unemployment benefits, how unemployment is taxed, and general tax and financial solutions.
Terrors ahead
- TaxMama (
http://taxmama.com ): Next season’s problems, as Mama sees it, are in four main areas, all of them related to the pandemic. - AICPA (
https://blog.aicpa.org/ ): “There is no terror in the bang,” Alfred Hitchcock said, “only in the anticipation of it.” Why 2021 busy season due dates can’t come soon enough. - Income Tax School (
http://www.theincometaxschool.com/blog/ ): Will many clients opt to stay home/safe next season and DIY their taxes? Some ideas to ensure you have business coming in this coming season, starting with letting them know you’re open for business. - Strategic Advisor (
https://strategicadvisor.liveplan.com/ ): Talking Heads Dept.: If this sounds familiar to you, then you’re likely facing the same challenge these bloggers faced: successfully delivering a unique and engaging experience virtually. The first step is having the best platform. What to look for. - National Association of Tax Professionals (
https://blog.natptax.com/ ): There’s one simple thing you’re probably missing that could significantly increase your cash flow: a client guide. Benefits and best uses of one. - Current Federal Tax Developments (
https://www.currentfederaltaxdevelopments.com ): The IRS has published the final version of the regulations under IRC Sec. 274 that eliminates an employer’s deduction for the cost of providing some employer provided transportation and commuting benefits. There’s “one interesting change” from the previously proposed regs.
New to us
- Financial Cents Accounting Blog (
https://financial-cents.com/blog/ ): The practice management solution offers weekly tips on running a firm from perspectives technological to human. Recent entries cover switching from task to task, marketing mistakes to avoid and client onboarding. Welcome!
