In the blogs: Slight detours


The problem with some tax credits; a PPP forgiveness portal; crypto replies; and other highlights from our favorite tax bloggers.

Slight detours

  • National Taxpayer Advocate ( A previous blog set out the initial stages of a tax return’s journey once it’s been filed, including certain detours a return may take as it goes through reviews prior to being posted on IRS systems. One of these detours: a review by the IRS’s Error Resolution System, where the return is reviewed for possible errors or omissions. And this filing season ERS has experienced a significant backlog, causing delays in refunds.
  • Boyum & Barenscheer ( Erasing That Fine Line Dept.: What exactly is the difference between a “gift” and a “kickback” for employees? (For that matter, what about relatives?”)
  • Sovos ( How the new E-988 surcharge could be the dawn of what ultimately might become a new and expansive tax compliance requirement for sellers of prepaid wireless products and services.
  • Taxjar ( There are many ways to host an online class. And do you know what else appears in great variety when it comes to online classes? Sales tax laws! Here’s “Online Class Taxability 101.”
  • Tax Foundation ( Louisiana legislators have passed a tax reform that has received overwhelming political support, but voters will get the ultimate say. Ultimately, the plan would simplify the state’s tax code, lessen residents’ tax burdens and make the state more competitive. A walkthrough of what’s in these reforms and what effect the changes will have on taxpayers.

Limited credit

  • Current Federal Tax Developments ( A look at the recent discussion from the IRS Chief Counsel’s office concerning issues related to conservation easement extinguishment. Specifically, that requirements prevent an easement with an extinguishment clause that removes post-donation increases in property values (due to post-donation improvements from the calculation of the charity’s share of such proceeds) from qualifying for a charitable deduction.
  • The Wandering Tax Pro ( What to remind them about changes to the Child and Dependent Care Credit for 2021.
  • Taxbuzz ( What to tell them about tax breaks — and how such “breaks” might actually cost a client money.
  • Mauled Again ( Another problem with tax credits and deductions for doing the right thing — with particular attention to the undeserved advantages of holding out.
  • Summing It Up ( The New York State 2021-22 budget bill included a new Pass-Through Entity Tax (“PTET”) regime, an electable tax on pass-through entities, effective for tax years beginning on or after Jan. 1, 2021. Eligible partnerships and S corporations with a New York filing requirement have the option to pay an entity-level tax at graduated rates. A look at PTETs, including what other states have them.
  • The Tax Times ( FBAR remains high: A look at a recent report that a New York woman is liable for $333,000 in penalties and interest for failing to report bank accounts she controlled in Switzerland and Hong Kong.
  • Wolters Kluwer ( The Small Business Administration now has a Paycheck Protection Program forgiveness application portal to allow borrowers with loans of $150,000 or less to apply for forgiveness directly through the SBA.

A matter of time

  • Solutions for CPA Firm Leaders ( It’s so what you will reap: “Plant Seeds Early” examines how the American Institute of CPAs is encouraging the profession to urge high school students to consider becoming a CPA. “There is only one thing wrong with this activity,” the blogger contends.
  • Bloomberg Tax ( The U.S. Senate is heading toward passage this week of a $550 billion infrastructure bill that would provide the biggest infusion of federal spending on public works in decades and mark a major milestone for President Joe Biden’s economic agenda. Recent developments include the Democratic and Republican senators who negotiated the plan ruining their weekend over the 2,702-page bill. Majority Leader Chuck Schumer said it would pass “in a matter of days.”
  • Eide Bailly ( More of the recent news about the real Infrastructure Week.
  • Parametric ( Investors may be missing opportunities through the wrong tax management strategy. While one size does not fit all, an organized, systematic approach that continuously monitors and adjusts can ensure investors make the most of all opportunities.
  • Don’t Mess with Taxes ( Last fall, the Internal Revenue Service announced that it was adding QR, or Quick Response, codes to some of the notices it sends taxpayers. Specifically, the codes are going on tax due notices. The timeless goal: to make it easier for taxpayers to deal with the notices and the agency.
  • AICPA Insights ( This retooled blog moves to a new addy and this week features the new AICPA chair sharing his vision for the profession’s future.

Getting pinned

  • Taxing Subjects ( The second week of the Security Summit’s “Protect Your Clients; Protect Yourself” campaign focuses on helping taxpayers protect their return by highlighting the benefits of an IP PIN. The biggest hurdle seems thematically similar to many things with clients: getting them to understand why they need an IP PIN. Plus, six tips for anyone considering an IP PIN.
  • Gordon Law ( The crypto crawlies: what to tell them about responding to a CP2501.
  • Palm Beach Accounting and Financial Services ( What to tell them, generally, about trusts.
  • Surgent Income Tax School ( Your clients expect and deserve much more than just a correct tax return. Making the experience positive and adding value requires making a good first impression. How to cross these Ts beforehand.

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