Repatriation wrinkles; PLR pricetags; state and local tax info; and other highlights from our favorite tax bloggers.
- Rubin on Tax (http://rubinontax.floridatax.com): A partnership paid $2.95 million to acquire a remainder interest in property and a year and a half later assigned the interest to a university and claimed a charitable deduction of $33,019,000. Sounds fine until the 8283 that the taxpayer submitted with its income tax return to disclose the contribution left blank “Donor’s cost or other adjusted basis.” Bad omission.
- Due Diligence (http://www.mahanyertl.com/mahanyertl/): In this week’s collection: “New York City Department of Education Contracts Fraud”; “Subprime Auto Loans and Bank Whistleblowers”; “Robocalls – Legal Woes Pile Up as OCWEN Struggles to Placate Homeowners”; “Politics and Corruption (Archrock Partners / Exterran)”; and “New Hospital Medicare Scam?”
- Federal Tax Crimes (http://federaltaxcrimes.blogspot.com/): The indictment of a Virginia couple for evasion of payment and conspiracy to structure bank deposits to avoid the reporting requirements offers “a pretty straight-forward, unexceptional indictment” at least for the first allegation. The second, however, is unusual “for how sparse it is … many cash withdrawals of less than $10,000” over six months.
- Tax Policy (http://taxfoundation.org/blog): U.S. corporations are required to pay taxes to the U.S, on all their income, regardless of where it was earned. If a company decides to reinvest overseas instead of bringing the money back home, it can defer its taxes owed on foreign profits. “This process of deferral helps keep U.S. companies internationally competitive, but heavily discourages the transfer of money back into the country, otherwise known as ‘repatriation.’ ” What’s the possible fallout of a repatriation tax holiday?
- Houston Tax Attorney (http://www.irstaxtrouble.com/category/tax-blog/): In the recent Crestek v. Commissioner, the court addresses unpaid advances that a controlled foreign corporation made to its U.S. parent — a case showing “how easy it is for a U.S. corporation that has an outbound transaction to miss a transaction that results in foreign profits being subject to tax in the U.S.”
- Tax Vox (http://taxvox.taxpolicycenter.org): Why the single percentage point of difference between forecasters’ and the president’s outlook on the economy is a big number indeed.
- Don’t Mess With Taxes (http://dontmesswithtaxes.typepad.com/): Those with questions about a tax law or regulation can ask in writing for the IRS’s two cents — sometimes a.k.a. a private letter ruling. “But be prepared to pay for the advice and, effective Aug. 15, pay electronically.” And pay a lot.
- Taxable Talk (http://www.taxabletalk.com/): Recent IRS stats aside, how many clients report Bitcoin transactions?
- Bloomberg BNA (http://www.bna.com/news/#!topic=istax&type=isblogpost): Approval of the new version of the Revised Uniform Unclaimed Property Act has set off continuous change among the states, especially in Delaware. A look at that state’s updated proposal for new regulations regarding its unclaimed property audit program.
Questions and answers
- Intuit Proconnect (http://taxprocenter.proconnect.intuit.com/): You love’em, you hate’em, you need’em, so just admit you’d like to know “How to Be More Responsive to Clients.”
- H&R Block (http://blogs.hrblock.com/): How to add money tips to the three Rs for this season’s back-to-schoolers.
- John R. Dundon II EA (http://johnrdundon.com/): If You Had a Nickel Dept.: “We often encounter taxpayers who do not quite fully understand how to report for income tax purposes the lease agreements they have entered into for business use assets, particularly automobiles.”
- Tax Girl (http://blogs.forbes.com/kellyphillipserb): Blogger Kelly Phillips Erb fields a reader question on filling out a W-9 when payment’s in cash.
- Dinesen Tax (http://dinesentax.com/blog): Can an adult disabled child who lives at home be claimed as a dependent?
- Liberty Tax Blog (https://www.libertytax.com/tax-lounge/): Your SE clients have enough problems without dealing with the tax man. Here’s what to remind them about budgeting for tax expenses year-round.
- Summing It Up (http://blog.freedmaxick.com/summing-it-up): An Upstate New York firm is adding a new state and local tax newsletter this month, “SALT Updates.” Initial topics include income and franchise taxes, California stripping its State Board of Equalization to create two new agencies, and the condensing of New York’s power of attorney form.
- Taxjar (http://blog.taxjar.com/): E-mail contact info for every state’s sales tax department. Amazing fact one for this week: “Even though the year is 2017, many states are not equipped to help taxpayers by e-mail.”
- Mauled Again (http://mauledagain.blogspot.com/): Rules for passwords sometimes seem to have been written by Samuel Beckett: You must use caps, you never use caps, you can use your child’s name, you can never use your child’s name. Given the sensitive information preparers deal with online, how much time needs be given to passwords? (Hint: You must devote more time or you must devote less time…)
Hate to network?
- CCH Tax and Accounting (http://news.cchgroup.com/): A look back at the recent AICPA Engage event and what influencers and trendsetters said about the future of technology “as it relates to accounting, tax, audit and yes, practice management.” (Hint: Title of this entry is “Talent and Succession: Technology to the Rescue.”)
- Sageworks (https://www.sageworks.com/blog/default.aspx): You can count the beans that are there or you can help a client find new beans in new places — and that’s the distinction between being a cost center or a growth partner. You’re the bean pro: Guess which makes your practice truly more valuable?
- Focus (https://sgcpa.com/resources/focus-blog/): Partner and director of business development and marketing Neil Fauerbach spotlights an article that caught his eye on networking for folks who hate to network.
If you plan to try and account for revenue recognition (RevRec) under the new accounting standards ASC 605 and ASC 606/IFRS 15 using a spreadsheet, be aware that this is going to introduce more complexity to your financial processes, not less. It’s a significant consideration. Learn more now.