In the blogs: Money troubles

Implications of a big leak; taxing multinationals; better current than new clients; and other highlights from our favorite tax bloggers.

Money troubles

• The Tax Times (https://www.thetaxtimes.com): A look at recent reports that private wealth clients, hedge fund managers, cryptocurrency traders and other well-heeled heels are skipping out to Puerto Rico for its tax breaks and to escape Biden’s idea of capital gains increases. First to say “Bienvenido!” at the airport, however: the IRS.
• Federal Tax Crimes (http://federaltaxcrimes.blogspot.com/): A look at the tax crimes core concept questions (think “felony” on the part of the leaker of the info) from ProPublica’s publication of returns' information of the ultrarich. Also, how the news outlet justified its disclosure on the grounds of public interest versus privacy considerations.
• TaxProf Blog (http://taxprof.typepad.com/taxprof_blog/): All the rich taxpayers discussed were men and all of them white — yet no mention of race or gender was in the story. One conclusion: “Policies supporting wealth-building in America have always been designed by rich white men for their benefit… ProPublica is following a colorblind path that most business and tax reporters unfortunately take. Those reporters consistently ignore the significant explanatory power that systemic racism can have in helping their readers understand why the winners tend to be rich white men.”
• Procedurally Taxing (https://procedurallytaxing.com): Should we adjust disclosure laws “so we are not shocked” by the revelations in the article?
• Mauled Again (http://mauledagain.blogspot.com/): The tax treatment of legal malpractice awards.
• Current Federal Tax Developments (https://www.currentfederaltaxdevelopments.com): Another look at the case, in which the question was whether the amount one party received from an action against the attorney that represented her during her divorce was a nontaxable recovery of capital or a taxable award to her.

Kid stuff

• Tax Vox (https://www.taxpolicycenter.org/): Good for your affected clients: President Biden wants to cut taxes for many low- and moderate-income households and reduce taxes substantially for those with children. A look at the Tax Policy Center’s projections of specific numbers.
• Bloomberg Tax (https://pro.bloombergtax.com/news-insights/): Two recent IRS FAQs aim to help families and employers claim two tax benefits, following changes in the latest pandemic relief law.
• Turbotax (https://blog.turbotax.intuit.com): More families will now be eligible for the Child Tax Credit. What to tell them.
• Taxing Subjects (https://www.drakesoftware.com/blog): What to tell them about who will receive a letter about the Advance Child Tax Credit from the IRS.
• National Association of Tax Professionals (https://blog.natptax.com/): Taxpayers may face two major issues this post-tax season: IRS refund adjustments and estimated tax payments for the 2022 tax season. What to tell them about both.

VAT figures

• Tax Foundation (https://taxfoundation.org/blog): There has been some confusion about how some parts of the recent G7 agreement on new tax rules for multinational companies might work. The new policies would target the largest and most profitable multinationals and bring in a global minimum tax. Open questions for global tax reform.
• Avalara (https://www.avalara.com/us/en/blog.html): U.S.-based businesses selling to international customers should pay special attention to new rules for VAT on e-commerce sales.
• Eide Bailly (https://www.eidebailly.com/taxblog): All the news that fit to print on how time is slipping by for some serious federal lawmaking.
• Don’t Mess with Taxes (http://dontmesswithtaxes.typepad.com/): Is Infrastructure Week finally happening?
• Taxable Talk (http://www.taxabletalk.com/): Highlights and lowlights of the first part of the 2021 season — including praise for the IRS and, on the other hand, the agency’s “confounding decisions.”

In a bunch

• Canopy (https://www.canopytax.com/blog): Five ways to (finally!) look good on Zoom.
• Surgent Income Tax School (http://www.theincometaxschool.com/blog/): Do you take your existing clients for granted? Nurture these relationships instead: It’s five to 10 times more expensive to attract new clients than it is to retain existing ones, and any clients you don’t retain must be replaced before you can grow. Here are five actions to nurture current clients.
• John R. Dundon II EA (http://johnrdundon.com/): In the plethora of files across the blogger’s desk over the years, navigating compliance issues for liquidating distributions of a partner’s interest in a partnership have three buzzworthy considerations to avoid unwanted scrutiny.
• Tax Warriors (https://www.taxwarriors.com/): With Democrats needing to convince 10 Republicans to cross the aisle to enact a tax proposal in the Senate, President Biden’s tax proposals are most likely to move into, and take shape within, the budget reconciliation process. In a practice not unseen since 2016, the Biden administration reviewed and sued an accompaniment to the Administration’s Budget, a.k.a. the Green Book, with “more detail, insight, and a couple of surprise changes to proposals.”
• Sikich (https://www.sikich.com/insights/): Lease accounting rules are soon to change for private companies with the adoption of the provisions of ASC 842. What exactly are embedded leases?