In the blogs: Of bins and bogdowns

Biggest practice blunders; yet another reason to raise taxes; the court looks back; and other highlights from our favorite tax bloggers.

Of bins and bogdowns

• Taxable Talk (http://www.taxabletalk.com/): The Treasury Inspector General for Tax Administration’s interim report on the season inspired anything but warm fuzzies. “Instead, we’re left with more of the same: lots and lots of items sitting around in bins (both virtual and real).”
• The Tax Times (https://www.thetaxtimes.com): Seems IRS Appeals is taking longer and longer (and longer) to close cases. Also seems the word “languished” has been bandied about.
• Institute on Taxation and Economic Policy (https://itep.org/category/blog/): This would be an exciting mid-year all by itself, of course. Turns out that across the country taxes are adding a lot of spice to the stew.
• National Taxpayer Advocate (https://www.taxpayeradvocate.irs.gov/taxnews-information/blogs-nta/): They may operate legally in many states, but marijuana-related businesses still face big federal income tax law challenges.
• EideBailly (https://www.eidebailly.com/taxblog): All the news that fits regarding the foggy fate of future tax legislation, as well as Washington action on housing costs and the IRS doc-destruction rampage.
• Rosenberg Associates (https://rosenbergassoc.com/blog/): Years of consulting with accounting firms has helped produce these “12 Practice Management Blunders.” Part one of three. (Just three? ...)
• TaxProf Blog (http://taxprof.typepad.com/taxprof_blog/): Can anti-racism retool state and local tax systems?

Universally acknowledged

• Taxing Subjects (https://www.drakesoftware.com/blog): Time flies when the debris does too: Tax tips for hurricane season.
• Mauled Again (http://mauledagain.blogspot.com/): It is a truth universally acknowledged that there are all sorts of reasons that taxes get increased. Corsica, Pennsylvania, recently ran into a time-tested one regarding its property taxes: embezzlement.
• Rubin on Tax (http://rubinontax.floridatax.com/): It’s well settled in Florida that an estate is vested in the husband and wife as one person, and neither spouse can sell, forfeit or encumber any part of the estate without the consent of the other, nor can one spouse lease it or contract for its disposition without such consent. What happens if this is violated?
• Canopy (https://www.getcanopy.com/blog): A look at a recent study of how much clients like when accountants use the latest tech.
• Sovos (https://sovos.com/blog/?region=united-states): Why can’t we ship alcohol through the USPS.

Adventures and headaches

• Gordon Law (https://gordonlawltd.com/blog/): Favorite opening of the week: “Ignoring your IRS debt won’t make it go away.” What to remind them about tax liens.
• National Association of Tax Professionals (https://blog.natptax.com/): This week’s “You Make the Call” looks at your new clients James and Charles, who brought in their W-2s and interest statements — and documentation for their nonfungible token activity. You need more time to research the issue so you extended their returns and now have to determine whether their activity generated taxable income and, if so, how much and what kind. James purchased two Ethereum coins on the Ethereum blockchain for $7,500 in November 2021. He traded the ETH coins the next month for an NFT of his favorite New York Knick that was valued at $8,000. Charles was awarded two NFTs as tokens in a “play to earn” game in December 2021. He doesn’t know the fair market value of his NFTs as of the award date. How do you calculate the results of these two activities to finish the pair’s 2021 returns?
• HBK (https://hbkcpa.com/insights/): A look at recently released IRS regs that may affect some clients’ gifting strategies — especially if they’ve been trying to use the increased estate exclusion amount before its expected drop in 2026.
• Avalara (https://www.avalara.com/blog/en/north-america.html): If you’ve got clients who have employees working in other countries, who gets the fun adventure and who gets many of the tax headaches?
• Henry+Horne (https://www.hhcpa.com/blogs/): What to remind them about tax concerns when buying a first home.
• TaxConnex (https://www.taxconnex.com/blog-): Five crucial pieces of sales tax compliance for your clients who sell online.
• Taxbuzz (https://www.taxbuzz.com/blog): The coming hikes in HSA contribution limits.
• John R. Dundon II EA (https://www.johnrdundon.com/): An update on recent Colorado legislation includes sales tax help for small businesses and SALT parity.

Agreeing to disagree

• Summing It Up (http://blog.freedmaxick.com/summing-it-up): Small and midsized companies may not see governance as important, but research shows that good governance improves SME business performance.
• Current Federal Tax Developments (https://www.currentfederaltaxdevelopments.com/): In Rogerson v. Commissioner, the taxpayer argued that, following a reorganization of the S corporation he owned 100% of into multiple corporations, he had not materially participated in the activities of one of these resulting corporations for the three years following the reorganization. Could be, but the IRS disagreed.
• Procedurally Taxing (https://procedurallytaxing.com): One issue often litigated is whether and when a return is deemed filed for purposes of starting the SOL on assessment. A look at Quezada v. U.S. and the IRS decision to publish an action on decision disagreeing with the Fifth Circuit.
• Wolters Kluwer (https://www.wolterskluwer.com/en/solutions/tax-accounting-us/industry-news): If a taxpayer uses an accounting method that does not clearly reflect income, the IRS may require the taxpayer to change its method of accounting. In a recent case, the Tax Court held that the taxpayer’s accounting method clearly reflected income and the IRS abused its discretion in requiring a change. Of particular interest here: The Tax Court backed up its call with an extensive discussion of law and rulings regarding IRS authority and its own history.