In the blogs: Poor it on

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Engagement letters’ fine line; 382 requirements eliminated; owing California; and other highlights from our favorite tax bloggers.

Poor it on

  • IRS Mind (https://www.irsmind.com/): How fewer IRS resources mean disproportionately more audits on lower-income taxpayers.
  • Procedurally Taxing (https://procedurallytaxing.com): How a late return was a late return in the eyes of a judge despite the taxpayer being poor, mentally ill and struggling to manage finances.
  • Mauled Again (http://mauledagain.blogspot.com/): What happens on a TV court show when a defendant claims a plaintiff’s daughter on his return for the Child Tax Credit even though the youngster was not his child? When the judge announces that’s illegal, the defendant blames guess who?
  • TaxProf Blog (http://taxprof.typepad.com/taxprof_blog/): Governments are increasingly turning to behavioral economics to inform policy design in areas like health care, the environment and financial decision-making. Where a “nudge” fits in.
  • Intuit ProConnect (http://taxprocenter.proconnect.intuit.com/): Engagement letters walk a fine line. Good ones balance enough information and clarity to the tax client about the services you provide — but aren’t so detailed that the client is scared off by the length of the letter. Other requirements of this key document and what goes into building one.
  • Tax Girl (https://www.forbes.com/sites/kellyphillipserb/): The IRS is warning about yet another Social Security number scam, this one often involving robocalls luring taxpayers to call back because their number is at risk.
  • Don’t Mess With Taxes (http://dontmesswithtaxes.typepad.com/): What to remind them about good year-end tax moves.

Welcome news

  • Tax Foundation (https://taxfoundation.org/blog): Build That Acronym Dept.: Senator Ron Wyden, D-Oregon, has introduced the Providing Real Opportunities for Growth to Rising Entrepreneurs for Sustained Success, or PROGRESS, Act, which contains two new tax credits intended to increase investment in smaller businesses and help them grow. However, the legislation may incentivize firms to remain below the tax credit eligibility threshold, make the Tax Code less neutral, shift net investment away from slightly larger firms and slow firm growth.
  • Taxjar (http://blog.taxjar.com/): November sales tax due dates, by state.
  • Sikich (https://www.sikich.com/insights/): Revisiting tax reform’s impact on the construction industry after the 2018 season.
  • Sagenext (https://www.thesagenext.com/blog): Data is the new oil of business, and here are six “foolproof” ways to deal with data security.
  • Rubin on Tax (http://rubinontax.floridatax.com/): “In welcome news to taxpayers,” the IRS has revoked documentation requirements by eliminating Treas. Reg. Section 1.382-2. The IRS has also indicated that future proposed regulations will address other aspects of the proposed Sec. 382 regulations, including the distribution requirements included in those regulations.

There for you

  • Tax, Society & Culture (http://taxpol.blogspot.com/): A look at a paper examining the OECD’s project intended to tackle the tax challenges of the digitalization of the economy and allowing countries to tax multinationals in the absence of “traditional” physical presence.
  • Avalara (https://www.avalara.com/us/en/index.htm): A brief history of tariffs and the United States-China trade war.
  • Taxable Talk (http://www.taxabletalk.com/): Assume you operate a business as a tax professional anywhere outside California. You’ve been in business for years, and don’t solicit new clients (other than having a website). Your only trips to California have nothing to do with your business. You have clients in California but prepare all the returns in your office. Do you owe California tax? Could be.
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