Extension battle goes on; flipping out; correcting clients' misinformation; and other highlights from our favorite tax bloggers.
Robust discussions
- Canopy (
https://www.getcanopy.com/blog ): The blogger would like to talk about a mistake most accounting firms make: undercharging. This isn't because the services they provide aren't worth it, but because they're not presenting the value of those prices well enough. The blogger knows it's because when he ran a firm he undercharged by 90%. - Armanino (
https://www.armanino.com/articles/ ): CFOs are often tempted to cut back on internal audit and compliance during economic downturns, but perceived short-term savings can carry long-term consequences, such as fraud that increases during economic downturns; compliance teams still have the same responsibilities, but reduced staff make the teams less effective; and the costs of fraud, regulatory penalties and lawsuits can quickly surpass any perceived savings. - Intuit Turbotax (
https://blog.turbotax.intuit.com ): The $1,000 Head Start: Is your client's child eligible for the new savings account? - Tax Foundation (
https://taxfoundation.org ): Growth of markets for new "alternative tobacco products" anti-smoking campaigns has prompted a robust policy discussion: How should ATPs be taxed? - Eide Bailly (
https://www.eidebailly.com/taxblog ): Obamacare's long, long road to a healthy future. - Taxable Talk (
http://www.taxabletalk.com/ ): The Battle of Penalties After Legally Extended Returns in New Jersey continues.
Flippin' and fraudin'
- National Association of Tax Professionals (
https://www.natptax.com/news-insights/ ): Tax rules every house-flipping and builder client should know. - Dean Dorton (
https://deandorton.com/insights/ ): " 'Tis the Season (for Fraud)": How your biz clients can be on guard. - Wolters Kluwer (
https://www.wolterskluwer.com/en/solutions/tax-accounting-us/industry-news ): Technology has unleashed hoards of misinformers concerning taxes. The latest example: the new personal auto interest loan deduction.
Case by case
- Withum (
https://www.withum.com/resources/ ): In the past few years, two landmark Tax Court cases have influenced how appraisers think about discounts and ownership structure: Warne v. Commissioner, and Nelson v. Commissioner. Warne addresses discounts for lack of control and marketability in connection with majority interests less than 100%, and clarifies how value is measured in charitable transfers. Nelson addresses whether tiered discounts are appropriate when ownership interests are held through multiple entities. Here's an overview of the cases, what the courts decided and ultimately how appraisers and estate lawyers and financial advisors should apply these decisions. - Current Federal Tax Developments (
https://www.currentfederaltaxdevelopments.com/ ): In the recent decision of Temnorod v. Commissioner, the U.S. Tax Court addressed the tax treatment of payments made by an acquiring entity to settle the liabilities of a related party in bankruptcy. The case is a critical reminder to tax pros regarding the hierarchy of the IRC — specifically that capitalization requirements under Sec. 263 generally supersede deduction provisions under Sec. 162.
Fun's in the journey …
- Taxjar (
https://www.taxjar.com/resources/blog ): January's sales tax due dates. - TaxConnex (
https://www.taxconnex.com/blog- ): Mish-mashed Potatoes Dept: The sales tax puzzle of taxation of groceries during this holiday season. - Sovos (
https://sovos.com/blog/ ): Biz clients' sales tax guides to Colorado, Idaho and Pennsylvania. - Avalara (
https://www.avalara.com/blog/en/north-america.html : In any state with a general sales tax, businesses that get sales tax wrong can end up liable for back taxes plus penalties and interest. In Illinois, starting Jan. 1, businesses subject to destination sourcing rules that fail to provide the information to validate the location of their sales could end up paying a 15% tax rate on those transactions.
