In the blogs: Slow starts

Tax cuts losing steam; cyberattack follow-up; introducing the CSR; and other highlights from our favorite tax bloggers.

Slow starts

• Don't Mess with Taxes (http://dontmesswithtaxes.typepad.com/): A recent poll indicates that most taxpayers support the direct-to-IRS option of Direct File. The program is off to a slow start but is that pace intentional?
• Canopy (https://www.getcanopy.com/blog): All 1099-MISCs that report non-employee compensation must be sent to both the recipient and the IRS by Jan. 31; all other 1099s are due Feb. 28 if filed on paper, April 1 if filed electronically. Those early due dates are a tall task for many businesses and accounting firms. How to get a one- to two-month extension on filing.
• Institute on Taxation and Economic Policy (https://itep.org/category/blog/): With many state legislatures now in full swing, some tax cut proposals have lost steam.
• University of Illinois Tax School Blog (https://taxschool.illinois.edu/blog/): How this year marks the IRS making it easier and quicker for taxpayers to claim the Clean Vehicle Credit. 
• Procedurally Taxing (https://www.taxnotes.com/procedurally-taxing): IRS user fees for advanced pricing agreements have jumped but remain attractive.
• National Association of Tax Professionals (https://blog.natptax.com/): This week's "You Make the Call" looks at Donna, who got an IRS letter regarding her level of due diligence when preparing a 1040 that included an Earned Income Tax Credit. The Letter 4858 indicated that she may not have met her requirement and that no action was needed but did say that the IRS would continue to monitor the returns she prepares when credits like the EITC, Child Tax Credit, Additional Child Tax Credit, credit for other dependents or American Opportunity Credits and head of household are included. Donna thinks she failed to include an 8867, "Paid Preparer's Due Diligence Checklist," in a paper-filed return but she still feels she met her requirements. Should she have gotten a letter?

Cyberspaces

• Gordon Law (https://gordonlawltd.com/blog/): Tax and other advantages to forming an LLC for crypto trading.
• Sikich (https://www.sikich.com/insights/): This year's top tech trends for manufacturing clients, from AI to cyberthreats to labor shortages.
• HBK (https://hbkcpa.com/insights/): What manufacturing clients can look forward to through the rest of 2024.
• Summing It Up (http://blog.freedmaxick.com/summing-it-up): After a cyberattack on a major insurance claims site, what should the victim do?

Changes upon changes

• Taxjar (https://www.taxjar.com/resources/blog): Top 2024 income and sales tax changes in the U.S. range from the increased standard deduction to significant changes to transaction requirements for basic nexus. 
• Withum (https://www.withum.com/resources/): State roundups include the New Jersey appellate court rejecting a use tax refund claim for equipment, repair parts, and supplies used in the production of chemicals based on too-skimpy an explanation of the claim's basis; West Virginia clarifying the taxation of streaming services; and Rhode Island's new tax guide for contractors.
• TaxConnex (https://www.taxconnex.com/blog-): How are e-commerce and sales tax obligations changing? Look at curbside pick-up, shoppable videos and "q-commerce," for starters.

Important questions

• Taxing Subjects (https://www.drakesoftware.com/blog): What are some benefits of offering more than one way for folks to pay?
• AICPA & CIMA Insights (https://www.aicpa-cima.com/blog): Think about how much time your senior staff spends in client onboarding meetings, writing client correspondence, training clients on the firm's portal, managing and monitoring projects and other administrative tasks. All these jobs are ideally suited for a nonaccountant or a non-CPA — someone who could become your firm's next client service representative.
• Tax Foundation (https://taxfoundation.org/blog): U.S. Trade Representative Ambassador Tai has questioned whether being headquartered in the U.S. is sufficient for a company to be American or whether policymakers should also consider where companies pay taxes. Her logic suggests that if a company is headquartered in the U.S. but primarily pays taxes to other governments, U.S. trade policy should focus less on protecting its interests. This thinking is faulty for three reasons, according to the Tax Foundation.
• Virginia – U.S. Tax Talk (https://us-tax.org/about-this-us-tax-blog/): How an estate tax treaty might mitigate the U.S. estate tax when a non-U.S. domiciliary's estate is subject to the tax but a treaty is available.
• Mauled Again (http://mauledagain.blogspot.com/): Favorite title of the week: "Does Anyone at the IRS Read This Blog?"