In the blogs: Sudden impacts

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There’s always tomorrow; having class; medical marijuana; and other highlights from our favorite tax bloggers.

Sudden impacts

  • Tax Vox (http://www.taxpolicycenter.org/taxvox): Headline for our times: “Congress and President Trump Are Spending Money and Cutting Taxes Like There Is No Tomorrow.” So, is there?
  • Intuit Proconnect (http://taxprocenter.proconnect.intuit.com/): Ah, the mushrooming phenom and well-worn job place debate continues: “Employee vs. Independent Contractor,” and how reform might impact the classifications.
  • Mauled Again (http://mauledagain.blogspot.com/): This blogger’s criticism of the 2017 tax legislation as “a sloppily drafted, terrible-for-most-Americans giveaway to the oligarchs is no secret.” But what’s reform’s likely impact on Main Street businesses?
  • Taxbuzz (https://www.taxbuzz.com/blog): Living and working abroad offers a wide range of cultural benefits, but it can also come with tax headaches.
  • TaxProf Blog (http://taxprof.typepad.com/taxprof_blog/): Trump made tax cuts. CEOs got “eye-popping” payouts. How to do the painfully obviously math.
  • Tax Foundation (https://taxfoundation.org/blog): The New York Times recently published a chart showing that corporate tax revenues have fallen significantly since passage of the Tax Cuts and Jobs Act. This has led some to wonder whether the dynamic revenue effects that were promised by supporters of the TCJA are going to materialize. If the economy is supposed to grow in response to a tax cut, shouldn’t corporate tax revenues stay relatively constant, or at least not fall too significantly?
  • Federal Tax Crimes (http://federaltaxcrimes.blogspot.com/): Excerpts from an article on why Israeli banks are asking customers where their money comes from.
  • Wolters Kluwer (http://news.cchgroup.com/): A look at the Financial Accounting Standards Board’s new transition method and a practical expedient for separating components of a contract intended to reduce costs and ease implementation of the leases standard for financial statement preparers.

Hard lessons

  • Don’t Mess With Taxes (http://dontmesswithtaxes.typepad.com/): If you thought back-to-school tax holidays were a bit too early, think again. Resumption of classes (on what seems a crazily early date) means that in addition to purchasing the clothing, books and other supplies, youngsters and their families also are doing some homework on how to pay for all the school-related costs. A look at 529s.
  • Turbotax (https://blog.turbotax.intuit.com): Student loans have become financial mountains on the shoulders of many young adults and parents — including probably more than a few tax prep clients. What to tell them about any tax breaks that ease the burden.
  • Rubin on Tax (http://rubinontax.floridatax.com): Reform reworked the Kiddie Tax. An overview of the new provision.
  • The Wandering Tax Pro (http://wanderingtaxpro.blogspot.com/): Born in the Savings Account Dept. The recent House GOP Listening Session Framework again revives the “USA” account, calling for “Creating a new Universal Savings Account to offer a fully flexible savings tool for families.” The blogger’s thoughts, including how USAs might replace a number of separate, common accounts now.
  • Taxable Talk (http://www.taxabletalk.com/): A client was selected for a correspondence audit; the IRS asked the client to submit all the documentation regarding a tax credit taken on a recent return. The client had all the documentation, made his photocopies and mailed off the notice using certified mail, return receipt requested. Imagine his surprise when three weeks later — two weeks after the deadline to respond — he receives his package back. Did he forget the stamp? Screw up the address? Nope, the mistake was that of the IRS.
  • Houston Tax Attorney (http://www.irstaxtrouble.com/category/tax-blog/): A tax return has to be signed to be valid. But what if the return is signed by someone else? Is a return with a forged signature a valid return? These issues abound in Coggin v. United States.

The sweet and the new

  • Avalara (https://www.avalara.com): Is chocolate caramel popcorn food or candy? (Food! Obviously! Especially when watching “Star Trek.”) When taxing a Farmers Market Mason Jar, do you tax the gummy peaches, cherries and watermelons separately from the mason jar itself? (Dunno. Kirk didn’t use mason jars.) These are the types of questions Dylan’s Candy Bar, the largest state-of-the-art sweets emporium and lifestyle brand, is faced with when it comes to taxes. How managing a global, omni-channel business caused Dylan’s accounting team to find itself in the middle of a tax maelstrom.
  • Bloomberg BNA (https://www.bna.com/news/#!topic=tax&type=blogpost&page=1): Maine made significant amendments to its medical marijuana law (good for our home state), including providing a deduction for medical marijuana-related business expenses otherwise prohibited by federal tax law.
  • Procedurally Taxing (http://procedurallytaxing.com): The Tax Clinic at Harvard has, so far unsuccessfully, litigated on behalf of individuals misled by the IRS regarding the last date to file a Tax Court petition. In Kerger v. United States, another situation in which incorrect advice can harm a taxpayer surfaces in regard to a declaration that certain taxes were discharged in a prior bankruptcy case.
  • Boyum & Barenscheer (https://myboyum.com/blog/): The cash method of accounting, which allows you to recognize sales when cash is received, is attractive to many small businesses due to its simplicity. Due to the new tax law, for tax years beginning after 2017, the ability to use the cash method is greatly expanded. A look at adopting a new, more favorable accounting method.
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