S corp misconceptions; Spanish authorities go after pop singer; changes to withholding under FATCA; and other highlights from our favorite tax bloggers.
The perfect year
- Tax Foundation (
https://taxfoundation.org/blog ): “January through December,” sang Ronnie Milsap, “we had such a perfect year.” This week is the first anniversary of the passage of the Tax Cuts and Jobs Act, “but it was not perfect. A year after its adoption, it’s important to take a step back to review the reforms’ impacts on individuals, businesses and the U.S. economy.” Then we can all start having fun with the new season… - Taxable Talk (
http://www.taxabletalk.com/ ): Good Luck With That Dept.: “Hug Your Tax Professional, or The Upcoming Horrible, Miserable, Rotten, and Delayed Tax Season” is about…oh you’ll be figuring it out. Let’s start with the delayed announcement of the start of the festivities, fueled by late forms. - Federal Tax Crimes (
http://federaltaxcrimes.blogspot.com/ ): Here’s an ice-breaker this holiday-party season: “Does the Statute of Limitations Affect the Issue of Whether a President Can Be Indicted During His Presidency?”
Ride, baby, ride
- Dinesen Tax Times (
http://dinesentax.com/blog ): Suddenly Everyone’s an Expert Dept.: Says one client, “I get paid as a 1099 consultant, but my CPA has it all run through my LLC so I don’t have to pay taxes on it.” Another client’s S corp turned profits in excess of $100,000 a year but the owner paid himself $0 salary. The new lure of ignorance of the capital S. - Liberty Tax (
http://www.libertytax.com/tax-lounge ): Your student clients may qualify for a lot more education credits and additional resources than they know. Start with the Free Application for Federal Student Aid (FAFSA), federal grants and scholarships. Remember: They’re busy in the books and don’t know taxes… - Turbotax (
https://blog.turbotax.intuit.com ): The proliferation of rideshare companies such as Uber and Lyft has created a whole new income stream for many people (including many of your clients). What to tell them about the tax implications. - Solutions For CPA Firm Leaders (
http://ritakeller.com/blog/ ): The job of the good manager in five basic tasks, from setting objectives to motivating developing staff. - Summing It Up (
http://blog.freedmaxick.com/summing-it-up ): Nine steps to figuring out your client’s sales tax obligations, determining where, what and to whom you sell. - Taxjar (
http://blog.taxjar.com/ ): State laws on economic nexus vary and it’s hard to keep up if you’re doing business in multiple states. What you need to know about California. - Mauled Again (
http://mauledagain.blogspot.com/ ): Reactions Yea and Nay to the recent meme captioned, “After the age of 65 you should be 100-percent tax-exempt. You have already more than paid your dues. Like and share if you agree.” Responses hinge, we personally feel, on defining “paid” and “dues.”
Daddy-o!
- TaxMama (
http://taxmama.com ): A look back at the IRS month of catch-up on procedures, alerts and announcements. - Tax Girl (
http://blogs.forbes.com/kellyphillipserb ): For a change from going after footballers, Spanish tax authorities have set their sights on the partner of FC Barcelona footballer Gerard Piqué: international pop singer Shakira, charging her with tax evasion for 2012, 2013 and 2014. - Houston Tax Attorney (
http://www.irstaxtrouble.com/category/tax-blog/ ): Rules that allow the IRS to assess and collect criminal restitution as if it is a tax due present some unique questions. In Bontrager v. Commissioner, the court considered whether the IRS can assess and collect a father’s tax restitution payment as tax restitution against the son. - Rubin on Tax (
http://rubinontax.floridatax.com ): New proposed regs modify withholding and other requirements under FATCA. Some of the more interesting changes: no withholding on gross proceeds; and the extension of implementation of withholding on foreign passthrough payments and premiums for insurance contracts that do not have cash value will be excluded non-financial payments and, therefore, not withholdable payments. - Wolters Kluwer (
http://news.cchgroup.com/ ): The Second Circuit Court of Appeals has joined the First and Sixth Circuits in reversing the Tax Court holding that payments from the parent of a closely held manufacturing group’s payments to a domestic international sales corporation were not commissions and that the dividends the DISC paid to its Roth IRA shareholders were excess contributions.
