In the blogs: Why, oh why?

Buy-ins are changing; faxing the IRS; Barbie and sales tax; and other highlights from our favorite tax bloggers.

Why, oh why?

• The Tax Times (https://www.thetaxtimes.com): The Tax Court has dismissed a taxpayer's petition because it was e-filed late. Eleven seconds late.
• The Rosenberg Associates (https://rosenbergassoc.com/blog/): Is it time to dump the decades-long practice of new-partner buy-ins? Consider: In the most recent Rosenberg MAP Survey, the average buy-in was only about $200,000 and most firms today also allow the buy-in to be paid over years interest-free, often by withholding from bonuses.
• EideBailly (https://www.eidebailly.com/taxblog): Remember the fax machine? Remember the funny noise? Apparently the IRS does, at least for some late-filed international forms and documents.
• National Taxpayer Advocate (https://www.taxpayeradvocate.irs.gov/taxnews-information/blogs-nta/): Why an IRS Tax Pro Account is suddenly worth another look.
• Institute on Taxation and Economic Policy (https://itep.org/category/blog/): A year on, what did the IRA accomplish? A fair amount.
• Tax Foundation (https://taxfoundation.org/blog): With the Sept. 1 tripwire looming, "Inconsistent Tax Treatment of Student Loan Debt Forgiveness Creates Confusion."
• Procedurally Taxing (https://procedurallytaxing.com): In Optimal Wireless v. IRS, the D.C. Circuit Court of Appeals held that the Anti Injunction Act bars a taxpayer's suit relating to a pre-enforcement challenge to a provision of the Affordable Care Act. The opinion reveals a deep circuit split, one that might lead to the Supreme Court again exploring a key procedural issue involving the AIA and the ACA.
• Taxable Talk (http://www.taxabletalk.com/): FinCEN Form 8300 requires anyone in business — including sole proprietors, partnerships, LLCs, corporations and professional gamblers — to report cash transactions of more than $10,000. This law isn't new. What is new: Is crypto considered "cash" under the Infrastructure Act, the relevant section of which kicks in next Jan. 1?
• TaxMama (http://taxmama.com): There weren't many objections from the public when Congress clawed back $20 billion from the IRS. "What taxpayers don't really understand is — these funds are/were being used to make our lives easier."
• Tax Vox (https://www.taxpolicycenter.org/taxvox): Why should anyone pay someone else to prepare a tax return?

Foreign affairs

• Virginia – US Tax Talk (https://us-tax.org/about-this-us-tax-blog/): Post-Bittner, the IRS looks to get crabbier about non-willful FBAR penalties.
• National Association of Tax Professionals (https://blog.natptax.com/): This week's "You Make the Call" looks at Rafael, a U.S. citizen who owns more than 10% of a foreign corporation and who must report information regarding his foreign ownership annually. He failed to file a Form 5471 for tax years 2019 and 2020 due to the pandemic — apparently a willful and intentional disregard. Without review, the IRS assessed a penalty of $10,000 for each annual accounting period. Rafael received IRS notices for tax years 2019 and 2020 and still did not file a 5471 for more than 90 days after the date of the notice; he was assessed continuation penalties of $10,000 for each month or partial month that the failure continued after the 90 days. The continuation penalty is capped at $50,000, his total penalty for the failure to file at $60,000 per year. What remedy does Rafael have after the recent Farhy v. Commissioner, challenging the IRS right to automatically assess such penalties?
• Global Taxes (https://www.globaltaxes.com/blog.php): The IRS faces a legal challenge for a penalty collection for failing to file an information return for a foreign trust. Did the IRS fail to comply with requirements for written supervisory penalty approval?

Safety in numbers

• Withum (https://www.withum.com/resources/): Usually death catches someone at least partially unprepared. Part of this blogger's job (like most CPAs) is dealing with the families who survive those who lacked wills, business agreements and formal arrangements for partners to make payments for the shares of the deceased co-owner.
• AICPA Insights (https://www.aicpa-cima.com/blog): How, with a solid understanding of pricing theory, management accountants can pinpoint and communicate economic value to customers.
• Taxbuzz (https://www.taxbuzz.com/blog): What to remind biz clients about AR.
• Marcum (https://www.marcumllp.com/insights): A relatively new way startups and early-stage companies raise capital is a simple agreement for future equity, or SAFE. This contact between an investor and a portfolio company provides rights to the investor for future equity in the company. But, to paraphrase Laurence Olivier in Marathon Man, is a SAFE safe for taxes?
• Tax Pro Center (https://proconnect.intuit.com/taxprocenter/): Gen X is barreling toward retirement. How can your firm help this generation, which has unprecedented money pressures, prepare?
• Vertex (https://www.vertexinc.com/resources/resource-library/filter/field_asset_type/blog?page=0): This year's legislative update already offers a dizzying number of sales tax changes, from new fees in Minnesota to lower rates in South Dakota to blossoming exemptions in Florida.
• TaxConnex (https://www.taxconnex.com/blog-): Time waits for no one — especially if that someone has sales tax obligations.
• Avalara (https://www.avalara.com/blog/en/north-america.html: Is the Texas Franchise Tax the same as a sales tax?
• Summing It Up (http://blog.freedmaxick.com/summing-it-up): What to remind them about still qualifying for the Employee Retention Credit — and, more important, about avoiding scams.
• Surgent Income Tax School (http://www.theincometaxschool.com/blog/): How you can still help clients snag the R&D credit.
• Sovos (https://sovos.com/blog/): Sales tax paralleled the evolution of Barbie herself.