Audits plunge; new pricing survey; Mnuchin does Europe; and other highlights from our favorite tax bloggers.
You knew this was coming
- Bloomberg Tax (
https://pro.bloombergtax.com/news-insights/ ): That’s Rich Dept.: The IRS has audited 0.05 percent of those earning $1 million to $5 million in 2018, according to recent data. For those reporting $10 million or more, that figure drops to 0.03 percent. - Procedurally Taxing (
https://procedurallytaxing.com ): Former National Taxpayer Advocate Nina Olson examines the recent GAO report “COVID-19: Opportunities to Improve Federal Response and Recovery Efforts.” Favorite line in her writeup: “But — and you knew this was coming — the IRS has made some administrative decisions with respect to EIPs that are very troubling...” - Tax Girl (
https://www.forbes.com/sites/kellyphillipserb/ ): Got a client confused about their estimated payment deadline? How the series of events leading up to the extension for estimated payments (not once, but twice) left many taxpayers bewildered. Here is, finally, what they need to know.
Why not all 50?
- Wolters Kluwer (
http://news.cchgroup.com/ ): The Maryland Court of Appeals has affirmed that the state’s interest rate for personal income tax refunds was constitutional in a case involving taxpayers who were state residents and part-owners of a Maryland pass-through organization, and who due to the multistate operation of their business paid income taxes to 39 other states. - Mauled Again (
http://mauledagain.blogspot.com/ ): Today’s lesson covers “How Not to Write Tax Break Statutes,” with the evidence being a recent decision of the Pennsylvania Commonwealth Court, Dechert LLP v. Pennsylvania Department of Community and Economic Development. - Tax Foundation (
https://taxfoundation.org/blog ): How several states may legalize recreational marijuana in the coming years as the coronavirus pandemic has left many state budgets in disarray and policymakers looking for new revenue sources. - EideBailly (
https://www.eidebailly.com/taxblog ): Certain sales of businesses or business real estate are excluded from Iowa taxation, but only if they meet two stiff tests that are based on federal tax rules. A look at how this was applied in a recent case that went against a couple of taxpayers. - Federal Tax Crimes (
http://federaltaxcrimes.blogspot.com/ ): The feds have brought a summons enforcement suit against the Delaware Department of Insurance to obtain documents and testimony that the department failed to provide regarding micro captive insurance companies. - Taxjar (
http://blog.taxjar.com/ ): Marketplaces must now collect sales tax on behalf of sellers on online marketplaces (think Walmart or Amazon) in Louisiana.
Vet on it
- Canopy (
https://www.canopytax.com/blog ): There’s a new tax prep pricing survey out. Among the highlights: an itemized 1040 and a state return runs an average of about $300 nationally, most preparers charge a flat fee and Delaware’s a deal for clients. - National Association of Tax Professionals (
https://blog.natptax.com/ ): Small businesses still have a window to apply for a Paycheck Protection Program loan. - Tax Warrior Chronicles (
https://www.taxwarriors.com/blog ): A look at recent IRS relief to 2020 required minimum distribution recipients. - Tax Pro Center (
https://proconnect.intuit.com/taxprocenter/ ): Animal Magnetism Dept.: An insightful look at veterinarians as a tax prep niche, including the mindset, demographics and impact of COVID-19. - Summing It Up (
http://blog.freedmaxick.com/summing-it-up ): What in fact does go into companies’ latest buzzterm: data governance? And what can be the risks of not investigating it?
New to us
- Allison Christians (
https://www.allisonchristians.com/blog ): The McGill University tax law professor and popular blogger of “Tax, Society & Culture” has a new site. This week she examines Treasury Secretary Steven Mnuchin’s recent letter to four finance ministers to complain about unilateral digital services taxes but also to insist that everyone stop trying to reach consensus on taxing the digital economy. The Europeans’ response is included.
