AI and the IRS; the 1099-DA; your best banking products; and other highlights from our favorite tax bloggers.
The real world
- Tax Foundation (https://taxfoundation.org/blog): In the new pink blockbuster, Barbie’s venture from Barbieland introduces her to conflict, judgment, work “and (gasp!) flat feet.” But we all know she has even more to think about as she navigates human adulthood: taxes, especially in California.
- Don’t Mess with Taxes (http://dontmesswithtaxes.typepad.com/): Fave opening of the week: “Any great change brings hopes and fears. The possibilities and threats of artificial intelligence becoming a regular part of our lives have ramped those hopes and fears up to level gazillion.” What’s going to happen when the IRS adds the two big new letters to its toolkit?
- Institute on Taxation and Economic Policy (https://itep.org/category/blog/): Too many state and local governments tap legal-system collections, rather than adequate tax systems, to fund shared essentials like public safety and education. But a growing number of states and localities are choosing a better approach.
- Virginia – US Tax Talk (https://us-tax.org/about-this-us-tax-blog/): A recent district court case in Florida, Dennis And Suzanne Gomas v. United States Of America, couldn’t better illustrate the problems faced by older persons who get scammed — even by their own daughter (we do wonder if “spawn” isn’t a better word …).
- Vertex (https://www.vertexinc.com/resources/resource-library/filter/field_asset_type/blog?page=0): Sales tax rate changes and new sales taxes enacted in the first half of this year increased 43% over the same period in 2022.
- Marcum (https://www.marcumllp.com/insights): A look at cybersecurity’s biggest hits for July, from the Midnight Group to Rapperbot.
- Sikich (https://www.sikich.com/insights/): Cybersecurity is more than just a good firewall like a moat around your office. It’s always knowing how your practice or firm receives client and customer info and who else can look at it via you.
The state of taxes
- Tax Vox (https://www.taxpolicycenter.org/taxvox): How time flies when you’re running with scissors: a look back at three years of states’ tax cuts.
- HBK (https://hbkcpa.com/insights/): New Jersey’s new budget makes a number of corporate tax changes, including (but not limited to) tagging the state’s economic nexus sales tax thresholds to income tax and letting businesses use a net operating loss before taking a dividend-received deduction.
- EideBailly (https://www.eidebailly.com/taxblog): Partnerships and S corporations will need to file their regular 2022 Iowa returns before electing into the optional state pass-through entity tax for the year — plus more tidbits in the state’s guidance on the new tax.
- The Tax Times (https://www.thetaxtimes.com) The U.S. District Court for Colorado has held that the Department of Justice can seek judgment for federal income tax deficiencies using a common law right of action, bypassing the usual procedures in the Internal Revenue Code.
Future shocks
- Tax Pro Center (https://proconnect.intuit.com/taxprocenter/): As a tax pro, are you ready to do your part in the looming great wealth transfer?
- Gordon Law (https://gordonlawltd.com/blog/): Form 1099-DA is expected to provide a solution so taxpayers can more easily report their crypto. What we know about the form so far.
- Avalara (https://www.avalara.com/blog/en/north-america.html): Remember when booking travel had less to do with your keyboard and more to do with sitting across from someone’s desk with the posters of exotic destinations festooning every wall? That was before online travel agencies — and before those agencies faced a full itinerary of sales tax obligations.
- Procedurally Taxing (https://procedurallytaxing.com): President Trump changed the path of review of tax regulations, requiring most to go through review at the Office of Information and Regulatory Affairs. A look at President Biden’s reversal of the requirement.
- TaxConnex (https://www.taxconnex.com/blog-): A recent webinar looks at the looming storm in exemption certificate audits over sales tax.
- Taxjar (https://www.taxjar.com/resources/blog): August sales tax deadlines.
Options
- Surgent Income Tax School (http://www.theincometaxschool.com/blog/): What to remind them about the annual filing season program.
- Parametric (https://www.parametricportfolio.com/blog): Regular loss harvesting isn’t the only way to reduce a portfolio’s tax bill, especially as its value rises. What else to share with increasingly well-heeled clients.
- Turbotax (https://blog.turbotax.intuit.com): What tax wisdom to render for clients with AirBnBs.
- Taxbuzz (https://www.taxbuzz.com/blog): What to remind small-biz clients about the importance of financial statements.
- Boyum & Barenscheer (https://www.myboyum.com/blog/): For construction clients, inventory can really gum up tax planning — starting with valuation.
- National Association of Tax Professionals (https://blog.natptax.com/): This week’s “You Make the Call” looks at Sara, who does consulting work for a private company that gave her 1 million options at a $0.01 strike price. Sara will only have 90 days to exercise the shares once leaving the company. Though the 409a valuation reflects a stock price of $0.01, the shares currently have a market value of $0.50. What are the tax results if Sara exercises her options?
- Taxing Subjects (https://www.drakesoftware.com/blog): Handy guide to a subject not discussed enough — the best banking products for tax pros.
