Off and Bozo-ing; the 100% tariff; Johnston on hot trends; and other highlights from our favorite tax bloggers.
The rubber and the road
- University of Illinois Tax School Blog (
https://taxschool.illinois.edu/blog/ ): “Employee” versus “independent contractor” — a look at recent guidance on this endlessly thorny question. - The Rosenberg Associates (
https://rosenbergassoc.com/blog/ ): Chalk one up for the AI Busy Season Bot. - Tax Pro Center (
https://accountants.intuit.com/taxprocenter/ ): This entry from the recent past looks at a red-hot topic for the future: how to draft an AI policy for an accounting firm. - AICPA & CIMA Insights (
https://www.aicpa-cima.com/blog ): Financial planning has been added to the CPA Exam for the first time. - Tax Foundation (
https://taxfoundation.org/blog ): The receding of state tax revenues from all-time highs has occasioned handwringing about whether states can afford the tax cuts adopted over the past few years. With 27 states reducing the rate of a major tax between 2021 and 2023, is there cause for concern? - Institute on Taxation and Economic Policy (
https://itep.org/category/blog/ ): Maryland lawmakers are considering “worldwide combined reporting,” a.k.a. “complete reporting.” This policy “offers a more accurate, and less gameable, way to calculate the amount of profit subject to state corporate tax.” The Tax Foundation reportedly recently published a blog designed to discourage Maryland lawmakers from enacting WWCR that includes “a number of misrepresentations — some pertaining to ITEP’s own analyses — addressed here. - Parametric (
https://www.parametricportfolio.com/blog ): A portfolio’s after-tax return is “where the rubber meets the road,” particularly for investors who depend on distributions for income. How blending municipal, corporate and Treasury securities while engaging in opportunistic tax-loss harvesting inside a separately managed account ladder structure has the best shot to enhance after-tax returns. - Taxable Talk (
http://www.taxabletalk.com/ ): Time once more, kids, for the rundown of Bozo Tax Tips, “strategies that you really, really, really shouldn’t try.” This year’s list opens with a repeat for the 11th year in a row — i.e., how otherwise intelligent individuals consistently email tax documents.
Future plans
- Procedurally Taxing (
https://www.taxnotes.com/procedurally-taxing ): The potential extended statute of limitations due to preparer fraud could impact assessment of recaptured Employee Retention Credits. - Tax Vox (
https://www.taxpolicycenter.org/taxvox ): Former President Trump has vowed “a 100% tariff on every single car that comes across the line, and you’re not going to be able to sell those guys if I get elected.” He was unclear about the target of his tariffs, but what would the consequences be of a 100% tax on imported autos? - Canopy (
https://www.getcanopy.com/blog : Randy Johnston, executive vice president of K2 Enterprises and expert of 30-plus years in accounting and technology, discusses in this podcast the need for keeping up on accounting trends. - Don’t Mess with Taxes (
http://dontmesswithtaxes.typepad.com/ ): A look at IRS Commissioner Werfel’s recent talk to students and faculty at American University revealing what has been dubbed the agency’s “generational digital transformation plan.” - Avalara (
https://www.avalara.com/blog/en/north-america.html ): What your clients who are newbies to e-commerce need to know about nexus, sales tax and not taking either one lightly. - Marcum (
https://www.marcumllp.com/insights ): And the hits just keep on clickin’: the top cyber security threats of the past month.
Land of the land
- Taxbuzz (
https://www.taxbuzz.com/blog ): Investing in U.S. real estate offers lucrative opportunities for non-residents, but it also comes with a complex tax landscape — starting with FIRPTA. Common tax mistakes non-residents make when buying and selling property in the U.S. and guidance on how to sidestep them. - Global Taxes (
https://www.globaltaxes.com/blog.php ): Proposed anti-money laundering regulations could have a major impact on foreign investors in U.S. real estate. - TaxConnex (
https://www.taxconnex.com/blog- ): Companies outside the U.S. that sell into America most likely know sales tax obligations from experience with VAT or GST. Is that sufficient to sell into the U.S. and meet sales tax obligations? - The Buzz About Taxes (
http://thebuzzabouttaxes.com/ ): Favorite opening of the week: “Court cases that involve interpretation of tax treaties are always fun!” In Christensen v. United States, the court interpreted the U.S.-France treaty to allow U.S. citizens residing in France to claim a foreign tax credit against the U.S. NIIT for income tax imposed by France on foreign-source income. - Armanino (
https://www.armanino.com/articles/ ): The Institute for Internal Auditors Standards Board has released the updated Global Internal Audit Standards, the main component of the International Professional Practices Framework, which kicks in next Jan. 9. A summary of the new guidance and how to prepare. - HBK (
https://hbkcpa.com/insights/ ): What to remind clients about if they worked overseas or moved to the U.S. from another country where they earned pension benefits or deferred compensation. Do they also have a tax-free savings account or life insurance policy in a foreign country? A look at U.S. taxation of foreign pensions and retirement accounts. - Taxjar (
https://www.taxjar.com/resources/blog ): Does Utah charge sales tax on services?
Slap happy
- National Association of Tax Professionals (
https://blog.natptax.com/ ): A few of the top questions from a recent webinar on 1099-INTs, 1099-DIVs and 1099-Bs. - Meyers Brothers Kalicka (
https://www.mbkcpa.com/insights ): More people again getting out of their offices marks a good time for a refresher on the deductibility of business travel. - Vertex (
https://www.vertexinc.com/resources/resource-library/filter/field_asset_type/blog?page=0 ): IT leaders managing multiple ERP systems in your clients’ companies may take a different approach to indirect tax calculation for each source system. This may serve your client in the short term but it can hinder long-term growth. Here’s a better idea. - National Taxpayer Advocate (
https://www.taxpayeradvocate.irs.gov/taxnews-information/blogs-nta/ ): What to remind some clients about preventing a refund offset. - Boyum & Barenscheer (
https://www.myboyum.com/blog/ ): S corp and limited liability company structures are probably popular with your manufacturing clients because of the combination of liability protection and tax benefits. Both forms have pros and cons, though, as well as some variations in tax consequences. - TaxProf Blog (
http://taxprof.typepad.com/taxprof_blog/ ): Another fav opening this week: “When Congress giveth a tax benefit with one hand, it sometimes taketh the other hand and slaps the taxpayer silly …” The one hand here is in Sec. 104(a)(1).
