Flat tax; doubts about “computerized” IRS calculations; when to shred; and different highlights from our favourite tax bloggers.
Buzzing sounds
- Tax Basis (
https://taxfoundation.org/weblog ): From July 2021 to September 2022, 5 states enacted legal guidelines to rework graduated-rate earnings taxes into single-rate tax buildings. The place issues stand with the states’ flat tax revolution. - Institute on Taxation and Financial Coverage (
https://itep.org/class/weblog/ ): Legislatures countrywide are resolved to write down new tax coverage, and debates are heating up. However states’ fiscal conditions fluctuate dramatically. - Tax Vox (
https://www.taxpolicycenter.org/taxvox ): Washington is abuzz over whether or not Congress will tackle Trump’s formidable coverage agenda in a single invoice or two. However lawmakers should confront a extra vital query. - International Taxes (
https://www.globaltaxes.com/weblog.php ): In Case You Missed It Dept.: A circuit court docket has flip-flopped (once more) on helpful possession reporting, and now the Supreme Court docket’s concerned. - Present Federal Tax Developments (
https://www.currentfederaltaxdevelopments.com/ ): An summary of latest remaining regs that determine sure micro-captive transactions as listed transactions and transactions of curiosity. - CLA (
https://www.claconnect.com/en/assets?pageNum=0 ): A have a look at the brand new draft Type 7217, “Accomplice’s Report of Property Distributed by a Partnership,” to gather data akin to a partnership’s foundation in a property earlier than distribution, the honest market worth of the distributed property and any foundation changes that will apply — all of which promise “a extra pronounced affect on actual property partnerships.” - Tax Notes (
https://www.taxnotes.com/procedurally-taxing ): Last regs on the oft-litigated Sec. 6751 “supervisory approval” go away longtime questions unanswered. Amongst them: What precisely occurs when a penalty is “mechanically calculated via digital means?”
Shore issues
- Virginia – U.S. Tax Discuss (
https://us-tax.org/about-this-us-tax-blog/ ): Lengthy-awaited and ultimately remaining Sec. 2801 regs — regarding items and bequests acquired by a U.S. particular person from sure international individuals — resemble proposed rules issued 10 years in the past (and 17 years since Sec. 2801 was enacted). “In a nutshell,” a U.S. recipient might must file a Type 708 (not but accessible). - Armanino (
https://www.armanino.com/articles/ ): How tax credit and incentives are among the many particulars biz shoppers ought to consider as they take into account nearshoring, offshoring and reshoring.
Robust questions
- MBK (
https://www.mbkcpa.com/insights ): What to remind biz shoppers concerning the Tax Cuts and Jobs Act’s Sec. 163(j), which usually limits deductions of enterprise curiosity to 30% of an organization’s adjusted taxable earnings. - The Nationwide Affiliation of Tax Professionals (
https://weblog.natptax.com/ ): This week’s “You Make the Name” appears to be like at Jason, who gambles on the native on line casino. He’s not thought-about to be within the commerce or enterprise of playing however does spend a big sum of money at one on line casino, which supplies him perks that complete $2,500. Throughout the 12 months, Jason’s playing pursuits have resulted in playing winnings of $10,000, which he’ll report on his 1040. He additionally retains a log of all his wagers and has allowable documented playing losses of $20,000. Assuming Jason can itemize on Schedule A, what quantity of playing losses can he deduct? - Gordon Regulation (
https://gordonlawltd.com/weblog/ ): What to remind them about who must file a FBAR. - Summing It Up (
http://weblog.freedmaxick.com/summing-it-up ): Nonprofits appear particularly susceptible to theft (what they might comparatively lack in juicy assets from a thief’s perspective they typically make up for in an absence of safety). A have a look at frequent kinds of theft in nonprofits, in addition to safety measures they will take. - Palm Seaside Accounting and Monetary Companies (
https://www.pbafs.com/weblog ): Why do I exist? What’s love? And for many of us, the actual toughie: When can we shred our monetary paperwork? - Taxjar (
https://www.taxjar.com/assets/weblog ): A query in your ecommerce shoppers’ minds, whether or not they admit it or not: Must you spend money on gross sales tax software program or rent a tax skilled?
Think about it a warning
- Sovos (
https://sovos.com/weblog/ ): IRS due dates for 2024 data returns. (Largely unchanged from final 12 months, although tweaked for weekends). - Cover (
https://www.getcanopy.com/weblog ): In a latest podcast, Dr. Jackie Meyer, CPA, entrepreneur and creator of “The Steadiness Sheet of Life Method,” “shares her journey as she goes from a standard accountant to pioneering modern approaches within the discipline.” She additionally discusses the challenges of postpartum melancholy and persistent fatigue. - Wolters Kluwer (
https://www.wolterskluwer.com/en/options/tax-accounting-us/industry-news ): How safe is the cloud? - Sikich (
https://www.sikich.com/insights/ ): Synthetic intelligence could also be altering how entrepreneurs produce content material, however the place does content material advertising go in 2025? Two challenges B2B manufacturers should overcome. - Taxable Discuss (
http://www.taxabletalk.com/ ): New Jersey lately requested a shopper to ship extra tax paperwork; one technique instructed was electronic mail. “Is New Jersey conscious of the dangers of id theft by emailing paperwork? Is the Division of Taxation conscious of their very own steering on this?” - TaxProf Weblog (
http://taxprof.typepad.com/taxprof_blog/ ): Congratulations to Ellen Aprill and Beverly Moran, latest recipients of Affiliation of American Regulation Colleges Tax Part Lifetime Achievement Award.