The biz climate in all 50; extend them not; when partners won’t commit; and other highlights from our favorite tax bloggers.
Too much money
- TaxProf Blog (http://taxprof.typepad.com/taxprof_blog/): Favorite opening of the week: “There is too much money in American politics, and too much of it comes from too few citizens.” A new tack argues that by changing our tax system from an income to a consistent progressive spending tax, the true cost of political expenditures by mega-donors could increase tenfold.
- Institute on Taxation and Economic Policy (https://itep.org/category/blog/): The Treasury Department recently announced that it would begin research to examine certain tax policies through a racial equity lens. How this is welcome news for researchers and advocates “fighting for an equitable and just Tax Code.”
- Tax Vox (https://www.taxpolicycenter.org/): Cities provide an early look at how governments are advancing racial equity. They’ve made numerous explicit commitments to advancing equity — but are a lot farther along thinking about centering equity strategies in spending than revenues.
- Taxable Talk (http://www.taxabletalk.com/): The Tax Foundation’s recent list of the business tax climate in the 50 states shows that not much has changed since the last report, “and for those in New York, New Jersey and California wondering why businesses are moving to Florida and Nevada, you just need to look in the mirror.”
- Taxpro Center (https://proconnect.intuit.com/taxprocenter/): Businesses in many industries are shifting to value-based pricing and subscription models, and advisory services are a natural fit for this transition. Here’s a look at the pricing models.
- HBK (https://hbkcpa.com/insights/): Either way you slice it, U.S. penalties are hefty for unreported foreign financial accounts.
- Tax Foundation (https://taxfoundation.org/blog): ‘Tis the season when “an eclectic group” of temporary tax policies approach their expiration dates but at the last minute typically hitchhike onto must-pass legislation for another temporary extension. Not this year.
- Boyum & Barenscheer (https://myboyum.com/blog/): Yes, it did take the IRS years to issue any guidance related to cryptocurrency or virtual currency — but a flood of guidance has come out and enforcement has stepped up in a major way.
- National Association of Tax Professionals (https://blog.natptax.com/): In this week’s “You Make the Call,” George is a single taxpayer who owns virtual currency investments and is curious about the tax implications of his two hard forks and one airdrop transaction during the year. The first hard fork results in the creation of 60 units of a new virtual currency, which are airdropped into George’s account. He immediately obtains dominion and control of the airdropped units. The new units have a fair market value of $350 per unit at the time of the airdrop and an FMV of $100 per unit at the end of the year. The second hard fork results in the creation of 20 units of virtual currency, with no airdrop. The units have an FMV of $100 per unit at the time of the hard fork and an FMV of $150 per unit at the end of the year. Does George have taxable income resulting from these transactions, and what is his basis in the units received?
- Sikich (https://www.sikich.com/insights/): A look at IRS revisions to Form 1024, “Application for Recognition of Exemption Under Section 501(a),” allowing tax-exempt organizations to submit the form electronically. This will be the first year applicants can e-file.
- Mauled Again (http://mauledagain.blogspot.com/: You can’t teach an old tax preparer new tricks, but you can teach them old ones.
Cups of kindness
- Taxjar (http://blog.taxjar.com/): Ever Brought to Mind Dept.: A look at sales tax rate changes in 18 states for the new year.
- Solutions for CPA Firm Leaders (http://ritakeller.com/blog/): When it comes to professional progress and advancement of staffers, why some stubborn partners still don’t want to be pinned down.
- Turbotax (https://blog.turbotax.intuit.com): What to remind them about end-of-year retirement tips.
- TaxMama (http://taxmama.com): General filing tips before flipping the calendar — and what they can expect for filing paperwork in early 2022.
- Tax Warriors (https://www.taxwarriors.com/): Woo hoo, they work remotely already, so why can’t they work remotely from a vacation home as well? Tax jurisdictions might love if they do this — and here’s a discussion of dual residency and double taxation.