News

IRS regulation of tax preparers gains steam

August 31, 2021

Internal Revenue Service regulation of return preparers, sidelined since its prohibition by the Loving decision, is back for another try.

  • state tax
  • federal tax

Reviewing Benefits of the State and Local Tax Deduction by County in 2018

August 25, 2021

As Congress considers repealing or making more generous the $10,000 state and local tax deduction cap in the budget reconciliation process, it is helpful to review how the state and local tax (SALT) deduction is taken by taxpayers across U.S. counties.

  • state tax
  • federal tax

CFOs: Prepare for Changes in Global Tax Rules

August 24, 2021

You hear it everywhere: U.S. corporations don’t pay their fair share of taxes. They’ve hollowed out domestic industry by moving to cheaper, more tax-friendly countries.

  • business and industry
  • federal tax

Security Summit warns tax pros to watch for tell-tale signs of identity theft

August 17, 2021

With identity thieves continuing to target the tax community, Internal Revenue Service Security Summit partners today urged tax professionals to learn the signs of data theft so they can react quickly to protect clients.

  • federal tax
  • forensic accounting and fraud
  • state tax
  • technology and cybersecurity

5 tips for charging clients more for tax planning

August 16, 2021

What’s the greatest tragedy of the accounting profession? It’s the fact that most small-business owners and individuals believe their accountant is saving them money on taxes, when in truth the majority of tax preparers never reduce anyone’s tax liability.

  • practice management
  • federal tax

IRS offers flexibility on Work Opportunity Tax Credit

August 16, 2021

The Internal Revenue Service is giving employers more leeway in claiming the Work Opportunity Tax Credit to hire people in areas who face significant obstacles to employment for jobs in summer youth and community programs.

  • business and industry
  • coronavirus
  • federal tax
  • practice management

Advance CTC payments may be making a dent in hunger

August 13, 2021

Even as the Internal Revenue Service began sending out the second batch of advance Child Tax Credit payments, evidence has emerged that the first round may have had a measurable impact on hunger and poverty in the U.S.

  • coronavirus
  • federal tax

New IRS Accounting Proposal Still Alive Despite Pushback From CU Trades

August 13, 2021

An amendment aimed to block a new tax-reporting requirement for financial institutions, including credit unions, narrowly failed in the Senate by a vote of 49-50 on Tuesday. The reporting requirement, as proposed by the Treasury Department and included in the Senate’s fiscal year 2022 Budget Resolution, would mandate financial institutions to report the inflows and outflows of personal and business accounts, as well as transfers between accounts of the same owner, if it is more than $600 per year.

  • federal tax

‘A never-ending tax season:’ Rating 2021

August 10, 2021

Tax Day 2020 was pushed to July to provide pandemic relief. The latest Tax Day was bumped a month to give the Internal Revenue Service time to implement tax laws that changed as late as March.

  • state tax
  • federal tax

Ledecky may owe $44K in taxes for Olympics glory

August 09, 2021

As the Olympic flame goes out in Tokyo on Sunday, marking the end of the 2020 Games, swimming phenom Katie Ledecky and pole vaulting sensation Katie Nageotte will both be leaving with gold — but a hefty tax bill awaits only one of them back in the U.S.

  • federal tax

IRS offers further guidance on employee retention credit, even as Congress may end it soon

August 05, 2021

The IRS and the Treasury guidance in Notice 2021-49 deals with how various issues apply to the employee retention credit in both 2020 and 2021, amplifying earlier guidance offered earlier this year in Notice 2021-20 and Notice 2021-23. The new notice explains changes made by the American Rescue Plan Act of 2021 to the employee retention credit that are applicable to the third and fourth quarters of 2021.

  • business and industry
  • advocacy - federal
  • coronavirus
  • federal tax
  • practice management

Newly Issued Employee Retention Credit Guidance Punishes Owner Employees If They Have Living Family Members

August 05, 2021

The IRS issued Notice 2021-49 on August 4th which states that the Employee Retention Credit (ERC), made available for businesses suffering from the COVID-19 crisis, will not be available with respect to wages paid to a majority owner, or such owner’s spouse, if the majority owner has a brother or sister (whether by whole or half-blood), ancestor, or lineal descendant.

  • business and industry
  • advocacy - federal
  • coronavirus
  • federal tax
  • practice management

CT officials forecast $55M in annual cannabis tax revenue by FY '26

July 28, 2021

Connecticut's Office of Fiscal Analysis is projecting the state's cannabis industry will generate $20.4 million in tax revenue in its first full year of operation, and over $55 million in its fourth year.

  • advocacy - state
  • federal tax

IRS continues unemployment compensation adjustments, prepares another 1.5 million refunds

July 28, 2021

The Internal Revenue Service reported today that another 1.5 million taxpayers will receive refunds averaging more than $1,600 as it continues to adjust unemployment compensation from previously filed income tax returns.

  • federal tax

The coming shift in sales tax compliance

July 21, 2021

The second annual Sovos Sales and Use Tax report sheds surprising light on the existing landscape of sales and use tax compliance, and raises questions about the future, particularly as we move into a digital age.

  • state tax
  • federal tax

Wyden introduces bill to overhaul pass-through deduction and expand to accountants

July 21, 2021

Senate Finance Committee chairman Ron Wyden, D-Oregon, introduced legislation Tuesday to streamline the section 199A deduction for qualified business income for pass-through entities, allowing accountants, lawyers, doctors and others to qualify, but phasing out above $400,000.

  • business and industry
  • advocacy - federal
  • federal tax
  • practice management

Security Summit partners urge tax pros to use multi-factor authentication; critical step to boost protection against data theft

July 20, 2021

With security incidents on the rise, the Internal Revenue Service, state tax agencies and the tax industry urged tax professionals and taxpayers to use a special feature – multi-factor authentication – available on tax software products to help protect against identity and data theft.

  • state tax
  • technology and cybersecurity
  • federal tax

IRS opens tax pro accounts

July 19, 2021

The Internal Revenue Service has begun offering online Tax Pro Accounts that practitioners can use for submitting an authorization request to an individual client’s own taxes online with the IRS.

  • federal tax

IRS: Monthly Child Tax Credit payments begin

July 16, 2021

The Internal Revenue Service and the Treasury Department announced today that millions of American families have started receiving monthly Child Tax Credit payments as direct deposits begin posting in bank accounts and checks arrive in mailboxes. This first batch of advance monthly payments worth roughly $15 billion reached about 35 million families today across the country. About 86% were sent by direct deposit.

  • federal tax

Accounting Methods Are Hot Topics for 2021 Tax Planning

July 15, 2021

The tumultuous 2020 tax year, combined with expected tax increases in the future, make 2021 a key year for tax planning. Ryan Vaughan and Andrew Kosoy of Mazars outline common accounting methods and considerations for business taxpayers regarding such methods.

  • accounting and auditing
  • practice management
  • federal tax