Tax Section Odyssey
Melanie Lauridsen, AICPA & CIMA VP of Tax Policy & Advocacy, provides an update on IRS service improvements and the impact of the Inflation Reduction Act funding. She also discusses other key tax advocacy tax initiatives that are top of mind right now. AICPA resources — Access resources to learn the latest on the employee retention credit (ERC). — Access resources to learn about the beneficial ownership information reporting requirement under FinCEN’s Corporate Transparency Act (CTA). For a full transcript, see
info_outline From filing cabinets to cloud — Records management in the digital ageTax Section Odyssey
Mark Gallegos, CPA, MST, Partner — Porte Brown LLC, discusses the importance of having processes around retaining documents for accounting firms as well as advising clients on what information is important for them to maintain. It is imperative to manage files in an efficient manner, and, often, there are different considerations for physical storage versus digital storage. AICPA resources — Having a written document retention policy for your firm is a must-do along with advising clients on taxpayer record retention. — Formalize your tax firm’s policies about retaining...
info_outline A radical approach to client relationship buildingTax Section Odyssey
In this episode, listen to a conversation with Jody Padar, the Radical CPA, about the evolving role of CPAs in the face of technological advancements. Jody emphasizes the need for proactive communication, year-round tax planning, and restructuring business models to prioritize client needs so that CPAs can maintain their relevance in the accounting industry. To learn more about Jody and her new book coming out soon, please visit her . AICPA resources — Tackle today’s top practice management issues with insights and tips from pioneers in the tax community. — “Transform”...
info_outline Deadline Dilemmas: Navigating Tax Extensions and RisksTax Section Odyssey
the new Director of the AICPA & CIMA’s Tax Practice & Ethics team joins the podcast to discuss the importance of clear communication with clients, especially during the tax filing season. Liz emphasizes the need for valid contracts and signed engagement letters before filing extensions. Common risks and pitfalls associated with not having them in place include improperly filed extensions, missed deadlines, fee disputes and potential loss of revenue. Sharing her passion for safeguarding the profession and futureproofing it for upcoming generations, she is focused on...
info_outline Digital asset playbook: Part 3 — Reporting requirementsTax Section Odyssey
Steve Turanchik from the AICPA’s Digital Assets Tax Task Force discusses upcoming reporting requirements for digital assets. Sec. 6045 will require brokers to report transactions involving digital assets, similar to how they report securities transactions currently. This is meant to combat anonymity concerns and improve tax compliance. However, the reporting rules have been delayed multiple times. The AICPA continues advocacy efforts in this area, providing comments to highlight issues and gaps in reporting requirements. AICPA resources — This hub is your go-to library for AICPA...
info_outline Clearing up BOI confusion and other tax advocacy updatesTax Section Odyssey
Melanie Lauridsen, AICPA & CIMA VP of Tax Policy & Advocacy, provides an update on several key tax initiatives that are top of mind right now. Highlights include the latest updates on beneficial ownership interest (BOI) reporting as well as what to expect from pending tax legislation. AICPA resources , The Tax Adviser, March 12, 2024 , The Tax Adviser, March 5, 2024 , The Tax Adviser, March 5, 2024 — Access resources to learn about the beneficial ownership information reporting requirement under FinCEN’s Corporate Transparency Act (CTA). — Share some...
info_outline What's under the hood — Superseded returnsTax Section Odyssey
Superseded returns — essentially a replacement for an originally filed tax return — can be a useful tool, especially as it relates to partnership returns which operate in the centralized partnership audit regime (CPAR). Learn more about when these “do-over returns” should be considered and what implications they may have for statutes of limitations. AICPA resources , July 1, 2021, The Tax Adviser — Gain answers to frequently asked questions about the centralized partnership audit regime under the Bipartisan Budget Act of 2015 (BBA). Other resources — Information from the...
info_outline Digital asset playbook: Part 2 — The loss ledgerTax Section Odyssey
The tax treatment for digital asset losses can be a complex area. Not to mention, misleading information can cause confusion for tax practitioners and taxpayers alike. Learn more about the intricacies of how realized digital asset losses are reported and why it likely makes sense to avoid having the digital asset be considered worthless or abandoned based on the current tax treatment. AICPA resources —This hub is your go-to library for AICPA guidance and resources as well as current legislation, IRS initiatives and tax advocacy project — With the prevalence of recent virtual...
info_outline Digital asset playbook: Part 1 — Questions and misconceptionsTax Section Odyssey
Misconceptions about digital asset tax compliance are common. With business tax returns now requiring taxpayers to affirm their taxable digital asset transactions, it is even more important to ask the right questions. Educating yourself and your clients in this area is important to fulfill your due diligence requirements as a tax practitioner. AICPA resources —This hub is your go-to library for AICPA guidance and resources as well as current legislation, IRS initiatives and tax advocacy projects. — Before accepting clients that are engaged in digital asset...
info_outline Worker classification 101 and the risks of misclassificationTax Section Odyssey
Daniel Moore, CPA, Owner — D.T. Moore and Company, LLC, discusses the recent Department of Labor rule on determining the classification of workers as either employees or independent contractors under the Fair Labor Standards Act. He also highlights the potential legal and financial risks associated with worker misclassification. The rule, effective on March 11, 2024, aims to align with judicial precedents, reduce misclassification risks and offer more flexibility for businesses engaging with independent contractors. Factors for worker classification under this rule are: Opportunity for...
info_outlineThe employee retention credit (ERC) continues to be a topic of conversation amongst taxpayers and their trusted advisers. Now that the IRS has placed an immediate moratorium on processing new claims to at least the end of 2023, additional considerations and challenges have manifested.
Justin Elanjian, CPA, Managing Director — Disputes, Claims & Investigations, Stout, chats with April Walker, CPA, CGMA, Lead Manager — Tax Practice & Ethics, AICPA & CIMA, and shares best practices for navigating the current ERC environment.
What you’ll learn in this episode
- Current ERC developments and how Justin is assisting his clients (0:50)
- Tips for taxpayers who have already claimed the ERC (4:55)
- How to advise clients contemplating withdrawing their claim (10:31)
- Advice for helping clients that have not yet filed for the ERC (16:22)
- Statute of limitation issues and recommendations to consider (19:50)
- Office of Professional Responsibilities (OPR) guidance around professional responsibilities around claims (26:23)
- What Justin is seeing in ERC examinations (33:05)
- Final thoughts (41:34)
- A page from Justin’s travel journal (43:45)
Related resources
- ERC guidance and resources — The rules to be eligible to take this refundable payroll tax credit are complex. This AICPA resource library will help you understand both the retroactive 2020 credit and the 2021 credit.
- ERC suspended: What happens next | Tax Section Odyssey — October 16 has sunset. Tune in to this podcast to hear fellow CPA practitioner Brandon Lagarde’s experience with the 2023 extension season and what to expect in 2024.
- Employee Retention Credit (ERC): Fact or Fiction? — Use this guide to educate yourself and others on common misconceptions surrounding the ERC.
- Employee Retention Credit Decision Tree — Download the ERC decision tree to help you with various decision points when working with clients to protect yourself/your firm from significant risk.
IRS resources
- IR-2023-169 — IRS news release on Sept. 14, 2023, ordering the immediate stop to new ERC claim processing.
- IRS ERC resource center — IRS hub for ERC information, including links to guidance, FAQs and the latest news.
- ERC eligibility checklist: Help understanding this complex credit — IRS chart is used to help taxpayers figure out if they may be eligible for the credit. Use this chart if you are considering claiming the credit or have already submitted a claim to the IRS.