Lowering Okay-1 penalties; one other use for property taxes; 183 is not at all times added up the identical; and different highlights from our favourite tax bloggers.
Numbers video games
- Institute on Taxation and Financial Coverage (
https://itep.org/class/weblog/ ): Fav headline of the week: “Who could make a billion-dollar mistake and never lose their jobs? Congressional tax writers.” - Present Federal Tax Developments (
https://www.currentfederaltaxdevelopments.com/ ): And one other: “Court docket frowns on skilled’s use of randomly generated Social Safety numbers.” - Tax Vox (
https://www.taxpolicycenter.org/taxvox ): Surging house values have amplified calls to chop and even abolish the property tax. As a result of property taxes rise with house values, owners might concern being squeezed by bigger tax payments: The median invoice rose about 30% between 2019 and 2024. But property taxes haven’t run amok. The true problem is discovering sensible methods to guard residents with out undermining the fiscal bedrock of native governments.
Nonetheless talkin’ about it
- Sikich (
https://www.sikich.com/insights/ ): The IRS has launched Rev. Proc. 2025-28, which gives steerage on elections for analysis expenditures beneath Sec. 70302 of the One Huge Lovely Invoice Act. This process updates the method for altering accounting strategies with the IRS and, importantly, addresses how taxpayers can retroactively apply the OBBBA’s Sec. 174A provisions for eligible small taxpayers. - Dean Dorton (
https://deandorton.com/insights/ ): For companies in research-intensive industries, one of the vital favorable OBBBA modifications is the partial restoration of instant expensing for R&E prices. Since 2022, the Tax Cuts and Jobs Act required R&E bills to be capitalized and amortized over 5 to fifteen years. The OBBBA restores the flexibility to instantly deduct home R&E expenditures for tax years starting after Dec. 31, 2025. - Berkowitz Pollack Grant (
https://www.bpbcpa.com/articles-press-releases/ ): What the OBBBA tries to do to tax exempts. - Tax Basis (
https://taxfoundation.org/weblog ): The OBBBA provision limiting deduction of playing losses may trigger people to owe taxes on imaginary earnings, incentivizing gamblers succeeding on skinny margins to exit the U.S. or attempt their luck in illicit markets. - Taxable Speak (
http://www.taxabletalk.com/ ): You and your shoppers might have seen arecord of occupations which are eligible for the OBBBA’s “No Tax on Suggestions” provision. Maybe your shopper’s occupation is on that they usually’re considering, “Great! My taxable earnings goes down!” Possibly that’ll be the case and possibly it will not.
Heading into fall
Suppose first
- Mauled Once more (
https://mauledagain.blogspot.com/ ): “Can Tax Reductions Encourage Individuals to Do What They Do not Need to Do?” Nicely, let us take a look at books and Denmark. - CLA (
https://www.claconnect.com/en/sources?pageNum=0 ): Why the UK ought to decrease or abolish, not elevate, its VAT registration threshold. - TaxProf Weblog (
http://taxprof.typepad.com/taxprof_blog/ ): This weblog will sundown on Sept. 30. All thanks and good needs to the blogger from a grateful career. - Vertex (
https://www.vertexinc.com/sources/resource-library/filter/field_asset_type/weblog?web page=0 ): An indispensable information for any shopper excited about shifting into e-commerce. - TaxConnex (
https://www.taxconnex.com/blog- ): Not a couple of e-commerce shoppers now deal through the rising platform Store. How does Store’s app deal with gross sales and is it a market facilitator? - Virginia – U.S. Tax Speak (
https://us-tax.org/about-this-us-tax-blog/ ): The well-known “183-day” is a benchmark tax check considerably blindly relied upon by overseas-born residents who spend important time within the U.S. However it has different equally vital necessities which are at all times examined in time. - World Taxes (
https://www.globaltaxes.com/weblog.php ): Earlier than leaping on the bandwagon of leaving the nation, expats ought to mull plenty of tax concerns. - EideBailly (
https://www.eidebailly.com/taxblog ): Company tax and finance practitioners usually use the time period “Everlasting Institution” and “Switch Pricing” in the identical breath. What is the connection? - Taxnotes (
https://www.taxnotes.com/procedurally-taxing ): In Moxon Corp. v. Commissioner, the Tax Court docket held that the IRS’s failure to ship a discover of deficiency to a companion’s final identified deal with voided the discover, leading to an abatement of the tax assessed based mostly on the discover. Regardless of the failure to ship the discover to the petitioner’s final identified deal with, the failed discover didn’t have an effect on the evaluation for the associated penalty. Now the taxpayer has a legitimate evaluation of the penalty in opposition to it, although it has no legal responsibility for the tax giving rise to the penalty. - Withum (
https://www.withum.com/sources/ ): Company taxpayers are inspired to organize for the Florida Sturdy Households Tax Credit score Program, which opens for functions Jan. 2 annually. This program gives a dollar-for-dollar credit score in opposition to choose Florida taxes for contributions to accepted charitable organizations.
