Winter 2023 Archives

Preparation

Key Considerations for Enrolled Agents in the Upcoming Tax Season

The Tax Cuts and Jobs Act (TCJA) of 2017 brought substantial changes to individual income taxes, but many of these provisions are scheduled to expire at the end of 2025. As tax practitioner... Stephen Molchan, EA

Winter 2023, Preparation, TCJA, Tax Cuts and Jobs Act, s corporation, c corporation, §199A, partnership, ROTH IRA, LLC, adjusted gross income, AGI, required minimum distribution, RMD, capital gains, SECURE Act 2.0, Alternative minimum tax, limited liability company, sole proprietor

Feature Article

Are You Prepared for the Corporate Transparency Act?

As the clock strikes midnight on January 1, 2024, the Corporate Transparency Act (CTA) will come into full effect. In simple terms, the CTA requires that every company organized in the United States identifies its beneficial owne... Fernando Juarez Hernandez, EA

Winter 2023, Feature Article, corporation, partnership, Financial Crimes Enforcement Network, FinCEN, Schedule C, LLC, beneficial ownership information, Corporate Transparency Act, CTA, limited liability company, Title 26, Title 31, National Defense Authorization Act, NDAA, terrorism, money laundering, Financial Action Task Force, FATF, financial intelligence unit, FIU, Egmont Group of Financial Intelligence, beneficial owner, inactive company, BOI report

Feature Article

2023 Energy Credits Updates and Planning

Changes made in the Inflation Reduction Act (IRA) of 2022 have created new planning opportunities for tax professionals and their clients. As enrolled agents (EAs), we need to be aware of these changes in order to better s... Patrick Knightly, EA

Winter 2023, Feature Article, s corporation, IRA, Form 8978, child tax credit, adjusted gross income, AGI, Inflation Reduction Act, §25C, residential clean energy credit, §25D, Form 5695, retirement savings contribution credit, elderly, disabled, mortgage interest credit, first-time homebuyers’ credit, ENERGY STAR®, International Energy Conservation Code, IECC, Form 8908, Form 3800, Schedule K

Feature Article

Small Business Inventory Rules Under the Tax Cuts and Jobs Act

The Tax Cuts and Jobs Act (TCJA) made a significant change to the rules for eligible small business taxpayers that were previously required to maintain inventories and utilize the accrual method of account... Patrick D. Dimmitt

Winter 2023, Feature Article, TCJA, Tax Cuts and Jobs Act, s corporation, Schedule C, NIMS, §274, inventory, Form 3115, §471(c), §1.471-1(b), §52(a), §52(b), §414(m), §414(o), nonincidental materials and supplies, applicable financial statement, AFS, §1.162-3, first-in, first-out, FIFO, §461, §1.451-3(a)(5), U.S. Securities and Exchange Commission, SEC, Form 10-K, Financial Industry Regulatory Authority, §1.446-1(c)(2), §5.01(1)(f), §22.18(6)(b), Rev. Proc. 2015-13, §22.18(6)(a), designated automatic accounting change number, DCN, §22.18(17), Rev. Proc. 2023-15

Tax News Briefs

Income Statement Verified by a CPA Is Not Substantiation

For some types of expenses, lack of substantiation can be overcome. If a taxpayer establishes that a deductible expense has been paid but cannot establish the precise amount, the Tax Court may estimate the amount under the s... TheTaxBook

Winter 2023, Tax News Briefs, CPA, Tax Court, Form 1040, §274, Cohan rule

Take Note

Leadership: What Is in It for Me?

As members of a professional association, the time and talent that we dedicate to the organization helps benefit the community as a whole. However, what we receive in return can go beyond the satisfaction of a job ... NAEA Leadership Development Committee

Winter 2023, Take Note, Schuldiner/Smollan Leadership Academy, leadership, practice management

Capitol Corner

IRS 2023 and Beyond: Transition and Transformation

It is no secret that when Danny Werfel was confirmed as Commissioner of the Internal Revenue Service (IRS) in March 2023 the agency was facing difficult times. Customer service had been struggling since the beginning ... Michelle McCaughey, Thad Inge, and Samantha Ford

Winter 2023, Capitol Corner, IRS, IRA, Form 1040, Centralized Authorization File, CAF, Form 941, employee retention tax credit, ERTC, Inflation Reduction Act, Electronic Tax Administration Advisory Committee, ETAAC, Form 940, Form 941SSPR

ICYMI

A Roundup of Recent Discussions from the NAEA WebBoard.i

QUESTION #1: I have a new client, an S corporation with two shareholders (married couple) who moved to Texas last year, that have hired me to prepare their 2022 tax return. The corporation purchases aircraft... Patrick D. Dimmitt, EA

Winter 2023, ICYMI, s corporation, partnership, NIMS, §263A, LLC, Form 1065, Rev. Proc. 2013-30, §4.03(1), §732(b), §168(i)(7), §358(a), §5.03, §752(b), §731(a)(1), Reg. §1.357-2(a), §357(c), Reg. §301.7701-3(g)(1)(i), Reg. §1.351-3(b), Reg. §1.351-3(a), §731, §351, Reg. §301.7701-3(c)(1)(v)(C), Form 2553, Reg. §301.6109-1(h)(1), EIN, Internal Revenue Manual 21.13.4.3.1, Rev. Rul. 99-5, Reg. §301.6109-1(h)(2)(ii), §735(a), Rev. Rul. 77-412, §732(c), Rev. Rul. 67-65, §708(b)(1), National Incident Management System, inventory, Form 3115, Reg. §1.417-1(b)(6)(iii)(E), Reg. §1.471-1(b)(3), §471(c), Form 1125-A

Feature Article

2023 and 2024 By the Numbers

Many numbers we use in our profession are indexed for inflation. The effective date for many of these inflation calculations is August 31st. This chart contains the amounts for 2023 and 2024 for many items we deal with on a regular basis. T... Compiled by David L. Mellem, EA

Winter 2023, Feature Article, Key numbers, tax season, 2023, 2024

Practice Builder

Non-practice Ownership Enrolled Agent Career Paths

Introduction The reality of our modern corporate world is that moonlighting is growing at a rate three times faster than the traditional workforce with no signs of slowing down.i Moonli... Dannie Lynn Fountain, EA

Winter 2023, Practice Builder, cryptocurrency, practice management, Form W-2, Form 1099, notice letter

Take Note

Updated Form W-9 Requirements for Flow-through Entities Require Foreign Partner Acknowledgement

Late last month, the Internal Revenue Service (IRS) released an updated draft of Form W-9, Request for Taxpayer Identification Number and Certification, with an updated re... Rita M. Ryan, JD

Winter 2023, Take Note, trusts, Form W-9, Schedule K-2, Schedule K-3, Form 1041, Form W-8, flowthrough entity, estates, taxpayer identification number, partnerships, beneficiary

Tax Court

Recent Passport Cases in the Tax Court

In 2015, Congress added §7345 to the Internal Revenue Code (IRC). Under §7345(a), if the Internal Revenue Service (IRS) certifies that a taxpayer has a “seriously delinquent tax debt,” a taxpayer may h... Thomas Gorczynski, EA, USTCP

Winter 2023, Tax Court, Tax Court, collection, Passport, §7345, offer in compromise, §6015, innocent spouse relief, §7345(a), debt, §7345(d), §6331, §7459(d), §6213, deficiency case, installment agreement, Meduty

Preparing for the Upcoming Tax Season: Key Updates and Tools for Tax Professionals

Editor's Message

Preparing for the Upcoming Tax Season: Key Updates and Tools for Tax Professionals

As we approach the upcoming tax season, tax professionals and taxpayers alike are gearing up to navigate the ever-changing landscape of tax laws and regulations. To help you stay on top of the latest developments and prepare for a successful tax season, this issue brings... Tynisa (Ty) Gaines, EA (She/Her)

Winter 2023, Editor's Message, practice management, 2023 tax season

Tax Tech

Are Non-fungible Tokens Collectibles?

Non-fungible tokens (NFTs) became incredibly popular during the recent cryptocurrency boom and remain actively traded as a new asset class. Non-fungible tokens are unique digital assets that can represent ownership of v... Zac McClure

Winter 2023, Tax Tech, cryptocurrency, crypto, bitcoin, Ethereum, capital gains, Non-fungible token, NFT, Form 8949, virtual, collectibles, Schedule D, §408(m)(2), Notice 2023-27, Treasury

President's Message

The Year of Possibilities

As one year closes out and a new one begins, a common tradition is to make resolutions. I don’t like resolutions. Maybe it is because they tend to frame some perceived negative behavior, such as “I will stop procrastinating,” “I will get off the couch and go the gym,” or “I will... Cynthia Leachmoore, EA

Winter 2023, President's Message, advocacy, practice management

Member Profile

Roslyn Haynie Banks, EA

Where do you reside? Williamsburg, Virginia What got you involved in the tax profession? Working on my family farm in the Northern Neck of Virginia as a child. I took an accounting course in high school, went to c... Roslyn Haynie Banks, EA

Winter 2023, Member Profile, practice management

EVP Message

What Does Inclusion Mean?

Once upon a time, there was a young naïve woman who was working for a large organization based in a big city. Having been raised in the suburbs in a relatively homogeneous community, she was not very knowledgeable about diversity. It was the early aughts, so it wasn’t really somethi... Megan Killian

Winter 2023, EVP Message, practice management

Feature Article

Tax Appointment Worksheet

The tax appointment worksheet is a tool to help you gather the needed information for new and returning clients for the 2023 tax year. This year’s worksheet has been enhanced to reflect the changes in tax law. The energy credits will be... Compiled by Mary Mellem, EA

Winter 2023, Feature Article, appointment, worksheet, practice management, 2023