My Journey to the US Tax Court Practitioner Exam
As an enrolled agent (EA) with a solid foundation in tax law, I decided to take on the challenge of becoming a US Tax Court Practitioner. This decision was fueled by my ambition to provide more comprehensive services to... Jacqueline W. Pointer, EA
Deadline Postponement Regulation Found Invalid
Section 7508A was added to the Internal Revenue Code (IRC) in 1997. Section 7508A(a) authorizes the Internal Revenue Service (IRS) to postpone certain tax actions for up to one year for a taxpayer affected by a §165(i)(5)(... Thomas Gorczynski, EA, USTCP
Tax Compliance for Refugees
“Give me your tired, your poor, your huddled masses yearning to breathe free…” – Emma Lazarus All... Mary Beth Lougen, EA, USTCP
Policy in Action: What NAEA Is Fighting For
Every year, the National Association of Enrolled Agents (NAEA) works to develop policy priorities that reflect the intersection of what enrolled agents (EAs) are facing in their everyday practices and the realities of where we as an a... Michelle McCaughey, Thad Inge, Samantha Ford
What Is — and Isn’t — Included in the Inflation Reduction Act of 2022
The Inflation Reduction Act of 2022 (IRA) was signed into law by President Biden on Aug. 16, 2022. It has been championed by the administration and Congress as the most sweeping climate and energy reform in history, altho...
Important Tax News You Can Use
Penalty Relief for 2019 and 2020 Tax Returns The Internal Revenue Service (IRS) is providing relief for taxpayers from certain failure-to-file penalties with respect to tax returns for the ... TheTaxBook
An Enrolled Agent’s Guide to the Systemic Advocacy Management System
Do you know of issues at the Internal Revenue Service (IRS) that affect multiple taxpayers? Want to do something about it? Try the Systemic Advocacy Management System (SAMS). You might be thinking, “The IRS needs to a... Beth Logan, EA
Is a Remote Tax Court Exam Easier to Pass?
Circular 230 practitioners know we cannot always resolve tax controversies in the Internal Revenue Service (IRS) administrative processes within the Examination, Collection and App... Sherrill Trovato, EA, USTCP
Advocacy and the NAEA PAC: Making Your Voice Heard Where It Counts
In the last issue of Capitol Corner, we discussed how the National Association of Enrolled Agents’ (NAEA) advocacy shaped new pathways for significant improvements in tax policy and tax administration amid the roller coaster ride that was the year 20... Michelle McCaughey and Thad Inge
2021: Craziness in Action
While it certainly would be hard to top 2020, the year 2021 was quite the roller coaster ride at the federal and state levels for tax professionals, especially enrolled agents. The year began with ... Thad Inge and Michelle McCaughey
IRS Clarifies Timing of Paycheck Protection Program Loan Forgiveness Basis Increase
The Internal Revenue Service (IRS) released three new revenue procedures last month clarifying Paycheck Protection Program (PPP) loan and other federal COVID-19 grant tax-exempt income recognition, expense deductions paid with COV... Jane Ryder, EA, CPA
The Role Technology Plays in Your Practice
Wikipedia has defined technology as "the sum of any techniques, skills, methods, and processes used in the production of goods or services or in the accomplishment of objectives, such as scientific investigation.” As a n... Nayo Carter-Gray, EA
Do Not Sell Yourself Short in Representing Clients
From my interactions with the tax professional community, I believe a lot of you sell yourself short with how you price your services. Low prices mean more work to meet revenue goals and more work interferes with your ability to have appropriate work/life balance. Over... Thomas Gorczynski, EA, USTCP
Practicing Patience
Patience. That is the word that comes to mind when working to resolve a collections case with the Internal Revenue Service (IRS) throughout the COVID-19 pandemic. With continuous budget constraints and lack of manpower, the IRS faced new challenges with sh... Clarice Landreth, EA
From Expat to Entrepreneur to EA
I did not know it at the time, but my enrolled agent (EA) journey began in 2002 when my wife, Carrie, and I moved from the United States to Barcelona to pursue our Master of Business Administration (MBA) degrees. When we graduated in 2004, we... David McKeegan, EA
The Value of NAEA Advocacy
The National Association of Enrolled Agents (NAEA) engages in government relations and advocacy activities on behalf of the membership with the goal of enhancing and protecting the enrolled agent credential. After many decades working closely with... Jeffery S. Trinca and Michelle McCaughey
From Hero to Zero in 60 Seconds or Less
The following is a collection of anecdotes from members of the National Association of Enrolled Agents' (NAEA Ethics and Professional Conduct (EP&C) Committee. Names have been changed to preserve the confidentiality of our complainants and respondents. So...
Stepping up Support for IRS Funding
Let’s face it, COVID-19 has broken the Internal Revenue Service (IRS) and if Congress cares about fixing it, they will need to make a substantial investment in unbreaking it. What do we mean? Well, the National Association of Enrolled Agents (NAEA) believes that merel... Jeffery S. Trinca
COVID Leave Update: Voluntary Extension and Expansion of FFCRA Leave
As with any new presidential administration there is always a period of out with the old and in with the new. Many of you may have noticed the flurry of news reports regarding changes or new hires made by the new administration. If you are anything like... Christina N. Rogers
State-Legal Marijuana Businesses and Taxes
2020 was a big year for the marijuana industry. As the COVID-19 pandemic led to shutdowns across the country, many states labeled their marijuana dispensaries as “essential businesses,” allowing them to stay open during the stay-at-home orders. Despite their “esse... Kasia A. Parecki, JD
What President-Elect Joe Biden’s Tax Policies Could Mean for You
President-elect Joe Biden has developed a comprehensive plan to reorder the nation’s tax laws. In short, he would raise taxes on households over $400,000 and on corporations and provide myriad programs and tax cuts for working- and middle-class Americans. His ab... Jeffery S. Trinca and Michelle McCaughey
Your Questions Answered
QUESTION #1: My client, Camille, has been spending significant amounts of time reorganizing her home amid the pandemic. She spent time going through dressers, closets, the attic, the basement, and even the garage. She identified many items that sh... Catherine Martin, JD
CARES Act and Retirement Plan Distributions
As with so many things in 2020, the tax laws changed in regard to distributions from various types of retirement plans. Just as we were getting comfortable with the changes made at the end of 2019 under the Setting Every Community Up for Retirement Enhancement (SECUR... Kathryn M. Morgan, EA, USTCP
Helping Clients in the Face of COVID-19
With hundreds of millions of Americans financially impacted by COVID-19, our role as tax professionals as trusted advisors will be of utmost importance this year as we help them navigate both their tax responsibilities and COVID-19 tax benefits. The articles this month will empowe... Thomas Gorczynski, EA, USTCP
Relief Keeps Opportunity Zones an Attractive Option
The Tax Cuts and Jobs Act’s powerful new investment tool, the opportunity zone program, was intended to enable companies to make smart, potentially profitable, investments in troubled economic areas. The economic downturn brought about by COVID-19 may, at first glance, appear to ... Dustin Stamper and Michael Eickhoff
New IRS FAQs: 2020 Employment Tax Deposits/ Payments Deferral
The Coronavirus Aid, Relief, and Economic Security (CARES) Act provides employers with a deferral mechanism for the employer portion of any Social Security taxes and self-employed individuals with a deferral mechanism for the employer portion of any self-employment taxes... David E. Peritz, CPA
Notice 2020-51: The How-To Guide on Waiving and Rolling Over 2020 RMDs
The IRS released Notice 2020-51 on June 23, 2020, in an effort to answer outstanding questions surrounding the waiver of required minimum distributions (RMDs) from retirement plans for 2020 brought about by the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The ... Jennifer Kiffmeyer, JD
The State of ePayables in 2020: Why a Crisis Is the Right Time for AP Automation to Shine
Physical disruption and “work from home” mandates, furloughs and layoffs, downsizing, and outright business closures. The uncertainty gripping global markets during the COVID-19 pandemic and the challenging business climate has a silver lining for accounts payable (AP) groups. It is an oppo... Nimia Amaya
What Year-End 2020 Will Look Like
The pandemic laid waste to many tax deadlines this year. But year-end for payroll rolls around like clockwork, regardless of current events, including the pandemic. Thankfully, almost all of the upheaval everyone experienced during 2020 had only a minor impact on employers’ Forms W-2 ... Alice Gilman
Employee Payroll Tax Deferral Guidance Creates Risk
The IRS issued guidance on August 28, 2020, (Notice 2020-65) implementing a White House directive to defer certain employee payroll taxes, but the guidance raises more questions than it answers and appears to expose employers to potentially significant repayment obligations and ... Dustin Stamper
Will You Do Your Part?
In the midst of the pandemic as well as in the crucible of an exceedingly partisan political climate, it is human to want to throw your hands up in the air and feign disinterest. Often it appears as if a single voter or an individual member cannot make a difference. Yet, nothing is fart... Michael Nelson
Reimagining the Future of NAEA Education to Meet an Extraordinary Moment
For enrolled agents,i it will be a year remembered as one of the most consequential and challenging tax filing seasons in recent memory, or, perhaps ever. That’s why I am happier than ever to be a member of the National Association of Enrolled Agents (NAEA),ii becaus... Lynn Jacobs, EA, USTCP
Stimulus Bill Provides Relief to Plan Participants
Earlier in the year, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was enacted into law when it was signed by President Trump. The act is far-reaching for nearly every aspect of American life and business. This article focuses on Sections 2202 and 2203 of the CARES Act, w... John R. Kirk, JD, and Alex S. Mattingly, JD
COVID-19 Presents Opportunities for Leave Sharing
In an attempt to find a silver-lining to the current health situation, this article examines how the current national emergency for COVID-19 presents an opportunity for employers to enhance their benefits for employees. While leave-sharing programs are common in the public s... John Kirk, JD, and Alex Mattingly, JD
Recent Developments in Employment Tax Controversies
THE INTERNAL REVENUE CODE (IRC OR THE CODE) IS CHOCK-FULL of laws employers must follow. They are required to collect and remit taxes withheld from employee wages, including federal income tax and taxes under the Federal Insurance Contributions Act (FICA), which ... Marcus E. Dyer, CPA
Five Best Practices for Nonprofit Accounting in a Pandemic
There are some best practices that should be followed to ensure a nonprofit organization’s accounting needs are not only met, but maximized. Despite their diligence, nonprofit organizations are often the victims of accounting mistakes or fraud. By implementing a few best practic... Jon Osterburg, Jitasa
Revisiting Base Erosion and Anti-Abuse Tax Post-Pandemic: Final and Proposed Regulations are Worth a Second Look
In today’s economic environment, the base erosion and anti-abuse tax (BEAT) may apply to taxpayers who did not need to consider it as recently as three months ago. Considering recent economic developments and the Coronavirus Aid, Relief, and Economic Security (CA... Brian Abbey, JD
Impact of COVID-19 on Accounting for Income Taxes
The spread of COVID-19 is impacting businesses around the world. As entities consider the effects of COVID-19 on their global operations, careful consideration is needed in understanding the accounting implications of these developments. The many ramifications of the curr... April D. Little, Ciro Buttacavoli, and Adam Lehmann
Keeping a Pandemic at Arm’s Length: A COVID-19 Transfer Pricing Example
The COVID-19 pandemic is impacting global supply chains – and, as a result, international tax transfer pricing policies – at alarming speeds. Amid this chaos, companies risk making impulsive, short-term decisions with long-term effects. In order to successfully prepare for sign... Kevin Croy, CPA
As Streaming Subscriptions Surge, So Do Tax Complexities
Is your streaming company seeing a sudden surge in subscriptions? Many providers are. With consumers spending the bulk of their time at home these days, trials and signups are skyrocketing. While it can be easy for companies to get caught up in a whirlwind of widespre... Steve Lacoff
Teleworking Employees, COVID-19, and the Resulting SALT Effects
The novel coronavirus (COVID-19) pandemic is changing the way we work. More specifically, it is changing where we work. At first blush, simply working from home might not raise any tax-related red flags. Why should it matter for a business whether its employees work f... Scott Smith, JD
Data and Network Security Risks Relating to the Coronavirus Outbreak and Response
In their response to the coronavirus outbreak, employees and other stakeholders will begin remote work and there is increased pressure on an organization’s cybersecurity risk management. A likely derivative effect of the outbreak, lower in priority but still significant, is increased pressure ... John Doernberg
COVID-19 is Accelerating the Rise of the Digital Economy
If there were any lingering doubts about the necessity of digital transformation to business longevity, the coronavirus has silenced them. In a contactless world, the vast majority of interactions with customers and employees must take place virtually. With... Malcolm Cohron
What a Difference a Day Makes
In our last issue, I wrote about change and how we have to be prepared to step up to the plate and break out of the “we always did it that way” frame of reference. The year 2020 hit us like a sledge hammer. One day we were sitting in our offices working and wondering, “Will we ever get to th... Donald Rosenberg, EA
Remote Work for Enrolled Agents: How to Increase Productivity and Protect Client Data
Making the change to work from a home office presents unique challenges for enrolled agents (EAs) and other tax professionals. However, adopting a few key best practices and utilizing the right tools can help you boost productivity, maintain work-life balance, and ensure ... David McKeegan, EA
Keep an Eye on Special Payroll Tax Credits for the Rest of the Year
Congress enacted two laws — the Families First Coronavirus Response Acti (FFCRA) and the Coronavirus Aid, Relief, and Economic Security Actii (CARES Act) — in response to the coronavirus pandemic, which devastated the country late last winter. Both law... Alice Gilman, Esq.
How We Tech
This year, our annual technology issue has collided with the coronavirus (COVID-19) pandemic. Whether you consider yourself a techie or are tech-averse, COVID-19 has increased our need to use technology, for better or for worse. Our heightened dependence on technology during the pandemi... Janelle Julien
The New Normal?
The outbreak of the coronavirus (COVID-19) has caused all of us to stop in our tracks, take stock of what’s important, and reassess the plans we set out for the year. This pandemic is changing our world. The novel coronavirus has disrupted modern working life for everyone. We’re all bei... Janelle Julien