Inevitable tech crossroads; ‘game-changer’ for a key deadline; nuptials and deductions; and other highlights from our favorite tax bloggers.
Toil and trouble
* Tax Vox (https://www.taxpolicycenter.org/taxvox): Two of the nation’s most prominent chipmakers have agreed to pay the U.S. government 15% of their revenues from the sale of AI chips to China. In effect, the firms will be paying an export tax, though neither they nor the administration describes it this way. One reason: Such a levy appears to be unconstitutional.
* Withum (https://www.withum.com/resources/): Starting in 2025, the 1099-DA will require brokers to report detailed crypto sales and exchange transactions directly to the IRS. But this form only reflects broker platform activity. For investors with diverse digital holdings, this means the IRS may see only part of the picture, and that’s where trouble begins.
* Berkowitz Pollack Grant (https://www.bpbcpa.com/articles-press-releases/): The One Big Beautiful Bill Act dramatically changes prior tax laws that encouraged individual and business taxpayers to invest in clean energy solutions. In many cases, taxpayers have a narrow window of opportunity to claim these credits — a window closing much faster than initially planned.
* Institute on Taxation and Economic Policy (https://itep.org/category/blog/): The Trump megabill hands the richest 1% a trillion-dollar windfall while gutting funding for health care, education and disaster relief. State and local leaders must step up.
* Wiss (https://wiss.com/insights/read/): What to remind them about the end of federal governmental paper checks, now just a month and change away.
* CLA (https://www.claconnect.com/en/resources?pageNum=0): The OBBBA greatly expands business interest deduction limits, a boon to capital-intensive businesses. A review of key provisions to pinpoint opportunities for increasing biz clients’ interest deductions.
* Trout CPA (https://www.troutcpa.com/blog): A look at the OBBBA’s impact on architecture, engineering and construction, including bonus depreciation and Sec. 179 expensing.
* Taxpayer Advocate Service (https://www.taxpayeradvocate.irs.gov/taxnews-information/blogs-nta/): Push Until It Gives Dept.: IRS Appeals continues to move toward greater transparency by sharing appeals case memoranda with taxpayers.
Different outcomes
* Canopy (https://www.getcanopy.com/blog: Accounting firms have access to more technology than ever, but at some point, every firm reaches the same crossroads: Do you keep layering on tools and integrations to solve this problem, or do you consolidate to an all-in-one platform that handles it all? Both paths have their trade-offs, but they lead to different outcomes.
* Current Federal Tax Developments (https://www.currentfederaltaxdevelopments.com/): A look at the IRS and Treasury’s new proposed regs aimed at modifying information reporting obligations concerning sales or exchanges of certain partnership interests. These proposed changes affect partnerships and seek to alleviate existing compliance burdens by refining the timing of certain reporting requirements for Section 751(a) exchanges.
* The Tax Times (https://www.thetaxtimes.com): The Second Circuit’s recent decision in Buller et al. v. Commissioner of Internal Revenue is a game-changer for taxpayers who miss the critical 90-day deadline to petition after receiving an IRS notice of deficiency.
* Taxnotes (https://www.taxnotes.com/procedurally-taxing): Not all supposedly improper collection activity is equal: The recent Bowen v. United States involves damages stemming from allegations of IRS employee misconduct during a collection due process case. The taxpayer alleged that during a CDP proceeding, when IRS collection is generally stayed, a revenue officer demanded financial documents and made defamatory statements about the taxpayer.
