Tax Section Odyssey

The IRS recently released long-awaited guidance related to PPP forgiveness with three revenue procedures — Rev. Procs. 2021-48, 2021-49 and 2021-50. Earlier in the year, the AICPA submitted a letter to the IRS requesting guidance for a range of issues which are addressed in the revenue procedures. These include: The timing for tax purposes of when PPP loan forgiveness is received or accrued How partners and partnerships may allocate PPP forgiveness as exempt income and allocate deductions resulting from expenditures attributable to the use of forgiven PPP loan proceeds How eligible partnerships subject to audit procedures under the Bipartisan Budget Act of 2015, P.L. 114-74, (BBA partnerships) may file amended returns. Consequently, amended returns remain an area of confusion for many professionals. On today’s Tax Section Odyssey episode, Jan Lewis, CPA, Tax Partner — Haddox Reid Eubank Betts PLLC, discusses some nuanced issues with amended returns, and when they can be used and when they should be used. What you’ll learn in this episode Jan’s overall perspective on the newly released guidance (2.00) Reflections around when an amended return is needed and how to broach the subject with a client (5.12) Timing issues with the employee retention credit and the Form 941X, Adjusted Employer’s Quarterly Federal Tax Return or Claim for Refund (10.12) Billing considerations with amended returns (13.37) Final thoughts from Jan (18.00) A page from Jan’s travel journal (18.48) AICPA resources AICPA Town Hall Series— Bi-monthly, high-impact news broadcast series that delivers the latest news, analysis, insights and practical guidance to accounting and finance professionals and responds to pressing issues facing the profession. Employee retention credit guidance and resources— The ERC is an important of the COVID-19 relief legislation for small businesses. This library provides the ins and outs of calculating this credit. SBA PPP resources for CPAs— Tools and resources on the ever-evolving PPP Other resources IRS Operations During COVID-19: Mission-critical functions continue — COVID-19 continues to cause delays in IRS services. The page is kept up to date to inform taxpayers and practitioners of the status of IRS functions. Note: If your podcast app does not hyperlink to resources, visit https://taxodyssey.libsyn.com to access show notes with direct links. This episode is brought to you by the AICPA’s Tax Section, your home base to maintain your professional edge. To learn more about the Tax Section, check out aicpa.org/tax or sign up for a free web tour.

In these challenging times, many CPAs may be contemplating if working in the profession among constant chaos is worth it. In this Tax Section Odyssey episode, Tony Nitti, CPA chats with April Walker, CPA, CGMA, from the AICPA Tax Section, about the current state of the profession and its future. Professionals at all levels of their careers will find something they can relate to and perhaps hear some insights worth considering. Tony also discusses what’s next for him in his career and gives a sneak peek as to what attendees will hear in the upcoming webcast — Tax Practice Quarterly: 2022 Busy Season Readiness happening on December 6 and rebroadcasted on December 8.  What you’ll learn in this episode What’s up next for Tony in his career (1.07) A preview of what Tony will cover in the upcoming AICPA webcast (3.01) Ways CPA professionals can move out of survival mode to a thriving mode (11.23) Closing thoughts (29.41) AICPA resources Tax Practice Quarterly: 2022 Busy Season Readiness — Tony Nitti, CPA, highlights the key takeaways from this year to help you proactively and effectively plan with your clients before year end with this free, CPE-eligible event for Tax Section members.  Note: If your podcast app does not hyperlink to resources, visit https://taxodyssey.libsyn.com to access show notes with direct links. This episode is brought to you by the AICPA’s Tax Section, your home base to maintain your professional edge. To learn more about the Tax Section, check out aicpa.org/tax or sign up for a free web tour.

In June 2021, the IRS released final versions of two new international-related schedules that are being added to passthrough entity returns: Schedule K-2, Partners' Distributive Share Items — International Schedule K-3, Partner's Share of Income, Deductions, Credits, etc. — International The new international-related schedules will be required for 2021 partnership and S corporation returns and 2021 Schedules K-1, Partner's Share of Income, Deductions, Credits, etc. In this Tax Section Odyssey episode, April Walker, CPA, CGMA, from the AICPA Tax Section, welcomes Amy Miller, JD, CPA, from the AICPA Tax Policy and Advocacy team, David Sites, CPA, Managing Partner of International Tax Services — Grant Thornton, Kyle Dawley, JD, CPA, Principal — Clifton Larson Allen, and Tim Chan, CPA, Managing Director — KPMG, to discuss the new schedules and related past and future AICPA efforts.  What you’ll learn in this episode Background of the AICPA Foreign Passthrough Reporting Task Force and its past activities (1.19) Summary of the September 2020 AICPA comment letter (2.08) AICPA recommendations that were adopted by the U.S. Treasury and IRS (3.24) What the IRS is trying to achieve with the new schedules (4.20) Timing of schedule furnishment to partners (6.29) Thoughts on potential postponement of the Schedules K-2 and K-3 (8.06) Status of form instructions and major issues that practitioners and clients need to be aware of (10.37) Parts II and III reporting for those with 100% U.S. source activity (14.37) Country-by-country reporting requirement (16.49) Interaction between international forms (e.g., Forms 8858 and 5471) and new reporting requirements (18.00) Filing requirements for entities that are not required to file Forms 1065 or 8865 (20.37) What an upper-tier partnership should do if a lower-tier partnership does not provide any or all of Schedule K-3 information (21.30) Next steps for the AICPA Foreign Passthrough Reporting Task Force (23.00) AICPA resources Comments on Proposed International Changes to Form 1065, Schedule K-2, and Schedule K-3 — The AICPA submitted comments on the proposed international changes to Form 1065, Schedule K-2 and Schedule K-3. The AICPA recommended transmittal of Schedule K-3 in portions and minimizing overreporting by allowing partnerships the ability to determine the reporting needs of its partners. Other resources Notice 2021-39 — The IRS announced draft 2021 instructions for Schedules K-2 and K-3 for partnership and S corporation Forms 1065, 1120-S and 8865 as well as transition relief from penalties for any incorrect or incomplete reporting on the schedules. About Form 1065 and About Form 1120-S — The recent developments section provides updates as Schedules K-2 and K-2 are finalized for the 2021 tax year.  Note: If your podcast app does not hyperlink to resources, visit https://taxodyssey.libsyn.com to access show notes with direct links. This episode is brought to you by the AICPA’s Tax Section, your home base to maintain your professional edge. To learn more about the Tax Section, check out aicpa.org/tax or sign up for a free web tour.

The Infrastructure Investment and Jobs Act was approved in the House of Representatives on Nov. 5, 2021 and is headed to President Joe Biden's desk to be signed into law. The House passed the legislation by a 228–206 vote after it passed the Senate by a 69–30 vote in August. In this Tax Section Odyssey episode, April Walker, CPA, CGMA, from the AICPA Tax Section, highlights major tax-related items contained in the bill and shares several resources available for practitioners to navigate the provisions.  What you’ll learn in this episode Status of the enactment of the Infrastructure Investment and Jobs Act (0.25) Early termination of the employee retention credit (ERC) (0.56) Cryptocurrency reporting (1.58) Build Back Better Act legislation status and related resources (3.30) Additional AICPA year-end resources (4.31) AICPA resources Year-End Tax Planning Letter for Individual Clients — Use this letter template to get the conversations started with your individual tax clients to help them take a fresh look at their current and future financial health. Year-End Tax Planning Letter for Small Business Clients — This small business client letter template provides a handy list of key considerations for this year that your clients need to factor in for next year and a jumping off point for them to contact you as their tax and financial planning adviser. 2021 Tax Year in Review Presentation for Clients — A presentation to use as a touchpoint with your clients to update them on various tax law changes and year-end reminders and encourage them to talk with you about their long-term financial plans. This template also works as a starting point for presentations to networking groups, rotary clubs, chambers of commerce and many other groups. CPA Marketing Toolkit — A toolkit to help you communicate with prospects and clients throughout your career to help you demonstrate your strength as a trusted adviser, assisting with all aspects of your clients’ financial situations. Build Back Better Act: Where we are now — Recorded on Nov. 8, 2021, Bob Keebler, CPA/PFS, reports on the latest with the Build Back Better Act. Bob will also be speaking on a related webcast on Nov. 17, 2021.  Note: If your podcast app does not hyperlink to resources, visit https://taxodyssey.libsyn.com to access show notes with direct links. This episode is brought to you by the AICPA’s Tax Section, your home base to maintain your professional edge. To learn more about the Tax Section, check out aicpa.org/tax or sign up for a free web tour.

Many tax practitioners think their clients are insulated from the world of international tax issues. However, as the business environment continues to evolve globally, tax practitioners need to make sure they are taking inventory of various international tax matters. International tax policies can dramatically affect business decisions, job creation and retention and office and plant locations. Having exposure to international tax issues will allow tax practitioners to spot potential issues and provide a value-add service to clients. In this Tax Section Odyssey episode, April Walker, CPA, CGMA, from the AICPA Tax Section and Jason Freeman JD, CPA, Managing Member — Freeman Law, highlight the latest happenings in the current and future international tax landscape. Jason provides an avenue for CPA practitioners to learn more at the upcoming Freeman Law International Tax Symposium taking place November 18-19, 2021 and shares various AICPA resources and programs.  What you’ll learn in this episode What international tax issues should a tax practitioner focus on (1.42) Overview of the Freeman Law International Tax Symposium (2.50) Why all tax practitioners need to have awareness of international tax issues (5.59) Jason’s advice for small practices without an international alliance option and how to find specialists (8.02) Potential international tax policies that could be included in future tax legislation (10.19) Reporting requirements for Form 5471, Information Return of U.S. Persons With Respect To Certain Foreign Corporations (14.41) AICPA U.S. International Tax Certificate program (16.08) A page from Jason’s travel journal (18.19) AICPA resources AICPA International Tax Hub — A compendium of international tax resources S. International Tax Certificate program — The AICPA U.S. International Tax Certificate Program provides accounting and finance professionals the competencies needed to navigate the international tax environment. Other resources The Freeman Law International Tax Symposium — Join leading tax experts from across the globe on November 18–19, 2021 as they discuss tax trends that are reshaping international taxation.  Note: If your podcast app does not hyperlink to resources, visit https://taxodyssey.libsyn.com to access show notes with direct links. This episode is brought to you by the AICPA’s Tax Section, your home base to maintain your professional edge. To learn more about the Tax Section, check out aicpa.org/tax or sign up for a free web tour.

The 2021 PCPS CPA Firm Top Issues Survey polled firms of all sizes to get a pulse on the top pressing issues impacting them. In this Tax Section Odyssey episode, April Walker, CPA, CGMA, from the AICPA Tax Section and Brad Barbour, CPA, from the AICPA Private Companies Practice Section, and host of the Small Firm Philosophy podcast discuss tax-related challenges that emerged in the 2021 CPA Firm Top Issues Survey. What you’ll learn in this episode Overview of the survey and highlights of results (1.18) What’s happening with tax law that is keeping practitioners up at night (2.07) Advice from the AICPA Tax Section to help tax practitioners remain up to date and communicate tax changes with clients (3.07) Challenges when working with the IRS (5.01) Relevant AICPA Tax Section resources (8.00) Resources available to help practitioners deal with workload and deadlines (10.24) Staffing issues (13.20) A page from Brad’s travel journal (15.41) AICPA resources Resources to address CPA firm top issues — The PCPS and the AICPA provide a variety of resources that can help address the issues identified in the 2021 PCPS CPA Firm Top Issues Survey. Also included in this toolkit is the Client Evaluation Tool. PCPS CPA Firm Top Issues Survey — Professional insights highlighting the results of the biannual firm top issues survey conducted in May and June of 2021. Small Firm Philosophy podcast — This podcast shares big ideas about small firms. You'll hear from leaders of small accounting firms about their philosophies on running a successful practice in today's rapidly changing environment. AICPA tax hub — Compendium of tax guidance and resources. IRS Hotlines Quick Reference Chart — Summary of contact telephone numbers for various IRS departments to help practitioners resolve IRS tax matters for their clients. Contacting the IRS FAQs — Answers to frequently asked questions help you navigate your correspondence and activities with the IRS. Client Termination Practitioner Checklist and Notification Letter — This checklist will guide you through some important items to keep in mind when terminating a client relationship. The notification letter is used to notify a client about the termination of your professional relationship with them and remind them of other unsettled matters. Extension Reminder Letter for Client Tax Return — Customizable letter to send to your clients to help them understand the tax return extension process and inform them of what financial information you need from them and when. Other resources IRS Operations During COVID-19: Mission-critical functions continue — COVID-19 continues to cause delays in IRS services. The page is kept up to date to inform taxpayers and practitioners of the status of IRS functions. Note: If your podcast app does not hyperlink to resources, visit https://taxodyssey.libsyn.com to access show notes with direct links. This episode is brought to you by the AICPA’s Tax Section, your home base to maintain your professional edge. To learn more about the Tax Section, check out aicpa.org/tax or sign up for a free web tour.

As virtual currencies gain more traction in the marketplace, the IRS is taking notice. Your clients may be unaware of the tax reporting requirements and the tax implications from their cryptocurrency transactions.  In this Tax Section Odyssey episode, April Walker, CPA, CGMA, Lead Manager — Tax Practice & Ethics, Association of International Certified Professional Accountants, representing AICPA & CIMA, and Shehan Chandrasekera, CPA, Head of Tax Strategy — CoinTracker, delve into the cryptic world of virtual currency and discuss practical tax compliance tips.   What you’ll learn in this episode History and the basics of cryptocurrency (1.01) Advantages and benefits of owning and transacting with cryptocurrency (2.39) Non-fungible tokens (NFTs) (4.18) The taxation of cryptocurrency and IRS guidance (5.56) Advice to clients regarding cryptocurrency activity and transaction tracking (8.39) How to answer the virtual currency question on the Form 1040 (10.53) Potential tax legislation and virtual currency (13.01) What to do when a client receives an IRS letter or notice regarding virtual currency activity (15.07) Journal of Accountancy podcast episode that focuses on the recent annual tax software survey (18.43) AICPA resources Virtual currency tax guidance and resources — Consolidation of AICPA resources, comment letters and IRS guidance to help tax practitioners advise clients on cryptocurrency complexities Blockchain & Digital Assets — Hub of resources around this increasingly-common technology Other resources Coinmarketcap.com — Website consolidating the various cryptocurrency properties and current prices IRS Notice 2014-21 —IRS guidance for individuals and businesses on the tax treatment of transactions using virtual currencies Rul. 2019-24 — IRS guidance that addresses common questions by taxpayers and tax practitioners regarding the tax treatment of a cryptocurrency hard fork The IRS also published Frequently Asked Questions on Virtual Currency Transactions for individuals who hold cryptocurrency as a capital asset and are not engaged in the trade or business of selling cryptocurrency CoinTracker — Software to help track cryptocurrency investment performance and taxes. Lukka — Data and software solutions to manage crypto assets on infrastructure built for the future of commerce. In December 2019, CPA.com announced a strategic alliance with Lukka to deliver crypto asset solutions to firms. IRS Cryptocurrency Tax Letter Guide: 6173, 6174, 6174-A, CP-2000 — Step-by-step guide to help taxpayers know what to do if they receive a cryptocurrency-related letter from the IRS Tax software: What CPAs like and dislike — Journal of Accountancy podcast where editors Alistair Nevius and Paul Bonner discuss details of the annual tax software survey. Note: If your podcast app does not hyperlink to resources, visit https://taxodyssey.libsyn.com to access show notes with direct links. This episode is brought to you by the AICPA’s Tax Section, your home base to maintain your professional edge. To learn more about the Tax Section, check out aicpa.org/tax or sign up for a free web tour.

As a tax practitioner during the revolving door of tax law changes this year, you might have asked yourself questions such as: Can I bill my clients for PPP loan assistance? How do I bill my clients for employee retention credit consultations? How do I get my long-time clients to value and agree to pay for the high-quality services that I offer each year? If any of the above apply, we have some tips. Loren Fogelman, a business coach for accounting professionals at Business Success Solution, provides some best practices on how to innovate your billing practices for the future.  What you’ll learn in this episode Low-value vs. high-value clients (2.07) Ways that firms and practitioners can attract the right kind of clients (6.52) How firms determine whether it is time to move on from a client relationship (9.18) Step-by-step process to raise rates for existing clients (11.53) How to determine package services and pricing (14.40) The lowdown on timesheets and hourly rates (18.48) Formula for best pricing (20.22) How to handle situations when clients do comparison shopping with each other (24.10) Four takeaways on clients’ perceptions of value (27.08) AICPA resources CPA Marketing Toolkit — These tools help you demonstrate your strength as a trusted adviser, assisting with all aspects of your clients’ financial situations. Other resources 10 steps to package and price your services — A free resource from Business Service Solutions that lists steps to transition from hourly rates to packages. Note: If your podcast app does not hyperlink to resources, visit https://taxodyssey.libsyn.com to access show notes with direct links. This episode is brought to you by the AICPA’s Tax Section, your home base to maintain your professional edge. To learn more about the Tax Section, check out aicpa.org/tax or sign up for a free web tour.

The impact of disasters can be life changing. Fortunately, special tax law provisions may aid in the recovery efforts for individual taxpayers and businesses alike. Depending on the circumstances, the IRS may grant additional time to file returns and pay taxes. Victims may also be able to deduct casualty losses that occurred. In this Tax Section Odyssey podcast episode, Jerry Schreiber, CPA, partner at Schreiber & Schreiber in Louisiana, the recipient of the AICPA’s 2018 Arthur J. Dixon Memorial Award and dubbed the “Master of Disaster,” along with Amy Miller, JD, CPA, Senior Manager — AICPA Tax Policy & Advocacy, Association of International Certified Professional Accountants, representing AICPA & CIMA, join April Walker, CPA, CGMA, Lead Manager — Tax Practice & Ethics, Association of International Certified Professional Accountants, representing AICPA & CIMA, to discuss tax-related disaster relief and insights to resources available for taxpayers and their CPA practitioners.    What you’ll learn in this episode Top AICPA member concerns during disasters (1.18) How tax relief is applied if either the CPA practitioner or the client is not located in the disaster area (2.30) Summary of the steps CPA practitioners can take to help clients impacted by a disaster (3.38) Tax-deductible charitable contributions (7.17) How CPA practitioners can assist their business clients in disaster situations (11.18) AICPA advocacy efforts in the disaster arena (12.36) Helpful resources in times of disasters (16.28)  AICPA resources: Disaster Tax Relief Guidance and Resources —Provides answers to frequently asked questions (FAQs) concerning a disaster, casualty or theft; how these events may impact a client’s tax returns and business affairs and a list of valuable resources to help navigate the complexities of a disaster. Disaster financial issues tools to help with disaster recovery — Tools included on this page include the Disaster and Financial Planning Guide and Disaster and Financial Planning Guide Checklists by the American Red Cross. Other resources: Guides for CPAs to providing disaster assistance — Please contact Jerry Schreiber at ghschreiber@bellsouth.net to request detailed, state-specific guides on disaster-related topics, including the disaster declaration process, tax implications of disasters, IRS filing relief, insurance company claim numbers and FAQs on charitable contributions for aid given to disaster victims. The guides are frequently updated. LA-2021-04, August 31, 2021 — IRS announces tax relief for victims of Hurricane Ida in Louisiana IR-2021-175, August 31, 2021 — IRS announces tax relief to victims of Hurricane Ida fema.gov — The official website of the Federal Emergency Management Agency Revenue Procedure 2018-08 —Provides safe harbor methods that may be used in the case of casualty and theft losses occurring as a result of any federally declared disaster. Tax Relief in Disaster Situations — IRS website housing the most recent tax relief provisions for taxpayers affected by disaster situations Publication 584, Casualty, Disaster, and Theft Loss Workbook — Designed to help to help taxpayers figure losses on personal-use property in the event of a disaster, casualty or theft. Publication 584-B, Business Casualty, Disaster, and Theft Loss Workbook — Designed to help taxpayers figure losses on business and income-producing property in the event of a disaster, casualty or theft. Note: If your podcast app does not hyperlink to resources, visit https://taxodyssey.libsyn.com to access show notes with direct links. This episode is brought to you by the AICPA’s Tax Section, your home base to maintain your professional edge. To learn more about the Tax Section, check out aicpa.org/tax or sign up for a free web tour.

The Association of International Certified Professional Accountants provides the world’s most highly skilled accountants with knowledge, insight and foresight to meet the demands of a disruptive world. It is a driving force in a dynamic profession that powers trust, opportunity and prosperity for people, businesses and economies worldwide.   But the Association can’t do its work without the dedicated group of volunteers behind the scenes. Approximately 2,500 volunteers serving across nearly 200 official groups work and are committed to protecting the public interest, speaking with the power of more than 650,000 professional accountants and students around the world. In addition, all AICPA conferences have volunteer committees that work diligently on the logistics and content creation to help plan the spectacular events held year-round.   In this Tax Section Odyssey episode, April Walker, CPA, CGMA, Lead Manager — Tax Practice & Ethics, Association of International Certified Professional Accountants, representing AICPA & CIMA, and Brandon LaGarde, CPA, JD, LLM, Director — Postlethwaite & Nettervile, chat about what it means to volunteer with the Association on official groups and with conference planning committees.   What you’ll learn in this episode Tips on making the most of a conference experience (1.07) An important tidbit Brandon learned at the recent ENGAGE 2021 conferences (7.05) Brandon’s experience volunteering with the AICPA and advice for others (8.49) How and where to submit a volunteer application in Volunteer Central (12.31) How to express interest in speaking at a conference (13.04) Overarching thoughts about volunteering at the AICPA (15.58) AICPA resources Volunteer Central – Repository of the official AICPA volunteer groups and hub for the volunteer application process. Webcasts & Conferences – Explore all the upcoming conferences and filter by such categories as topic, content type and CPE credits to find your next event. Email the Tax Section – Let us know if you’re interested in learning more about volunteer opportunities in tax.   Note: If your podcast app does not hyperlink to resources, visit https://taxodyssey.libsyn.com to access show notes with direct links. This episode is brought to you by the AICPA’s Tax Section, your home base to maintain your professional edge. To learn more about the Tax Section, check out aicpa.org/tax or sign up for a free web tour.