January 5, 2021 | TaxConnections

05 Jan 2021

Frequently Asked Questions: Sales And Use Taxes Economic Nexus And Wayfair (Part 2)

PART 2: IF A TAXPAYER MEETS THE SALES THRESHOLD IN A STATE, WHAT MUST WE DO NOW?

These frequently asked questions build on our prior series of FAQs.

Q: Once a taxpayer meets the sales threshold of a state, what must be done to be compliant with the state’s tax laws?

A: You must register for sales and use taxes with the state. Depending on the state and jurisdiction, you may need to register with the local jurisdiction or parish. Please note some states may require you to register with the state’s Secretary of State before obtaining a sales tax permit from the state.

Q: How often will I need to file sales and use tax returns?

A: It will depend on each state. The state will assign you a filing frequency based on certain criteria it has established. The frequency will be either monthly, quarterly or yearly.

Written by George Rendziperis, J.D. | Posted in Economic Nexus • Sales And Use Tax • Wayfair Case

05 Jan 2021

FinCEN Intends To Amend FBAR Regulations To Include Virtual Currency

Every year, U.S. persons are required to file FinCEN Form 114, Report of Foreign Bank and Financial Accounts (“FBAR”), if the total amount of their foreign accounts exceed $10,000. Under current regulations, reportable foreign accounts include bank accounts, securities accounts, and certain other specified financial accounts (e.g., insurance accounts with cash values). See 31 C.F.R. § 1010.350(c).

On New Year’s Eve, however, the Financial Crimes Enforcement Network (“FinCEN”) announced its intent to broaden the list of reportable accounts to include virtual currency. Specifically, FinCEN issued a notice that provides:

Written by Matthew Roberts | Posted in FBAR Regulations • FinCEN • Virtual Currency

05 Jan 2021

IRS: Economic Impact Payments On Their Way

The Internal Revenue Service urged people to visit IRS.gov for the most current information on the second round of Economic Impact Payments rather than calling the agency or their financial institutions or tax software providers. IRS phone assistors do not have additional information beyond what’s available on IRS.gov.

The IRS and the Treasury Department began issuing a second round of Economic Impact Payments, often referred to as stimulus payments, last week.

The direct deposit payments may take several days to post to individual accounts. Some Americans may have seen the direct deposit payments as pending or as provisional payments in their accounts before the scheduled payment date of January 4, 2021, which is the official date funds are available.

Written by IRS | Posted in Economic Impact Payments • IRS Notice

05 Jan 2021

Tax Advisor Helps Other Tax Advisors “Reduce Client’s Taxes By 50%, Almost 100% Of The Time

TaxConnections has attracted a large community of tax advisors helping and supporting each other. TaxConnections is an asset for tax advisors who want to add services outsourcing work to other tax advisors through TaxConnections referral network. In the weeks ahead, I want to bring to your attention to tax advisors who are supporting tax advisors. It is important to learn what our members are doing to adapt their tax practices to the market while helping other tax professionals increase revenue.

Keith Youngren helps tax advisors by supporting them in providing tax planning services to clients. Keith serves you by offering “Foundational Planning” to your clients, including providing trust and legal documents through legal counsel.

Written by TaxConnections Admin | Posted in Increase Tax Firm Revenue • Outsource Tax Planning

05 Jan 2021

Tax Policy Observations Of COVID-19 Legislation

The FFCRA and CARES Act enacted in March 2020 and CAA-21 enacted Dec. 27, 2020 provide a variety of financial relief to individuals and small businesses. The recovery rebates (called “economic impact payments” by the IRS) in the CARES act ($1,200 per adult and $500 for child under age 17) helped over 160 million people. The $600 payments in CAA-21 should help a similar number.

Is that the best way to help? There was also increased and longer payments of unemployment compensation to clearly help those who lost their jobs. There were changes to allow those with sufficient retirements accounts to pull out up to $100,000 without penalty and even to pick it up into income over three years as well as to pay it back.

Written by Annette Nellen | Posted in COVID - 19 Legislation • Tax Policy Legislation