Western CPE Blog
Breaking tax and accounting news and analysis from the experts at Western CPE.
IRS Enhances Its Online Account Features (IR-2025-28)
By: In a move that significantly improves digital accessibility for taxpayers, the IRS announced the addition of critical information return documents to the Individual Online Account. This represents another step in the agency’s ongoing modernization efforts and creates new opportunities for more streamlined tax preparation processes. More Documents Available in Online Accounts: Effective February 27, 2025, taxpayers can access Form W-2 (Wage and Tax Statement) and Form 1095-A (Health Insurance Marketplace Statement) directly through their IRS Individual Online Account. These documents are available for tax years 2023 and 2024 under the “Records and Status” tab. Tax Practitioner Planning Considerations: As tax …
What is the Annual Federal Tax Refresher Course (AFTR) and Comprehension Test?
If you’re a tax preparer looking to participate in the IRS Annual Filing Season Program (AFSP), one of the key requirements is completing the Annual Federal Tax Refresher (AFTR) course and passing its comprehension test. But what is AFTR and why do you need it to have an AFSP Record of Completion? We’ll break down why AFTR is essential for tax preparers who are interested in or renewing their Record of Completion through the AFSP. What is the AFTR Course? The Annual Federal Tax Refresher course is a six-hour educational program designed to update tax preparers on the latest changes …
How to Complete the Annual Federal Tax Refresher Course (AFTR) and Comprehension Test
Getting ready for tax season can’t start early enough for tax return preparers, especially for those looking to participate in the IRS’s Annual Filing Season Program. Tax return preparers looking to upgrade their careers with credentials through the IRS Annual Filing Season Program can expect to complete the Annual Federal Tax Refresher Course (AFTR) and the accompanying comprehensive test. If you’re planning to earn or renew your AFSP Record of Completion, here’s your step-by-step guide to navigating this important professional milestone. Step 1: Do You Need to Take the AFTR Course? It’s worth noting that not everyone will need to …
A Reminder of Real Estate Professional Status Requirements (Warren v. Comm. (T.C. Summary Opinion 2024-20))
By: 
& James Michael Warren purchased a single-family home in 2016 with plans to convert it into an assisted living facility. Throughout 2017, he renovated the property while employed full-time as an engineer at Lockheed Martin. Though some rooms remained habitable during renovation, generating $6,000 in rental income (which Warren failed to report), he claimed a $41,733 loss deduction on his Schedule E. The Taxpayer Flunked the Time Test: The IRS disallowed Warren’s claimed losses, determining he didn’t qualify as a real estate professional under Section 469(c)(7). The Tax Court agreed, highlighting two critical points:First, to qualify as a real estate professional, …
How to Complete the IRS’s Annual Filing Season Program
As tax professionals, we understand the importance of maintaining high standards of expertise and professionalism in our industry. The IRS’s Annual Filing Season Program (AFSP) gives non-credentialed tax preparers the opportunity to distinguish themselves in the marketplace by being added to the IRS’s Directory of Federal Tax Return Preparers and gaining limited representation rights before the IRS. If you’re considering participating in this voluntary program, this guide will walk you through the step-by-step process of completing the requirements and obtaining your Record of Completion.If you are interested in the Annual Filing Season Program and want to know more, check out …
FAQs Released for FinCEN Geographic Targeting Order Impacting California and Texas Border Region Money Services Businesses
On March 11, 2025, the Financial Crimes Enforcement Network (FinCEN) issued a Geographic Targeting Order (GTO) that impacts money services businesses (MSBs) operating in California and Texas border counties. The targeting order is an important development for tax professionals advising clients in the affected regions.On March 24, 2025, FAQs were released to answer 21 frequent questions on implementing the reporting requirements. What Affected California and Texas Tax Professionals Need to Know The GTO dramatically lowered the Currency Transaction Report (CTR) threshold to just $200 for MSBs operating in specific ZIP codes along the southwest border. This represents a substantial change …
Social Security Identity Verification Requirements Change for a Second Time
The Social Security Administration has eased some of its new identity verification requirements and delayed implementation from March 31, 2025 to April 14, 2025. The revised rules for identity verification represent a significant procedural change that will affect clients who prefer or need to manage their benefits through phone or in-person channels rather than online. The change is part of the Administration and DOGE’s efforts to curb fraud and abuse at all levels of government. Key Changes Effective April 14, 2025: 1. Different Requirements by Benefit Type: Retirement, Survivors, or Auxiliary Benefits: Require either online identity proofing (via my Social …
IRS Employment in Flux: Reinstatements, Voluntary Separations, and Resignations
The IRS personnel shake-ups continue. Approximately 7,000 probationary IRS employees who were terminated in February are set to return to work by April 14, but the agency has now launched three voluntary separation programs as part of a broader reduction-in-force (RIF) initiative. Acting IRS commissioner Melanie Krause has also resigned, making her the third IRS leader to do so in 2025. Court-Ordered ReinstatementsThe reinstatement comes after federal court interventions forced the IRS to bring back the terminated workers. Initially, the agency placed these employees on administrative leave in March, a move that drew criticism from Judge William Alsup of the Northern …
Executive Order Mandating Electronic Federal Tax Refunds and Payments for Taxes
By: Beginning as early as September 30, 2025, the president’s March 25, 2025, executive order “Modernizing Payments To and From America’s Bank Account” mandates all payments to and from the US Treasury be paid electronically. This includes federal tax payments and federal tax refunds.Timing of Electronic Tax Payments & Refund MandateVerbiage in the order indicates there may be a delay in implementing the order: “As soon as practicable, and to the extent permitted by law, all payments made to the Federal Government shall be processed electronically, except as specified in section 4 of this order.”The order also indicates all federal tax …
A Welcome Relief: FinCEN Lifts Beneficial Ownership Reporting Burden from U.S. Companies
In a rare regulatory win that tax professionals can actually celebrate during the height of tax season, the Financial Crimes Enforcement Network (FinCEN) announced on March 21, 2025, that it has removed beneficial ownership information (BOI) reporting requirements for all U.S. companies and U.S. persons under the Corporate Transparency Act (CTA). Following the Treasury Department’s initial announcement on March 2, 2025, this decision removes yet another administrative burden from the shoulders of already overwhelmed tax practitioners. A Silver Lining: One Less Compliance Burden At a time when tax professionals are drowning in ever-expanding regulatory requirements, the elimination of BOI reporting …
California Corner: New FinCEN Geographic Targeting Order Impacts California Border Region Money Services Businesses
Last week, the Financial Crimes Enforcement Network (FinCEN) issued a significant Geographic Targeting Order (GTO) that will directly impact money services businesses (MSBs) operating in California’s border counties. This new order represents an important development for tax professionals advising clients in the affected regions.What California Tax Professionals Need to KnowThe GTO, released on March 11, 2025, dramatically lowers the Currency Transaction Report (CTR) threshold to just $200 for MSBs operating in specific ZIP codes along the southwest border. This represents a substantial change from the standard $10,000 CTR reporting requirement that most financial institutions follow.For California tax professionals, this order …
Treasury Ends BOI Enforcement
The U.S. Treasury Department announced on March 2 that it will no longer enforce the Corporate Transparency Act (CTA) or its associated Beneficial Ownership Information (BOI) reporting requirements. This decision effectively halts a rule aimed at combating money laundering and shell company formation. In a press release, Treasury Secretary Scott Bessent called the move “a victory for common sense” and stated it aligns with “President Trump’s bold agenda to unleash American prosperity by reining in burdensome regulations, in particular for small businesses that are the backbone of the American economy.” The Treasury Department confirmed it will not impose penalties against …
California Corner: Filing 1099s with the Franchise Tax Board (FTB)
By: If you file Forms 1099 via paper or file electronically with the IRS following the IRS Combined Federal/State Filing Program (CFSF) guidelines as outlined in IRS Publication 1220, and the amounts you are reporting to the IRS and FTB are the same, you do not need to file anything separate with FTB—the information will be forwarded to FTB from the IRS. IRS Publication 1220 also lists which forms are included in the CFSF. If you have an exception that requires you to report something different for federal and state purposes, such as a different dollar amount, file separate returns with …
Five Tips for Guiding Parents through Financial Planning for College
As financial planning professionals, you often encounter parents who are overwhelmed by the prospect of saving for their children’s college education. That’s where you come in. Your role as a financial planner puts you in a position to ensure the continued development of a child’s education, helping those that go to college reach their goal of earning a degree. Your work has lasting generational benefits, but with college costs continuing to rise significantly year over year, families need your expert guidance to develop effective saving and funding strategies that foster their children’s educational future. Here are five essential tips to …
Enhance Your Practice with Personal Financial Planning (PFP) Services
As tax professionals, you develop a deep understanding of your clientele’s financial needs, their goals, and their struggles. You’re the trusted advisor for keeping their taxes compliant and maximizing their tax benefits. As client needs become more complex and tax preparation increasingly automated, forward-thinking CPAs and tax professionals are discovering new opportunities to leverage their client base with personal financial planning (PFP). This strategic expansion isn’t just about adding services—it’s about transforming your practice into a year-round advisory powerhouse. PFP for Your Client Base Starting your PFP journey doesn’t require a complete practice overhaul. Begin with your current clients who …
The Best CPE for Auditors in 2025
As an auditor, you know that staying ahead in this ever-evolving profession requires ongoing learning. The best CPE for auditors in 2025 isn’t just about checking a compliance box—it’s about sharpening your expertise, staying informed on industry changes, and ensuring you’re delivering top-notch service. Here are some must-take courses that will keep you at the top of your game. 1. Identifying Audit Risks – Financial Reporting and Revenue Recognition 1 Credit: Auditing | Available in: Self-StudyUnderstanding financial reporting and revenue recognition is essential for catching potential risks early. This course takes a deep dive into common audit risk factors, equipping …
The Best CPE for Forensic Accountants in 2025
If you’re a forensic accountant, you already know that staying one step ahead of fraudsters is no easy task. The field is constantly evolving, and keeping your skills sharp is essential to catching complex financial schemes. We’ve identified some of the best CPE for forensic accountants to make your day a little easier. 1. Accounting Fraud: Recent Cases 1 Credit: Accounting | Available in: Self-StudyThis course dives into recent high-profile fraud cases, showing you what went wrong, how the fraudsters covered their tracks, and how investigators finally cracked the case. It’s perfect for forensic accountants who want to learn from …
BOI Reporting is Back in Effect
Beneficial ownership reporting requirements are back in effect, and most companies will have a new reporting deadline of March 21, 2025
Valentines for Accountants
By: This Valentine’s Day we’re spreading the love with our new collection of accounting Valentine’s Day cards to share with your sweetheart or office bestie. We’ve created a special set of accounting Valentine’s Day cards filled with clever jokes to make your colleagues, clients, or special someone, smile. Whether you’re a CPA, a financial planner, or just someone who loves a good accounting pun, these accounting Valentines are the perfect way to spread some joy in the office. Download your Valentines for Accountants Our exclusive free Valentine’s cards feature clever, accounting-inspired messages that are sure to get a chuckle. Forget the …
Christopher Pascucci V. Comm., TCM 2024-43
$8.2 Million Madoff Theft Loss Disallowed for Lack of Ownership of Stolen Assets (Christopher Pascucci V. Comm., TCM 2024-43) Christopher Pascucci owned 16 variable life insurance policies which provided life insurance and the opportunity for investment. The policies specifically stated that the insurance company was the legal owner of assets in all of the investment accounts. Investments were made in Bernard L. Madoff Investment Securities which claimed to provide investors “a secure investment with a high rate of return using a ‘split strike conversion’ strategy.”On Dec. 11, 2008, Mr. Madoff was arrested for — and ultimately pleaded guilty to — …