Western CPE Blog
Breaking tax and accounting news and analysis from the experts at Western CPE.
Knock knock. Who’s there? Not the IRS.
By: The IRS states it will end most unannounced visits by revenue officers: In a major policy change, the IRS stated that it will end most unannounced visits by revenue officers. Instead of a surprise visit, taxpayers can now expect to receive an appointment letter, known as a 725-B, and schedule a follow-up meeting with the revenue officer.The move comes as part of the larger effort to transform operations under the new IRS Strategic Operating Plan. IRS Commissioner Daniel Werfel said, “We are taking a fresh look at how the IRS operates to better server taxpayers and the nation, and making …
Certified Management Accountant (CMA) Requirements
If you’re a finance or accounting professional looking to take your career to new heights, earning the Certified Management Accountant (CMA) designation may be the next major step for you. However, before you can sit for the CMA exam, it’s crucial to understand the various CMA exam requirements, as well as the registration process. This comprehensive guide will provide you with all the necessary information needed to plan the leg next of your career path. What’s a CMA, anyways? The Certified Management Accountant (CMA) designation signifies an enhanced expertise in financial accounting, decision support, financial analysis, strategic management, and professional …
IRS Continues to Send Erroneous Collection Notices
By: In case you haven’t heard (or opened the mail), the IRS continues to send erroneous collection notices to certain taxpayers affected by natural disasters even though they are eligible for a delayed tax return filing and payment deadline. Shocker.That’s right; many taxpayers are receiving CP14 balance due notices from the IRS telling them tax payments are currently due and that the IRS will begin to charge interest and penalties if the taxpayer doesn’t pay up months earlier than IRS guidance permits. You might recall (you don’t) that I mentioned this issue on Twitter last month with the help of funny …
The Big 4 Accounting Firms: 2023 Guide
In the wide and diverse world of finance, the Big 4 accounting firms have long stood as pillars of the industry, offering a wide range of services beyond their traditional auditing roles. In this 2023 guide, we’ll dive into the current landscape of these behemoths and see what’s shaking in their respective boardrooms. Who are the big 4 companies? The “Big 4” is a term used to reference the four largest accounting firms: Deloitte, Ernst & Young (EY), KPMG, and PricewaterhouseCoopers (PwC). Their gargantuan size and global reach put them in a unique position to shape the finance industry, drive …
Congress Receives NTA’s Mid-Year Report and Forecast on IRS Improvements
Last week, while the family and I were getting poison ivy camping in Maine, the National Taxpayer Advocate (NTA) Erin M. Collins released her statutorily mandated mid-year report to Congress. And by family, I don’t mean “The Family” as in the Mob. I’m not sure how much camping they do anyway, though I’m sure they do end up in the woods a fair amount. No, I mean my husband and our four wild, smart-mouth boys. Same thing, maybe. For background, the NTA is required by statute to submit two reports to Congress each year: an annual report issued in January …
Getting a Master’s in Taxation: Everything You Need to Know
By: Are you considering taking your career to new heights in the world of taxation? Getting a Master’s in Taxation might be right for you.Professionals with a Master’s in Taxation are found in every corner of the tax industry. You’ll find them working as tax advisors, financial managers, or tax consultants, for starters. They’re often found in corporate tax departments or in government roles in places like the Internal Revenue Service.The short version: When it comes to taxation careers, their strong tax expertise makes them highly sought after. Understanding the Value of Getting a Master’s in Taxation A Master’s in Taxation …
IRS Drops Guidance on Transferring Clean Energy Credits
Happy Friday, tax pros. In case you missed the major guidance drop out of the IRS this week, temporary and proposed regulations as well as FAQs were issued on June 14 that address direct-pay elections and transferability of certain clean energy tax credits under the Inflation Reduction Act (IRA) (P.L. 117-169) and the CHIPS and Science Act of 2022 (P.L. 117-167). The package of guidance on the Inflation Reduction Act of 2022 (P.L. 117-169) and the CHIPS and Science Act of 2022 (P.L. 117-167) includes: Proposed regulations addressing applicable entities that earn certain clean energy credits and make an …
House GOP Revs Tax Talk Engine with Release of Individual, Business Tax Package
House Republicans have revved the engine on congressional tax talks this year by releasing a trio of bills for an individual and business tax package. The following three bills, released on June 9, make up the American Families and Jobs Act package and serve as the starting line for this year’s congressional tax negotiations: Tax Cuts for Working Families Act (H.R. 3936), Small Business Jobs Act (H.R. 3937), and Build It in America Act (H.R. 3938). A Look Under the Hood at the American Families and Jobs Act Package Generally, taking a quick look under the hood shows us that …
Congress Extends Debt Limit, Cuts IRS Funding
Congress has approved a bipartisan debt limit bill, which avoids a federal government default and takes a sizeable bite out of the IRS’s much-needed makeover funding. See what I did there? The Fiscal Responsibility Act of 2023 (H.R. 3746) now heads to President Biden’s desk where he is expected to sign it as early as today. The bipartisan bill cleared the Senate on June 1 by a 63-36 vote. The House approved the measure by a 314-117 vote on May 31. Notably, the bill will suspend the federal debt limit through January 1, 2025, and immediately rescind $1.4 billion of …
Supreme Court Backs IRS’s Summons Power Notice Exception
No Notice, No Problem The U.S. Supreme Court has backed the IRS on a third-party notice exception to its summons power of financial records. Last week, the high Court unanimously held in Polselli v. IRS, No. 21-1599 (S. Ct. May 18, 2023), that the IRS in efforts to collect an assessed tax liability has authority to summon banking and other records under Internal Revenue Code § 7609(c)(2)(D(i) without issuing notice to third parties.In other words, the IRS can issue a summons to gain access to sensitive third-party financial information without notice to the account holder, and yes, even when the IRS …
CALIFORNIA CORNER: Newsom Signs Retroactive Student Tax Relief Bill
California Governor Gavin Newsom has signed a retroactive tax relief bill for current and former students impacted by economic hardships during the COVID-19 pandemic. A.B. 111, signed by Newsom on May 15, makes certain student loan debt relief and other pandemic relief provided to students through postsecondary education institutions tax free at the state level. Specifically, the temporary provisions will: exclude from an individual’s gross income student loan discharges for taxable years beginning on or after January 1, 2021, and before January 1, 2026, in conformity with the federal exclusion under the American Rescue Plan Act; exclude from an individual’s …
Capitol Hill Connection: Werfel in Hot Seat Before Senate Finance Committee
Happy first Friday after Tax Day, tax pros. You made it. And if you don’t read this because you refused to check your email today, I can’t blame you. But there was a noteworthy development on Capitol Hill this week, and as your “boots on the ground” here in Washington, D.C., let me fill you in. Werfel Sits in Congressional Hot Seat IRS Commissioner Danny Werfel felt the heat from lawmakers this week during an April 19 Senate Finance Committee (SFC) hearing examining the IRS’s budget and 2023 tax filing season. This was Werfel’s first time testifying before Congress since …
Insider Strategies to Get More Accounting Clients
By: Western CPE
Surefire Insider Strategies to Get More Accounting Clients For accounting firms, it can be difficult to know how to find new accounting clients and retain them. The teams that thrive in today’s competitive landscape—and the ones that will grow in the years to come—are the ones that work smarter, modernize their learning, and hustle harder. Here we’ll discuss surefire strategies to help you get more clients for your accounting firm. We’ll look at how to optimize search engine results (SEO), leverage social media presence, and offer discounts or free service trials, as well as other insider strategies that can help …
Technical vs Non-Technical CPE: What’s the Difference?
If you’re reading this article, you’re probably familiar with the terms CPE and CE. If by chance you are not, we’ll start there. Once we’ve hit the basics, we’ll explain the two broad categories of CPE: technical CPE and non-technical CPE. What is the difference between CPE and CE credits? Continuing professional education (CPE) and continuing education (CE) are interchangeable terms that refer to the educational requirements professionals acquire to maintain, improve, and enhance their skills and knowledge. Though the concept is the same, the terminology differs in:Industry usageCPE is more commonly used in heavily-regulated industries, such as accounting, law, …
Need-to-Know California LLC Fees: Your California LLC Guide:
Thinking of starting your own Limited Liability Company, better known as an LLC? There are California LLC fees associated with that. If you plan on starting a California business with a California LLC, some of these considering factors affect how much you’re going to spend.This convenient handbook should serve as a helpful guide to walk you in the right direction of your new California business. Owning a California LLC will require the following: the California LLC filing fees, the California LLC fee, business license, and other optional or additional fees.Fear not the fees, and we won’t forget to tell you …
Which states have the highest income tax in the US?
There are many factors people consider when choosing a place to live, including location, weather, housing, pace of life, and affordability. Another factor some may consider is the income tax rate. Though there are various types of taxes in every state, the amount of income tax you’ll pay as a resident can have a significant impact on your overall financial situation and quality of life.Some states in the U.S. have lower income tax than others, and nine states have no income tax at all. In most cases, that money is made up in a higher sales tax or a higher …
IRS: Taxpayers Who Reported Certain 2022 State Refunds as Taxable Should Consider Filing Amended Return
The IRS announced today that taxpayers who filed their federal income taxes earlier in this year’s filing season AND reported certain state 2022 tax refunds as taxable income should consider filing an amended return. To Tax or Not to Tax: That WAS The Question You might recall that on the heels of a February Procedurally Taxing post, the IRS released a statement noting that it was aware of taxpayer uncertainties involving special tax refunds or payments made by states during 2022 and was working to determine whether those payments are subject to federal tax. On February 3, the IRS recommended against …
Know Your California Income Tax Brackets
It’s important to understand the income tax bracket you fall into within your state so you can pay your state income taxes accordingly. If you’re a California taxpayer, your state income tax has some of the highest rates in the United States. California state taxes aren’t the same for everyone, and a few different factors determine which CA tax bracket you fall into. California income taxes are divided into nine income tax brackets. Where do you stand in the CA tax brackets? Read on to find out. Who has to file California state taxes? Let’s start with the basics. Are you subject …
9 States with No Income Tax
Oh, the joy of receiving a paycheck without income tax taken out. Though it may sound like a dream to some, it is the reality for those in 9 out of the 50 states. It’s not all cut and dry, though. Though these nine U.S. states don’t take state income tax out of personal income, their actual tax burden can be more complex. The Nine States With No Income Tax: AlaskaFloridaNevadaNew HampshireSouth DakotaTennesseeTexasWashingtonWyomingAnd there you have it, the nine states whose residents are free of income tax. But, before we get carried away, what’s the catch? The blue pop-out states …
In Case You Missed It: Clean Vehicle Credit Guidance, Irrevocable Trusts, and Disaster Relief
Happy Friday, tax pros. Once again, we’re wrapping up the week by getting some of the most noteworthy tax-related developments on your radar in case, you know, you missed it. March 31: Clean Vehicle Credit guidance – critical mineral and battery component requirements. The IRS has issued much anticipated proposed regulations (REG-120080-22) related to certain requirements that must be met for critical minerals and battery components for the new clean vehicle credit under the Inflation Reduction Act (IRA). As the IRS notes in IR-2023-64: The critical mineral and battery component requirements will apply to vehicles placed in service on or …