CalCPA Daily Clips

Jan. 4, 2022

BUSINESS
Here’s what’s ahead for California businesses in 2022
Clogged supply chains. Hiring struggles. New mask rules. A virus that trampled right over return-to-work schedules. Last year was chaotic for many businesses across California. What does 2022 hold? Layered on top of pandemic uncertainty is the question of what policymakers might do for — and to — businesses.
CalMatters
https://calmatters.org/economy/2022/01/california-economy-2022/
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Best career development advice in 2021
These tips can lead to meaningful career progress in the new year.
FM
https://www.fm-magazine.com/news/2022/jan/best-career-development-advice-2021.html
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Talent Attraction & Retention: Supporting a Flexible Work Environment
Employees across the country have been empowered by the transformations in the world of work. The priorities of employees have evolved post pandemic.
CPA Practice Advisor
https://www.cpapracticeadvisor.com/payroll/article/21250002/talent-attraction-retention-supporting-a-flexible-work-environment

PERSONAL FINANCE
The benefits of starting 401(k) contributions early
Getting an early start can be a wise move for people who want to max out 401(k) contributions for the year, and this approach also allows more time for money to be in the market. It’s important to understand the specific nature of a plan and any employer match.
CNBC
https://www.cnbc.com/2022/01/03/nows-the-time-to-boost-401k-contributions-for-2022.html
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Are your planning parameters still accurate?
January is a good time to reevaluate assumptions that have gone into making your financial plan to ensure they remain accurate. New circumstances, such as changes in the health of relatives, might require a fresh approach.
Kiplinger
https://www.kiplinger.com/retirement/retirement-planning/604012/when-it-comes-to-your-financial-plan-you-cant-trust-a
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Planning with charitable lead trusts
In today’s low-interest-rate environment, charitable lead annuity trusts and charitable lead unitrusts offer a powerful and tax-friendly way for clients to meet philanthropic goals while preserving family wealth.
The Tax Adviser
https://www.thetaxadviser.com/issues/2021/dec/planning-charitable-lead-trusts.html

POLITICS & POLICY
Legislature faces difficult politics of plenty
After a four-month sabbatical, state legislators returned to Sacramento Monday for a new session that will be dominated by several seemingly contradictory factors.
CalMatters
https://calmatters.org/commentary/2022/01/california-legislature-budget-windfall-taxes/

PROFESSION
Getting ready for the 2022 tax season
It’s the start of another tax season, and while many preparers are cautiously optimistic that this year will mark a return to some sort of “normalcy,” it is likely that keeping pace with legislative changes, late information from clients, and potential filing extensions will result in another complex tax season.
AccountingToday
https://www.accountingtoday.com/news/getting-ready-for-the-2022-tax-season

REGULATORY
Private companies prepare for lease accounting standard
The Financial Accounting Standards Board’s lease accounting standard takes effect this year for private companies. Here is an overview of some of the issues companies will face to get ready for compliance when they file their first annual report of 2022.
Bloomberg Tax
https://news.bloombergtax.com/financial-accounting/countdown-starts-to-private-company-lease-accounting-overhaul

TAX
States want Supreme Court to weigh in on SALT cap
Connecticut, Maryland, New Jersey and New York want a Supreme Court review of a lower court decision that upholds the cap on federal deductions for state and local taxes. The states say the “deduction is rooted in the structural limitations placed on the federal government by basic federalism principles in the Constitution.”
The Hill
https://thehill.com/policy/finance/588092-blue-states-ask-supreme-court-to-hear-challenge-to-salt-cap
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The taxation of NFTs
It is often the case that new products, services or other income streams develop in the U.S. economy before Congress and the Internal Revenue Service figure out if existing tax provisions apply or if a new law or guidance is necessary to let taxpayers know the proper treatment of these new developments. Such has been the case with the growth of the digital economy and virtual currencies.
AccountingToday
https://www.accountingtoday.com/opinion/tax-strategy-taxation-of-non-fungible-tokens
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These factors could lead to a smaller tax refund
Taxpayers accustomed to receiving refunds might need to plan for receiving less money than that in a typical year. Several factors, including advance child tax credit payments and a continued pause in student-loan payments, could lead to a smaller refund.
CNBC
https://www.cnbc.com/2022/01/03/dont-count-on-that-tax-refund-yet-why-it-may-be-smaller-this-year.html
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IRS sending form for families who receive child tax credit
The Internal Revenue Service is sending out Letter 6419, a form that shows taxpayers how much they received through the enhanced child tax credit last year. The form is helpful as families look to receive the second half of the credit when they file tax returns.
CNBC
https://www.cnbc.com/2022/01/03/families-who-got-the-child-tax-credit-need-to-look-out-for-this-letter.html
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IRS starts requiring e-filing of Form 1024
The service has revised Form 1024 to permit electronic filing and is beginning to require applications for tax-exempt status to be e-filed.
AccountingToday
https://www.accountingtoday.com/news/irs-requires-e-filing-of-form-1024