CalCPA Daily Clips

Jan. 12, 2022

MEMBERS IN THE NEWS
(Dan Herron and Sheryl Rowling quoted.)
This pandemic tax filing season is ‘dumpster fire 2.0’
Millions of mass affluent Americans face yet another turbulent tax season this year, as special payments sent out during the COVID pandemic scramble their federal returns — and potentially their refunds.
AccountingToday
https://www.accountingtoday.com/news/pandemic-child-tax-credits-and-a-backlogged-irs-make-this-tax-filing-season-dumpster-fire-2-0

BUSINESS
Adjust your mindset to improve every negotiation
Letting nerves run unchecked leads to failure in negotiation. For best results, don’t focus too heavily on the conflict that goes with negotiating.
FM
https://www.fm-magazine.com/news/2022/jan/adjust-mindset-improve-negotiation.html

PERSONAL FINANCE
Debt burden on the rise for households
More than one-third of Americans say the past year has brought more challenging financial circumstances as prices rise and as debt increases again, according to NerdWallet. On average, households with debt have seen a 6.2% increase in what they owe compared with a year ago.
CNBC
https://www.cnbc.com/2022/01/11/amid-rising-prices-us-households-fall-deeper-in-debt.html
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Investors urged to beware of crypto volatility, scams
Scams related to cryptocurrencies and digital assets are a top threat to investors, according to the North American Securities Administrators Association, which urges caution before buying into volatile digital instruments.
CNBC
https://www.cnbc.com/2022/01/11/crypto-scams-are-the-top-threat-to-investors-by-far-say-regulators.html

POLITICS & POLICY
California Governor Considers Cannabis Tax Reform to Prevent Industry Rebellion
Legit businesses are struggling with the state’s onerous regulations.
Green Entrepreneur
https://www.greenentrepreneur.com/article/412620

PROFESSION
Practitioners wary of IRS service lapses as tax season begins
Continuing problems in timely processing of returns and correspondence might bring more headaches.
Journal of Accountancy
https://www.journalofaccountancy.com/news/2022/jan/practitioners-wary-irs-service-lapses.html
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Accounting firms look abroad to find talent
Accounting firms are increasingly tapping into the global workforce to find talent, looking to locales such as India and the Philippines. But challenges exist, such as tight labor markets in other countries and issues with keeping data protected outside domestic markets.
ROI-NJ
https://www.roi-nj.com/2022/01/11/finance/looking-abroad-as-accounting-firms-struggle-to-find-workers-more-and-more-are-expanding-overseas/
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Growing Advisory While Keeping Compliance’s Value
Compliance services can sometimes get a pretty bad rep since it usually consists of the same old tasks. However, these same repetitive functions can highlight some precious insights that allow accountants to bring much more to the table than an annual or monthly report.
AccountingWeb
https://www.accountingweb.com/practice/practice-excellence/growing-advisory-while-keeping-compliances-value

REGULATORY
Powell: Fed cryptocurrency report coming within weeks
Federal Reserve Chair Jerome Powell has told the Senate banking committee a Fed report on cryptocurrencies “is ready to go, and I expect we will drop it — I hate to say this again — in coming weeks.” The report is expected to explore the possibility of creating a central bank digital currency.
The Block
https://www.theblockcrypto.com/linked/129900/powell-says-delayed-fed-report-on-digital-currencies-will-be-released-within-weeks

TAX
The IRS is ‘buried’ in paper after ‘most challenging’ year for taxpayers. Why it matters for 2022 tax season.
Declaring that last year was the worst tax filing season ever for Americans, the national taxpayer advocate told Congress in a report Wednesday that 2022 could see a similar logjam of returns and refunds.
USAToday
https://www.usatoday.com/story/money/2022/01/12/irs-2022-tax-season-challenges/9161470002/
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List of State Income Tax Deadlines for 2022
So far, most states have gotten on the April 18 bandwagon, but a few states have different deadlines.
CPA Practice Advisor
https://www.cpapracticeadvisor.com/tax-compliance/news/21252625/list-of-state-income-tax-deadlines-for-2022
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Make a killing on NFTs and crypto? The IRS may tax them differently
In the digital realm, all taxes aren’t necessarily equal. Amid a cryptocurrency and non-fungible token (NFT) boom, wealthy owners may pay a different tax rate on investment growth in such holdings.
CNBC
https://www.cnbc.com/2022/01/11/make-a-killing-on-nfts-and-crypto-the-irs-may-tax-them-differently.html