Foreshadowing TCJA talk; BOI ping-pong; rightful claims; and other highlights from our favorite tax bloggers. 

Meltdown mode 

• Tax Foundation (https://taxfoundation.org/blog): The Congressional Budget Office and the Joint Committee on Taxation recently published analyses of extending provisions of the TCJA that provide insights on the looming debate. 
• Tax Notes (https://www.taxnotes.com/procedurally-taxing): Can the IRS recover erroneous Employee Retention Credit refunds by assessment?
• CLA (https://www.claconnect.com/en/resources?pageNum=0): The year’s best real estate-related CLA blogs include coverage of opportunity zones, IRS disaster relief of 1031 exchanges, and implications of intangible assets, among other tax topics.
• Taxbuzz (https://www.taxbuzz.com/blog): The accounting world is “in meltdown mode” thanks to the sudden shutdown of Bench, a Canada-based accounting startup. Thousands of entrepreneurs are losing access to their financial records and tax documents. What does this mean for you? 
• Avalara (https://www.avalara.com/blog/en/north-america.html: From transaction counts in Alaska and food in Kansas to diapers in Nevada, a look at the sales tax changes that kick in on Jan. 1.

Back and forth and back

• Dean Dorton (https://deandorton.com/insights/): Fave headline of the week (clearest, too): “BOI reporting — what a mess!”
• Eide Bailly (https://www.eidebailly.com/taxblog): So it’s on again? The reporting requirement or the stay? What do we mean by “stay?” What do we mean by “mean?” After “a confusing sequence of events,” FinCEN has updated its page and says it will accept voluntary reports, but penalties for non-reporting will not be applied until further notice. 
• U of I Tax School (https://taxschool.illinois.edu/blog/): “This is certainly not over.” 
• Taxable Talk (http://www.taxabletalk.com/): “This so reminds me of a comedy, with our heads being forced to turn first to the left and then to the right.” Also, at least another topic’s clear: The 2024 Tax Offender of the Year.

Only fair

• The Rosenberg Associates (https://rosenbergassoc.com/blog/): How do you know if partners feel they’re rewarded fairly? How can a compensation system cultivate cultural change? Would any of your partners recommend your firm’s system to a peer at a firm of similar size? A recent survey might offer answers.
• The National Association of Tax Professionals (https://blog.natptax.com/): This week’s “You Make the Call” looks at Jane, who earns $35,000 a year and receives non-taxable alimony and child support. She shares custody of her 2-year-old son with Mark. Their son lives with Jane during the week and stays with Mark on weekends. Which parent is entitled to claim their son?
• TaxConnex (https://www.taxconnex.com/blog-): Whether you’re consulting for a deal or cleaning up your own operation for M&A, why sales tax history matters.
• Don’t Mess with Taxes (http://dontmesswithtaxes.typepad.com/): What to remind them about the life events that could affect taxes.
• Vertex (https://www.vertexinc.com/resources/resource-library/filter/field_asset_type/blog?page=0): The rise of new digital infrastructure, or “digitalization” has enabled opportunities for organizations — and has prompted a change in the way tax and finance teams operate. 

Let’s face it: Clients of accounting firms come with unique, continuously evolving needs, which can make streamlining operations something of a moving target. 

But in the realm of client accounting services, improvements in one area — travel and expense management — can have an outsized effect on maximizing efficiency. In pursuit of this goal, more firms are embracing integrated T&E solutions, which help them standardize their tech stacks. 

However, not all T&E management solutions are created equal. And one feature in particular can give accounting firms a distinct advantage over the competition: enabling their clients to choose whichever credit card they like. Here’s why. 

The changing face of T&E management

Traditionally, T&E inhabited separate worlds, and companies used separate applications to manage both. This legacy process has been fraught with inefficiencies, such as reconciling credit card statements and ensuring compliance with company policies. The result: a heavy load of busywork for admins — and a large number of headaches. 

Once the benefits of merging travel and expense became clear, a single platform was as inevitable as it was game-changing. Today, modern solutions have brought travel booking, expense reporting and reimbursements together and automated many of the processes to a transformative degree. For some of these solutions, the innovations don’t stop there. 

The case for flexibility

T&E platforms can differ in important ways, but the technology behind almost all of them mandates that customers switch corporate cards. Until recently, adopting the platform’s prescribed card was the only way to reap the rewards of a modern T&E solution. It’s been all or nothing. 

Changing cards, however, can easily complicate a client’s overall financial ecosystem. And some clients simply don’t want to switch. In a recent survey, 71% of business travelers said they were happy with their corporate card solution but that their expense management platform doesn’t always support their needs. So why should they have to switch? 

They don’t. Technology now exists that allows customers to bring their own cards — a flexibility that offers important advantages to accounting firms and their clients. These include: 

1. Client autonomy and satisfaction: Clients may have strategic financial agreements, loyalty programs, or credit limits with their existing cards. Offering a platform that adapts to their needs rather than forcing a change strengthens client satisfaction and trust.

2. Tech stack standardization: Platforms offering card flexibility make it easier for accounting firms to standardize their tech stacks. Why work with more vendors and more complexity than necessary? 

3. Simplified finances and comprehensive reporting: Supporting multiple credit cards lets accounting firms provide their clients with a more seamless integration into existing financial systems. Firms can more effectively capture comprehensive financial data, providing deeper insights and facilitating more robust financial analysis and reporting. It’s a holistic approach that aligns perfectly with the CAS model, by augmenting advisory capabilities with richer data sets. 

4. Empowered negotiations and business relationships: The flexibility to select credit cards can empower clients in negotiations with financial institutions, potentially securing lower fees or enhanced bonuses. By allowing any credit card, firms can foster strong business relationships with clients who appreciate the autonomy and empowerment this choice provides. 

5. Adaptability to multiple client requirements: Within the CAS model, firms may deal with a diverse clientele across various industries. Each client might have distinct policies, vendor relationships or geographic considerations that influence their choice of credit cards. An adaptable T&E platform mitigates the friction of onboarding and accommodates a wider array of client needs, ultimately enhancing a firm’s versatility and market reach. 

Looking beyond the status quo

Delivering value is what every accounting firm wants to do for its clients, and an integrated T&E platform with flexible credit card options can help. Of course, the inverse is also true — restricting clients to specific credit cards may inadvertently limit their own adaptability and obstruct clients’ existing financial strategies. 

Flexibility, adaptability and client-centric models are crucial for the future of T&E solutions, and key to what accounting firms can offer their clients. As the industry continues to innovate, platforms that marry robust features with client-first flexibility will lead the pack, setting a standard in service delivery that resonates across industries. 

The bottom line is this: Providing clients with their choice of credit card clearly shows the firm is committed to a higher level of service, deeper insights and a more personalized client experience. For accounting firms advancing their CAS practices, this could be the linchpin for delivering enhanced client satisfaction and staying competitive in a dynamic market. 

A federal court has greenlit the Internal Revenue Service to serve a John Doe summons on JustAnswer LLC, seeking information about U.S. taxpayers who were paid for answering questions as “experts” from 2017 to 2020.

The IRS wants the records of individuals who were paid by Covina, California-based JustAnswer, which operates a digital platform where the public pays for answers by professionals such as tax pros, doctors, lawyers, veterinarians and engineers.

In the court’s order, U.S. District Judge Dolly Gee for the Central District of California found there is a reasonable basis for believing that U.S. taxpayers who were paid by JustAnswer to answer questions as experts may have failed to comply with federal tax laws. The order grants the IRS permission to serve what is known as a John Doe summons on JustAnswer.

There’s no indication that JustAnswer has engaged in any wrongdoing in connection with its digital platform business, authorities said, adding that the IRS uses John Doe summonses to obtain information about individuals whose identities are unknown and who possibly violated internal revenue laws.

JustAnswer must produce records identifying U.S. taxpayers who have used its platform to earn income, along with other documents relating to their work.

“The gig economy has grown in recent years and with it, the concern for tax compliance issues has increased,” said Deputy Assistant Attorney General David Hubbert of the Justice Department’s Tax Division, in a statement. 

“Like their fellow Americans who earn income through traditional means, U.S. taxpayers who earn income from digital and other platforms that comprise the gig economy need to pay their fair share of taxes,” added IRS Commissioner Danny Werfel in a statement.