Flat tax; doubts about “automatic” IRS calculations; when to shred; and other highlights from our favorite tax bloggers.

Buzzing sounds

• Tax Foundation (https://taxfoundation.org/blog): From July 2021 to September 2022, five states enacted laws to transform graduated-rate income taxes into single-rate tax structures. Where things stand with the states’ flat tax revolution.
• Institute on Taxation and Economic Policy (https://itep.org/category/blog/): Legislatures countrywide are resolved to write new tax policy, and debates are heating up. But states’ fiscal situations vary dramatically. 
• Tax Vox (https://www.taxpolicycenter.org/taxvox): Washington is abuzz over whether Congress will address Trump’s ambitious policy agenda in one bill or two. But lawmakers must confront a more important question.
• Global Taxes (https://www.globaltaxes.com/blog.php): In Case You Missed It Dept.: A circuit court has flip-flopped (again) on beneficial ownership reporting, and now the Supreme Court’s involved.
• Current Federal Tax Developments (https://www.currentfederaltaxdevelopments.com/): An overview of new final regs that identify certain micro-captive transactions as listed transactions and transactions of interest. 
• CLA (https://www.claconnect.com/en/resources?pageNum=0): A look at the new draft Form 7217, “Partner’s Report of Property Distributed by a Partnership,” to collect information such as a partnership’s basis in a property before distribution, the fair market value of the distributed property and any basis adjustments that may apply — all of which promise “a more pronounced impact on real estate partnerships.”
• Tax Notes (https://www.taxnotes.com/procedurally-taxing): Final regs on the oft-litigated Sec. 6751 “supervisory approval” leave longtime questions unanswered. Among them: What exactly happens when a penalty is “automatically calculated through electronic means?”

Shore things 

• Virginia – U.S. Tax Talk (https://us-tax.org/about-this-us-tax-blog/): Long-awaited and at last final Sec. 2801 regs — concerning gifts and bequests received by a U.S. person from certain foreign persons — resemble proposed regulations issued 10 years ago (and 17 years since Sec. 2801 was enacted). “In a nutshell,” a U.S. recipient may have to file a Form 708 (not yet available).
• Armanino (https://www.armanino.com/articles/): How tax credits and incentives are among the details biz clients should keep in mind as they consider nearshoring, offshoring and reshoring.

Tough questions

• MBK (https://www.mbkcpa.com/insights): What to remind biz clients about the Tax Cuts and Jobs Act’s Sec. 163(j), which generally limits deductions of business interest to 30% of a company’s adjusted taxable income.
• The National Association of Tax Professionals (https://blog.natptax.com/): This week’s “You Make the Call” looks at Jason, who gambles at the local casino. He is not considered to be in the trade or business of gambling but does spend a large amount of money at one casino, which gives him perks that total $2,500. During the year, Jason’s gambling pursuits have resulted in gambling winnings of $10,000, which he will report on his 1040. He also keeps a log of all his wagers and has allowable documented gambling losses of $20,000. Assuming Jason can itemize on Schedule A, what amount of gambling losses can he deduct?
• Gordon Law (https://gordonlawltd.com/blog/): What to remind them about who needs to file a FBAR.
• Summing It Up (http://blog.freedmaxick.com/summing-it-up): Nonprofits seem especially vulnerable to theft (what they may comparatively lack in juicy resources from a thief’s perspective they often make up for in a lack of security). A look at common types of theft in nonprofits, as well as security measures they can take.
• Palm Beach Accounting and Financial Services (https://www.pbafs.com/blog): Why do I exist? What is love? And for most of us, the real toughie: When can we shred our financial documents? 
• Taxjar (https://www.taxjar.com/resources/blog): A question on your ecommerce clients’ minds, whether they admit it or not: Should you invest in sales tax software or hire a tax professional? 

Consider it a warning

• Sovos (https://sovos.com/blog/): IRS due dates for 2024 information returns. (Largely unchanged from last year, though tweaked for weekends).
• Canopy (https://www.getcanopy.com/blog): In a recent podcast, Dr. Jackie Meyer, CPA, entrepreneur and author of “The Balance Sheet of Life Formula,” “shares her journey as she goes from a traditional accountant to pioneering innovative approaches in the field.” She also discusses the challenges of postpartum depression and chronic fatigue.
• Wolters Kluwer (https://www.wolterskluwer.com/en/solutions/tax-accounting-us/industry-news): How secure is the cloud?
• Sikich (https://www.sikich.com/insights/): Artificial intelligence may be changing how marketers produce content, but where does content marketing go in 2025? Two challenges B2B brands must overcome.
• Taxable Talk (http://www.taxabletalk.com/): New Jersey recently asked a client to send additional tax documents; one method suggested was email. “Is New Jersey aware of the risks of identity theft by emailing documents?  Is the Division of Taxation aware of their own guidance on this?”
• TaxProf Blog (http://taxprof.typepad.com/taxprof_blog/): Congratulations to Ellen Aprill and Beverly Moran, recent recipients of Association of American Law Schools Tax Section Lifetime Achievement Award.

Springline Advisory, a financial and business advisory firm backed by the private equity firm Trinity Hunt Partners, has partnered with Fiske Advisory LLC, a South Florida-based business accounting, tax, business valuation and advisory services firm. 

Through the partnership, Fiske will get greater access to the resources of a larger firm. Springline Advisory will in turn expand its firm portfolio with Fiske’s business advisory services such as forensic accounting, litigation support, business valuation and tax.

“Joining forces with Springline Advisory is a natural fit,” said Sheri Fiske Schultz, managing partner of Fiske Advisory LLC, in a statement Tuesday. “Their commitment to delivering exceptional client service and their strong cultural alignment with our values of professionalism, integrity and personalized attention make this partnership a powerful opportunity. Together, we’re excited to provide even greater value to our clients, increase professional development opportunities for our teams, and to build on our legacy of excellence.”

Founded in 1972, Fiske offers litigation support accounting, business valuation, and other specialized services, Fiske is consistently ranked among the top 25 litigation support accounting firms, top local providers of business valuation services, and top women-owned businesses in the region.

“We’re thrilled to welcome Fiske as a Springline founding firm. Their sterling reputation for providing exceptional advisory services, employee-centric culture, and entrepreneurial spirit complement our shared vision for growth,” said Springline Advisory CEO Tim Brackney in a statement. “This combination underscores our dedication to forging strategic partnerships that strengthen the capabilities of traditional accounting firms, allowing us to offer a broader range of services that meet the business demands of today’s dynamic middle market.” 

“My focus in advising Fiske was to find a partner that could really accelerate their growth as an advisory business while continuing to nourish and support their strong culture,” said Gary Thomson, managing partner of Thomson Consulting and advisor on the deal. “Springline Advisory’s strategic approach to growth is impressive. Partnering with Fiske, whose solid reputation in specialized areas like litigation support and business valuation is built on years of experience and deep industry knowledge, positions Springline as a high-impact player in the accounting and advisory space and elevates their competitive advantage as demand in the market continues to grow.”

The announcement follows recent strategic transactions for Springline Advisory with Dallas-based HM&M Advisory, LLC and Clark, Raymond & Co.in Redmond, Washington.

Trinity Hunt Partners, a Dallas-based PE firm, created Springline Advisory last year. The first investment was in MarksNelson, a Kansas-based firm. In addition to MarksNelson, Springline later added Indianapolis-based BGBC Advisory and made plans to expand by adding more firms around the country that serve middle-market clients. 

Insero Advisors LLC, a firm based in Rochester, New York, has received a strategic investment from Rallyday Partners, a private equity firm in Denver, to accelerate its growth and expand its service offerings.

With the investment, Insero plans to enhance its advisory services, integrate advanced technologies into its operations, double down on its “people-first” culture, and broaden its reach across new regions. Insero’s strategy will include partnering with other like-minded public accounting, advisory, and professional services firms and adding more service lines for clients.

Following the closing of the transaction, Insero will operate an alternative practice structure in which Insero & Co. CPAs, LLP, a licensed CPA firm, will provide attest services, and Insero Advisors, LLC, will provide business advisory, tax and other non-attest services. 

“Insero has always been committed to helping our clients succeed by providing solutions that address their unique challenges and opportunities,” said Insero CEO Nancy Catarisano in a statement Tuesday. “We are excited for this next step as we lead the reinvention of the public accounting and consulting industries at a national level. This partnership with Rallyday is going to enable us to get to this vision faster and smarter, and we could not be more thrilled.”

Insero & Company CPAs has frequently been ranked among Accounting Today’s Best Firms to Work For over the past decade. Beyond enhancing client services, Insero plans to continue its investment in its people, offering employees opportunities to learn, innovate, and contribute to impactful projects with a great sense of purpose.

“We are honored and inspired to partner with Nancy and the team at Insero as they redefine what it means to be a modern accounting firm,” said Rallyday managing partner Ryan Heckman in a statement. “Their clients consistently praise the firm’s ability to deliver exceptional results through a unique blend of technical expertise, operational savvy, and unwavering integrity. Insero’s commitment to innovation and personalized service truly sets them apart in the accounting and advisory space. They also share our dedication to the human side of business — prioritizing both employee development and meaningful client relationships — which makes this partnership even more compelling for Rallyday.”