Become more informed in minutes....

The IRS is offering tax-related information to entrepreneurs in anticipation of the upcoming kick-off of National Small Business Week. The IRS is a partner in the National Small Business Week celebration, and the agency will be showcasing numerous resources to help small business entrepreneurs learn and understand their tax responsibilities and benefits. Throughout this week, it will publish information in its popular tax tips e-News publications, as well as on social media platforms including Facebook, X (formerly Twitter), LinkedIn and Instagram. Tax topics during the week will include best practices for small businesses, what to know when starting a business, scams to beware of, tips for tax professionals who support small businesses, and how the IRS can help small businesses after a disaster.

 

CPA Practice Advisor

Canopy Demo Sweepstakes Webinar

Did your practice management software make this tax season more difficult than it needed to be? If so, now is the perfect time to take a look at changing.  Join us live on May 7th to see an interactive demo of Canopy. Get free CPE credit and a chance to win from $5k+ in prizes. 

Reserve my spot.

 

The Kansas Governor has signed a law amending various property tax laws. The law includes property tax exemptions for new electric generation facilities and new pollution control devices at electric generation facilities. It also discontinues property tax exemptions for certain existing electric generation facilities. Additionally, the law grants countywide retailers' sales tax authority for various counties and introduces other tax credits and deduction provisions. The law will take effect after its publication in the statute book.

 

Bloomberg Tax

The New York Governor has signed a law amending various tax provisions, including extending the itemized deduction limit for individuals with income over $10m and creating the Commercial Security tax credit program. The law also establishes standards for electronic tax administration and amends other tax provisions on property tax, sales, and use tax. The law took effect on April 20.

 

Bloomberg Tax

The Tennessee General Assembly has adjourned for the year, concluding months of tense political infighting that saw  a near-$2bn tax cut and refund for businesses receive last-minute approval. The tax cut and refund for businesses aims to resolve concerns over the state's franchise tax violating the U.S. Constitution's Commerce Clause. On the last day of the session, a measure was agreed to allow businesses to apply for retroactive refunds for the past three years in exchange for temporarily disclosing the names of businesses that sought a refund and the ranges of refund amounts — a first in Tennessee history. “Bottom line, Tennessee pays its bills,” said Republican Sen. Rusty Crowe. “The state of Tennessee wrongly took this money and we're going to pay these companies back.”

 

US News and World Report

The National Association of State Boards of Accountancy (NASBA) board of directors has named Daniel J. Dustin as its next president and chief executive. His spell in charge will begin August 1st after the retirement of Ken Bishop, the incumbent president and CEO. Mr. Dustin has been serving as NASBA's vice president of state board relations since Jan. 1, 2012. He works as an advocate for the 55 U.S. state boards of accountancy, assessing their needs and concerns while exploring new opportunities to provide support and services to NASBA's member boards as an extension of NASBA's mission.

 

Accounting Today

The PCAOB has released KPMG LLP's 2022 inspections review, which highlighted a single deficiency in tax accounting. The report revealed that 30% of the firm's audited audits had faults, covering financial statements from 2021. KPMG stands by its audits and is focused on continuous improvement.

 

Bloomberg Tax

A global insurance coalition, the Net Zero Insurance Alliance (NZIA), has been disbanded and replaced by the Forum for Insurance Transition to Net Zero (FIT) in response to companies leaving over allegations of collusion by Republican politicians in the United States. The move comes as Republican-led attacks on environmental initiatives dilute efforts to tackle climate change. The FIT will focus on sustainable insurance practices and engagement with companies in different sectors. The NZIA lost over half its members, including AXA and Lloyd's of London, after Republican officials sought information about insurers' membership. The FIT is launching with 46 organizations, including Aviva and Generali, and will be supported by a legal team. Regulators from various countries are also involved. Other UN-backed financial coalitions are also trying to prevent member departures.

 

Reuters

The IRS has unveiled a draft of the first crypto tax reporting form, 1099-DA, which aims to translate the tax reporting information required by proposed regulations into specific boxes. The form is set to take effect in 2025 and signals the impending finalization of crypto tax regulations. The new form serves the goal of boosting tax revenue from digital asset transactions, estimated at $28bn over a decade. However, the form's definition of a broker appears to impose uniform reporting requirements on diverse crypto entities, potentially reshaping the industry landscape. Taxpayers will face challenges in complying with the form, including providing sensitive personal information and verifying the accuracy of broker-issued forms. The IRS's new form will strengthen its ability to collect taxes from crypto transactions and foster compliance across the industry. However, the IRS will need to confront the challenge of handling a large amount of data collected through the forms. The possession of this data should deter tax evasion.

 

Bloomberg Tax

Last year, world leaders, corporate executives, and academic experts gathered at Britain's Bletchley Park for the world's first global artificial intelligence (AI) summit. Now, the second AI Safety Summit, co-hosted by Britain and South Korea, will address the limitations and regulation of artificial intelligence. Martha Bennett, a senior analyst at Forrester, believes it will be difficult to move beyond the broad agreement reached at the first summit. The focus has shifted from existential risk to the resources needed for AI's development, such as data and electricity. Experts warn against relying solely on scientific breakthroughs and lucrative financing efforts for AI's future. Questions around copyright, data scarcity, and environmental impact are also expected to be discussed. However, some key attendees have declined invitations to the virtual event in Seoul. Despite the lower attendance, the summit aims to build on the momentum of Bletchley Park and make progress in AI safety and innovation.

 

Reuters

The EU carbon border adjustment mechanism (CBAM) is a significant step in addressing climate change. It aims to create a level playing field for European companies by placing greenhouse gas emissions on equal footing with non-EU importers. However, there are concerns about its effectiveness and implications for developing economies. EY's Richard J. Albert and George Riddell offer a guide to the new rules. Non-EU producers will face competitive pressure and potential declines in sales and corporate value. The EU's approach has been questioned by emerging and developing countries, particularly regarding exemptions for least developed countries. The CBAM is expected to reshape the economic landscape in Asia-Pacific and Africa, with potential trade disruptions and GDP loss.

 

Bloomberg Tax