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Key Takeaways

• Lawyers from top accounting firms partake in brief stints in the Treasury Department, with the expectation of big raises when they return.
• President Joe Biden supports a proposal to tax billionaires for the appreciation in their investments on an annual basis, a change that would prohibit some of the richest Americans from deferring their tax bills
• The Taxpayer Certainty and Disaster Tax Relief Act of 2020 generally extends through the end of 2021 for temporary tax changes originally enacted by the CARES Act.

Tax preparation and filing has been in perpetual flux. The 2022 tax season will be the third one since the pandemic hit in early 2020 and will once again not be a normal tax season. With the ever-changing tax landscape and business relief during the health crisis, it’s important that financial advisors and CPAs work together to uncover potential tax savings and help meet clients’ long-term financial goals. If you don’t take a team approach to optimizing financial plans, you’re likely missing opportunities to help your clients save on taxes and make beneficial decisions for the future.  Referrals are a major source of new business for CPA firms, but they aren’t the only way new clients find their next CPA. Here are the top stories on accounting and tax news.

Will the 2022 Income Tax Season Be Normal?

The 2022 tax return season for filing 2021 returns will be the third one since the COVID-19 pandemic hit in early 2020. Several new tax law provisions will create complications for some filers as well as potential pitfalls to avoid.

Via CPA Practice Advisor

How Accounting Giants Craft Favorable Tax Rules From Inside Government

The largest U.S. accounting firms have perfected a remarkably effective behind-the-scenes system to promote their interests in Washington. Their tax lawyers take senior jobs at the Treasury Department, where they write policies that are frequently favorable to their former corporate clients, often with the expectation that they will soon return to their old employers. The firms welcome them back with bigger titles and higher salaries. Many of the industry veterans from their government jobs, approved loopholes exploited by their former firms, gave tax breaks to former clients and rolled back efforts to rein in tax shelters — with enormous impact.

Via New York Times

Details on Expanded Tax Benefits for Individuals and Business

The Taxpayer Certainty and Disaster Tax Relief Act of 2020, enacted last December, provides several provisions to help individuals and businesses who give money to charity. The new law generally extends through the end of 2021 for temporary tax changes originally enacted by the CARES Act. Here is a rundown of these changes.

Via CPA Practice Advisor

Find Out What Leads Clients to Their CPA Firms

Referrals are a major source of new business for CPA firms, but they aren’t the only way new clients find their next CPA. Learning how clients have found your firm can help you develop strategies to ensure your firm remains a prospective option. Here are six things CPAs need to know about what brings clients to firms and important factors in deciding to hire a firm.

Via Journal of Accountancy

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Biden Backs Tax on Billionaires’ Unrealized Investment Gains

President Joe Biden said he supports a proposal to tax billionaires for the appreciation in their investments on an annual basis, a change that would prohibit some of the richest Americans from deferring their tax bills. Requiring investors to pay taxes annually on their unrealized gains would end a longstanding rule that says taxes aren’t due to the IRS unless an asset is sold. The change would require ultra-wealthy taxpayers to report on the gains and losses on their stock, bonds and other asset holdings annually, rather than being able to defer any taxes until they sell.

Via Financial Advisor Magazine

Tax-Smart Financial Planning: Why Collaboration Is Key for CPAs and Financial Advisors

Investors often don’t think about their certified public accountant (CPA) and financial advisor communicating with each other — until a situation arises where they wish they had. These two professions operate separately or, at best, meet annually to review your tax return. However, modern-day financial planning should integrate all aspects of your financial life — from estate and insurance planning to business and tax planning — to maximize your opportunities.

Via Forbes