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In the blogs: It’s all in the game

Balancing craters; SST risks and trade-offs; Employee Retention Credit enforcement surge; and other highlights from our favorite tax bloggers.

It’s all in the game

  • TaxProf Blog (http://taxprof.typepad.com/taxprof_blog/): Favorite opening of the week: “Taxation is not just a legal duty; it is a game, and the best players always win.” While governments rely on laws and penalties to enforce compliance, corporations, high-net-worth individuals and elite tax strategists exploit loopholes, turning complexity into opportunity. This article argues that tax avoidance is not a flaw in the system, but an expected outcome. Modern tax law does not just permit avoidance; it actively encourages it. 
  • Dan Dorton (https://deandorton.com/insights/): Something For Everyone Dept.: Big Beautiful’s impacts on the petroleum industry, convenience stores and mining.
  • Berkowitz Pollack Grant (https://www.bpbcpa.com/articles-press-releases/): Among the various provisions of the new tax and spending bill is a significant change to the tax accounting method that condo developers must use to recognize income, removing a significant irritant to developers’ cash flow and tax efficiency.
  • Institute on Taxation and Economic Policy (https://itep.org/category/blog/): Budget-wise, there are two kinds of states: those who have acknowledged the fiscal crater caused by the new Trump tax law and those that have not. Colorado has joined the former camp, making substantial progress in closing a $750 million hole in the state’s current-year budget. Among the revenue-raising tax reforms approved are two provisions that would more equitably tax the profits of big multinationals doing business in the state.
  • Current Federal Tax Developments (https://www.currentfederaltaxdevelopments.com/): Private Letter Ruling 202535015, which addresses a taxpayer’s request for a waiver of the 60-day rollover requirement for an IRA distribution, provides insight into how the IRS applies its discretionary authority in cases involving fraud.
  • Canopy (https://www.getcanopy.com/blog): What’s the first question to ask in your marketing plan? “Who’s your ideal client?”

Risks and trade-offs

  • Taxjar (https://www.taxjar.com/resources/blog): “Sales tax compliance” can trigger a deep headache in ecommerce clients. Managing obligations across dozens of states is a challenge that pulls everyone away from what they do best (growing a business). To help alleviate this complexity, a group of state governments introduced the Streamlined Sales Tax program — which offers powerful benefits but also comes with significant risks and trade-offs.
  • Parametric (https://www.parametricportfolio.com/blog): Investors who want the advantages of a direct indexing account need to realize there will be some tracking error, which can be scary. Understanding the sources of tracking error and how it’s managed can go a long way in easing the fright.
  • Avalara (https://www.avalara.com/blog/en/north-america.html): The difference between IEEPA tariffs, Section 232 tariffs and Section 301 tariffs is subtle yet great.
  • The National Association of Tax Professionals (https://blog.natptax.com/): You’ve likely encountered situations where related-party rules throw a wrench into your usual strategy or when a sale is altered after the deal closes. Knowing how to report adjustments, handle note cancellations and accurately complete Form 6252 helps you stay in control. A few top questions on the topic from a recent webinar.

Keeping them in mind