Discover Padgett

Section 199A and SALT Caps: A Tug-of-War That Could Reshape 2024

For tax practitioners following the political landscape, a unified Republican government signals potentially sweeping changes—especially with key provisions like Section 199A approaching expiration and the SALT cap’s future in doubt. However, as revealed in a recent Federal Tax Updates podcast episode with host Roger Harris, EA, and Thad Inge, Vice President at Van Scoyoc Associates, the gap between political promises and real-world implementation is often substantial. Navigating the complexities of budget reconciliation, regional divisions, and administrative obstacles will be critical for practitioners advising clients through the next year. The Reconciliation Reality Check Budget reconciliation will guide the path to tax reform under Republican control of the House, Senate, and White House. The budget reconciliation process allows the Senate to pass […]

The Unexpected 1099-K Changes Tax Professionals Must Understand Now

As the 2025 tax season begins, tax practitioners are at a critical juncture. Uncertainty in information reporting requirements, evolving digital payment thresholds, and new cryptocurrency frameworks are converging just as the IRS races to modernize decades-old systems. In a recent Federal Tax Updates podcast episode, hosts Roger Harris, EA, and Annie Schwab, CPA, interviewed Wendy Walker, VP of Regulatory Affairs at Sovos and Chair of the IRS Advisory Council, to offer insights to help practitioners prepare for these sweeping changes. “We’re kind of expecting an eleventh-hour communication drop that might change the reporting threshold,” explains Wendy, referencing speculation about a $5,000 threshold for 1099-K reporting on 2024 transactions. Practitioners must contend with statutory requirements, administrative guidance, and practical implementation challenges—all […]

Master the Latest Tax Compliance Shifts and Protect Your Clients in 2025

As we enter 2025, tax practitioners are contending with a “perfect storm” of new and evolving reporting obligations that could disrupt even the most organized firms. In a recent Federal Tax Updates podcast, industry experts Roger Harris, EA, and Annie Schwab, CPA, addressed these converging challenges—ranging from changes to 1099-K reporting thresholds to shifting beneficial ownership reporting requirements and revised identity protection measures. Their message was clear: practitioners should prepare for substantial bottlenecks during tax season and increased liability exposure. Identity Protection Measures: New Tools for Managing Client Returns The IRS introduced significant updates to its Identity Protection PIN (IP PIN) program, creating both benefits and responsibilities for tax practitioners. One key change involves dependent claims, historically a common source […]