January/February 2021
IRS Program Number: X9QQU-T-00715-20-S
4 CE

Reasonable Compensation: What Is It, Why Is It, and How the Heck Do We Get Our Clients to Understand It !
Paul S. Hamann and Jack Salewski, CPA
The beginning of the year is the best time to address reasonable compensation with your clients. Getting all your ducks in a row now will make the end of the year a breeze.

CARES Act and Retirement Plan Distributions
Kathryn M. Morgan, EA, USTCP
This article reviews the impact of the Coronavirus Aid, Relief, and Economic Security (CARES) Act on pension and retirement account distributions, the rules for 2020, the impact on future returns, and how to complete the tax forms associated with the new law.

The IRS Is Moving the Crypto Disclosure Question to the Front of Form 1040: Here Is What You Need to Know
Zac McClure and Barrett Strickland
There is a broader trend of increasing scrutiny of cryptocurrency (crypto) transactions by the IRS. Advising taxpayers of the importance of full disclosure will be key to helping them avoid future audits and penalties.

An Introduction to the Supervisorial Approval of Penalties under Internal Revenue Code Section 6751(b)
Frank Agostino and Phillip J. Colasanto
Internal Revenue Code §6751(b)’s supervisory approval requirement has been a hotly litigated issue over the past few years. This article explains how supervisory approval is obtained, how tax practitioners can verify that approval was obtained, and, if not, how to challenge whether supervisory approval was obtained.

2020 and 2021 Key Numbers
David Mellem, EA
Many numbers we use in our profession are indexed for inflation. This article provides the amounts for 2020 and 2021 for many items tax professionals deal with on a regular basis.

Your Questions Answered
Catherine Martin, JD
This article discusses charitable deductions and health savings accounts amid COVID-19.

Tax Court
Is an Identity Protection Personal Identification Number (IP PIN) a Required Element of a Taxpayer Signature for Purposes of the Assessment Statement of Limitations?
Sherrill Trovato, EA, USTCP

Robin J. Fowler (155 T.C. 7 (September 9, 2020)) answers the question of whether the Internal Revenue Service (IRS) can choose to reject a validly e-filed tax return because it is missing the identity protection personal identification number (IP PIN).

Payroll Corner
Pandemic-Related Payroll Deferrals Become Due This Year
Alice Gilman
The Coronavirus Aid, Relief, and Economic Security Act (CARES) Act allowed all employers, regardless of whether they were impacted by the coronavirus pandemic, to defer the deposit of their 6.2 percent share of Social Security taxes through the end of 2020.