Tax laws are constantly changing so it is important for CPAs and Accountants to be up to date with
the current laws. There are several ways to get the tax updates. For federal tax updates you can
subscribe to IRs.gov for their E-news for tax professionals. Another way to stay updated is to take
CPE classes. CPAs need continuing education of 40hrs per year to stay updated. By taking specific
CPE classes you can make sure you are aware of the new tax laws. The most common way to get
updates is by subscribing to commercial tax and accounting research tools like Thomson Reuters
Checkpoint, BNA Tax Management Portfolio by Bloomberg Tax, AICPA News. These services send
email notifications when there are changes in for federal tax laws as well as state laws. For updates
in state laws, you can also visit the state webpage and look in to news section for any updates.
Knowledge is power. Small businesses may choose to subscribe to commercial tax update services
that are geared towards just small businesses. They can also subscribe to the newsletter provided
from the CPA firms. Most CPAs send out weekly or monthly newsletter to their clients regarding
new tax updates. Keeping an eye on these newsletters will help small businesses ask better
questions to their tax advisors. They can also look in to IRS.gov and search for "small business" and
they can find variety of resources that they can learn. They can subscribe to IRS E-news for small
business to learn about new tax updates.
Business owners do not need to learn the regulations and code sections but they should be aware
of any tax law changes. They cannot just rely on your tax advisors for all the tax updates. If the
business owners are knowledgeable then they can ask specific questions if the tax situations in the
business have changed. Tax advisors cannot give advice if they are not aware of your tax situation.
There are several ways to get information and updates to issues that affect clients. a One is to look
at the Treasury regulations. a “Regulations are the highest administrative authority issued by the
Treasury Department. They are published in the Federal Register and codified in Title 26 of the
Code of Federal Regulations (C.F.R.). Title 26 of the C.F.R. is updated annually on April 1, and the
researcher should be sure to consult the most current version of the regulation” (Georgetown Law,
n.d.).
The next way to get updates and information on tax issues is revenue rulings. a Revenue rulings are
official interpretations “by the IRS of the Internal Revenue Code, related statuses, tax treaties and
regulations” (IRS, 2023). a This is the conclusion “of the IRS on how tax law is applied to a specific
set of facts” (IRS, 2023). a These rulings are published in the Internal Revenue Bulletin for taxpayers,
IRS personnel, and tax professionals to use (IRS, 2023).
Revenue Procedures are another way for tax professionals and small businesses to keep up with
changes in tax law. a A revenue procedure is an official statement of a procedure that affects the
rights or duties of taxpayers and others under the IRC (IRS, 2023). a Revenue procedures can give
return filing instructions or other instructions concerning the IRS’s position on a tax matter (IRS,
2023),
If a small business has a unique set of facts that information cannot be found in the first three
sources above, the business can request a private letter ruling (IRS, 2023). a This gives the taxpayer
the federal tax consequences of the set of facts (IRS, 2023). a The PLR can be requested either
before or after the set of facts occurs (IRS, 2023).
“Technical Advice Memoranda are issued only on closed transactions and provide the
interpretation of proper application of tax laws, tax treaties, regulations, revenue rulings or other
precedents” (IRS, 2023). The advice in the memo only pertains to the specific case in which the
advice is issued and is not made public until all identifying information of the taxpayer involved has
been removed (IRS, 2023).
One of the best ways to keep up with constantly changing tax laws is to attend continuing
education seminars on tax changes. Many local CPA societies offer them at a fee but a lot of
business networks, such as a chamber of commerce, banks and such will offer a luncheon with a
speaker on tax issues to their members/customers. a Small businesses should also have a CPA they
use to prepare their tax returns, audit their financial statements, and perform other accounting
services, who has access to information on tax law changes. a If the CPA does not know, he/she has
access to information to look up questions the small business owner might have.
Small business owners need to know about anything that will significantly affect their tax liability. a If
there is an issue that could be interpreted in different ways, the taxpayer needs to be aware of the
potential for the return being changed by the IRS and owing much more tax. a The taxpayer needs to
make the final decision on taking the chance that he will get a tax notice and owe more tax. a If no
attest services are provided by the CPA, keeping up with depreciation, filing sales tax and payroll tax
returns, preparing payrolls, and making payroll tax deposits are some things he/she can turn over
to the accountant to keep track of.
References:
Georgetown Law. (n.d.). a Georgetown Law Library. a Tax Research – Federal Guide. a Treasury
Regulations. a Retrieved from https://guides.ll.georgetown.edu/c.php?g=271147&p=2678773. a
IRS. (2023). Understanding IRS Guidance - A Brief Primer. a Revenue Rulings. a Retrieved from
https://www.irs.gov/newsroom/understanding-irs-guidance-a-brief-primer.
E-News subscriptions
Internal Revenue Service. (n.d.). https://www.irs.gov/newsroom/e-news-subscriptions
Sawyers, R. & Gill, S. (2021). Federal tax research. (12th ed). Cengage.
