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Is The Justification For The United States’ System of Worldwide Taxation A Hoax? – Part I

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The U.S. is one of the only countries left in the world that still taxes its citizens and residents on their worldwide income, regardless of where it is earned. In contrast, other countries practice a territorial tax system. Under a territorial tax system, taxation is limited to taxation of income from sources within a country’s boundaries, no matter who derives it – a citizen, resident, or anyone else. Territorial tax systems accommodate other tax systems in the simplest way possible – by not extending their own.

No other topic generates more debate than the U.S. policy of taxing its citizens and residents on their worldwide income. Have you ever stopped to think about what the justification is for the U.S.’s system of worldwide taxation? Does it make sense? Read More

Court Authorizes IRS To Issue Summonses…

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Court Authorizes IRS To Issue Summonses For Records of U.S. Taxpayers Who Used Sovereign Management And Legal Ltd. to Conceal Offshore Accounts, Assets or Entities

On December 19, 2014 the DoJ announced that U.S. District Judge Vernon S. Broderick entered an order on December 18, 2014 authorizing the IRS to issue summonses requiring:

• Federal Express Corporation, doing business as FedEx Express,
• FedEx Ground Package System Inc., aka FedEx Ground,
• DHL Express (DHL),
• United Parcel Service Inc. (UPS), Read More

Don’t Let The Recent Funding Cuts To IRS Give You A False Sense Of Complacency

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With just weeks remaining before the new tax season opens, Congress walloped the IRS with $341 million in budget cuts. That’s in addition to earlier slashes to the IRS budget of more than $1 billion since 2010, resulting in nearly 13,000 employee layoffs.

Is that a wise choice or an act of spite toward an unpopular agency?

Congress touted that the cuts are much needed but to others it looks like something else – revenge. You see many in Congress are still fuming about this year’s earlier tax-exempt organization scandal and those missing Lerner emails. There are other members of Congress that are angry about reports of wasteful spending. And still there are other members of Congress that see this as a great opportunity to keep IRS from properly implementing pieces of the Affordable Care Act – yes, the same Act that Congress pushed Read More

Countries The IRS Has An Exchange of Tax Information Agreement

U.S.Treasury To Insure Money Market Mutual Funds

The following are the countries with which the United States has in effect an income tax or other convention or bilateral agreement relating to the exchange of tax information within the meaning of section 6103(k)(4) pursuant to which the United States agrees to provide, as well as receive, information and under which the competent authority is the Secretary of the Treasury or his delegate:

Antigua & Barbuda
Aruba
Australia
Austria
Azerbaijan Read More

Countries That, So Far, Are Exchanging FATCA Information With The USA

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The following list identifies the countries with which the automatic exchange of deposit interest information FBAR (FATCA) has been determined by the Treasury Department and the IRS to be appropriate.

Australia
Canada
Denmark
Finland
France
Germany
Guernsey Read More

Congress Passes $42 Billion Tax Extenders Package: The Primary Tax Extenders Affecting The Real Estate Industry

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On Tuesday, December 16th the U.S. Senate passed H.R. 5771 by a 76 to 16 vote reviving dozens of previously expired tax breaks for calendar year 2014 only.

Republicans and Democrats compromised on the one-year extension after the White House undercut negotiations on a broader bipartisan package, underscoring divisions between Democrats in the wake of this year’s heavy losses at the election polls this past November. Senators from both parties indicated that they would have preferred legislation that would have restored the tax extenders through calendar year 2015 (e.g., a 2 year extension package that would have retroactively reinstated the tax extenders for calendar year 2014 and forward through all of calendar year 2015). The bill is now awaiting President Obama’s signature in order for the bill to become law. It is highly anticipated that the President will Read More

Harnessing The Power of Fear in Public Speaking – Tips And Tricks For An Unforgettable Presentation – Part II

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When you hear the words “professional speaker,” do they conjure up a particular image in your mind? What exactly does a professional speaker look and sound like? What are some of the traits that successful speakers have in common?

Before we delve into this, let me take you back to 1997. That was the year that Dustin Hoffman was awarded the “Lifetime Achievement Award” at the Golden Globes Award Ceremony. After thanking everyone who helped him during his career, he told a story that has a great deal of relevance to public speaking.

Paraphrasing, the story went something like this:

“When I was doing a promotional tour for ‘The Graduate,’ I found myself flipping the dials in Read More

Congress Passes $42 Billion Tax Extenders Package

Washington Monument and the U.S. Capitol Building

On Tuesday, December 16th The U.S. Senate passed a $ 42 billion tax extenders package, by a 76 to 16 vote, reviving dozens of previously expired tax breaks for calendar year 2014 only.

Republicans and Democrats compromised on the one-year extension after the White House undercut negotiations on a broader bipartisan package, underscoring divisions between Democrats in the wake of this year’s heavy losses at the election polls this past November. Senators from both parties indicated that they would have preferred legislation that would have restored the tax extenders through calendar year 2015 (e.g., a 2 year extension package that would have retroactively reinstated the tax extenders for calendar year 2014 and forward through all of calendar year 2015). After the late night 76-16 vote on Tuesday, Read More

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1. Building your tax professionals brand in the media

2. Improving client acquisition and retention strategy Read More

Target: Los Angeles, California – Think You Can Hide From The IRS? 

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The U.S. Attorney’s Office in Los Angeles is taking on a pilot project to pin-point their investigations to the wealthiest zip codes in the L.A. metro area. The idea being that anyone who is selected for investigation in these areas will result in a higher tax liability than those who live in less affluent areas. The government is looking for non-filers, persons engaged in on-line and virtual currency transactions and businesses cheating or delinquent on employment taxes.

Non-Filers

When a taxpayer does not file and the IRS has information statements indicating a filing requirement, the IRS uses the data to file a return on behalf of the taxpayer if there is a projected balance owed. In 2012, the IRS used information statements to file 803,000 returns Read More

IRS Updates List of Countries For Exchange of Bank Interest Information

vault

The Internal Revenue Service added 7 additional jurisdictions to the list of those with which the U.S. has agreements for exchange of information for purposes of reporting bank interest paid to nonresident aliens.

The 7 additional jurisdictions include:

1. Brazil,
2. Cayman Islands,
3. Colombia,
4. Croatia,
5. Curacao, Read More

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