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 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
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
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
Azerbaijan Read More
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.
Guernsey Read More
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
WASHINGTON — The Internal Revenue Service today reminded taxpayers born before July 1, 1944, that they generally must receive payments from their individual retirement arrangements (IRAs) and workplace retirement plans by Dec. 31.
Known as required minimum distributions (RMDs), these payments normally must be made by the end of 2014. But a special rule allows first-year recipients of these payments, those who reached age 70½ during 2014, to wait until as late as April 1, 2015 to receive their first RMDs. This means that those born after June 30, 1943 and before July 1, 1944 are eligible for this special rule. Though payments made to these taxpayers in early 2015 can be counted toward their 2014 RMD, they are still taxable in 2015. Read More
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
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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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.
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
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:
2. Cayman Islands,
5. Curacao, Read More