Tag Archive for Find Tax Lawyer

US Income Taxation of Nonresident Alien Individuals – What About Alimony Income?

A nonresident alien individual (NRA) is generally subject to US income tax on two types of income categories:

Income that is “effectively connected” with a trade or business in the United States (so-called “ECI”); Income from US sources that is “fixed, determinable, annual or periodical” (so-called “FDAP” income)

ECI versus FDAP

When income is “effectively connected” with a US trade or business, the income is taxed at graduated rates. These are the same rates that apply to US citizens and residents (the highest marginal rate is 39.6%). Such “effectively connected income” ECI, is to be Read More

Written by | Posted in Expatriate • Income Tax • Individual • International

Cancellation of Debt, Foreclosures, And Bankruptcy – Part 5

Procedural Flow of Foreclosure

The debtor has several options when faced with a foreclosure or repossession. The options have varying costs, time limits and consequences associated with them. Be aware that every state has differing rules and procedures for these actions and failure to abide by the rules in that jurisdiction can results in the loss of time, money and rights for both the lender and the debtor.

The debtor may voluntarily surrender a piece of collateral property to the creditor when the threat of foreclosure or repossession is imminent.

For Example: John purchased a new car in Jan 2013. By November 2013 John had lost Read More

Written by | Posted in Individual

Taxpayers Rights When Audited By Tax Authorities In South Africa (Chapter 5 – 5.1)

Posted in sections, this is my Doctoral Thesis on taxpayers rights when audited by the tax authorities in South Africa – equally applicable to many English-based law systems in Africa and abroad (eg. India). This will be of particular use to any tax practitioners doing work in Africa and in other English-based legal systems around the world.

Analysis Of Challenging The Commissioner’s Discretionary Powers In Auditing Taxpayers under The Constitution Of The Republic of South Africa

CHAPTER 5 – JUDICIAL REVIEW WITH REFERENCE TO SS 74A AND 74B –

5.1 INTRODUCTION Read More

Written by | Posted in Africa • Audit

The Unknown Tax Comic – Part 6

♦ Every year, I include a piece of chicken in the envelope with my taxes. Not as a bribe, but a treat for the guy at the IRS who opens it. – Jimmy Kimmel

♦ Regis Philbin is back in primetime, hosting 11 new episodes of ‘Who Wants To Be a Millionaire.’ But because of Obama’s tax plan, it’s been re-titled to ‘Who Wants To Win Just Under $250,000.’ – Jimmy Fallon

♦ The U.S. Senate is considering a bill that would tax Botox. When Botox users heard this, they were horrified. Well, I think they were horrified. It’s difficult to tell. – Craig Ferguson

♦ Abracadabra, thus we learn the more you create, the less you earn. The less you earn, the more you’re given, the less you lead, the more you’re driven, the more destroyed, the Read More

Written by | Posted in Tax Humor • TaxConnections

A Practical Guide To The New Circular 230 Amendments

Introduction

On June 12, 2014 the Department of Treasury and Internal Revenue Service (hereinafter the “Service”) issued final regulations that made noteworthy amendments to Circular 230. As a reminder, Circular 230 sets forth the requirements and responsibilities of tax professionals (e.g., Certified Public Accountants, Attorneys, Enrolled Agents, and Enrolled Actuaries) admitted to practice before the Service. The final regulations recognize that the Covered Opinion Rules are no longer necessary, and have been replaced with new standards for issuing written tax advice. As a consequence, the “Circular 230 Disclaimer” will no longer be required on written correspondence. The general consensus is that removal of the disclaimer is a positive step for tax professionals by reducing the Read More

Written by | Posted in IRS

How Harry Potter Can Help You Navigate The Labyrinth of Overlapping Rules Within OVDP

Nary a day goes by that I don’t talk to a client who is confused about one or more aspects of the OVDP program. Most of the time, it’s not the client’s fault. Usually, the confusion lies in the fact that the rules themselves are like a tangled web or labyrinth on the scale of what Harry Potter had to endure in the triwizard competition. So grab your broom. It’s time to navigate the labyrinth of overlapping rules within OVDP. The only difference is that your tour guide on this journey is not a famous teenage wizard who wears glasses, is an ace Quidditch player, has an impenetrable patronus, and speaks Parseltongue. Instead, it’s a very ordinary tax attorney who can no more get a snake to listen to him than he can his dog, Fido.

For as tedious as the rules can be, surprisingly that is not the primary source of Read More

Written by | Posted in IRS • OVDP

LIFO Repeal – Tax Savings For The Small Business?

LIFO REPEAL – TAX SAVINGS FOR THE SMALL BUSINESS?

The Tax reform Act, 2014 calls for a repeal of the Last in First Out (LIFO) method of inventory valuation. Despite the promise of reduced tax rates associated with LIFO repeal and other proposed changes, there has been strong opposition to the proposed repeal particularly from a group of over 120 companies coming together to form the LIFO Coalition in 2006. (LIFO Coalition, 2014)

The group contends that getting rid of LIFO would cause severe economic hardship to businesses and lead to loss of jobs. (Whitehouse, 2009).

WHAT IS LIFO?

Read More

Written by | Posted in Corporate • Federal • Income Tax • IRS • Small Business • Tax Policy

Cancellation of Debt, Foreclosures, And Bankruptcy – Part 4

Deemed Sales

As we mentioned earlier, any time a property is seized or abandoned the owner has a “deemed sale” of that piece of property. As with any tangible asset, if there is a sale, there is a gain or loss. Whether or not that gain or loss is reportable and the manner in which it is reported will depend on the type and use of the property.

This is treated completely separately from the calculation of CODI and may occur in a separate tax year if the foreclosure takes an extended period of time. Unless both the seizure of the property and the cancellation of debt occur in the same tax year the debtor should receive a Form 1099A when title to the property is transferred to the lender who Read More

Written by | Posted in Individual

Taxpayers Rights When Audited By Tax Authorities In South Africa (Chapter 4 – 4.2.7)

Posted in sections, this is my Doctoral Thesis on taxpayers rights when audited by the tax authorities in South Africa – equally applicable to many English-based law systems in Africa and abroad (eg. India). This will be of particular use to any tax practitioners doing work in Africa and in other English-based legal systems around the world.

Analysis Of Challenging The Commissioner’s Discretionary Powers In Auditing Taxpayers under The Constitution Of The Republic of South Africa

CHAPTER 4 – SECTION 195(1) OF THE CONSTITUTION AND PUBLIC ADMINISTRATION DUTIES WITH REFERENCE TO SECTIONS 74A AND 74B

4.2.7 Limitations to s 195(1) Read More

Written by | Posted in Africa • Audit

5 Basic Tax Tips For New Businesses

If you start a business, one key to success is to know about your federal tax obligations. You may need to know not only about income taxes but also about payroll taxes. Here are five basic tax tips that can help get your business off to a good start.

1. Business Structure. Prior to start up, you’ll need to choose the structure of your business. Some common types include sole proprietorship (Form 1040), partnership (Form 1065) and corporation (Form 1120). You may also choose to be an S corporation (Form 1120-S) or Limited Liability Company. You’ll report your business activity using the IRS forms which are right for your business type. A Limited Liability Company (created by state statute) may be taxed as a sole proprietorship (single member), a partnership (multiple members), or other taxable entity. Read More

Written by | Posted in Small Business • Tax Tips

Cancellation of Debt, Foreclosures, And Bankruptcy – Part 3

How Do I Know if My Client Has CODI?

As with any information for your clients, the key is a thorough interview. Lending institutions are notorious for sending out reporting documents late or, in the case of the client moving, never.

The courts and the IRS have been very specific about what triggers a forgiveness of debt by a lender. They set forth examples and used them as precedence in the IRC and recent Bankruptcy Court cases. These are called “identifiable events” and are defined as follows:

In general. An identifiable event is– Read More

Written by | Posted in Individual

SCOTUS Decides to Hear CSX – But Why?

Each year, the Supreme Court punts on dozens of cases. Included in the dozens of cases which the court elects not to hear each year are sales tax cases. They are uninteresting to the majority of the population and just not the type of cases the justices want to hear. In fact, despite having a significant affect in most multi-state businesses, the Supreme Court has not heard a sales tax nexus case since Quill in 1992.

If there was ever a case to hear, it was Amazon and Orbitz versus New York. At issue was the two large online retailers versus the mighty state of New York. To the dismay of many State and Local Tax (“SALT”) critics, the Supreme Court decided to punt on this case at the end of 2013. Perhaps, it thought Congress was going to shock the world and actually do something. Or, perhaps, it just really didn’t care about sales tax nexus. Read More

Written by | Posted in State And Local Tax (SALT)
« Older Entries   Recent Entries »