Tag Archive for Tax Blog

Upcoming Texas Amnesty Program

There always seems to be an amnesty program going on somewhere, particularly if you know where to look.

States are aggressively pursuing delinquent taxpayers, while still making it relatively easy for them to come forward themselves. Last year, we wrote an article about some interesting amnesty programs in Connecticut (CT), Ohio (OH), and Rhode Island (RI).

Most amnesty programs allow for a waiver of penalties and a limitation on interest if businesses come forward under the terms of the program as specified by the state legislature. Most of the programs are limited in time (often only a two to three month window) and only cover certain taxes.  Yet, with the right fact pattern, a company might benefit from engaging in such a program. But not always.  As with most things related to multi-state tax issues, the answer may require a little more research and analysis. Read More

Written by | Posted in Amnesty Programs • Texas Tax

Tax Advisors Reference Guide On President Trump’s Executive Orders On The Elimination of 298 IRS Existing Regulations #2

You would never know what was hidden in these regulations unless you conduct extensive research which we did for our members. We will be providing our research to our members.  Based on a preliminary review, these proposals could be very far reaching and effect a wide range of our member’s clients. These proposals deserve your immediate review!

TaxConnections Members should study this very important information in order to make comments or request a public hearing on areas that will impact you and your clients. If you want to comment or request a public hearing please make note of the date of May 14, 2018. You must make a request for a public hearing before this date.

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Written by | Posted in President Trump Executive Orders • TaxConnections

Nonresident Aliens Still Facing Hardships In Obtaining Refunds Of Withheld Tax

Imagine how you would feel if you were expecting your tax refund to arrive imminently, and checked the mailbox or your bank account day after day, only to be disappointed. Finally, you receive the hoped-for letter from the IRS, which you open eagerly. Disappointed to find no refund check enclosed, you read a letter that in part says, “We’re holding the portion of your refund that relates to the withholding credit you claimed…while we review it. Our review can take up to 6 months from the date we received your return or the due date of the return, whichever is later.” Read More

Written by | Posted in National Taxpayer Advocate • Nonresident Alien

Security Summit Partners Warn Tax Pros Of Heightened Fraud Activity As Filing Season Approaches

WASHINGTON – The Internal Revenue Service, state tax agencies and the tax industry today warned tax professionals of early signs that cybercriminals already are at work as the nation’s tax season approaches. Fraudsters are using a new round of emails posing as potential clients or even the IRS to trick tax practitioners into disclosing sensitive information.

The Security Summit partners encourage tax practitioners to be wary of communicating solely by email with potential or even existing clients, especially if unusual requests are made. Data breach thefts have given thieves millions of identity data points including names, addresses, Social Security numbers and email addresses. If in doubt, tax practitioners should call to confirm a client’s identity.  Read More

Written by | Posted in Fraud • IRS • TaxConnections

Casualty And Theft Losses

It is not unknown for people to suffer a loss in the form of theft and casualty for their personal properties. If you are one of them, you can claim the same as itemized deduction for your tax returns. To do so, you need to fill up the Form 4684 to understand how much of yours loses you can report and then mention the same in the Schedule A of the Form 1040.

It is important to note that you can claim only for those losses that are not covered or reimbursed by any insurance company. Also, in order to qualify for the deductions, your loss should amount to more than 10% of your adjusted gross income. You cannot claim a deduction otherwise. Read More

Written by | Posted in Tax Return • Theft

Do You Know About These Valuable Resources Through TaxConnections?

Thomas Kerester, Tax Blog, Tax Advisor, TaxConnections., Washington DC

Did you know that you are one click away from reading the provisions of all the Tax Treaties currently in effect between the United States and other countries around the world at TaxConnections?

Did you know you can reach TaxConnections Members  who are highly trained experts in international tax  who are easily accessible and available to assist you?

Did you know select TaxConnections Members have served on the Tax Staffs of Congressional Tax Writing Committees and participated in the Congressional Legislative process including offering testimony before Committees?

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Written by | Posted in TaxConnections • Washington DC

The National Taxpayer Advocate “Purple Book”: A Summary Presentation Of Our Top 50 Legislative Recommendations

Last week, we issued the National Taxpayer Advocate’s annual report to Congress. As some of you probably noticed, we also issued the first-ever edition of the National Taxpayer Advocate “Purple Book.” In this week’s blog, I will explain why we developed the Purple Book and what it’s intended to accomplish.

Section 7803(c)(2)(B) of the Internal Revenue Code requires the National Taxpayer Advocate to issue an annual report to Congress that, among other things, proposes legislative recommendations to resolve systemic taxpayer problems. Read More

Written by | Posted in National Taxpayer Advocate

IRS Urges Travelers Requiring Passports To Pay Their Back Taxes Or Enter Into Payment Agreements; People Owing $51,000 Or More Covered

WASHINGTON ─ The Internal Revenue Service today strongly encouraged taxpayers who are seriously behind on their taxes to pay what they owe or enter into a payment agreement with the IRS to avoid putting their passports in jeopardy.

This month, the IRS will begin implementation of new procedures affecting individuals with “seriously delinquent tax debts.” These new procedures implement provisions of the Fixing America’s Surface Transportation (FAST) Act, signed into law in December 2015. Read More

Written by | Posted in FAST Act • IRS • Traveling Tax

U.S. Now A Black-Listed Country For Purpose Of Italy’s CFC Rules

Pursuant to the Tax Cuts and Jobs Act (“TCJA”) passed on Dec. 22, 2017, the U.S. will tax U.S. corporations with the following tax rates:

– 21 percent general corporate income tax rate,
– 13.125 effective tax rate on U.S. corporation’s foreign derived intangible income (“FDII”), for taxable years from 2018 through 2025;
– 10.5 percent effective tax rate on the U.S. corporation’s pro rata share of global intangible low taxed income (“GILTI”) of a controlled foreign corporation (“CFC”). Read More

Written by | Posted in CFC • Tax Cuts Jobs Act

Irish Employment Tax

It’s very difficult to keep up to date with all the amendments to the Irish tax system so here is a summary of some of the changes to be mindful of in 2018:

1. Annual Membership Fees paid to a professional body (Revenue eBrief 04/18 published on 9th January 2018)

https://www.revenue.ie/en/tax-professionals/ebrief/2018/no-0042018.aspx

The updated Revenue guidance notes allow an employee to claim a deduction for professional membership fees only in circumstances where: Read More

Written by | Posted in Ireland Tax

Taxpayer Advocate Criticizes Hardships Faced By Nonresident Aliens Trying To Obtain Refunds Of Withheld Tax

In a scathing blog published this past week, National Taxpayer Advocate Nina Olson criticized the significant roadblocks that meet nonresident aliens (“NRAs”) trying to rightfully obtain refunds of withheld tax from the IRS. The roadblocks stem from a recent general freeze by the IRS on credits claimed on Forms 1040NR, U.S. Nonresident Alien Income Tax Return, which do not match with the information provided on Forms 1042-S filed by withholding agents.

The Taxpayer Advocate is an independent office within the IRS tasked with helping people resolve tax issues with the IRS and recommending changes that will prevent future problems. It’s always interesting to hear the point of view of the office responsible for taking the IRS to task for its missteps in handling taxpayer issues. Read More

Written by | Posted in IRS • National Taxpayer Advocate • Withheld Tax

The U.S. Will Now Bar Tax Delinquents From Travelling Abroad

I wrote back in 2015 here about new legislation that gave power to the Secretary of State to deny, revoke or limit the passport of persons with delinquent taxes. Code §7345 provides that the Commissioner of the IRS will provide notice to the Secretary of the Treasury, who will then transmit that notice to the Secretary of State, in regard to a taxpayer’s delinquent tax debt.

Generally, it applies to delinquent tax debt over $50,000 (adjusted for inflation), for which a notice of lien has been filed or a levy has been made. Upon receipt of a Code §7345 certification, §32101(e) of the 2015 FAST Act provides that the State Department will generally deny an application for issuance or renewal of a passport from such individual, and may revoke or limit a passport previously issued to such individual. Read More

Written by | Posted in Tax Delinquency
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