Chat with us, powered by LiveChat

Archive for the Tax Planning Category

IRS and Treasury Take Action Against Corporate Inversions

The Treasury and the IRS have announced that they will be taking targeted action against corporations employing a technique known as a tax inversion in order to avoid taxation, and have issued a fact sheet and a Notice in that respect. What happens with an inversion, is…

Read more

IRS’ Overhaul of Streamline & Offshore Voluntary Disclosure Program “OVDP”

On June 18, 2014, the IRS announced comprehensive changes to both the Streamlined and the Offshore Voluntary Disclosure Program (“OVDP”) programs. Such changes to the Streamline Program include: Streamlined Program 1. Expanded to include both U.S. citizens living abroad and U.S. citizens living in the United States…

Read more

Final Regs Issued for Small Business Healthcare Tax Credit

Section 45R(a) provides for a health insurance tax credit for eligible small employers for any taxable year in which they have a qualified contribution arrangement, have no more than 25 full-time equivalent employees (FTEs), and the average annual wages of its FTEs does not exceed $25,000 (as…

Read more

Two Important Factors used to Determine Reasonable Compensation for S Corporation Shareholders

Taxable income as calculated on the U.S. Federal Return for an S corporation flows through to its shareholders and is taxed at the individual level, not subject to self-employment tax. Because the income from the S Corporation is taxed when it is reported on the federal tax return…

Read more

Tax Withholding Applied to Foreign Parters of a Partnership Depends on Income Classification

When a U.S. Partnership is formed and has one or several foreign individual partners who do not live in the United States, the income of such partnership to the partners must be assessed as to its nature to the partners in order to determine the amount of tax withholding to…

Read more

IRS Responds to Taxpayer Expectations for More Online Services

In response to the ever-increasing number of taxpayers wanting online services, the IRS continues to develop online tools to interact with the taxpayers online, Commissioner John Koskinen said on April 2. Speaking at the National Press Club in Washington, D.C., Koskinen added that adequate funding is critical for…

Read more

Ways and Means Approves Tax Extender Bills Without Revenue Offsets

A divided House Ways and Means Committee approved six bipartisan tax bills on April 29. The tax incentive measures, popularly known as tax extenders because they often lapse and are restored by Congress, were taken from a comprehensive tax reform package introduced by Committee Chairman Dave Camp,…

Read more

Do Unregulated Tax Preparers put Taxpayers at Risk?

Did you know that nearly 80 million taxpayers use paid tax preparers, but 60% of those preparers are not regulated by the IRS?  The reason for this is because the agency is only allowed to impose requirements on tax attorneys, enrolled agents, and Certified Public Accountants? The Government Accountability…

Read more

Tax Extenders That Expired December 31, 2013

There are dozens of temporary tax provisions that expired at the end of 2013.  Most of these provisions have been part of past temporary tax extension legislation.  Most recently, many temporary tax provisions were extended as part of the American Taxpayer Relief Act of 2012.  Collectively, temporary tax provisions…

Read more

IRS Issues First Guidance on Bitcoin

While bitcoin and other virtual currencies are becoming more popular, the tax rules that apply to them have been unclear, including the basic question of whether they are treated as a currency or as property.  Well, the first step to clearing this up for federal tax purposes…

Read more