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Court of Appeals Rejects Arguments that Instructions on Willfulness and Good Faith Were Reversible Error

In United States v. Basile , 2014 U.S. App. 12388 (3d Cir. 2014), here , the defendants, husband and wife, chiropractors, engaged an asset protection firm who put them into offshore entities and bank accounts to avoid tax. The defendants took other actions to obscure their income and avoid tax. The defendants...

Part II: Federal and State Tobacco Taxes -- On Fire or Just Smoking?

by Daniel G. Mudd * In a follow-up to Part I (EIA 7184) [ "Basics of Federal and State Tobacco Taxes -- On Fire or Just Smoking?" by Daniel G. Mudd – Emerging Issues Analysis Commentary], which covered the Federal Excise Tax (FET) considerations for a company involved in the tobacco...

Ongoing Intrigue: Self-Employment Tax, Limited Partners, and LLCs

On so many fronts, understanding federal tax discipline, and complying with its tenets, is a daunting challenge. Taxpayers with the best intentions, and the practitioners who serve them, face frequent 'head scratchers' in their concerted efforts to apply the IRC, regulations, and judicial authority...

Message to Treasury: Flex Your Muscles! Who Needs Lawmakers?

In today's political environment, there's no shortage of frustration over the virtual absence of substantive legislation coming out of Congress. The federal tax arena is no exception, of course. And what better target to focus on nowadays than big bad corporations who have the audacity to navigate...

Trojan Horse -- The ACA's 3.8% Medicare Surtax

Editor’s Note : This EIA is excerpted from chapter 1 of the Matthew Bender publication New York University Review of Employee Benefits and Executive Compensation – 2014 , available on Lexis.com, Lexis Advance, and in print HERE . ... In part, the Affordable Care Act created an entirely...

Final Regs on Itemized Deductions of Estates and Non-Grantor Trusts

Like individuals, trusts or estates may deduct ordinary and necessary administration or nonbusiness expenses that are paid or incurred during the tax year. [ IRC §§ 212 , 641 ; Treas Reg §§ 1.212-1(i) , 1.641(b)-1 .]Miscellaneous itemized deductions are allowed to the extent that...

Loving v. IRS and Tax Return Preparer Regulations

by Kimberly Stanley, J.D., LL.M. * Introduction Like more than half of United States taxpayers, you probably pay someone else to prepare your federal income tax return. Although about 40 percent of paid return preparers are attorneys, CPAs, or enrolled agents, the remaining 60 percent have no professional...

View all the federal, state, and international tax news headlines for October 8th from TaxAnalysts® on LexisNexis Tax Center

View all the federal tax news headlines for October 8th from TaxAnalysts® on LexisNexis Tax Center View all the state tax news headlines for October 8th from TaxAnalysts® on LexisNexis Tax Center View all the international tax news headlines for October 8th from TaxAnalysts® on LexisNexis...

EU to Investigate Amazon Tax Ruling for State Aid Breach

The European Commission on October 7 formally launched an investigation into whether Amazon's Luxembourg subsidiary received a favorable transfer-pricing-related tax ruling that violates EU state aid rules. According to a commission release, the investigation focuses on a tax ruling granted by the...

Extenders Indecision Could Delay Filing Season, Koskinen Warns

The IRS might have to delay the start of the 2015 filing season and the processing of tax refunds if Congress does not decide by November whether to renew expired tax provisions known as extenders, IRS Commissioner John Koskinen said October 6. Koskinen's comments came in a letter to Senate Finance...

Final Treasury Regulations Issued on Back-to-Back Loans

by Ronald :Levitt * Treasury Regulations addressing basis increases for back-to-back loans made by S corporation... have been finalized without substantive changes [to proposed regulations issued in 2012] other than changes to the effective/applicability date and minor clarifying changes. [ T.D. 9682...

Filing Compliance Procedures Challenge U.S. Taxpayers Residing Overseas

Generally, [the 2012 Offshore Voluntary Disclosure Program] OVDP is designed for those delinquent U.S. taxpayers who have been holding financial assets overseas, have not been disclosing such assets to the U.S. government, have not been reporting the income produced from such assets, and...

Navigating the IDR Process for U.S. - Based Multinational Enterprises

By Paul DeNard, Anthony Russo, Tien Do and Elizabeth Sweigart The new information document request (IDR) process is aimed at supporting a systematic, issue-focused approach to examinations. A year into the new IDR creation approach -- and six months into the new enforcement process -- the results...

Legislative Outlook: Extenders in Limbo

The waning 113th Congress will return from Thanksgiving recess December 1 to resume work on extenders, which are in limbo after a presidential veto threat scuttled the latest attempt at a deal to make some provisions permanent. The White House issued the threat November 25 after details of a plan emerged...

Congress Piddles, Twiddles, and Resolves - But to What End?

In a song from the musical “1776” (“Piddle, Twiddle, and Resolve”), John Adams sings the following: I do believe you've laid a curse on North America, A curse that we now here rehearse in Philadelphia. A second flood, a simple famine, Plagues of locusts everywhere, Or...

Treasury's Inexorable Slide Toward Unitary Taxation

Your authors have long maintained that the most sensible system for taxing business operations is reflected in the unitary system adopted by California, among other states. The system is sensible because it avoids arbitrary shifting of income and expenses among related entities. Under the unitary system...

Republicans Renew Push to Repeal Medical Device Tax

House Republicans have renewed their efforts to repeal the 2.3 percent excise tax on medical devices, hoping that bipartisan support for a measure introduced by Ways and Means Committee member Erik Paulsen, R-Minn., will protect it from President Obama's threat to veto any GOP attempts to unravel...

The Exclusion for Cancelled Mortgage Debt Income

by Suellen M. Wolfe * Introduction ...As the tax incentive for mortgage debt relief expired at the end of 2013, Congress' 2014 agenda includes tax extenders. Over 50 tax breaks expired at the end of 2013. As part of the tax extenders, Congress is considering extending the reinstatement of mortgage...

The Special Tax Rate for Small Business Stock

by Matthew Cavitch, J.D. * Certain taxpayers can take advantage of a slightly favorable tax rate through the sale of qualified small business stock with timely tax planning. There are several limitations on the type of stock which qualifies and the class of taxpayer which is eligible for this tax...

Estates and Trusts and Final Regs Under IRC Section 1411

Basics of the Net Investment Income Tax. The Net Investment Income Tax (NIIT) is imposed by I.R.C. Section 1411. The NIIT applies at a rate of 3.8 percent to certain net investment income of individuals, estates, and trusts that have income above the statutory threshold amounts. The NIIT went into effect...

College Booster Club Contributions

[1] Introduction Not all transfers of value to qualified charitable organizations are deductible. When you buy a book from the college bookstore, your payment is not a contribution; you got what you paid for. If you give $300 to your local public radio station, and they give you a tote bag, you've...

IRS Ruling: LLC Members Not Limited Partners for Employment Tax Purposes

by Stephen Looney* In CCA 201436049 , (September 5, 2014), the IRS found that members of a management company LLC ("Management Company") were not "limited partners" within the meaning of IRC Section 1402(a)(13) and, therefore, were subject to the self-employment tax on their distributive...

Congressional Republicans Announce Final Budget Agreement

Congressional Republicans announced April 29 the conference report on their fiscal 2016 budget resolution, which includes reconciliation instructions to repeal the Affordable Care Act. The reconciliation instructions were expected to touch on the ACA. Though reconciliation was not applied to tax reform...

TIGTA Advises EO Application Changes, Sends Found Lerner E-Mails

The IRS should improve future training on the processing of exemption applications involving political campaign intervention and consider expanding its self-certification process for section 501(c)(4) organizations to similar organizations, the Treasury Inspector General for Tax Administration said in...

Legislative Outlook: Senate Panel to Survey Small Business Taxes

The House is not in session the week of May 4, and a Senate committee will meet to discuss the federal tax burden on small businesses at the beginning of the week. The Senate Small Business and Entrepreneurship Committee will hold a field hearing May 4 in Livingston, Louisiana, titled "Reducing...