Archives For IRS

Yesterday, President Obama did an interview with comedian Zach Galifianakis, on his show “Between Two Ferns,” where he tried to rally some much-needed support for Healthcare.gov. Surprisingly, the awkward interview video has become the number one site driving traffic to Healthcare.gov.

President Obama seems to be doing whatever he can these days to help muster support for his party ahead of the midterm elections. Unfortunately, Republican David Jolly won a closely watched U.S. House special election in Florida last night. Though Jolly was short on money, groups pooled money into one of the most expensive House races ever to hammer the ineffectiveness of the Affordable Care Act (ObamaCare) into voters’ minds for the win. Continue Reading…

According to Janet Larsen, Director of Research at Earth Policy Institute, there are more than 18,000 sharing bikes across the country in 34 official systems.

They provide as alternatives to private vehicles, taxis and mass transit. Many ride them in urban areas with the hope of reducing traffic congestion, noise, and air pollution. Bike share programs allow for individuals to rent a bike at one docking station, and they can return them to the same station or to a different docking station. Even with all the stated benefits, the IRS believes that these bike share programs are still taxable.

bike share infographic

Continue Reading…

Picture 1(2)The Foreign Account Tax Compliance Act, or FATCA, is frequently referenced in the news as the cause of global bank transparency. In reality, though, bank secrecy was really broken by the John Doe summons. In 2008, the John Doe summons blew the lid off the hushed world of Swiss banking. A judge allowed the IRS to issue a John Doe summons to UBS for information about U.S. taxpayers using Swiss accounts. Continue Reading…

PLANNING FOR BUSINESSES [Part 7/7]

Renewable Resources Credit

ATRA modified the Code Sec. 45 renewable electricity production tax credit for electricity produced from wind and other qualified facilities. ATRA replaced certain placed-inservice deadlines with new deadlines and revised certain definitions, including the term “municipal solid waste.” The amount of the credit varies depending on the type of technology. Continue Reading…

PLANNING FOR INDIVIDUALS [Part 4/7]

Same-Sex Marriage

On June 26, 2013, the U.S. Supreme Court struck down Section 3 of the Defense of Marriage Act in E.S. Windsor, 2013-1 ustc 50,400. The Court held that Section 3, which had defined marriage for federal purposes as the union of one man and one woman, was unconstitutional. Subsequently, the IRS announced a general rule in Rev. Rul. 2013-17 recognizing same-sex marriages nationwide. Continue Reading…

PLANNING FOR INDIVIDUALS [Part 2/7]

Surtax On Net Investment Income (NII)

Starting in 2013, higher-income taxpayers may be liable for a 3.8 percent NII surtax. The NII surtax on individuals equals 3.8 percent of the lesser of: Continue Reading…

Due to the government shutdown this month, the IRS will delay the start of the tax-filing season by one to two weeks. The season for filing 2013 tax returns likely will start between Jan. 28 and Feb. 4, the agency said. Continue Reading…

Year-end 2013 brings many new planning opportunities along with the traditional year-end tax planning strategies. It also brings challenges for both individuals and businesses.

There is much for taxpayers and their tax advisors to consider in taking action before 2013 ends, including the important changes made by the American Taxpayer Relief Act of 2012 (ATRA) (signed into law on January 2, 2013), the provisions in the Patient Protection and Affordable Care Act of 2010 (Affordable Care Act) (scheduled to take effect in 2013, 2014) the Supreme Court’s decision on same-sex marriage and the release of significant new IRS rules on many pressing issues.

There is also the prospect of comprehensive tax reform in 2014, which will require some “crystal ball” forecasting of what Congress may or may not do in the coming year. On top of everything, the IRS shutdown in October could delay the start of the 2014 filing season, although the long-term effects have yet to be determined.

This week-long CCH briefing explores some of the 2013 year-end planning opportunities available to taxpayers, especially as the result of provisions that are new-for-2013 and those that at the moment are scheduled to expire after 2013. Continue Reading…

Haven’t seen AMC’s TV series, Breaking Bad? You don’t know what you are missing. A high school teacher, Walter White, turns into a major drug dealer, murderer, and tax advisor. While morality may not be his strongest suit, tax advice is clearly his weakest. Don’t worry; there aren’t any series finale spoilers in this post. Continue Reading…

“There was never a doubt that the Michael Jackson estate was on a clear collision course with the Tax Court,” said Bridget Crawford, a tax professor at Pace Law School, who reviewed the Tax Court filings.

The pop artist’s Estate paid off his massive personal debt, $500 million, in November 2012. However, the IRS believes that his Estate still owes the agency money because it undervalued many of Jackson’s assets by hundreds of millions of dollars. Continue Reading…