College and high school students are frequently utilized by businesses and non-profit organizations as interns. These arrangements can be beneficial to the organization as the organization may get the services and insights from the intern, even though the organization receives no immediate tangible benefit. The intern may benefit by obtaining valuable on-the-job training, an entree into a permanent job, college credit, and maybe a few dollars in earnings. Internships vary greatly. They may be paid or unpaid; for college credit or not for credit; highly structured as in a college program, or an independent arrangement with less structure. Read More
On Thursday, February 4, 2016 DoJ announced the filing of criminal charges against Bank Julius Baer & Co. Ltd. (Julius Baer or the company), a financial institution headquartered in Zurich, Switzerland. Julius Baer is charged with conspiring with many of its U.S. taxpayer-clients and others to help U.S. taxpayers hide billions of dollars in offshore accounts from the IRS and to evade U.S. taxes on the income earned in those accounts.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Read More
On 1/28/16, the Senate Finance Committee held a hearing on – Helping Americans Prepare for Retirement: Increasing Access, Participation and Coverage in Retirement Savings Plans. This isn’t the first time for this topic. There were a few hearings on this in 2014. I’m not sure if anything is driving the renewed attention to this topic now. While tax reform is challenging in an election year, this important topic seems good for any year. There is a need for reform of the tax rules for retirement plans to make them more equitable and simple to help more people save for retirement. Read More
We previously posted DOJ Swiss Bank Program is Over After Netting $1.36 Billion! where we discussed that thee Department of Justice
announced on January 27, 2016 that it reached its final non-prosecution agreement under Category 2 of the Swiss Bank Program, with HSZH Verwaltungs AG (HSZH). The department has executed agreements with 94 banks. Under the program, the swiss banks are required to:
Make a complete disclosure of their cross-border activities; Read More
The IRS has taken a new official position on the applicability of the Church Audit Protection Act, and it is good news for churches.
The Church Audit Protection Act (Code Section 7611 of the Internal Revenue Code) specifies that the IRS cannot initiate a church tax inquiry or examination unless certain criteria are met. In brief, there must be a reasonable belief by an appropriate high-level Treasury official that the church either is not exempt by reason of its status as a church, Read More
Strategies that motivate management to listen to the Tax Department is what we will address in this weeks’ post. Although there are dozens of topics I could address, this post will address a couple of challenges faced by most anyone leading a tax organization when it comes to compensating your tax team. This post will also provide solutions; these are solutions intended to make your job leading a tax organization easier. Although I know better than to put “ Head of Tax” and “Easy” in the same line, leading a tax organization is one of the toughest jobs out there today. Read More
Personal Use Allocation
From time to time business owners will replace vehicles used in their business. When replacing a business vehicle, the tax ramifications are different when selling the old vehicle and when trading it in for a new vehicle. If the vehicle is sold, the result is reported on the taxpayer’s return as an above-the-line gain or loss. Read More
We are now almost half of the way through our 12 week special blog series. We hope you have enjoyed our work so far.
If you have missed out on each or any weeks blog so far, you can find them here: Read More
On Thursday, January 14, 2016 we posted U.S FinCEN Will Track Secret Buyers of Luxury Real Estate in Manhattan and Miami where we discussed that the Financial Crimes Enforcement Network (FinCEN) on January 13, 2016 issued a Geographic Targeting Orders (GTO) that will temporarily require certain U.S. title insurance companies to identify the natural persons behind companies used to pay “all cash” for high-end residential real estate in the Borough of Manhattan in New York City, New York, and Miami-Dade County, Florida. Read More
Tracing Excess Debt
One of the current IRS audit initiatives is checking to see if taxpayers are deducting too much home equity debt interest. Generally, taxpayers are allowed to deduct the interest on up to $1 million of home acquisition debt (includes subsequent debt incurred to make improvements, but not repairs) and the interest on up to $100,000 of home equity debt. Read More
The focus of my career has been guiding tax professionals and tax organizations in their growth and success. In this post, I will share the roadblocks most tax leaders face in finding the highly technical tax expertise they need for their organizations. There is a connectivity challenge tax leaders face today and one that I spent more than three decades identifying, researching and ultimately solving. Read More
Incident to a divorce, one question that must be settled between the two spouses is “Who gets to claim the children on their taxes?” It is most commonly thought that reference to the divorce decree (Qualified Domestic Relations Order or QDRO). However, this may not be the case.
Under IRS rules children of unmarried parents are claimed as dependents on the custodial parent’s return. The custodial parent is determined strictly by a time test. The qualifying child must have the same principal place of residence as the taxpayer for more than half the year if the taxpayer is to qualify as the custodial parent. Read More