TaxConnections


 

Private Debt Collection: Hardship (Part 2 of 3)

I have always had concerns about outsourcing tax debts to private collection agencies (PCAs). First, I believe tax collection is an “inherently governmental function” within the meaning of section five of the 1998 FEAR Act that should be performed only by federal employees. Second, as a TAS study of the last private debt collection (PDC) initiative showed, the IRS is more efficient at collecting tax debt than PCAs are. Now that Internal Revenue Code (IRC) § 6306(c) requires the IRS to outsource some tax debt, my job is to ensure that its PDC program operates in accordance with the law and respects taxpayers’ rights. Read More

Participating vs Non-Participating Shares – Canada Tax FAQs

Why should I be concerned about participating and non-participating shares in my company?

Shares in a corporation can be participating or non-participating, among other features. Participating shares are eligible to “participate” in the equity growth of the company and be permitted to receive dividends. Non-participating shares do not benefit from the equity growth of the company. This can potentially impact the valuation of shares. Read More

Tax Burdens Prompt More Americans To Ditch Citizenship

Americans abroad have just about had it with Uncle Sam’s tax filing requirements.

Those were the findings from a recent survey of more than 2,100 U.S. expatriates, according to Greenback Expat Tax Services, which specializes in working with American taxpayers residing overseas.

Just over 4 in 10 respondents said that while they aren’t planning to renounce their U.S. citizenship, they wouldn’t rule it out, and 19% said they’re seriously considering it. Read More

FBAR Instructions For U.S. Expats Filing FinCEN Form 114

Hugo Lesser

Americans living abroad are still required to file a U.S. tax return, and furthermore they may have to report their foreign bank and investment accounts by filing a Foreign Bank Account Report, or FBAR.

Due to the 2010 Foreign Account Tax Compliance Act (FATCA), most foreign banks and other financial firms are now reporting their American account holders account balance and contact details to the IRS. Read More

Practice Ignition Training Webinar – Thursday, July 26th

Join me as I introduce Ryan Embree from Practice Ignition who will walk you through step by step instructions on how to use this super easy template software. What Practice Ignition has done is take the client onboarding process including proposals, engagement letters, and billing clients super easy and fun. This elegant template software takes what would normally take any tax, accounting or legal professionals hours and streamlines it to minutes. All attendees will receive a two week for trial for attending this webinar since you will become a pro after one easy training webinar. Read More

2017 Residence Based Taxation Request To Chairman Hatch

It’s tax reform season and Senator Orrin Hatch wants to hear from you (again).

As reported on the Isaac Brock Society and other digital resources for those impacted by U.S. taxes, you have until July 17, 2017 to tell Senator Hatch what you think needs to be changed in the Internal Revenue Code. After great deliberation, it occurred to me that people who either are (or are accused of being) U.S. citizens or Green Card holders living outside the United States, might want the USA to stop taxing them. After all, they already pay taxes to the countries where they reside. This is your opportunity to “Let your voices be heard” (well maybe). Read More

House Budget Plan And Tax Reform

Speaker Ryan’s email message and blog post today notes that the House Republican budget plan “paves the way for transformational tax reform.” The Budget Committee has a markup session this morning. When Speaker Ryan tours the New Balance factory in Massachusetts on July 20 he will “promote the historic tax reform plan currently being developed by the House, Senate, and Trump administration.” [7/17/17 press release]  Read More

Massachusetts Online Sales Tax Update

A couple of weeks ago we summarized Massachusetts’ Directive 17-1, a new piece of online sales tax legislation that redefined physical presence to include downloaded apps and internet ‘cookies’ – the data websites store on users’ computers and phones to track visits. While Directive 17-2, which repealed the prior directive, was announced at the end of June, the original law redefining physical presence (or nexus) was so distinctive that we wanted to take a closer look at the rule. Read More

Tax Job – Tax Manager/ Partnerships – Northern California

Kat Jennings, TaxConnections CEO and internationally recognized tax search consultant, has worked with many firms over the years. One of her clients is an East Bay Area boutique tax practice with former Big Four Tax Partners and has grown to around a 50-person tax practice. They offer a culture of support, respect, flexibility, and opportunity that is refreshing to experience these days.

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Are California Taxes That High?

Are California’s taxes high? I was asked this question recently by a reporter with Politifact California. Assemblymember Travis Allen who is running for governor had stated that California had the highest taxes. His website says that California has the highest personal income tax and state sales tax rates. [Chris Nichols article of 7/11/17]

If just looking at the rate structure, those are correct statements. The Federation of Tax Administrators posts helpful and current tables of the PIT and sales tax rates among the states. Read More

Tax Expert Spotlight Interview – Jim Marshall

At TaxConnections, we are building a panel of experts that will answer your tax questions when you need. TaxConnections tax and financial experts are available to help you! In order to find the right expert to answer your inquiry, we need to shine the spotlight on our experts. We interviewed Jim Marshall, a tax and financial advisor out of Arizona.

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Denying Taxpayers’ Right To Switch From OVDP To Streamlined

Previously, we discussed that three taxpayers seeking to switch over to the IRS’ new “streamlined” compliance program for unreported offshore income argued to a D.C. Circuit panel that their lawsuit is not foreclosed by the Anti-Injunction Act’s bar on pre-enforcement tax challenges, attacking the government’s key defense in the case. The case is Maze et al. v. Internal Revenue Service et al., case number 16-5265, in the U.S. Court of Appeals for the District of Columbia Circuit. Read More

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