Archive for August 26, 2014

Taxpayers Rights When Audited By Tax Authorities In South Africa (Chapter 5.5.6 – 5.5.6.6)

Posted in sections, this is my Doctoral Thesis on taxpayers rights when audited by the tax authorities in South Africa – equally applicable to many English-based law systems in Africa and abroad (eg. India). This will be of particular use to any tax practitioners doing work in Africa and in other English-based legal systems around the world.

Analysis of Challenging The Commissioner’s Discretionary Powers In Auditing Taxpayers under The Constitution of The Republic of South Africa

CHAPTER 5 – JUDICIAL REVIEW WITH REFERENCE TO SS 74A AND 74B –

5.5.6.6 Reasonableness Read More

Written by | Posted in Africa • Audit

Australian Tax Office Ramps Up Offshore Money Chase

The Australian Taxation Office (ATO) is ramping up its “Project Do It” assault on offshore tax evasion by Australian residents. It is encouraging residents with undisclosed offshore funds to take advantage of an amnesty before 19 December 2014.

To date, some 375 residents have made disclosures under the amnesty arrangements. Approximately AUD37 million has been reported so far.

According to the Taxation Office, a further 450 or so residents have indicated they propose to make a voluntary disclosure under the amnesty.

A new interactive webpage (http://taxmatters.gov.au) has been launched dealing with global tax evasion. Read More

Written by | Posted in Tax Fraud/Evasion/Crimes

Recent Judicial Interpretation Provides Guidance on the Research & Experimentation Tax Credit Consistency Provisions

Introduction

In calculating the Research and Experimentation Tax Credit (hereinafter “RTC”) under I.R.C. § 41 and its corresponding treasury regulations, the consistency rules are a critical concept to understand in order to properly measure and compute the RTC and achieve a sustainable tax return filing position per Circular 230. In order to properly measure and compute the increase in qualified research and experimentation expenditures between the two periods measured to calculate the RTC, the consistency rule holds that the same standard must be applied in both periods. This critical concept was the focal point of a recent pivotal judicial interpretation handed down back in July of 2014 by the Fifth Circuit Court in Trinity Industries, Inc. v. United States. Read More

Written by | Posted in Income Tax • IRS • Treasury Regulations

Liens and Levies: Keeping Your Clients Options Open – Part 1

Today we will be looking at the IRS Lien and Levy programs as a part of the Collection Division. We will learn about the very strict time tables involved, how to get a lien or levy removed, withdrawn, or subordinated and how to help our clients get things back in their control.

1. The enforcement process.
2. When does the IRS institute a lien?
3. When is a levy issued?
4. Collection Appeal Program (CAP)
5. Collection Due Process (CDP)
6. What can the taxpayer do to release a lien/levy? Read More

Written by | Posted in IRS

The Risks of Certifying NonWillfulness

Recently, “Tax Notes Today” published an article by Andrew Velarde entitled, Streamlined Program Non-Willful Certification Can Be Hazardous, 2014 TNT 143-4 (7/25/14). The article summarizes comments made by three tax practitioners on a Bloomberg-sponsored webcast relating to the certification of non-willfulness. The practitioners were Robert F. Katzberg, of Kaplan & Katzberg; Alan Granwell of Sharp Partners; and Bill Sharp of Sharp Partners.

If there was a recurring theme to the article it was that certification of non-willfulness is risky business and not for the “do-it-yourselfer.” Very simply, false certifications can lead to steeper penalties (even greater than the onerous OVDP penalty), not to mention criminal prosecution for perjury. Read More

Written by | Posted in FBAR • OVDP

Taxpayers Rights When Audited By Tax Authorities In South Africa (Chapter 5.5.6 – 5.5.6.5)

Posted in sections, this is my Doctoral Thesis on taxpayers rights when audited by the tax authorities in South Africa – equally applicable to many English-based law systems in Africa and abroad (eg. India). This will be of particular use to any tax practitioners doing work in Africa and in other English-based legal systems around the world.

Analysis of Challenging The Commissioner’s Discretionary Powers In Auditing Taxpayers under The Constitution of The Republic of South Africa

CHAPTER 5 – JUDICIAL REVIEW WITH REFERENCE TO SS 74A AND 74B –

5.5.6.5 Abuse of discretion Read More

Written by | Posted in Africa • Audit

IRS Just Made Life Easier: Fillable Forms for Streamlined 2014

The IRS has really streamlined the Streamline Procedures. IRS has just updated the Streamlined Procedure forms for both its “offshore” and “domestic” procedures. All is now in fillable format; even the statement of facts can be cut and pasted right onto the Form.

Certification for Persons OUTSIDE the US

Certification for Persons INSIDE the US

You can learn more about the new Streamlined Procedures at my blog post, here.

Original Post By:  Virginia La Torre Jeker, J.D. Read More

Written by | Posted in IRS

Textbook Sales Tax Exemptions

New York and a few other states allow a sales tax exemption for college textbooks. That may be too broad of a statement – the exemption is for a college student buying a textbook noted on his/her course syllabus or a list from the college. It is not simple for the buyer or seller due to definitions, restrictions and recordkeeping.

While the exemption might sound like a great thing for students, and California often introduces proposals for such an exemption, it is not. There are better ways for legislatures to help college students including targeting relief to those who need it and not imposing extra work on third parties (booksellers) to handle the program.

What do you think? Read More

Written by | Posted in Sales/Use Tax

Taxpayers Rights When Audited By Tax Authorities In South Africa (Chapter 5.5.6 – 5.5.6.4)

Posted in sections, this is my Doctoral Thesis on taxpayers rights when audited by the tax authorities in South Africa – equally applicable to many English-based law systems in Africa and abroad (eg. India). This will be of particular use to any tax practitioners doing work in Africa and in other English-based legal systems around the world.

Analysis of Challenging The Commissioner’s Discretionary Powers In Auditing Taxpayers under The Constitution of The Republic of South Africa

CHAPTER 5 – JUDICIAL REVIEW WITH REFERENCE TO SS 74A AND 74B –

5.5.6.4 Jurisdictional facts Read More

Written by | Posted in Africa • Audit

Proven Strategies For Eliminating Excess Credits

There are three proven strategies for eliminating excess credits:

1. Foreign tax reduction planning,

2. Increasing the limitation, and

3. Cross-crediting.

Part I of this blog will cover the first two. Part II will cover the third, Cross-crediting.

A. Foreign Tax Reduction Planning

For U.S. persons in excess limitation positions, foreign tax reduction planning has no Read More

Written by | Posted in Income Tax • International

Cop Out! Williams Saga Finally Ends

Williams Court Yields To Government’s Claims That It Be Given Expansive Discretion For Asserting Willful FBAR Penalties

In Zwerner, the jury imposed multiple-year willful FBAR penalties at the maximum. Recall that the maximum willful FBAR penalty is the greater of $ 100,000 or 50% of the undisclosed account’s balance on the key date (June 30, as interpreted).

The jury was not asked to review the IRS’s assertion of the maximum willful FBAR penalty. Thus, a key issue left unresolved was whether the IRS’s decision to assert maximum willful FBAR penalties is reviewable. Assuming so, what standard would the trier of fact – here, the jury – apply in determining whether something less than the maximum penalty Read More

Written by | Posted in FBAR • IRS

Colorado Shocked With Pot Tax Revenue

One of the main goals accomplished by legalizing marijuana in Colorado was the perceived increased revenue stream from state tax. Lawmakers strongly believed Colorado would benefit financially from the legalization of marijuana in its state. To their shock and dismay, the legalization has not been as profitable as lawmakers had hoped.

By way of brief background, Colorado enacted a pot tax in 2013. Specifically, on November 5, 2013, Colorado voters passed the pot tax. The tax operated similar to other sin taxes in that it came at a hefty rate. Recreational marijuana sales were subjected to a 25% tax which went into effect on January 1, 2014. Of the 25%, 15% will be tagged for public school construction projects and 10% was earmarked to funding enforcement regulation on the retail pot sales. This excise tax, which is similar to tobacco and cigarette taxes, is in Read More

Written by | Posted in Marijuana Taxes • State And Local Tax (SALT)
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