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Archive for Annette Nellen

Sharing Economy – Need For Tax Literacy

Annette Nellen 5.25

The House Small Business Committee held a hearing today (May 24) (part 1 of 2) on “The Sharing Economy: A Taxing Experience or New Entrepreneurs.” Part 2 is scheduled for May 26 with National Taxpayer Advocate Nina Olson speaking. A focal point of the hearing per the posted testimony was difficulties freelancers face in the sharing economy because they don’t fully understand their tax obligations.
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Deciphering Campaign Tax Proposals

Annette Nellen

Here is my 15 minute presentation to the San Jose Rotary Club delivered today (May 11) on deciphering campaign tax proposals and helping members increase their tax policy savviness.

Deciphering Campaign Tax Proposals

Presentation delivered to Rotary International San Jose Chapter (District 5170) on May 11, 2016. Read more

New Rules Can Produce New Problems – AOTC and 1098-T

Annette Nellen

In writing a summary of a recent Tax Court summary opinion, I realized that a 2015 law change may cause problems for some students trying to claim the American Opportunity Tax Credit (Section 25A), Lifetime Learning Credit (Sec. 25A) or Section 222 above the line tuition deduction starting in 2016.  A 2015 law changes requires an individual to have received a Form 1098-T from the university in order to claim the tax benefit. Read more

Philadelphia Soda Tax

Annette Nellen

The Pennsylvania primary election likely brought nationwide attention to Philadelphia’s effort to create a soda tax. The tax aims to raise money for schools . It was also mentioned by at least Senator Sanders (he opposes) and Secretary Clinton (she supports).

Using principles of good tax policy, I oppose. Why? Read more

Can IRS Stop Printing Forms And Pubs?

Annette Nellen

Who remembers when the IRS mailed a packet with blank tax forms and instructions AND your Social Security number printed on your mailing label?  Several years ago the IRS reduced mailings such as when they could tell the taxpayer prepared their return with software the year before and for the past few years don’t mail forms.  They do still print them to pick up at IRS service locations. All of the forms, instructions and publications can be read or printed from the IRS website. Read more

Tax Reform in 2016?

Annette Nellen

While we are unlikely to see tax reform this year, there continues to be a lot of work going on in the tax committees on it.  And President Obama updated and released his framework for business tax reform this month (first report was released in Sept. 2012). I think the main impetus for the update was to address inversions to tie to the recent activities of IRS and Treasury. Read more

Will We See Candidate 2015 Tax Returns After April 18?

Annette Nellen

You likely already heard that the due date for your 2015 return is not April 15 (today), but April 18. This is due to a tax rule (IRC section 7503) that says if the required date for an act is Saturday, Sunday or a legal holiday in the District of Columbia, then the action is to take place on the next day that is not a Saturday, Sunday or legal holiday. April 16 is Emancipation Day in DC (see Read more

Transparency For Individual Taxes

Annette Nellen

Transparency as a principle of good tax policy means taxpayers should understand taxes and how they apply to them. Despite lots of data on a filer’s Form 1040, the one number people focus on is the amount due or refund. Clearly the better number is total federal income tax liability. And better yet, people should also Read more

Pay your taxes in cash at 7-11 – start of even better things to come?

nellennannette

One of the ways individuals and businesses can pay their federal taxes if they don’t want to do so or cannot do so via automatic bank withdrawal, credit card or check is to go to their local 7-Eleven-11 store and pay by cash.Per the IRS instructions, the fee is $3.99 and there are some actions that need to be taken online before going to 7-Eleven. That action includes entering your Social Security number. You then get a number to take to 7-Eleven to complete the transaction. The cash limit is $1,000.

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2015 Tax Legislation Changes – Lots of Them!

Annette Nellen 216

In 2015, over 15 federal laws were enacted, making over 150 changes to the federal tax laws!  Many of these bills did not have the word tax in their title because the main purpose was appropriations or trade or the Highway Trust Fund.  The tax changes include many administrative changes such as on due Read more

ACA Complexity Evident in IRS Incomplete Tax Tip

Annette Nellen

For the past few weeks, the IRS has been publishing Health Care Tax Tips.  The one I received by email today was troubling because it includes an error or at least not enough detail to be entirely useful. Today’s (3/23/16), HCTT 2016-25 – Understanding the Terms Affordable Coverage and Minimum Value, is directed to people interested in the employer mandate. This mandate applies to “applicable large employers” (ALE) meaning employers who had 50 or more full-time and full-time equivalent employees in the prior year. An ALE has to offer coverage to at least 95% of their full-time employees and their dependents up to age 26 to avoid version (a) of the penalty at IRC Section 4980H. To avoid version (b) of the penalty, that coverage has to be affordable and minimum value.

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Taxing Candy and Snacks – That’s a Good Start

Annette Nellen

Many states exempt food from sales tax (see list from Federation of Tax Administrators). The rationale is that food is a necessity of life so should not be taxed. But this is a flawed rationale because many food items are not necessities of life, such as:

Candy

Soda Read more

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