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Archive for Annette Nellen

Proposed Republican Health Care Fix Missing From Current Bill

Annette Nellen

The House Republican plan to repeal and replace the Affordable Care Act (aka Obamacare) that was released on March 6 omits something that the House Republican health reform blueprint of June 2016 said would be included. The missing item is a big one, that if modified, would make the tax law more equitable, reduce health care spending, raise revenue (that could be used to help those without insurance), and help a lot of people know what their health insurance costs.

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Taxes And The Sharing Economy

Annette Nellen

I define the sharing economy broadly as including both sharing assets and one’s time. Four characteristics:

  • Monetizing unused time and assets.
  • Using technology to match those with resources to those willing to pay for them.
  • Providing assets where temporary need exists (such as bike share).
  • Operating in the broadest space possible (including digital services provided to a global marketplace).

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What To Tell Clients About Tax Reform (Video)

Annette Nellen

The AICPA Tax Division has a nice tax reform resources website that includes comment letters and testimony from the AICPA and short update videos. I’ve got one there dated February 27 on what to tell your clients about tax reform. I hope you’ll check it out and that it helps give you some ideas of information to share with your clients to help them understand tax reform and the possible effects on them.

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Tax Paternalism – California AB 252

Annette Nellen

AB 252, a proposal in the California legislature “would prohibit the imposition by a city, city and county, or county, including a chartered city, city and county, or county, of a tax on video streaming services, including, but not limited to, any tax on the sale or use of video streaming services or any utility user tax on video streaming services.

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CA Proposal To Convert Vacation Home Subsidy

Annette Nellen

AB 71 introduced in California for the 2016-2017 session, proposes to repeal the deduction for mortgage interest on a second home (usually a vacation home) and use the savings (and apparently other funds) for low-income housing.

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More Than One Way To Tax Consumption

In the U.S., the consumption taxes we are most familiar with are the sales tax and some excise taxes, such as on gasoline, alcohol and tobacco. We typically think of these taxes as having to be imposed at the point of purchase. There is an advantage to this because you’ll know at that time if you can afford to pay the tax. Disadvantages to this approach include that the vendor has additional compliance to collect and remit the tax (and penalties if done wrong) and the rate can’t be adjusted for the income level of the buyer (although I understand many might not view this as a disadvantage).

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Extended Due Date For Calendar Year Corp – What?

Annette Nellen

In 2015, Congress changed the due date for several types of entities as well as for the FBAR (for foreign financial accounts). The AICPA has a wonderful chart with all of the new dates noted.

When Congress made the changes for C corporations, they apparently had a concern with a change that would move a due date from one government fiscal year into the next fiscal year. The federal government’s fiscal year ends September 30.

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States Need To Get Ready For Federal Tax Reform

Annette Nellen

There is lots of talk about federal tax reform. We are likely to see some legislative language from the House in spring, according to Speaker of the House Paul Ryan (see Jeremy Quittner, “Paul Ryan Says Tax Reform Won’t Happen Any Time Soon,” Fortune, 2/2/17).

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Fighting Tax Identity Theft

Annette Nellen

Our tax filing systems are not perfect! How does the IRS or a state tax agency really know if the person filing a return is the true owner of the taxpayer identification number used? In IRS Publication 1345, on procedures for authorized e-file providers, the IRS states that if the preparer/e-filer does not know the client, they should get two forms of verification (ideally picture IDs that include the client’s name and address (page 11 of Pub 1345)). That should help. What else is needed?

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Prospects For Tax Reform In The 115th Congress

Annette Nellen

We have a new Congress and new President – all of the same party. Tax reform discussions and hearings have been held for the past six years. In June 2016, the House Republicans released their “blueprint” for tax reform. So, will we see tax reform in 2017? If yes, what might it look like?

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Sales Tax Policy Outlook For 2017

Annette Nellen

Sales tax law changes and discussions in 2017 are likely to look a lot like those of 2016, with one possible exception.

The repeating discussions and activities will include:

1) Expanding the sales tax base to include more services and digital goods.

2) Congressional hearings on the Marketplace Fairness Act without enactment of legislation.

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IRS National Taxpayer Advocate Report Released

Annette Nellen

The IRS National Taxpayer Advocate—Nina Olson—is required to issue an annual report to Congress. The 2016 report was released 1/10/17. These reports are always a great read. The report lists the mots “serious issues” in the tax system and makes recommendations for improvement. The 2016 report focuses a lot on the IRS “Future State” project and tax reform.

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