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Introduction Of Bill To Protect Taxpayer Rights And Privacy

https://www.finance.senate.gov/ranking-members-news/crapo-brady-introduce-bill-to-protect-taxpayer-rights-and-privacy

Tax Gap Reform And IRS Enforcement Act Provides Guardrails Around Proposed IRS Funding  

Washington, D.C.–Seeking to protect taxpayers against Democrats’ campaign to monitor Americans’ bank accounts, place taxpayer finances in a surveillance dragnet, and provide massive, additional mandatory funding to IRS for an army of IRS agents, U.S. Senate Finance Committee Ranking Member Mike Crapo (R-Idaho) and U.S. House Ways and Means Republican Leader Kevin Brady (R-Texas) introduced the Tax Gap Reform and Internal Revenue Service (IRS) Enforcement Act.   

“In light of recent proposals to massively expand the IRS, with unprecedented amounts of mandatory funding, and the IRS’s continued abuses of taxpayer rights and privacy, any additional IRS funding and monitoring of Americans’ private finances must come with guardrails to help protect against abuses,”said Crapo.  “This legislation places important guardrails around IRS funding to protect taxpayers’ rights and privacy.”   

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TaxConnections Virtual Tax Summit – Tax Professionals AND Business Owners Invited To November 12, 2021 Event

Virtual Tax Summit Free Ticket

In a world of rapid change, engaging with and learning from other professionals is key to the success of every business organization. Having a support team of trusted professionals provides valuable expertise vital to the success of every organization.

On Friday, November 12, 2021, TaxConnections hosts the Virtual Tax Summit with leading tax advisors who share their expertise with tax colleagues and small to medium-sized business owners. The benefit of attending this online event is you will learn three ground-breaking innovations being quietly deployed that support the growth of small to medium-size enterprises.

The Virtual Tax Summit is uniquely different from other events. Tax Professionals AND Entrepreneurs are invited to participate in this online experience. Our Speakers bring valuable expertise gained through first-hand experiences with entrepreneurs who have faced a wide range of issues while growing their businesses. Scaling a company to grow requires constantly improving business processes and strategy to advance to the next level.

Register Today For Free Ticket To Virtual Tax Summit

(Selected Sessions Provide CPE For Tax Professionals)

Contact kat@taxconnections.com if interested in sponsorship.

Proposal To Close Loopholes Allowing Wealthy Investors, Mega-Corporations To Use Partnerships To Avoid Paying Tax

Proposal To Close Loopholes Allowing Wealthy Investors, Mega-Corporations To Use Partnerships To Avoid Paying Tax

Senate Finance Committee Chair Ron Wyden, D-Ore., today unveiled draft legislation to close loopholes that allow wealthy investors and mega-corporations to use pass-through entities, primarily partnerships, to avoid paying their fair share of taxes.

Seventy percent of partnership income accrues to the top 1 percent. Current partnership tax rules are too complicated for the IRS to enforce, turning partnerships into a preferred tax avoidance strategy for wealthy investors and mega-corporations. Although computers can check a wage earner’s return, the IRS needs highly-skilled specialists to audit partnerships. It audited only about 0.03 percent of the partnership returns filed for tax year 2018.

Wyden’s bill would remove the complexity in current partnership rules by closing loopholes that essentially allow partners to pick and choose how, and whether, to pay tax. Simply closing these loopholes would raise at least $172 billion, without raising tax rates.

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Admits To Concealing More Than $1 Billion In Assets When Renouncing U.S. Citizenship And Agrees To Pay More Than $500 Million Penalty

U.S. Department Of Justice
Admits to Concealing More Than $1 Billion in Assets when Renouncing U.S. Citizenship and Agrees to Pay More Than $500 Million Penalty

The founder of a Russian bank pleaded guilty to filing a materially false tax return.

“In 2013, when the value of Oleg Tinkov’s investment in his bank’s stock rose to over a billion dollars, Tinkov quickly renounced his U.S. citizenship and then lied to the IRS in a ploy to evade ‘exit taxes’ he knew were due,” said Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division. “Today, Tinkov has entered a plea to a felony and agreed to pay more than $500 million in taxes, interest and penalties, more than double the amount of money he sought to escape paying to the U.S. Treasury through his fraudulent scheme.”

“Oleg Tinkov brazenly violated United States tax law,” said Acting U.S. Attorney Stephanie M. Hinds for the Northern District of California. “No one who enjoys the immense benefits of United States citizenship, as Tinkov did, may avoid the corresponding obligation to support the country he chose. Tax evaders should take notice of the long reach of U.S. law enforcement.”

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Ranking Members Warn Against Bypassing Treaty Process

U.S. Senate Committee On Finance

The top Republicans on the U.S. Senate Finance Committee, the U.S. Senate Foreign Relations Committee, and the U.S. Senate Banking Committee expressed serious concerns with the Administration’s recent suggestions it is considering circumventing the Senate’s constitutional treaty authority in implementing a global tax agreement.  Finance Committee Ranking Member Mike Crapo (R-Idaho), Foreign Relations Committee Ranking Member Jim Risch (R-Idaho) and Banking Committee Ranking Member Pat Toomey (R-Pennsylvania) wrote Treasury Secretary Janet Yellen today asking for clarification of recent comments, reiterating the importance of constitutionally mandated congressional approval of tax treaties.  The letter comes as the Organisation for Economic Development and Co-operation (OECD) is negotiating an agreement on global tax rules.

From the letter:

As you know, under the U.S. Constitution, a bilateral or multilateral tax treaty would require the advice and consent of the Senate, with a two-thirds vote of approval.  Further, we are unaware of any existing congressional authorization that would permit the Administration to conclude a lesser international agreement, such as a congressional-executive agreement.  As described, the nature of changes required to implement Pillar One necessitates the conclusion of a treaty, not a congressional-executive agreement or other legislative override.

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Biden Global Tax Deal Puts Politics Over Progress, Surrenders Fate Of U.S. Economy To Foreign Competitors

Biden Global Tax Deal Puts Politics Over Progress

Brady, Crapo: Biden Global Tax Deal Puts Politics Over Progress, Surrenders Fate of U.S. Economy to Foreign Competitors

In a joint statement, Congress’s top Republican tax writers, Senate Finance Committee Republican Leader Mike Crapo (R-Idaho) and House Committee on Ways and Means Republican Leader Representative Kevin Brady (R-Texas), blasted the Biden Administration’s announcement that it had reached an agreement with the Organization for Economic Cooperation and Development:

“Rather than securing an agreement that would provide certainty and immediately eliminate digital services taxes, the Administration has instead used this global forum to advance its short-sighted domestic tax agenda. 

“By doing so, the Biden Administration is putting politics over progress and surrendering the fate of the U.S. economy to our foreign competitors. 

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300+ Motivational Quotes eBook For You

300+ Inspirational Quotes

Today is a day to remind yourself of the positive and motivational people who affect our lives. Receive our Motivational Quotes eBook and use it to inspire your family, friends, business colleagues and a steady stream of prospective new clients.

Here are some of our favorite quotes from Albert Einstein:

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“Anyone who has never made a mistake has never tried anything new.”

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“You never fail until you stop trying.”

This complimentary ebook is about spreading positive thoughts and inspire those around you. This is a newly updated version and we encourage you to get your copy. People will remember you for the positive energy you bring into their daily lives. Spread good thoughts around.

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IRS Launches New Webpage To Assist Taxpayers With Refunds Subject To Joint Committee On Taxation Review

Joint Committee Refund Case

The IRS announced a new webpage that provides information to taxpayers whose large refunds are subject to further review by the Joint Committee on Taxation (JCT or Joint Committee).

By law, when taxpayers claim a federal tax refund or credit of more than $2 million ($5 million for a C corporation), the IRS must review the refund or credit and provide a report to the JCT, a non-partisan committee of the U.S. Congress. Refunds subject to this review are known as “Joint Committee Refund Cases.”

Taxpayers can now find answers to most questions about Joint Committee case reviews and links to additional resources at Large Tax Refunds and Credits Subject to Review by the Joint Committee on Taxation – What to Expect.

The new webpage covers the following topics:

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Founder Of Russian Bank Pleads Guilty To Tax Fraud

Founder Of Russian Bank Pleads Guilty To Tax Fraud

Admits to Concealing More Than $1 Billion in Assets when Renouncing U.S. Citizenship and Agrees to Pay More Than $500 Million Penalty

The founder of a Russian bank pleaded guilty today to filing a materially false tax return.

“In 2013, when the value of Oleg Tinkov’s investment in his bank’s stock rose to over a billion dollars, Tinkov quickly renounced his U.S. citizenship and then lied to the IRS in a ploy to evade ‘exit taxes’ he knew were due,” said Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division. “Today, Tinkov has entered a plea to a felony and agreed to pay more than $500 million in taxes, interest and penalties, more than double the amount of money he sought to escape paying to the U.S. Treasury through his fraudulent scheme.”

“Oleg Tinkov brazenly violated United States tax law,” said Acting U.S. Attorney Stephanie M. Hinds for the Northern District of California. “No one who enjoys the immense benefits of United States citizenship, as Tinkov did, may avoid the corresponding obligation to support the country he chose. Tax evaders should take notice of the long reach of U.S. law enforcement.”

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How A Taxpayer’s Custody Situation May Affect Their Advance Child Tax Credit Payments

Advance Child Tax Credits And Custody Cases

Parents who share custody of their children should be aware of how the advance child tax credit payments are distributed. It is important to remember that these are advance payments of a tax credit that taxpayers expect to claim on their 2021 tax return. Understanding how the payments work will parents to unenroll, if they choose, and possibly avoid a possible tax bill when they file next year.

Here are some of the most common questions about shared custody and the advance child tax credit payments.

If two parents share custody, how will the IRS decide which one receives the advance child tax credit payments?
Who receives 2021 advance child tax credit payments is based on the information on the taxpayer’s 2020 tax return, or their 2019 return if their 2020 tax return has not been processed. The parent who claimed the child tax credit on their 2020 return will receive the 2021 advance child tax credit payments.
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Focus On The Positive: Free 300+ Motivational Quotes

Focus On The Positive: Free 300+ Motivational Quotes

Today is a great day to remind yourself of all the positive and motivational people who are in our lives, and who affect our lives. Take this opportunity to gather this Motivational Quotes eBook and use it to inspire your family, friends, business colleagues and a steady stream of prospective new clients.

This book is about spreading positive thoughts that put a smile on people’s faces and inspire those around you. This is a newly updated version and we encourage you to get your complimentary copy. People will remember you for the positive energy you bring into their daily lives.

Access Your Free eBook: 300+ Motivational Quotes And Fun Forms

Office of Tax Analysis: Treasury’s Distribution Methodology

Office of Tax Analysis: Treasury’s Distribution Methodology and Results

Treasury’s Distribution Methodology and Results July 2021

One of the principal tasks undertaken by the Treasury Department’s Office of Tax Analysis (OTA) is the analysis of the distribution of tax burdens. OTA’s distributional analyses show how federal taxes and proposed changes in tax law affect the distribution of after-tax income across families. Distributional analyses provide policy makers with guidance on the fairness of the current or proposed federal tax burden. Distributional analyses do not address economic
efficiency, simplicity, or other important aspects of good tax policy.1

Distribution Methodology
Distributional analysis has several components, of which the major components are:

Taxes Included: All federal taxes are included in Treasury’s analyses: individual and corporate income taxes, payroll taxes (Social Security tax, Medicare tax, and unemployment tax), excises
and customs duties, and estate and gift taxes. Treasury analyses do not include state or local taxes.

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