Archive for TaxConnections Admin

Great News For Corporate Tax Leaders: IRS Approved E-File For Forms 720 And 8849

Great News For Corporate Tax Leaders: IRS Approved E-File For Forms 720 And 8849

Don’t wait until the IRS mandates e-file for forms 720 and 8849. Act now to stay ahead of the game.

Visit and Contact us Today at https://akorefederal.com

Still, filing your Excise Tax Returns through paper? It’s time to switch to digital e-filing and eliminate paper returns. The IRS offers an e-filing option for excise tax forms 720 and 8849, and only Akore Federal Excise Tax E-File Software has the enterprise-level solution.

TaxConnections is excited to introduce AKORE Federal Tax Software by Richard Carrier (CEO):

  • IRS Authorized: Akore is the only e-file Provider with enterprise-level security for excise tax e-filing.
  • Top-rated Security: Backed by an AKORE Trust Document, ensuring critical security checks and reliability.
  • e-File 2024 Q3 and Q4: Get e-File ready now with introductory pricing through 12/31/24.

Flexible E-filing Solutions: Akore Federal provides an e-filing service tailored for everyone—individual tax experts, CPA firms handling hundreds of returns, and large corporate filers. No matter the volume, Akore has you covered.

Join the expanding number of companies utilizing Akore’s Federal e-Filing service to not only expedite your refunds and streamline your tax processes, but also to experience the peace of mind that comes with choosing certified, secure excise tax software. Akore’s existing clients are primarily large enterprises that demand professional support and trusted security certification.

Visit and Contact us Today at https://akorefederal.com

Written by | Posted in E-Filing IRS Approved • Form 720 • Form 8849

Kamala Harris Wants To Raise U.S. Corporate Income Tax Rate Higher

Kamala Harris Wants to Raise U.S. Corporate Income Tax Rate Higher

According to the organization Americans For Tax Reform, Kamala Harris wants to raise corporate income tax rates. Vice President Kamala Harris backs hiking the current 21% federal corporate income tax rate to 35%, higher than socialist Venezuela’s 34% rate.

Vice President Harris’ plan is also significantly higher than President Biden’s proposed plan to hike the corporate rate to 28%. The Harris 35% rate would saddle America with one of the highest corporate income tax rates in the world, ten points higher than Communist China and tied with communist Cuba.

After adding state corporate income taxes, the combined federal-state rate under Harris amounts to about 39%, sticking American employers with a higher tax burden than our competitors and adversaries.

During her previous presidential campaign, then candidate Harris told members of an Iowa roundtable that the corporate tax rate has “got to” be increased.

Harris said: “We’ve got to increase the corporate tax rate.” Harris’ plan for a 35% corporate rate is in line with her repeated threats to fully repeal the 2017 Trump tax cuts. This means a return to a 35% corporate tax rate under a President Kamala Harris.

American workers will bear the brunt of Harris’ corporate tax increase.
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Written by | Posted in Corporate Income Tax Rates

Chevron Dethroned: Supreme Court Reverses Course On Deference

Chevron Dethroned: Supreme Court Reverses Course On Deference

On June 28, 2024, the US Supreme Court overturned its 40-year-old precedent concerning deference (often referred to as “Chevron deference”) given to a federal agency’s interpretation of a statute in Loper Bright Enterprises, et. al., v. Gina Raimondo, No. 22-451 (S. Ct. 2024). Since the issuance of the Loper Bright opinion, tax professionals have been speculating as to the impact of the opinion. For example, see our email blast on July 2, 2024.

Exhibit 2 from the 2022 Tax Forum was a simplified version of the facts in the case of Tribune Media Co., et al. v. Commissioner, TC Memo 2021-122 (Oct. 26, 2021), which involved the sale of the Chicago Cubs to the Ricketts family. Unlike the senior debt, the junior debt was determined by the court to be equity and, therefore, treated as additional sale consideration rather than a debt-financed distribution under Reg. §1.707-5(b) (that is not tainted by the disguised sale rules). One of the issues in Tribune Media, now pending in the Seventh Circuit Court of Appeals, is the “general” partnership anti-abuse rule of Reg. §1.701-2, which is the topic of today’s email.

On July 3, 2024, counsel for Tribune Media submitted a letter to the Seventh Circuit Court of Appeals about the impact of Loper Bright on the validity of the partnership anti-abuse rule of Reg. §1.701-2. In the letter, counsel claimed that the regulation is an “extraordinarily broad assertion of agency authority,” and that “the agency [i.e., Treasury] even contends that it can invalidate a transaction that follows ‘the literal words’ of a statute that Congress enacted.” Counsel reiterated that “Loper Bright confirms that this Court should scrutinize [Treasury’s] assertion of authority carefully to ensure that the agency stayed within permissible statutory bounds.”
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Written by | Posted in Partnership Tax Seminars • Partnership Training • TaxConnections

Sales Tax Holidays By State, 2024

Sales Tax Holidays By State, 2024

According To The Tax Foundation “Sales tax holidays, designated periods when select goods or services are exempted from state (and sometimes local) sales taxes, continue to be politically popular among the states: 19 have held or will be holding sales tax holidays in 2024, one more than last year.

They also take different forms in different places. In recent years, Florida has exempted outdoor recreational equipment from its state sales tax during the summer, while Iowa and Oklahoma have exempted clothing during their holidays. Sales tax holidays are politically popular with elected officials because they offer direct discounts, whether real or perceived, to consumers in a highly visible way. Consumers often believe they’re getting a good deal. Thus, they remain popular despite their economic inefficiencies, unintended consequences, and frequent inability to achieve their stated goals.

Proponents of sales tax holidays claim they create economic growth by increasing retail activity within their timeframes. However, studies show that much of the increased shopping during holidays is shopping that consumers would have done at other times but moved to the holiday timeframe to take advantage of discounts. While some consumers make incidental “impulse” purchases during these holidays, those additional purchases are not enough to justify the revenue costs associated with these holidays, even if such impulse purchases are desirable. Since sales tax holidays shift the timing of demand but do little to increase its magnitude, sales tax holidays reduce state and local tax collections for little or no economic benefit.

Go To Tax Foundation To Read Article: https://taxfoundation.org/data/all/state/sales-tax-holidays-2024/

Written by | Posted in Sales Tax Holidays

Train And Retain Your Tax Team (Complimentary R&D Tax Credit Training)

R&D Tax Credit ‍Made Simple: Train And Retain Your Tax Team (Complimentary R&D Tax Credit Training)

If I could advise all tax leaders on retaining their valuable tax staffs, I would advise them on the number one reason tax staff turnover in an organization in the first place. The best retention strategy for leaders of tax organizations is to learn what we have discovered speaking privately with over 250,000 staff level tax professionals over thirty years on why they decide to leave a tax organization. They primarily give us the reason as lack of training and learning. This is one of the most overlooked retention strategies in every tax organization. Your tax team wants more training, so it is vitally important to provide continuous training to your tax staff. In this post, I will share about a training program that is valuable and free to your organization. For the understaffed tax manager/tax director/VP Tax, I want to share with you a program I discovered while speaking with Eric Larson at Source Advisors (Eric.Larson@SourceAdvisors.com). On a complimentary basis, Eric will arrange a team of experts to train your tax team on R&D Tax Credits. Yes, for free! Why is it free? Simply, they want to get you to know them and what benefits they bring to you.

While speaking with Eric, I also decided to learn about GOAT.tax which does the R&D tax credit work for your organization. What I discovered was amazing to learn because it is so easy to use, it is free to use, and it is supported on audit. If you are not familiar with GOAT.tax, I highly recommend you contact Eric about free training and education how to claw back tax savings through R&D tax credits. Complimentary training for your tax team will do wonders for your tax organization retention strategies. Eric organizes these training opportunities privately for corporate and public accounting tax organizations. Eric will speak with you about arranging a special training session just for your tax team. You staff retention will be higher with frequent training sessions.

If you have training needs in other tax areas, please contact me at kat@taxconnections.com and I will connect you with high end tax experts who would love the opportunity to train your tax teams on tax topics of interest to you.

Contact Source Advisors at this link: https://sourceadvisors.com/source-advisors-taxconnections-featured-offerings/ PR reach Eric directly at Eric.Larson@SourceAdvisors.com to set up complimentary R&D tax credit training for your entire tax organization.

REGISTER FOR TRAINING SESSION STARTING THIS MORNING AT 10:00AM CST: https://www.taxconnections.com/taxblog/join-us-thursday-july-18th-for-a-cpe-webinar-on-%c2%a7-174-updates-2/

OR Contact Eric to set up a complimentary training session just for your tax team.

Written by | Posted in R&D Tax Credit Training

CA Supreme Court Removes Taxpayer Protection Initiative From November Ballot

CA Supreme Court Removes Taxpayer Protection Initiative From November Ballot

“The liberal justices of the California Supreme Court sided with California’s corrupt politicians to strip citizens of the initiative rights that they have had for over 112 years.” – Carl DeMaio
The California Supreme Court sided with Gavin Newsom and California Democrat politicians in removing the California Taxpayer Protection Initiative from the November ballot.

The California Taxpayer Protection Initiative (CTPI) is a citizens initiative that collected the required amount of valid signatures — over 1.4 million — from Californians to be placed on the ballot. The measure would make it harder for state and local politicians to impose costly and unfair tax hikes — the reason that politicians sued to block it from the ballot.

Specificialy, the California Taxpayer Protection Initiative would:

-Restore a two-thirds vote for any tax hike – thus ending the way they imposed the car and gas takes hikes recently
-Impose a stricter definition on what is a “tax” so politicians can’t call them “fees”
-Require the words “tax increase” be included on the official title of any measure that appears on the ballot that contains a tax hike inside of it, and
-Repeal dozens of tax hikes imposed after Jan 1, 2022 – immediately saving taxpayers money Carl DeMaio, a candidate for State Assembly and chairman of the tax-fighting group Reform California — which helped collect signatures to place the initiative on the ballot, says that the decision stripped citizens initiative rights.

“The liberal justices of the California Supreme Court sided with California’s corrupt politicians to strip citizens of the initiative rights that they have had for over 112 years,” said Demaio. “By removing the California Taxpayer Protection Initiative from the November ballot, the Sacramento Swamp has shown how far they will go in their abuse of power to silence their opposition and prevent reform from happening.”
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Written by | Posted in TaxConnections

One-House Budgets Raise Taxes On Wealthiest New Yorkers

One-House Budgets Raise Taxes On Wealthiest New Yorkers

According to an article in the Fiscal Policy Institute, Senate & Assembly Raise Corporate Tax Through 2026, Raise Personal Income Tax Through 2027 — Raising Combined $2.2 Billion
ALBANY, NY. Note that we changed the title and removed the word “wisely” from this presentation to their original title which is actually titled “One-House Budgets Wisely Raise Taxes On Wealthiest New Yorkers — But Only Temporarily” since we have heard from many tax professionals who do not like the tax increases extracted from their clients who do not have enough money to pay their taxes now. In fact, many New Yorkers are leaving the city for lower tax jurisdictions.

— Following the release of the State Senate and Assembly One-House Budgets, Fiscal Policy Institute Director Nathan Gusdorf today released the following statement:

“In light of New York’s affordability crisis and the need for deeper State investments to lower the cost of living, the one-house budgets wisely invest in affordable housing, healthcare, and higher education. Additionally, the legislature sensibly rejects the Governor’s proposed cuts to public schools and home care worker wages.

“Both budgets prudently raise the top personal income tax and corporate tax rates to fund these investments, relying on increased revenue from those least affected by the affordability crisis. However, the budgets only increase taxes on the top 0.3 percent of taxpayers, and only on a temporary basis through 2027. The State’s long-term fiscal health would be better served by broadly increasing the progressivity of our tax system for all high earners on a permanent basis.

“Over the past four years, we have seen the importance of robust fiscal spending in the wake of the Covid-19 pandemic. New York’s fiscal base is stable and growing, and should be levied to strengthen the state’s economy and support working- and middle-class New Yorkers who currently face prohibitively high costs of living.
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Written by | Posted in New York State Tax Increases

Tax Policy Has A Powerful Impact On The Economy

PROJECT 2025

While everyone is talking about the Heritage Foundations Project 2025, it is valuable to read the section on Tax Policy in Section 4, The Economy about the Department of Treasury which starts here:

INTRODUCTION
The U.S. Treasury Department has a broad regulatory and policy reach. The next Administration should make major policy changes to:
(1) reduce regulatory impediments to economic growth that reduce living standards and endanger prosperity;
(2) reduce regulatory compliance costs that increase prices and cost jobs;
(3) promote fiscal responsibility;
(4) promote the international competitiveness of U.S. businesses; and
(5) better respect the American people’s due process and privacy rights.

These goals should be accomplished through: executive action (primarily treasury orders and treasury directives) and departmental reorganization; rulemakings; promoting constructive policies in Congress; actions in international organizations; and treaties.

The primary subject matter focus of the incoming Administration’s Treasury Department should be:
– Tax policy and tax administration;
– Fiscal responsibility;
– Improved financial regulation;
– Addressing the economic and financial aspects of the geopolitical threat posed by China and other hostile countries;
– Reform of the anti-money laundering and beneficial ownership reporting systems;
– Reversal of the racist “equity” agenda of the Biden Administration; and
– Reversal of the economically destructive and in elective climate-related financial-risk agenda of the Biden Administration.

BIDEN ADMINISTRATION TREASURY DEPARTMENT
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Written by | Posted in Project 2025 • TaxConnections

Join Us Thursday July 18th For A CPE Webinar On § 174 Updates

Join Us Thursday July 18th For A CPE Webinar On § 174 Updates

Join us Thursday July 18th at 10 AM CST for a CPE Webinar on § 174 Updates.

Participants will gain an understanding of the current landscape, legislative updates, and best practices for advising clients on navigating the amortization of § 174 expenses. This course introduces participants to the amortization of specified research and experimental expenditures (SREs) for federal income tax purposes. The relationship of SREs to the research tax credit will be developed. Other TCJA changes to research-related provisions of the Code will also be discussed.

After this course, the practitioner will:
• Identify taxpayers who are required to amortize under § 174
• Identify the types of expenditures that need to be amortized
• Quantify the impact of that amortization as well as identify mitigating factors

We look forward to your participation in this informative session.
Register for CPE Course!

Prerequisites: At least two years preparing intermediately complex business income tax returns. No advance preparation is required.
Recommended Credit: 1.0 hour CPE in the field of Taxes delivered by Group Internet

Attendance Policy: To receive credit, attendees must sign in and be present for the presentation and respond to at least three instances of the attendance monitoring mechanisms per hour of instruction
Refund Policy: Refunds are not issued as this course is complimentary
Eric Larson
(800) 806-7626

eric.larson@sourceadvisors.com

Written by | Posted in Complimentary Webinar • TaxConnections

Does the Inflation Reduction Act Give Rise To A New Tax Strategy Called Chaining?

Does the Inflation Reduction Act Give Rise to a New Tax Strategy Called Chaining?

Historical and New Energy Credits Indicate “Potential” New Tax Strategy
Historically, the Code provided two types of credits for renewable energy projects. The first being the production tax credit (PTC) and the other being the investment tax credit (ITC)—both of which fell under the scope of the general business credit of § 38.

These two credits were set to expire in 2021 and 2023. Moreover, the credits covered a limited set of production and investment activities. The Inflation Reduction Act (i) extended the time frame for which the credits are available to taxpayers, and (ii) expanded the activities covered. Understandably, this expansive legislation precipitated the promulgation of some lengthy Treasury Regulations. In that process, the Treasury received comment on “chaining” certain business credits.[1]

To understand the term “chaining”, there are two relevant Internal Revenue Code (Code) provisions that taxpayers are seeking to chain together which serve as the basis for the analysis.

Chaining
To start, under § 6418(a), eligible taxpayers may elect to transfer certain credits to unrelated taxpayers rather than apply the credit against its income tax liability. This process allows a taxpayer to finance its operations and current liabilities with a tax credit that provides no current value to it. Often times, the qualifying taxpayer is a nascent business in an emerging market. Having this newly furnished tax asset provides capital without taking on debt or issuing new shares.
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Written by | Posted in Chaining Tax Strategy • Inflation Reduction Act 2022

Join Us Thursday July 18th For A CPE Webinar On § 174 Updates

Join Us Thursday July 18th For A CPE Webinar On § 174 Updates

Join us Thursday July 18th at 10 AM CST for a CPE Webinar on § 174 Updates.

Participants will gain an understanding of the current landscape, legislative updates, and best practices for advising clients on navigating the amortization of § 174 expenses. This course introduces participants to the amortization of specified research and experimental expenditures (SREs) for federal income tax purposes. The relationship of SREs to the research tax credit will be developed. Other TCJA changes to research-related provisions of the Code will also be discussed.

After this course, the practitioner will:
• Identify taxpayers who are required to amortize under § 174
• Identify the types of expenditures that need to be amortized
• Quantify the impact of that amortization as well as identify mitigating factors

We look forward to your participation in this informative session.
Register for CPE Course!

Prerequisites: At least two years preparing intermediately complex business income tax returns. No advance preparation is required.
Recommended Credit: 1.0 hour CPE in the field of Taxes delivered by Group Internet

Attendance Policy: To receive credit, attendees must sign in and be present for the presentation and respond to at least three instances of the attendance monitoring mechanisms per hour of instruction
Refund Policy: Refunds are not issued as this course is complimentary
Eric Larson
(800) 806-7626

eric.larson@sourceadvisors.com

Written by | Posted in TaxConnections

Register For Complimentary Webinar On Navigating § 174 Expenses (Thursday, July 18, 2024)

Register For Complimentary Webinar On § 174 (Thursday, July 18, 2024)

Webinar Hosted By Source Advisors: Thursday, July 18th 2024
Time: 8:00AM PST/ 10:00AM CST/11:00AM EST/

REGISTER FOR FREE CPE AND EDUCATION ON § 174

Participants will gain an understanding of the current landscape, legislative updates, and best practices for advising clients on navigating the amortization of § 174 expenses. This course introduces participants to the amortization of specified research and experimental expenditures (SREs) for federal income tax purposes. The relationship of SREs to the research tax credit will be developed. Other TCJA changes to research-related provisions of the Code will also be discussed.

Speaker is Jim Foster. Jim joined Source Advisors as the Director of Tax Controversy in 2022. He has worked in tax incentives such as the R&D tax credit, disaster relief credits, the Employee Retention Credit, and most recently § 174. Jim has been practicing in the general area of taxation and tax law for fifteen years. In that time, he has produced numerous successful tax credit cases for his corporate clients. Further, he has had successful tax audits that range from IRS audits and appeals to state-level tax audits. Prior to joining Source Advisors, Jim worked at two national consulting firms that operated in niche tax incentives. While in law school, Jim worked at a public accounting office where he helped the firm advance in and maintain double-digit growth. Jim received his Bachelor of Science in Political Science from Texas A&M University and his Juris Doctorate from South Texas College of Law Houston. He is a licensed attorney in the State of Texas.

REGISTER HERE FOR COMPLIMENTARY WEBINAR

Meet Source Advisors

Written by | Posted in § 174 Webinar
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