Tax Cuts And Jobs Act:

The Tax Cuts and Jobs Act (“TCJA”) made significant changes that affect international and domestic businesses, such as deductions, depreciation, expensing, tax credits and other tax items. This side-by-side comparison can help taxpayers understand the changes and plan accordingly.

Some provisions of the TCJA that affect individual taxpayers can also affect business taxes. Businesses and self-employed individuals should review tax reform changes for individuals and determine how these provisions work with their business situation.

Visit TCJA: International Taxpayers and Businesses regularly for tax reform updates. International and Domestic Businesses can find details and the latest resources on the provisions below at Tax Reform Provisions that Affect Businesses.

International Provisions

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The Tax And Business Climate In Michigan, United States

Every month, we focus one blog on a “state of the month” where we share not only the state tax ramifications (including economic nexus rules for sales tax, among others), but also some information about the geography, business climate, various tax insights, and of course, some fun facts.

This month takes us to the Wolverine State of Michigan. The origins of this name are obscure, but may be derived from a busy trade in Wolverine furs during the 18th Century.

Its largest city, Detroit, is famed as the seat of the U.S. auto industry, which inspired Diego Riviera’s murals at the Detroit institute of Arts. Also in Detroit is Hitsville U.S.A., the original headquarters of the Motown Record Company. Michigan is home to many great musicians including The Supremes, The Temptations, Stevie Wonder, Smokey Robinson, Bob Seger, Kid Rock and Alice Cooper.

Michigan is the only state to consist of two peninsulas. The Lower Peninsula, to which the name Michigan was originally applied, is often noted to be shaped like a mitten. The Upper Peninsula (often referred to as “the U.P.”) is separated from the Lower Peninsula by the Straits of Mackinac, a five-mile channel that joins Lake Huron to Lake Michigan.

The heavily forested Upper Peninsula is relatively mountainous in the west. The Porcupine Mountains, which are part of one of the oldest mountain chains in the world, rise to an altitude of almost 2,000 feet above sea level and form the watershed between the streams flowing into Lake Superior and Lake Michigan.

A wide variety of commodity crops, fruits, and vegetables are grown in Michigan, making it second only to California among U.S. states in the diversity of its agriculture. Michigan is a leading grower of fruit in the U.S., including blueberries, apples, tart cherries, grapes, and peaches.

Business Climate 

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Tax Director - International Job

Tax Director – International Tax Software (Remote Role)

(This is an ideal opportunity for a Tax Partner, International or Tax Director, International in a public accounting firm or corporation who enjoys international taxation and keeping up to date on tax legislation. Our client has plenty of clients utilizing their technology platform. You never have to bill clients again as this is not a public accounting firm. This is a very exciting opportunity to stay on top of international tax and be the person that keeps people informed on tax law changes and technology platform up to date. Very generous salary offered.)

TaxConnections Executive Search Services division has been retained to conduct a search for a Tax Director – International Tax Software for a privately held company headquartered in the United States with more than one hundred employees working remotely. This software company creates and licenses cutting-edge, innovative tax technology that is utilized by more than 1000 companies worldwide.  They are a leading global tax technology company committed to providing high value, affordable tax research, management, and solutions by combining technology with tax expertise to deliver optimal international tax solutions.

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IRS Postpones Implementation of $600 Form 1099-K Reporting by a Year

As a result of taxpayer confusion, lack of clear guidance, concerns about the existing backlog, and impact on the upcoming filing season, industry and stakeholders urged the IRS to postpone the implementation of the new reporting requirements of the Forms 1099-K. Good news: The IRS listened, and on Friday, December 23, the IRS issued Notice 2023-10 delaying the requirement for electronic payment networks to report transactions over $600 to the IRS on a Form 1099-K, Payment Card and Third Party Network Transactions, until 2024.
Key Points:

  • The IRS is delaying lowering the threshold for Form 1099-K reporting by a year. The $20,000 and 200 transactions thresholds remain in place through December 31, 2023.
  • The rules for reporting income are not changing. Anybody receiving taxable income paid through third-party networks must still track and report their taxable income.

Why does this matter for taxpayers?

A Form 1099-K is an information form typically provided to freelancers or small business owners who receive payments of income from a client via a third-party payment system (e.g., Venmo, PayPal, or Cash App) and it is often considered self-employment income. However, with the convenience of Venmo, PayPal, or Cash App, many individuals pay personal expenses as well as payments associated with goods and services with these apps.

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Tax Director - International Tax Software (Remote Opportunity)

Tax Director – International Tax Software (Remote Role)

TaxConnections Executive Search Services division has been retained to conduct a search for a Tax Director – International Tax Software for a privately held company headquartered in the United States with more than one hundred employees working remotely. This software company creates and licenses cutting-edge, innovative tax technology that is utilized by more than 1000 companies worldwide.  They are a leading global tax technology company committed to providing high value, affordable tax research, management, and solutions by combining technology with tax expertise to deliver optimal international tax solutions.

Given the advances in globalization, tax departments of multinational enterprises (MNEs) benefit greatly from their fully integrated software solutions. The company provides tax relevant workflow solutions that can be accessed by all stakeholders. They are powered by a comprehensive international tax research platform that tracks the tax laws of 195 countries and can be customized to an MNEs global footprint.

The Tax Director – International Tax Software will report directly to the CEO who was formerly a Tax Partner, International with a Big Four firm in Silicon Valley.

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C Suite Tax Executive To Lead Software Company (Remote Opportunity)

A software company is searching for a Tax Partner/Principal who wants to retire from public accounting firm early, yet has another chapter in their professional life to accomplish. Our client is searching for a leader to run a company and take it to the next level within 3-5 years. The development of this tax software company has reached a stage where they need a CFO and/or CEO who has experience in raising money to build the sales and marketing team. Another option the Founder is considering is a merger with another tax related company with a proven sales team in place.

What is interesting about this tax centric company is it is a very established brand with a loyal client base. The CEO will retire in 3 years or less or as soon as the new C Suite Executive(s) are ready to lead the company through the next stages of development and growth. The current team is comprised of more than one dozen dedicated consultants who get the work done and a Founder who understands the benefits of bringing the right team forward to move to the next level of success.

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Trusted Tax Professionals

According to research by psychologists, Trust is a central part of any human relationship. Trust is a belief that a person will act and behave in certain ways. Trust in a person means that you have a feeling of confidence and security that you can depend on a particular individual. Trust is the number one characteristic desired in a tax advisor. Trust is what everyone searches for when hiring a tax professional to handle your personal information. Trust is the assured reliance on the character, ability, strength or truth of someone or something. Given challenges in the world today, the most valuable asset you can offer is trust!

Trust takes time to build. Relationships take time to build; finding people you trust is what we search for in our most valued relationships. We are taking this time to identify the people we know who are trusted to do a great job for taxpayers. Taxes are complex today. It is challenging time for tax experts and taxpayers to understand the new tax rules and legislation thrust upon us each year. Taxpayers need access to trusted tax experts in the profession. For the purposes of this blog post, we have three goals:

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50 Projects Taxpayers Pay For In A 1.7 TRILLION Omnibus Bill 2022

50 Projects Taxpayers Pay For In A 1.7 TRILLION Omnibus Bill 2022

Here is who supported the passing of the Omnibus Bill. 

The Bill is more than 4000 pages long and you can read it here.

In the Senate18 Republicans voted to pass the omnibus. They were Senate Minority Leader Mitch McConnell (R-KY) and Sens. Richard Shelby (R-AL), Roy Blunt (R-MO), John Boozman (R-AR), Shelley Moore Capito (R-WV), Susan Collins (R-ME), John Cornyn (R-TX), Tom Cotton (R-AR), Lindsey Graham (R-SC), Jim Inhofe (R-OK), Jerry Moran (R-KS), Lisa Murkowski (R-AK), Rob Portman (R-OH), Mitt Romney (R-UT), Mike Rounds (R-SD), John Thune (R-SD), Roger Wicker (R-MS), and Todd Young (R-IN).

The House Republicans who voted for the omnibus are Reps. John Katko (R-NY), Chris Jacobs (R-NY), Brian Fitzpatrick (R-PA), Fred Upton (R-MI), Rodney Davis (R-IL), Jaime Herrera Beutler (R-WA), Steve Womack (R-AR), Adam Kinzinger (R-IL), and Liz Cheney (R-WY). Upton, Davis, Herrera Beutler, Kinzinger, Katko, and Cheney are not returning to Congress in January, and this was their last vote as lawmakers.

Ocasio-Cortez was the only Democrat to vote no on the Bill.

In a floor speech ahead of last Friday’s vote, House Minority Leader Kevin McCarthy (R-Calif.) called the spending bill “a monstrosity,” adding “that is one of the most shameful acts I’ve ever seen in his body.”

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We have a complimentary eBook gift for everyone today! TaxConnections gifts our loyal readers a compilation of more than 250+ tax jokes, quotes and fun tax forms.

We want to give you something to remind you to take a moment  to enjoy your life with laughter! There are many known health benefits to laughter including: lowers blood pressure, reduces  stress hormones, improves cardiac health, boosts T-Cells, triggers the release of endorphins, and produces a general sense of well-being. Laughing is very good for you!

Request your complimentary copy today:

250+ Best Tax Jokes, Tax Quotes, Fun Tax Forms.

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Small Tax Firms Increase Annual Revenue

Good News For Small And Medium Size Tax Firms!

Small and medium sized tax firms nationally are benefitting from new revenue streams by offering R&D tax credit and cost segregation services to their clients. Many firms are growing by offering more diversification in services offered to their client base, thereby deepening long-term client relationships.

Any time your tax services firm can differentiate itself by offering a specialty niche, you have the opportunity to stand out from your competition while providing extra value to clients. Many firms are outsourcing R&D tax credit and cost segregation services to tax services firms, both of which can generate a fresh stream of revenue with little or no capital investment. Your firm should identify current clients that will benefit from R&D tax credit or cost segregation services. Legislative changes make cost segregation and R&D tax credits even more valuable to your clients. The reality is, if you aren’t already offering these services, other firms will.

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The Nobel Peace Prize Is Awarded December 10th Each Year: What Tax Advice Would You Give Elon Musk If He Won?

The Norwegian Nobel Committee has decided to award the Nobel Peace Prize for 2022 to one individual and two organisations.

The Peace Prize laureates represent civil society in their home countries. They have for many years promoted the right to criticise power and protect the fundamental rights of citizens. They have made an outstanding effort to document war crimes, human right abuses and the abuse of power. Together they demonstrate the significance of civil society for peace and democracy.

According to the Nobel Peace Prize Organization, this year’s awards were given to to one individual and two organisations.The Peace Prize laureates represent civil society; they have for many years promoted the right to criticise power and protect the fundamental rights of citizens. They have made an outstanding effort to document war crimes, human right abuses and the abuse of power. Together they demonstrate the significance of civil society for peace and democracy.  The Memorial is based on the notion that confronting past crimes is essential in preventing new ones.

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IRS -Where Is My Refund?

Are you still waiting for your individual federal income tax refund? There is an easy way to find out where your tax refund is right now.

Go the the U.S. Government tax site for your Tax Refund Status at this link: https://sa.www4.irs.gov/irfof/lang/en/irfofgetstatus.jsp

You will be asked to receive your tax refund information, you will need to be prepared to input the year of your tax return, your social security number, your filing status and the amount of refund you are expecting from the U.S. government.

Good luck as some taxpayers will discover that the IRS has recalculated a refund to zero for the reasons they state.