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Archive for Tax Compliance

Simplifying Tax Compliance for Seniors

Lisa Nason - Simplify Tax Compliance For Seniors
According to Adam Smith’s Canons of Taxation, the tax compliance function in any society needs to be convenient. This has not always been the case for many seniors in the United States. Form 1040EZ, Income Tax Return for Single and Joint Filers With No Dependents, currently used by eligible taxpayers under age 65, is not available to older taxpayers. Seniors age 65 and older may also not find relief in filing Form 1040A, U.S. Individual Income Tax Return, because of its $100,000 cap on taxable income and its prohibition on itemized deductions.

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Georgia: New Sales Tax Compliance Requirements For Online Retailers

Georgia will require online retailers to file sales tax compliance returns beginning January 1, 2019, if their annual Georgia revenues exceed $250,000 or if they have more than 200 separate retail transactions within the state per calendar year.

As an alternative to collecting Georgia sales tax from its customers and filing sales tax compliance returns, the retailer may instead send “tax due” notices to all Georgia customers who purchased more than $500 of taxable goods during the year. The law, which originated as House Bill 61 and became Act 365, was signed by Governor Nathan Deal on May 8, 2018.

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The First In A Series Of NTA Conversations Is Now Available For Online Viewing

The NTA is hosting a series of conversations that bring together experts to discuss relevant issues that impact and influence tax administration.

The first NTA Conversation panel discussion “An International Ethnographic Perspective on Tax Administration and Tax Compliance” was held on Dec. 1, 2017. The discussion included five international tax researchers who shared their approach to tax research and their work experiences with tax administration and tax compliance. Read more

The Global Forum on Tax Transparency Intensifies the Pressure on Tax Evaders Worldwide

In the aftermath of the release of the “Paradise Papers”, 200 delegates from more than 90 delegations met in Yaoundé, Cameroon for the 10th meeting of the Global Forum on Transparency and Exchange of Information for Tax Purposes which now includes 147 countries and jurisdictions.

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Seven Benefits of Sales Tax Compliance Outsourcing

There are a variety of reasons it makes sense for companies to look for assistance with sales tax compliance outsourcing. Fast growth which makes keeping up with ongoing compliance requirements a challenge, turnover in key positions or an unfavorable audit experience resulting in significant liabilities are a few of the possible reasons we have heard from our clients. Regardless of the reason, many companies are making the decision to look for outside assistance with their sales tax compliance. Below are the seven benefits cited most frequently by our sales tax compliance outsourcing clients when asked about their experience:

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Early Christmas Gift Announcement: US Overseas Taxpayers Subject to Three New IRS Scrutiny Campaigns & Audits Next Year

Since the enactment of FATCA, US persons (citizens and green card holders) overseas have, via lobbying efforts, requested relief from the additional tax compliance burdens placed upon them that appear to be increasing their costs of living overseas (which is generally more expensive than living in the USA anyway).

Their arguments fall into the following three: (1) generally, they file foreign tax returns and pay local tax preparation services but must also pay an additional $2,000- $3,000 for a US tax preparation service specialized in foreign residence; (2) generally the foreign income exclusion and foreign tax credit wash out the U.S. tax burden but for anomalies in definitions between retirement plans that cause undue burden on foreign residents US persons; and (3) US persons must pay more for financial services because they have become the pariah of the financial world.

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TAS Study Finds Informing Taxpayers Can Help Avert Future Noncompliance

Nina Olson, Tax Advocate

Taxpayers can claim the Earned Income Tax Credit (EITC) in more than one tax year, so using the audit as an opportunity to educate them about the requirements for claiming EITC is of particular benefit to them and to the IRS. If a taxpayer claims the credit in error but understands why there was an error, he or she can not only become compliant for the year of any audit, but remain compliant going forward. However, audits are expensive for both the IRS and taxpayers, and are intrusive and intimidating for the taxpayer. There are many EITC returns the IRS does not audit but identifies as containing an error. Thus, while the IRS may not have the resources to audit these taxpayers, through other cost-effective approaches, it can educate them about why they appear to have erroneously claimed EITC, and avert future noncompliance.

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Last Chance: Take Advantage Of The Amnesty Program Now!

Monika Miles, Tax Advisor

Are you still considering whether to take advantage of the current amnesty program? Designed as a way for online sellers to become compliant in states they may have created nexus (either intentionally or inadvertently), the voluntary program provides an opportunity for these businesses to come forward if they haven’t been collecting income, franchise, use or sales tax.

How the Amnesty Program Works

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Congressional Staffer Sentenced For Failure To File Tax Returns

William Byrnes

A congressional staffer was sentenced to prison today for willfully failing to file an individual income tax return, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and U.S. Attorney Dana J. Boente for the Eastern District of Virginia.

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International FAQ #24 – Registering for a GST Account

Tax Question:

What is a Canadian federal goods and services tax (GST) account and do I need to register for one?

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Detrimental Sales Tax Issues That Your CFO Faces

Monika Miles

In our multi-state tax consulting practice in Silicon Valley, we often see that sales tax is an afterthought in companies’ finance departments. Why? Many companies have net operating losses (NOLs) for income tax purposes, and they often don’t consider the ramifications of sales tax. Further, many of our clients sell intangible products—like software, Software as a Service (SaaS) platforms, or digitally downloaded information—and those items don’t seem to be taxable. Plus, in California most of those items do qualify for sales tax exemptions; but that’s not the case in all states. As such, with an already long “to do” list, CFOs and corporate controllers may not put sales tax concerns on the front burner. In a recent blog post, we explained why it’s not a good idea for a company’s corporate controller to take on the burden of sales tax. In some organizations, however, these responsibilities fall to the CFO. This post explains why this likely isn’t the best option, either.

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Foreign Earned Income For U.S. Overseas Taxpayers

John Dundon

The following was prepared by IRS Employees Bethany Barclay, Technical Specialist LB&I Division & Tracy McFee, CPA Technical Specialist LB&I Division regarding Foreign Earned Income Exclusion (FEIE).

Tracy and I met as guest panelists on the hit TV Show Tax Talk Today: Aliens, Immigration, and Taxes—Navigating the Shoals and I’ve grown to truly appreciate her knowledge base and skill set. She is a respectable public servant who I thank for allowing me to share her efforts in this venue.

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