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The Multistate Tax Commission Voluntary Disclosure Program

TC Admin- Multistate Tax

The Multistate Voluntary Disclosure Program (“MVDP”) provides a way for a taxpayer with potential tax liability in multiple states (including the District of Columbia) to negotiate a settlement, using a uniform procedure coordinated through the National Nexus Program (“NNP”) staff of the Multistate Tax Commission (“Commission”).

General Terms

The Commission offers this service to encourage taxpayers to commence filing and paying taxes in states in which they may have substantial nexus, which is the connection between the taxpayer and the state arising from the taxpayer’s activities in that state, making the taxpayer subject to the state’s taxing authority.

A taxpayer with potential tax exposure in more than one state will find this service to be faster, more efficient, and less costly than approaching each state separately.  There is no charge to the taxpayer for participation in the MVDP.

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American Opportunity Tax Credit For Education Expenses – $2500 Tax Credit Annually Per Student

IRS Logo - American Opportunity Tax Credit

The American opportunity tax credit (AOTC) is a credit for qualified education expenses paid for an eligible student for the first four years of higher education. You can get a maximum annual credit of $2,500 per eligible student. If the credit brings the amount of tax you owe to zero, you can have 40 percent of any remaining amount of the credit (up to $1,000) refunded to you.

The amount of the credit is 100 percent of the first $2,000 of qualified education expenses you paid for each eligible student and 25 percent of the next $2,000 of qualified education expenses you paid for that student. But, if the credit pays your tax down to zero, you can have 40 percent of the remaining amount of the credit (up to $1,000) refunded to you.

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TaxConnections Introduces Our Executive Search Services Division – View Tax Executive Jobs

Tax Jobs - TaxConnections Executive Search Services Division

TaxConnections Executive Search Services division is spearheaded by our CEO Kat Jennings who is an internationally recognized tax executive search expert. For more than three decades, Kat and her highly trained search team have served multinational organizations in attracting the very best tax executives around the world.

The majority of TaxConnections retained clients seek a dedicated, tightly focused search process that focuses on clients’ particular needs. Our specialty is serving clients who demand the highest standards during the search process for a tax executive. Our executive search services team focuses on high caliber tax executives leading corporate tax organizations nationally and internationally.

Please view our current management level tax searches.

 

 

U. S. Senate – How To Find Active Legislation On Tax Reform

United States Senate - Legislation

Would you like to easily find and follow active legislation on tax reform? The U.S. Congressional website makes it easy to follow legislation currently being considered. The site provides a Legislation And Records Link which enables you to follow the Sponsored bills. You can view the Bill Summary, When And How The Bill Is Introduced, When A Bill Passes The House of Representatives, When The Bill Passes The Senate, and then signed by the President and becomes law.

There is a Bill to amend the IRS code to make permanent tax provisions that were enacted in 2017 and are scheduled to expire at the end of 2025.

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Exempt Organizations: Form 1023-EZ Now Elicits Additional Information, But It’s Not Clear That IRS Reviewers Are Considering It

National Taxpayer Advocate - Nina Olson

Form 1023-EZ, Streamlined Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code, introduced in the summer of 2014, has been in use for over four years. While I am in favor of a shortened form that smaller organizations can use to apply for recognition as an IRC § 501(c)(3) organization, I have always had concerns about Form 1023-EZ, as discussed in my 20152016, and 2017 Annual Reports to Congress (including a study in volume 2 of the 2015 report).

One of my main concerns has been that Form 1023-EZ does not elicit enough information to allow the IRS to make an informed determination about whether an organization qualifies for IRC § 501(c)(3) status. My concerns were heightened by our reviews of successful applicants’ articles of incorporation to ascertain whether the articles contained purpose and dissolution clauses as required by Treasury regulations, thereby conforming with the statutory organizational test for tax exempt status. It’s important to note that our reviews were limited to representative samples of applicants that are corporations and are in states that make articles of incorporation available online for free.

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CFOs And Tax Executives Invited To Complimentary International Tax Provision Webinar – Friday, November 2, 2018

Tax Webinar- Corporate International Tax Provision

Complimentary International Tax Provision Webinar

Friday, November 2nd 2018

ASC 740 International Under The Tax Cuts And Jobs Act

A provision for income taxes is the estimated amount that a business or individual taxpayer expects to pay in income taxes for the current year. The proportional size of a corporate tax provision can vary significantly from corporation to corporation, based on their tax planning abilities.

The provision for income taxes on an income statement is the amount of income taxes a company estimates it will pay in a given year. Typically, this is represented quarterly with each earnings report on the company’s income statement. Income taxes are paid annually, but businesses will generally pay their estimated tax quarterly.

The corporate tax provision is something that CFOs and their corporate tax executives take seriously. The key for corporate executive management teams is to maintain an open and ethical relationship with the IRS, stay within the law and implement tax savings strategies that minimize taxes and increase profits.

International tax savings strategies that set up companies in countries in lower tax jurisdictions, including acquisitions of a company in a foreign jurisdiction to lower tax rates gain a lot of attention from the IRS and foreign auditors. Understanding the international tax provision under tax reform is what this webinar is all about. You are invited to attend a complimentary webinar on international tax provision by leading international corporate tax provision expert Nick Frank.

Complimentary Webinar Registration On November 2nd 2018

ASC 740 International Under The Tax Cuts And Jobs Act

Increase Communication Skills – TaxConnections Word Power

TaxConnections Word Power - Risorial

Risorial (rye-sor-ee-al) adjective. This word means pertaining to laughter or causing laughter.

Example: The risorial Tax Director made the office environment fun and lively.

Yare (yair) adjective. This word means mental quickness, agility, nimble.

Example: Her yare responses evoked a great deal of respect from her colleagues.

Tax Reforms New And Revised Tax Deductions – Cannot Deduct Certain Payments Made In Sexual Harassment Cases

IRS - Tax Reform Does Not Allow Certain Deductions In Sexual Harassment Cases

Qualified Business Income Deduction

Many taxpayers may be eligible for a new deduction for qualified business income (QBI) from a qualified trade or business operated directly or through a pass-through entity.

The deduction has two components.

1) Eligible taxpayers may be entitled to deduct up to 20 percent of their qualified business income (QBI) from a domestic business operated as a sole proprietorship or through a partnership, S corporation, trust or estate. For taxpayers with taxable income that exceeds $315,000 for a married couple filing a joint return, or $157,500 for all other taxpayers, the deduction is subject to limitations such as the type of trade or business, the taxpayer’s taxable income, the amount of W-2 wages paid by the qualified trade or business and the unadjusted basis immediately after acquisition (UBIA) of qualified property held by the trade or business. Income earned through a C corporation or by providing services as an employee is not eligible for the deduction.

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Section 965 “Transition Tax”: Individuals Subject To U.S. State Tax Jurisdiction, The Response Of New York State

John Richardson - Transition Tax

U.S. tax laws impact the application of State tax laws. The “Tax Cuts and Jobs Act” has impacted State tax revenues in various ways. Therefore, the Section 965 “Transition Tax” will impact individual state tax revenues.

My previous posts have discussed the “transition/repatriation” tax from the perspective of individuals who (1) have small business corporations outside the United States, who are (2) tax residents of other countries. I have previously noted that the “transition tax” impacts individuals who are “tax residents” of ONLY the United States (actually giving them a “sweet deal”) very differently from how it impacts individuals who are “tax residents” of other countries (basically confiscating their retirement assets. If you are a U.S. citizen why are living outside the USA anyway?). See in particular Part 4 above.

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Increase Communication Skills – TaxConnections Word Power

TaxConnections Word Power - Estaminet

Estaminet (ess-tam-een-ehy) noun. This word means café or coffee house.

Example: Each morning as I start my day, I arrive at an estaminet for my coffee.

Cogent (koh-gent) adjective. This word means convincing and appealing to the mind.

Example: The Tax Director made a very cogent argument about the state of the tax provision.

Three Common Family Tax Mistakes

Charles Woodson- Mistakes With Family

When it comes to transactions between family members, the tax laws are frequently overlooked, if not outright trampled upon. The following are three commonly encountered situations and the tax ramifications associated with each.

Renting To A Relative – When a taxpayer rents a home to a relative for long-term use as a principal residence, the rental’s tax treatment depends upon whether the property is rented at fair rental value (the rental value of comparable properties in the area) or at less than the fair rental value.

Rented at Fair Rental Value – If the home is rented to the relative at a fair rental value, it is treated as an ordinary rental reported on Schedule E, and losses are allowed, subject to the normal passive loss limitations.

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Increase Communication Skills – TaxConnections Word Power

axConnections Word Power - Recondite

1. Recondite (ree-con-dite) adjective.  This word means not easily understood, incomprehensible to one of ordinary understanding, concealed or hidden meaning.

Example: The recondite explanation of the tax impact on the global organization left management wanting more information.

2. Tyro (tie-roh) noun. The word means a beginner in learning.

Example: A new class of tyro tax staff just entered a ten week tax training course.

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