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ASC 740 The Basics – Perms, Temps, NOLs And Credits – Complimentary Webinar Series Starts Today

You are invited to a complimentary ASC 740 training session which  is about 30 minutes in length and will cover various facets of state taxes including separate versus unitary states, state modifications under the Tax Cuts and Jobs Act, state NOLs and state uncertain tax benefits.

Webinar: ASC 740 The Basics – Perms, Temps, NOLs And Credits

Date: Friday, July 19, 2019

Time: 12:00PM EST/11:00AM CT/10:00AM MT/9:00AM PST

REGISTER HERE 

 

Maximizing The Tax Benefits On Travel And Entertainment Expense

Kasim Qasim

Travel and entertainment are legitimate deductions, but few business owners take full advantage of them. One reason may be that they fear that the deduction will be challenged by the IRS and they’ll have to undergo the scrutiny of an audit. Another reason may be because the owner is unsure of how to take the deductions or what’s allowed and what’s not allowed. To be clear, travel and entertainment are allowable deductions. the IRS understands that much of business is conducted over drinks, meals or on the golf course. Travel is also an obvious necessary to conduct business. If you’ve been hesitant about taking travel and entertainment deductions, here is a guide to maximizing the benefits of these deductions.

What’s Really Allowed?

The first thing is to feel more confident about what’s really allowed with travel and entertainment expenses. That will enable you to recognize the expense when it occurs and to fully take advantage of every possible deduction.

Travel Expense Allowances

Travel expenses related to your business activities are allowed in the following two categories:

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A Canada Form T1135 Primer – Parsing The Language And Understanding The Basic Reporting Requirement

John Richardson

This is a post about Canada’s foreign asset reporting requirements. Previously, I introduced Canada’s Foreign Asset Reporting Requirements. This post will focus specifically on Form T1135 as it applies to individuals. Individuals are disadvantaged because they may or may not use professional tax advisers.

Form T1135 is a “compliance trap” and can lead to serious penalties for inadvertent noncompliance. (The case of Takenaka v AGC, 2018 FC 347 will be of great interest to U.S. citizens moving to Canada who retain their home in the United States and fail to report its use as a rental property. Ditto for certain U.S. life insurance policies.)

This post is for the purpose of helping individuals understand Form T1135 and the reporting obligations it implies. Obviously this is general discussion and not advice specific to your situation. Form T1135 reporting requirements are surprisingly complex. The Canada Revenue Agency is surprisingly unforgiving for “foot faults” in relation to this form.

Part A: Parsing the language – what is the basic Form T1135 reporting requirement?

If you want to understand the law it’s a good idea to begin with reading the law (make a note of that point). In this case the text of the law is found in Section 233.3 of the Income Tax Act of Canada (a not particularly obscure statute).

This post will guide you through the statute. Please note that all words in italics (whether bolded or not) are my personal commentary/explanation.

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Citi Closes Small Portion Of United States Credit Card Accounts In Certain Countries On July 17, 2019

Helen Burggraf

New York-based multi-national Citibank has confirmed that it has informed a “small portion of U.S. credit card-holders with mailing addresses in certain international countries” that it will no longer be able to service their accounts, citing “local regulatory requirements”.

News of the card account closures came in response to a query on behalf of a card-holder currently resident in the U.K., who first obtained a Citibank “AAdvantage Gold MasterCard” some years ago, and who received a “notice of pending account closure” earlier this month.

A spokesperson for Citibank – or Citi, as it is now normally referred to as – wasn’t able to say how many other countries besides the U.K. were included in this account closure.

The spokesperson added that those U.S. credit card holders residing in the U.K. and other countries where the bank is discontinuing providing credit card services would be able to keep their accounts if they were able to provide the bank with “a U.S. mailing address within 90 days” of receiving the letter saying their account was to be closed.

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IRS Formally Announces It Will No Longer Challenge Foreign Tax Credits On Two French Social Services Contributions

French Flag 2

The U.S. Internal Revenue Service said on Wednesday that it “will not challenge” the claiming of foreign tax credits against certain controversial payments that potentially thousands of American expatriates resident in France have been paying for years, and noted that taxpayers who wish to file a claim for refund of U.S. tax with respect to a foreign tax credit have 10 years after the “due date for filing the return” in question in which to do so.

The IRS statment, which was only two paragraphs long, came less than two weeks after the tax authority admitted in a U.S. Tax Court that it had wrongly collected millions of dollars of tax from France-resident American citizens in connection with their payment of the French “Contribution Sociale Generalisee” (CSG) and “Contribution au Remboursement de la Dette Sociate” (CRDS) taxes.

As reported, that statement was seen as capping a years-long legal saga, and was expected to potentially launch millions of dollars worth of tax refund claims by U.S. expats who have lived in, and been filing tax returns from, France.

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Tax Implications Of Converting An LLC To A Corporation

John Dundon

Recently a husband/wife owned 3 LLC’s that each successfully elected to be treated as S-corporations for federal income tax purposes by filing IRS Form 2553 – Election by a Small Business Corporation. Subsequently this great couple found themselves entertaining a rather complicated buyout offer of all 3 of their LLCs. This post addresses the tax implications of converting an LLC to a Corporation as part of a buyout strategy.

Their fundamental question – can the LLCs do a tax deferred corporate reorganization under IRC 351-368?

The husband/wife were concerned that their LLCs electing S corporation status might not be able to engage in a corporate reorganization because the LLC’s were comprised of ‘member interests’ and they did not have any “stock” – which is a key term in IRC 368 governing statute.

This drove them into the weeds of IRC 708 pertaining to the merger of two or more partnerships. Fortunately they came to me and turns out the main concern here is converting the legal form of the businesses from LLCs to a corporation which can require a state licensed business attorney.

Keep in mind however, the husband/wife converted each of their LLC’s tax status from a partnership to a corporation without changing the LLC’s legal form in Colorado. As such they only needed to:

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Have Fun Today Reading 200+ Tax Jokes

SMILEY FACE

There are many known health benefits to laughter including: lower blood pressure, reduces stress, improves cardiac health, boosts T-Cells, triggers the release of endorphins, and produces a general sense of well-being. Laughing is also very good for your abs:)  TaxConnections is focused on reducing your professional stress.

We are halfway through the year, and while many of you are smartly taking tours of the fantastic new Tax Calendar and  Tax Provision Software on the market today, we want to remind you to take a breath and enjoy being happy for all the wonderful new, easy, affordable resources now available to you. All you need to do is to open your mind to learn about these new tools being developed for you each day.

Looking to add some laughter to your life? Request your copy:)

2019 Edition of 200+ Best Tax Jokes, Tax Quotes, Fun Tax Forms.

Register To Tour This Easy And Affordable Tax Calendar

Akore Tax Calendar

It is simply one of the best tax software tours tax professionals will take this year. This Award Winning Tax Calendar offers an extraordinary inexpensive license annually. Frankly, it is the very best value for any tax calendar on the market today.

Register for a tour and discover for yourself what this tax calendar offers large, medium and small corporate tax organizations; and hundreds of clients of your tax firm. It is all securely stored in the cloud or you can store it in your own; the choice is always yours.

TaxConnections is in the process of reviewing over 1700 software companies this year and are super impressed at the low cost and high value of the Akore Tax Calendar. Yes! It is impressive! This is tax calendar organization at it’s best!

Register For A Tour That Is Simply Amazing.

 

TaxConnections Has Gifts For You – Eleven Valuable Complimentary eBooks For Tax Professionals

Free Stuff

TaxConnections has a special page we want to direct the tax professional community to discover. We have built an entire page of complimentary resources for you including: United States Tax Treaties, Global Tax Authority Country Representatives, Verify Law License Tool, Verify CPA License Tool, Automobile Depreciation Charts, Presidential Executive Orders, 250+ Motivational Quotes To Manage Teams, 200+ Best Tax Jokes And Quotes, Interviewing For Your Tax Department, Preparing For An Interview and much more.

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Is Your Company Facing A Payroll Tax Audit? Here Are Four Steps To Help You Prepare

Venar Ayar Payroll Tax Audit

A tax audit is a time to prepare and not to panic. Many companies are requested to supply documents to support deductions, and if your company keeps good records, a tax audit can be a simple inconvenience.

The important thing is to prepare for your date with the tax auditor. He or she can be a federal auditor, a state auditor, or a local auditor from the IRS. Whoever comes, you should be ready with documentation and good information that supports your company’s payroll tax filing.

Here we will look at four steps that can help you prepared for the big day. But first, let’s understand the meaning of payroll audit.

What Is A Payroll Audit?

A payroll audit is an examination that analyzes s a company’s payroll processes to ascertain accuracy. It examines things such as business’s current employees, wages, pay rates, and tax withholdings.

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The Inevitable Rise Of The Independent Tax Advisor

Kat

Independent tax advisory firms are growing much quicker than most people may realize. With Big Four firms retiring Partners at age 55, law firms rising expectations of their Partners, corporations replacing tax roles with increasing automation, and baby boomers retiring; the landscape for tax professionals worldwide is quickly changing. It is inevitable to see the rise of the independent tax services providers out on their own. What corporate, public accounting, legal and academia all have in common are tax professionals who desire to continue to work in their prime of tax knowledge and expertise. We saw this trend coming with the launch of www.taxconnections.com and created a platform for independent tax advisors to work remotely from any location globally. We have spent years building a tax professionals virtual office platform.

According to Internet Facts Stats

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Proposed U.S. Japan Tax Treaty Enhances Ability Of U.S. To Enforce Taxation On Americans Abroad In Japan

John Richardson Proposed U.S. Japan Tax Treaty

Prologue – Tax Enforcement And The Revenue Rule

The common law revenue rule was designed so that one country will not enforce tax debts owed to another country. There is general agreement that the “revenue rule” is gradually disappearing. Specifically, the United States has negotiated tax treaties with at least five countries (Canada, Denmark, France, Sweden and the Netherlands) which abrogate the revenue rule. To learn more about the Revenue Rule, see the “Appendix” below.

I have previously suggested how the “assistance in collection provisions” facilitate U.S. citizenship-based taxation. My 2016 comment on “assistance in collection provisions” suggested that U.S. citizenship-based taxation gives the United States strong incentives to end the revenue rule. Specifically …

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