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Last Day To Register For Complimentary Tax Provision Webinar: ASC 740 Be Ready for Q1 – What You Need To Know

Tax Webinar - Nick Frank
COURSE: ASC 740 Be Ready for Q1 – What You Need To Know
DATE: Friday, March 22, 2019
TIME: 11:00AM EST/10:00AM CT/9:00AM MT/8:00AM PSTQ1 is right around the corner. Be ready for it with an overview of the interim tax accounting rules and other important topics like the new GAAP lease accounting standard. Nick Frank is an internationally recognized expert on the corporate tax provision. Prior to founding Tax Prodigy, Nick was employed by a large multinational and a Big Four Firm. Given his responsibility for the tax provision, Nick found much of the tax software difficult to use and a challenge to understand. Nick had one goal in mind and this was to simplify the tax provision process and make it as easy as an Excel Sheet to understand. Learn why Fortune 1000 companies are saying Nick Frank is making the tax provision process easy for them.
Join This Tax Provision Webinar to learn how to simplify the tax provision!

The United States Imposes A Separate And Much More Punitive Tax On U.S. Citizens Who Are Residents Of Other Countries

John Richardson - The United States Taxes Citizens Who Reside In Another Country

On February 28, 2019 TaxConnections kindly posted my first post comparing the way that 19th Century Britain and 21st Century America Treated Its Citizens/Subjects. The post received a great deal of interest resulting in more than 120 comments (largely reflecting the frustration of Americans abroad and accidental Americans).

The purpose of that post focused largely on citizenship and the fact that the United States imposes worldwide taxation on U.S. citizens who are tax residents of other countries and do NOT live in the United States. What that post did NOT do was to focus on HOW the Internal Revenue Code applies to U.S. citizens who do NOT live in the United States.

The Bottom Line Is:

The United States is in effect imposing a separate and more punitive tax system on its citizens abroad. Strange but true. The purpose of this post is to explain how that works and to provide specific examples.

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What You Need To Know: States’ Online Sales Tax And Marketplace Facilitators

Monika Miles - What You Need To Kno

Across the country, states continue to update their sales tax laws in an effort to clarify provisions and increase state income. Of course, because company sales extend beyond state borders, it’s extremely important for your business to be aware of various multi-state tax issues and how they may affect your organization.

One major trend we’re seeing (unsurprisingly) is more states’ adoption of economic nexus and online sales tax provisions based on the Wayfair Supreme Court case. In addition, states that had adopted marketplace facilitators as part of their tax code are beginning to clarify their new role. What does this mean? Keep reading for the details!

Marketplace Facilitators-Their Role In State Sales Tax

As this blog post explains, marketplace facilitators are companies that facilitate:

  1. A seller’s product and payment
  2. The transaction between a buyer and seller by bringing them together
  3. The transaction by processing payment, storing inventory, listing products, setting prices, etc.

Amazon and eBay are two prominent companies that are often designated as marketplace facilitators.

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1099 Reasons To Hire Independent Contractors

William Rogers - 1099 Reasons To Hire Independent Contractors

Maybe not 1099 reasons. But there are good reasons to go the independent contractor route versus hiring employees. Of course, there are also compelling reasons to go the other direction on that. There’s a lot to consider when you make this choice, so let’s dive in.

Independent Contractors Versus W2 Employees

Before we get into the reasons to hire independent contractors, we need to understand the essential differences between the two, especially from the point of view of the IRS. Straight from IRS.gov, an independent contract is “an individual is an independent contractor if the payer has the right to control or direct only the result of the work, not what will be done and how it will be done.” With a W2 employee, the business must pay income taxes, withhold and pay Social Security and Medicare taxes, and pay unemployment tax. There are also insurance costs involved. With a 1099 contractor, the business simply pays contracted rates, and the contractor pays all associated taxes. It’s obviously important to get this right, as the business may face penalties, fines, legal fees and even an audit otherwise.

Read More: I’m Hired! Going Entrepreneur

Pros And Cons Of Hiring Independent Contractors

Depending on the business model, there are several advantages and disadvantages to hiring a contractor versus an employee.

Pros of Hiring Independent Contractors:

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NTA Suggests Greater Transparency – Great Ideas!

Annette Nellen - Greater Transparency For Taxpayers

The IRS National Taxpayer Advocate’s Annual Report to Congress released in February ( IR-2019-11 (2/12/19) + Report) includes the 2nd edition of the “Purple Book” with 59 legislative recommendations to improve taxpayer rights and tax administration. Two of the recommendations aim to strengthen taxpayer rights. They also improve the transparency of the tax system, which is a principle of good tax policy.

The two recommendations:

1. Codify as Section 1 of the Internal Revenue Code:
a. The Taxpayer Bill of Rights (at present, see Section 7803(a)(3)).
b. A Taxpayer Rights Training Requirement, and
c. The IRS Mission Statement

2. Require the IRS to issue all taxpayers a “receipt” that shows how their tax dollars are spent.

For details, see links and all 59 recommendations here.

These are great ideas as they bring greater attention to these important items to help taxpayers better understand the tax system and the federal budget.

I recommend they go farther:

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Cash Versus Accrual Under The Tax Cuts And Jobs Act

Cash Versus Accrual Under The Tax Cuts And Jobs Act

The Tax Cuts and Jobs Act of 2017 has led to changes in the way companies choose to be taxed.  Prior to the tax reform, many businesses were required to use the accrual method of accounting.  But with the change in tax law, businesses with $25 million or less in annual revenue over the prior three years can use the cash method.  More businesses are choosing the cash method of accounting instead of the previous accrual method, but what is the difference between cash and accrual methods of accounting?

Every business must make a decision on how and when to record income and expenses.  Making the choice between the cash and accrual methods is about the timing of when revenue and expenses are recognized and reported.  On their most basic levels, cash accounting is a recording of the transaction when the money actually changes hands, while in accrual accounting the transaction is recorded when it is earned or established.  Cash is immediate and accrual is anticipated.

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Consider These Options To Pay Your Federal Taxes

Charles Woodson- Ways To Pay Federal Taxes

If you aren’t one of those lucky Americans who gets a tax refund from the IRS, you might be wondering how you go about paying your balance due. Here are some electronic and manual payment options that you can use to pay your federal income tax:

  • Electronic Funds Withdrawal – You can pay using funds from your bank account when your tax return is e-filed. There is no charge by the IRS for using this payment method, and payment can be arranged by your tax return preparer, allowing for e-filing of your return and submitting an electronic funds withdrawal request at the same time.
  • Direct Pay – You can schedule and make a payment directly from your checking or savings account using IRS Direct Pay. There is no fee for this service, and you will receive an e-mail notification when the funds have been withdrawn. Payments, including estimated tax payments, can be scheduled up to 30 days in advance. You can change or cancel the payment up to two business days before the scheduled payment date.
  • Electronic Federal Tax Payment System – This is a more sophisticated version of the IRS’s Direct Pay that allows not only federal income tax but also employment, estimated and excise tax payments to be made over the Internet or by phone from your bank account, with a robust authentication process to ensure the security of the site and your private information. This is a free service. Payments, which can be scheduled up to 365 days in advance, can be changed or cancelled up to two days prior to the scheduled payment date. You can use IRS Form 9783 to enroll in the system or enroll at EFTPS.gov – but do so well in advance of the date when a payment is due because the government will use U.S. mail to send you a personal identification number (PIN), which you will need to access your EFTPS account.
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What The Auditors Say About The Corporate Tax Provision: Complimentary Webinar Friday March 8th 2019

Tax Provision Webinar- What The Auditors Say

We were curious how corporate tax teams handled the tax provision under tax reform this past year. If you want to learn what the auditors are privately saying about the corporate tax provision, you will enjoy this inside update on the tax provision and tax reform. We asked Nick Frank of Tax Prodigy what the Auditors were talking about under Tax Reform in which the tax provision did not go well and what the companies were talking about that placed them in a position that the tax provision went smoothly.

Register For Complimentary Webinar On The Corporate Tax Provision:

COURSE: ASC 740 and 2018 Year End
A Debrief On The First Year of Tax Reform

DATE: Friday, March 8, 2019
TIME: TIME: 11:00AM EST/10:00AM CT/9:00AM MT/8:00AM PST

This course will discuss the challenges that companies faced as they grappled with their ASC 740 processes for the first year under the Tax Cuts and Jobs Act. We will take an in depth look at the best practices we are seeing in the market to make the tax provision/ASC 740 process as efficient and effective as possible.

REGISTER TO ATTEND:

https://attendee.gotowebinar.com/register/2050531308768229387?source=TaxConnections

 

 

What Is A Virtual Phone? Tax Professionals Go Virtual

Buy Virtual Phone

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Raising Money Through Crowdfunding And Taxation

Kazim Qasim - Crowdfunding

In recent years, raising money online through third-party backers, or crowdfunding, has grown in popularity.  Originally utilized mostly by musicians, filmmakers and for other creative endeavors, it has now become a more widespread method of raising money for a trip, medical expense, or startup, and is often a quicker and easier alternative than conventional fundraising.  Often the creator of a campaign puts little thought to the tax ramifications before launching and collecting the funds.  With this increase in utilization, the business of its taxation has become an increasing question.  While Congress and the IRS have not addressed crowdfunding income specifically, applying standard tax principles and common sense may help when talking through the issues surrounding taxable crowdfunding income and deciding how to report and pay taxes on it.

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The USA Of The 21st Century Is Like Britain In The 19th Century

John Richardson And FATCA

In 2018 Professor Lucy Salyer of the University of New Hampshire published “Under the Starry Flag” – a book largely about the 1868 Expatriation Act. The book describes a period in American history where Britain treated its “subjects” as having perpetual loyalty to the British Crown. To put it simply: One could NOT emigrate to America and expatriate. No matter what one did, those who were born British Subjects were destined to die British Subjects.

The above tweet links to an interview of Professor Lucy Salyer conducted on February 9, 2019. The interview is about Professor Salyer’s new book “Under the Starry Flag”. It is a fascinating (brilliantly researched) work. The publisher describes the book as:

The riveting story of forty Irish Americans who set off to fight for Irish independence, only to be arrested by Queen Victoria’s authorities and accused of treason: a tale of idealism and justice with profound implications for future conceptions of citizenship and immigration.

In 1867 forty Irish American freedom fighters, outfitted with guns and ammunition, sailed to Ireland to join the effort to end British rule. Yet they never got a chance to fight. British authorities arrested them for treason as soon as they landed, sparking an international conflict that dragged the United States and Britain to the brink of war. Under the Starry Flag recounts this gripping legal saga, a prelude to today’s immigration battles.

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