TaxConnections brings you two leading tax experts in tax provision webinar scheduled for November 4th 2016. Accounting for income taxes is complicated and the stakes are high. Far too many companies still struggle with accurately completing the tax provision in a timely manner. Tax is still one of the leading sources of control deficiencies including financial restatements.
Many tax professionals like the ability to transfer their home into their office, since it allows for greater flexibility of time. There are also tax benefits when somebody sets apart a place in their home to create a home office. This post from MileIQ www.mileiq.com/taxpros) gives us the tax benefits and requirements for establishing a home office in order to apply for the tax deduction on business miles from the IRS.
144 Offshore Banks & Now Financial Advisors Are Turning Over Your Names To The IRS – What Are Your Waiting For?
On May 26, 2016 we posted 97 Offshore Banks Are Turning Over Your Names To The IRS – What Are Your Waiting For? and since then, the Government has added 47 more banks and financial advisors to this list bringing the number to 144 offshore banks and foreign financial advisors. The IRS keeps updating its list of foreign banks which are turning over the names of their U.S. Account Holders, who are now subject to a 50% (rather than 27.5%) penalty in the IRS’s Offshore Voluntary Disclosure Program (OVDP). This penalty is based on the highest account balance measured over up to eight years.
The “Exit Tax”: Dual US/Canada Citizen From Birth, No Canada Citizenship Today = No Exemption To US “Exit Tax”
Relinquishing US citizenship: South African Apartheid, the Accidental Taxpayer and the exit tax
The above references a “guest post” written by Dominic Ferszt of Cape Town South Africa. The post demonstrates how the “dual citizen from birth” exemption to the S. 877A “Exit Tax” relies on the citizenship laws of other nations. In some cases those laws of other nations are arbitrary and unjust. If these laws were U.S. laws, they might violate the equal protection and/or due process guarantees found in the United States constitution. For example, Mr. Ferszt describes how the “dual citizenship exemption” to the “Ext Tax” is dependent on South African “Apartheid Laws”. He describes a situation where a “black” U.S. citizen from birth is denied the benefits of the dual citizen exemption to the Exit Tax, which are available to a “white” dual citizen from birth. (During the “Apartheid Era” Blacks were not entitled to South African citizenship.)
According to The New York Times, Warren E. Buffett, the billionaire investor, volunteered more detailed information about his income taxes than Donald J. Trump, the Republican nominee, ever has.
Salim Omar’s goal with the “CPA Practice Growth and Freedom” Intensive is to SHOW YOU (side-by-side in the trenches) how to create a CPA Firm that allows you to dramatically increase the income you earn, to work when and how you want, that gets you quality clients you love working with… and that enables you to live a life of massive personal freedom.
Whitepaper- Controlling the “Out-of-Control” Tax Provision Or How to Make Your Auditors Love You & Your Tax Provision!
The PCAOB is using the type of logic that made you feel clever in 4th grade when you finally grasped that a square is a rectangle but a rectangle is not necessarily a square.
The general premise of the PCAOB is this; Restatements will most likely arise when there are material weaknesses in the internal controls environment. But the existence of a material weakness won’t necessarily lead to a restatement. In other words, you might still get things right in spite of poor internal controls.
If this logic holds true, there should be more general control issues (e.g., significant deficiencies) than material weaknesses and similarly more material weaknesses than financial restatements. In 2015 this did not hold true. Here is a troubling pattern:
What are the most common groupings of Asset and Liabilities on a Balance Sheet?
Continuing with a recent theme in this blog – here is an update on federal legislation to not tax winnings of Olympic athletes. That is, the value of the medal and the cash from the U.S. Olympic Committee will be tax free. H.R. 5946 has now passed in the House and Senate, so will soon be off to the White House.