Tag Archive for ask tax questions

Biggest Tax Fraud In History Ends In Sentencing of Ex-Lawyer To Fifteen Years In Prison

In a case dubbed “the biggest criminal tax fraud in history” by federal prosecutors, former lawyer Paul Daugardas was sentenced to 15 years in prison for helping wealthy clients dodge taxes. However, if you blinked, you might have missed it. Why? Mr. Daugedas was sentenced back on June 25, 2014, just a week after the IRS’s historic announcement that it had overhauled the voluntary disclosure program. Therefore, no matter how ground-breaking this story might have been, because it didn’t bear some relation to the major OVDP announcement, it was all but ignored by the media.

I’ve been following the Daugerdas saga ever since U.S. District Judge William Pauley threw out his earlier conviction and ordered a new trial. Right about now, you might be saying, “Wait. Back up. You’re telling me that Daugerdas had been previously convicted of Read More

Written by | Posted in Tax Fraud/Evasion/Crimes

Learn How To Get To The Top of The Tax Profession Faster Than Your Tax Colleagues

“The Best Tax Webinar of The Year” on Thursday, October 9th at 9:00AM (California).
 

There are a Limited Number of Seats. Register Now And Receive Two Valuable Gifts!

We noticed several tax professionals attended this webinar twice because they were thrilled with the information we shared during this presentation. We gave you a lot of secrets throughout the webinar and each of our attendees took away two gifts worth $997 and they are now enjoying all the benefits. We really appreciated so many of you came back for more and want to ask you all to send this invitation to a tax colleague so they Read More

Written by | Posted in TaxConnections

Logical Sales Tax Ruling On A Web-Based Business

Since the start of e-commerce and web-based businesses, uncertainties have existed about how sales tax applies to their operations. Often, the state eventually issued guidance for many types of transactions, particularly those involving software. Where there was no specific guidance, you just need to read the statute, understand the technical and legal nature of the business operations and what it provides to customers, and derive an answer. Some companies have also sought rulings from state agencies.

I think a recent ruling from the New York Department of Taxation and Finance reaches a logical conclusion. TSB-A-14(27)S (8/20/14) involves a business (B) that operates a website where people can place an order with a restaurant and pay. B’s website lists about 5,000 restaurants in 27 cities. Website visitors search for a restaurant, see the Read More

Written by | Posted in Sales/Use Tax

TaxConnections CEO Welcomes About.com Writer/Editor William Perez

As  the Founder and CEO of www.taxconnections.com, I want to welcome About.com Freelance Writer/Editor William Perez. William Perez is interested in interviewing members of TaxConnections on a wide variety of subject matters on tax. William joined TaxConnections and is eager to speak with and interview our members for media articles on tax topics. We encourage all of our members to reach out to William and send him a message at  https://www.taxconnections.com/profile/William-Perez/12261048 with interesting stories on a wide range of subject matters.

We are fortunate in the TaxConnections community as we have tax experts from all over the world joining an interactive experience only available through membership in TaxConnections Worldwide Directory of Tax Professionals. Our members are leading the Read More

Written by | Posted in TaxConnections

IRS Issues Final Regs On Deductibility of Local Lodging Expenses

On September 30, 2014, the IRS issued final regulations in T.D. 9696, allowing employees to deduct expenses paid or incurred for local lodging as business expenses.

The general rule is that local lodging expenses for an individual are nondeductible personal expenses. The new regulations provide that local lodging expenses that meet certain criteria are deductible as ordinary and necessary business expenses under IRC 162.

The regulations state that local lodging expenses that meet either a facts and circumstances test or satisfy safe harbor requirements are deductible by an individual if incurred directly. Read More

Written by | Posted in International • IRS • Tax Deductions

Taxpayers Rights When Audited By Tax Authorities In South Africa (Chapter 7.7) Final Post

Posted in sections, this is my Doctoral Thesis on taxpayers rights when audited by the tax authorities in South Africa – equally applicable to many English-based law systems in Africa and abroad (eg. India). This will be of particular use to any tax practitioners doing work in Africa and in other English-based legal systems around the world.

Analysis of Challenging The Commissioner’s Discretionary Powers In Auditing Taxpayers under The Constitution of The Republic of South Africa

CHAPTER 7 – CONCLUSION

7.7 THE PROPOSED TAX ADMINISTRATION ACT – Final Post Read More

Written by | Posted in Africa • Audit

Learn How Tax Professionals Are Surpassing Competitors – A Gift Is Included

Have you noticed just about everything has changed with technology over the past twenty years? Have you noticed that people now go to the web to find a tax professional? They no longer wait around for a referral. The client acquisition game has changed and for the first time in history tax professionals are surpassing their competitors with bigger brand names. A fundamental shift in how tax services are sold has opened the eyes of the thousands of tax professionals now utilizing new technology only available at www.taxconnections.com. The old ways of selling your tax expertise to prospective clients or even to potential employers is fundamentally changing right before your very eyes. We have the only technology available that is leading the way for the extraordinary shift in selling tax services. We know it is vitally important to your success that you learn about it Read More

Written by | Posted in TaxConnections

Opting Out of Social Security For A Minister

One of the tax options given to a minister is the ability to opt out of social security. This is a step that should be taken after a great deal of deliberation, as the decision is irrevocable. In order to opt out, the minister must file Form 4361 and certify that he or she opposes, either conscientiously or because of religious principles, the acceptance of any public insurance (with respect to services performed as a minister), including social security and Medicare coverage. Note that the objection is to the use of ministerial earnings for public insurance. Economic considerations or other non-religious reasons are not valid factors for opting out. Unfortunately, many likely opt out for economic reasons. Some faith groups actively promote opting out for their ministers.

The minister opts out only in relation to ministerial earnings. If he or she is employed in a Read More

Written by | Posted in Clergy • Individual • Religion

Tax Dodgers Beware!

In an effort to crack down on tax evasion the OECD developed what it calls a “New single global standard for the automatic exchange of information between key authorities worldwide.” The standard was approved by the OECD council on 15 July 2014 and is expected to result in an elimination of the secrecy surrounding some banking transactions as it relates to tax matters.
The new standard has been endorsed by more than 60 countries or jurisdictions including the United States, United Kingdom, European Union and Canada and other major jurisdictions already committed to implementation.

The standard requires detailed account information to be provided to governments by financial institutions. The information obtained from the financial institutions will be Read More

Written by | Posted in FATCA • International • OECD • Tax Fraud/Evasion/Crimes

Capital Gains Exemption – What You Need to Know

Tax Saving of Claiming Capital Gains Exemption

A Canadian business owner who carries on an active business through a corporation may be eligible for an $800,000 lifetime capital gains exemption (indexed for inflation after 2014) on the sale of his/her corporation shares or on the deemed disposition of his/her corporation shares immediately before his/her passing. For a Canadian business owner in the top marginal tax bracket, the claim of the $800,000 lifetime capital gains exemption will result in a tax saving ranging from $156,000 to $200,000, depending on the province in which the business owner is a resident.

How to Qualify for the Capital Gains Exemption

Read More

Written by | Posted in Canada • Capital Gains • Estate Planning Tax • Income Tax • Individual • Small Business

Corporate Tax Shelters – Are The Risks Worth The Hype?

The majority of tax shelters are in full compliance with the tax laws, but an increasing number of these shelters have crossed the boundaries whereas they are being viewed as illegal, abusive tax shelters. So what’s the difference between a true business loss and a tax shelter loss? The substance of the event that gives rise to the loss is the key element which distinguishes a tax shelter loss from a true business loss.

Three elements are usually found in tax shelters, either separately or in combination.

• Leverage is obtained through various financing arrangements.
• Taxes are deferred to later years.
• Ordinary gains (100% taxable) are converted to capital gains (40% taxable), or capital Read More

Written by | Posted in Corporate

Taxpayers Rights When Audited By Tax Authorities In South Africa (Chapter 7.6)

Posted in sections, this is my Doctoral Thesis on taxpayers rights when audited by the tax authorities in South Africa – equally applicable to many English-based law systems in Africa and abroad (eg. India). This will be of particular use to any tax practitioners doing work in Africa and in other English-based legal systems around the world.

Analysis of Challenging The Commissioner’s Discretionary Powers In Auditing Taxpayers under The Constitution of The Republic of South Africa

CHAPTER 7 – CONCLUSION

7.6 ‘JUST CAUSE’ SHOWN DEFENCE40 Read More

Written by | Posted in Africa • Audit
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