Tag Archive for Federal Tax Law

Family Courts Don’t Always Pay Attention to Federal Tax Law

All too often, family law courts make rulings that are contradictory to federal tax law, causing confusion and inequity in divorce actions since family court rulings cannot trump federal tax law.

An issue for divorced parents is who gets to claim the children for tax purposes. Federal tax law provides that the parent with physical custody claims the child unless that parent releases the exemption to the other parent. Frequently, family courts award physical custody to one parent and the tax exemption to the other. To make matters worse, the courts assume that the exemption deduction will provide a financial benefit to the non-custodial parent. Then the court adjusts child support accordingly, leaving the non-custodial parent with two unpleasant surprises when filing his or her tax return: the Read More

Written by | Posted in Federal • Individual

Little Noticed Tax Bill Enacted Fast

SyringesOn June 25, 2013, P.L. 113-15 was enacted to expand the vaccine excise tax provision of IRC Sections 4131 and 4132.  It adds vaccines against seasonal influenza to the long list of those with a 75 cent per dose tax. Like the other taxes, the funds go to the Vaccine Injury Compensation Trust Fund.

This tax is part of Chapter 32 of the federal tax law that covers manufacturer excise taxes. Here is an outline:

•  Subchapter A—Automotive and Related Items (§§ 4061 to 4063–4105)
•  Subchapter B—Coal (§ 4121)
•  Subchapter C—Certain Vaccines (§§ 4131–4132)
•  Subchapter D—Recreational Equipment (§§ 4161–4182)
•  Subchapter E—Medical Devices (§ 4191)
•  Subchapter F—Special Provisions Applicable to Manufacturers Tax (§§ 4216–4220 to 4225)
•  Subchapter G—Exemptions, Registration, Etc. (§§ 4221–4227)

H.R. 475 was introduced on Feb. 4, 2013. There was 40 minutes of debate in the House, and the bill became law via voice vote in both houses and was signed by President Obama on June 25. That’s fast!

The Joint Committee on Taxation scored the bill as generating “negligible” revenue. The Center for Disease Control estimates there were about 135 million flu vaccine doses in 2012-2013.  That means the bill might generate about $101 million per year. Read More

Written by | Posted in United States