Tag Archive for Find Tax Preparer

Should Gas Stations Fight Two-Tiered Pricing?

Have you ever wondered why gas stations often advertise two different prices on their sign? If you have not, then start looking and you will notice most stations advertise one price for cash (or company specific credit cards, such as Mobil, Shell, Chevron, etc.) and another for credit. The $0.10 difference, known as two-tiered pricing, is an attempt by station owners to recover steep credit card fees by incentivizing customers to use cash.

Over the past few years, many customers have expressed frustrations towards the station owners by being lured into a gas station for a lower price only to find a higher price at the pump when using their credit card. In response to public outcry, many counties enacted ordinances that require stations to list the highest price on their signs. For example, in Broward County, there is an ordinance on the books that requires gas stations to Read More

Written by | Posted in Individual • State And Local Tax (SALT)

Taxpayers Rights When Audited By Tax Authorities In South Africa (Chapter 5 – 5.3)

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 5 – JUDICIAL REVIEW WITH REFERENCE TO SS 74A AND 74B –

5.3 THE APPLICABILITY OF OBJECTION AND APPEAL Read More

Written by | Posted in Africa • Audit

What Should I Do If I Have Received A “Declaration of Consent” Form From My Swiss Bank?

Picture this. You have an offshore account with a Swiss Bank that, for whatever reason, you haven’t gotten around to reporting on your U.S. tax return or on a FBAR. One morning, as you are sipping your coffee and checking your email inbox, you come across an ominous email from your Swiss Bank.

The subject line of the email immediately grabs your attention. It reads: “Important Information for U.S. Persons.”

You open up the email and read the first three paragraphs:

“We have identified you as the beneficial owner of an account that is subject to FATCA. Participating foreign financial institutions such as ours are required to identify and report Read More

Written by | Posted in FATCA • FBAR • International • IRS

Calculating The Foreign Tax Credit In 3 Easy Steps

The U.S. taxes U.S. persons on all of their income, regardless of its source. This creates a double taxation problem with respect to a U.S. person’s foreign-source income, since foreign countries usually tax all the income earned within their borders, including that derived by U.S. persons.

If the U.S. did nothing to mitigate international double taxation, U.S. companies would be at a competitive disadvantage in overseas markets, since their total tax rate would exceed that of their foreign competitors by the amount of the U.S. tax burden on foreign-source income.

The U.S. mitigates international double taxation by allowing U.S. persons a credit for any Read More

Written by | Posted in International

Basic Steps To Avoid Probate

As many of you know that follow this blog my father recently passed away and I’ve been called upon to settle his financial affairs. My biggest fear is probate and after studying the tax code I have grown to be of the opinion that it is best to be avoided when possible. This short post on the basics of how to avoid probate was meant to help codify my thoughts. Hopefully you find it helpful.

Probate is essentially the legal process of transferring assets you own at your death to your heirs. It can last up to two years in some states, and involve court costs, attorneys’ and executors’ fees often fixed as a percentage of the assets probated (attorneys can be vultures), as well as unwanted publicity (mainstream media is evil). Read More

Written by | Posted in Individual • IRS

IRS Now Makes Transcripts Available Online

Have you ever needed a copy of a past tax return and contacted the IRS to get one? In the past, you had two options. You could mail or fax Form 4506 and expect to get a copy in “up to 75 days.” Oh, and you must pay $50 for each return requested.

The second option was to request a transcript of your return on Form 4506-T. A transcript just shows the line items on your return somewhat similar to the long-defunct 1040-PC. These are free and are normally received 5-10 days after the IRS receives the request. A transcript request may be faxed or the taxpayer may call 800 908-9946 to request one. These can also be requested online at http://www.irs.gov/Individuals/Get-Transcript.

However, the IRS now has a new, faster method of receiving a transcript. If you go to Read More

Written by | Posted in Individual • IRS

United States Taxation of Foreign Electronic Commerce

Introduction

United State taxation of electronic commerce from offshore is to be approached from two perspectives, the United States tax regime from an international perspective and bi-lateral treaties. This writing addresses the first consideration, the tax regime. As stated in a previous segment, international sourced based taxation poses particularly difficult legal risks. (1)

One risk is the electronic commerce and taxation implications. Those issues grapple with electronic commerce and taxation implications when melded with the notion of jurisdiction. Cross-border taxation issues of the authority of a source and resident country Read More

Written by | Posted in International • Tax Controversy

Cancellation of Debt, Foreclosures, And Bankruptcy – Part 6

Tax Consequences of Foreclosure

When a foreclosure or repossession is made there are tax consequences in addition to the legal and monetary issues. When a piece of collateral is seized in place of a debt, it is deemed a sale of the property and must be reported like any other sale, as we discussed in the previous section.

For recourse loans, the amount of the realized gain is:

• the lesser of the debt immediately before the seizure reduced by any amount of the loan the debtor remains liable for after the seizure
or Read More

Written by | Posted in Individual

Taxpayers Rights When Audited By Tax Authorities In South Africa (Chapter 5 – 5.2)

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 5 – JUDICIAL REVIEW WITH REFERENCE TO SS 74A AND 74B –

5.2 WHAT IS MEANT BY REVIEW? Read More

Written by | Posted in Africa • Audit

How To Get The IRS To Fund Your Home Based Business

If you are looking for ways to fund your home based business, you likely have come to many road blocks. Borrowing from family and friends is difficult especially if they don’t buy in to your idea for your home based business. Bank regulations and lack of business credit also hinder making your dream of owning your own home based business a reality. If your goal is financial freedom, there is a way to fund your home based business which you may not be aware of.

This strategy assumes you are working at a J. O. B. Each pay period you have federal income taxes, social security and medicare taxes, and depending on what state you reside or work in, state income taxes. Social security and medicare taxes are withheld by law, the rate of which is set by government. While federal and state income tax rates are Read More

Written by | Posted in Income Tax • Individual • IRS • Small Business

Filing Qualified Amended Returns vs. Streamlined Filing Compliance Procedures: What Is My Best Option?

On June 18, 2014, the IRS announced major changes in its offshore voluntary compliance programs. The changes include an expansion of the streamlined filing compliance procedures and key modifications to the 2012 Offshore Voluntary Disclosure Program (OVDP).

The expanded streamlined procedures are available to a wider population of U.S. taxpayers living outside the country and, for the first time, to certain U.S. taxpayers residing in the United States. The modifications to the existing OVDP program provide, in part, for an increased offshore penalty from 27.5% to 50% in certain circumstances.

Options for U.S. Taxpayers with Undisclosed Foreign Accounts

Read More

Written by | Posted in Individual • IRS • OVDP

Travel And Entertainment: Maximizing Tax Benefits

Tax law allows you to deduct two types of travel expenses related to your business, local and what the IRS calls “away from home.”

First, local travel expenses. You can deduct local transportation expenses incurred for business purposes such as the cost of getting from one location to another via public transportation, rental car, or your own automobile. Meals and incidentals are not deductible as travel expenses, but you can deduct meals as an entertainment expense as long as certain conditions are met (see below).

Second, you can deduct away from home travel expenses-including meals and incidentals, but if your employer reimburses your travel expenses your deductions are Read More

Written by | Posted in Individual • Tax Tips
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