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Tag Archive for Internal Revenue Service

IRS Updates AFRs; Interest Rates Remain Unchanged

Betty Williams, Tax Advisor

The Internal Revenue Service (IRS) has updated its applicable federal rates (AFRs) used for a variety of IRS calculations, such as the minimum interest rate for intra-family loans. For calendar year 2017, AFRs for short-term loans have increased from 0.96 percent to 1.52 percent, AFRs for mid-term loans have fluctuated around 2 percent, and AFRs for long-term loans have fluctuated between 2.6 percent and 2.82 percent. For a detailed list of AFRs by month and year, click here.

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Taxpayer Assistance Center Service Continues to Decline, Impairing Taxpayers’ Ability to Receive In-Person Assistance

Nina Olson, Taxpayer Advocate

The other day, I came across an interesting item in the news, describing that for the first time in its history, Macy’s was only letting people with appointments visit its famous Santa. I was interested in this because, for all intents and purposes, the Internal Revenue Service (IRS) had been “appointment only” in its Taxpayer Assistance Centers (TACs) since November 2016. So on the face of it, the IRS was in the vanguard of customer service.

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What US Expats Who Receive Form W-9 from a Foreign Bank Should Do

Hugo Lesser, Tax Advisor

Over the last few years, millions of US expats have been asked by their foreign banks and investment firms to fill out IRS form W-9. Receiving form W-9 often causes surprise or alarm. While there’s no need to panic, there are a number of things that expats should know if they receive form W-9, to ensure that they don’t create any problems in the future. Read more

Transferee Liability for Unpaid Corporate Taxes of Minority Shareholders

Ronald Marini, Tax Advisor

The Eleventh Circuit affirmed the Tax Court’s determination that petitioner was liable as a transferee under 26 U.S.C. 6901 for his former employer’s unpaid taxes, in Kardash v. Commissioner of IRS, US Court of Appeals for the Eleventh Circuit, Docket: 16-14254.
The Tax Court had previously found two minority shareholders liable to return several million of dividends they received from a corporation when the corporation failed to pay federal income taxes at the direction of majority shareholders, which majority shareholders also drove the company into insolvency by siphoning off corporate funds.

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What You Need to Know About Deductions for Your Holiday Giving

Betty Williams, Tax Advisor

November kicks off the season of giving, and the donations you make to your favorite charities may also provide you some tax benefits. However, there are some guidelines you should keep in mind as you write those checks.

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Filing IRS Back Taxes for US Expat Americans

Hugo Lesser, Tax Advisor
American expats are still required to file a US federal tax return to the IRS. As expats also have to comply with the tax rules in the country where they live, it’s counterintuitive but nonetheless important that they file US taxes too.
Taxing US citizens abroad, or Citizenship (rather than Residence) Based Taxation, dates back to the Civil War, but until recently the IRS was powerless to enforce expat taxes, so few expats filed.

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More Then 31,000 US Taxpayers Exposed in Paradise Papers

Ronald Marini, Tax Advisor

We had posted on October 30, 2017 ‘Another Offshore Law Firm Gets Hacked’ where we discussed that Appleby, an offshore law firm/corporate agent’s recent data breach is yet another example of how the IRS can discover your unreported foreign account and how the super-rich clients of offshore law firm Appleby are bracing themselves for the exposure of their financial secrets, after the firm admitted data had been stolen in a cyber attack last year.

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Oh Thank Heaven For The IRS!

Barry Fowler

I remember the old jingle for 7-Eleven that sang “Oh thank heaven for 7-Eleven!” Well, now we can add the tax collecting IRS to that jingle. Oh, thank heaven for 7-Eleven and the IRS!

Believe it or not, you can now pay your taxes at that convenience store in 34 states. And, you can even make those payments in cash!

According to a recent announcement from the IRS, “Individual Read more

The Service Issues New Administrative Authority Governing Tangible Property Regulations Compliance

On November 20, 2015, the Internal Revenue Service (hereinafter the “Service”) issued new administrative authority governing the Tangible Property Regulations (hereinafter “TPR”) in connection to the safe harbor rules for the retail and restaurant industries. More specifically, the newly released Revenue Procedure 2015-56 (hereinafter “Rev. Proc. 2015-56) provides a safe harbor method of accounting for taxpayers engaged in the trade or business of operating either a retail establishment or a restaurant for purposes of determining whether expenditures paid or incurred to remodel or refresh a qualified building are:

• Deductible pursuant to I.R.C. § 162(a);

• Requires capitalization treatment as an improvement pursuant to I.R.C. § 263(a); or Read more

The Service Issues New Draft Version of Form 3115

The Internal Revenue Service (hereinafter the “Service”) issued on July 15th of 2015 their long awaited draft version of their revised Form 3115 entitled “Application for Change in Accounting Method” which incorporates revisions to the process for requesting accounting method changes (e.g., accounting method changes in complying with the Final Treasury Regulations governing Tangible Property; accounting method changes in connection to depreciation adjustments resulting from Cost Segregation Analysis; etc.). The draft version of Form 3115 can be accessed at http://www.irs.gov/pub/irs-dft/f3115–dft.pdf

Once finalized, the latest form will replace the current version, which was previously issued in 2009. The Service requests that comments on the draft Form 3115 be made on Read more

It Is Extremely Dangerous Not To Be Proactive In Tax – Learn Why From An International Tax Attorney

iStock_000020558994XSmall(This Is Part Of A 7 Series Special Report)

This special report is based on over 120 lectures presented by International Tax Attorney and Professor Daniel Erasmus on multinational corporations (MNEs) and smaller businesses (SMEs) looking to minimize one of the largest financial risks facing them: tax.

The case studies in this special report are very real and based on years of experience. The names, places, and specific details are not, so as to preserve the secrecy of the taxpayers.

One thing this special report will do for you is teach and guide you, step by step, that in matters of tax it is extremely dangerous not to be proactive. No matter what anyone says, tax is always and will always remain a large expense for any successful business. States will always look to their most successful taxpayers to collect 80% of the tax from the 20% most successful taxpayers. It makes commercial sense. The balance of tax officials’ time will most probably be spent chasing after tax criminals, those who are blatant tax evaders and offenders. For you, who are reading this special report, I doubt you fall into this latter category; otherwise you would only have grabbed this special report if its title read How to Evade Tax, Legally! Read more

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