TaxConnections


 

Tag Archive for Tax Advisor

Whistleblower Awarded More Than a Million Dollars By The SEC

William Byrnes, Tax Advisor

The Securities and Exchange Commission announced that a whistleblower has earned an award of more than $1 million for providing the SEC with new information and substantial corroborating documentation of a securities law violation by a registered entity that impacted retail customers.

Read more

Testimony: A Letter To Senators From An American Affected By FATCA

John Richardson, Tax Advisor

Dear Senators:

I wish to address a serious injustice that the United States government is perpetrating against millions of innocent law-abiding citizens and residents of countries around the world. Through the Foreign Account Tax Compliance Act (“FATCA”), the United States of America is violating the international human rights of persons who possess some degree of (often distant) US origin.

All of you and I share one thing in common: we were born in the USA. However, I was born to a Canadian father, who brought my family back to Canada when I was an infant. I am therefore a Canadian citizen from birth (“born abroad”) and I have lived essentially my entire life in Canada, only as a Canadian. I have never lived as an adult, studied, worked or earned income in the US.

Read more

Tax Reform Framework: A Summary & Observations

Annette Nellen, Tax Advisor

On September 27, 2017, the Big 6 released their Tax Reform framework to guide the drafting of Tax Reform Legislation. Here is my summary and observations.

The plan also states President Trump’s Four Principles of Tax Reform:

  1. Simple, fair, easy to understand
  2. Give American works a pay raise.
  3. Make America a jobs market of the world
  4. Bring back trillions of dollars of unrepatriated earnings

Read more

Testimony: The Effects Of The Current Tax System On Americans Abroad

John Richardson, Tax Advisor

Good morning and thank you for the opportunity to speak with you today. My name is Marilyn Ginsburg. I will be 70 years old next month and I renounced my U.S. citizenship, with great regret, in my 69th year.

I was born in St. Louis, grew up in Denver, and moved to Canada when I was 26 years old. My husband and I left the United States in June, 1971, a month after we had both finished graduate school, I with a law degree and my husband with a PhD. in American history.We both obtained jobs teaching in our fields at a Canadian University. We assumed we would stay in Canada for a few interesting years, living in another country, and then return to hearth and home. One thing led to another and this never happened, and we have now lived in Canada for 44 years.

Read more

Will Equifax Executives Face SEC Charges For Selling Their Shares Before the Public Disclosure of 145 Million Hacked Consumer Files Led to Share Price Collapse?

William Byrnes, Tax Advisor

From mid-May 2017 through July 2017 Equifax, one of the nation’s three major credit reporting agencies, allowed the personal and financial records of 145.5 million American consumers to be collected by nefarious criminal actors.  On March 8, 2017, reports the New York Post, Equifax had been warned by the Department of Homeland Security about the software flaw that could lead to the breach, but Equifax did not patch the flaw.

Equifax, as reported by the Federal Trade Commission, allowed access to people’s names, Social Security numbers, birth dates, addresses and, in some instances, driver’s license numbers. They also stole credit card numbers for about 209,000 people and dispute documents with personal identifying information for about 182,000 people. UK and Canada personal information was also hacked.

Read more

TAS Study Finds Informing Taxpayers Can Help Avert Future Noncompliance

Nina Olson, Tax Advocate

Taxpayers can claim the Earned Income Tax Credit (EITC) in more than one tax year, so using the audit as an opportunity to educate them about the requirements for claiming EITC is of particular benefit to them and to the IRS. If a taxpayer claims the credit in error but understands why there was an error, he or she can not only become compliant for the year of any audit, but remain compliant going forward. However, audits are expensive for both the IRS and taxpayers, and are intrusive and intimidating for the taxpayer. There are many EITC returns the IRS does not audit but identifies as containing an error. Thus, while the IRS may not have the resources to audit these taxpayers, through other cost-effective approaches, it can educate them about why they appear to have erroneously claimed EITC, and avert future noncompliance.

Read more

The Guide To Organizing Finances For Freelancers

MileIQ, Tax Advisors
Many freelancers have trouble organizing their finances. This article walks you through how to organize finances for freelancers.

How to Organize Finances for Freelancers

The best way to organize your finances as a freelancer is to become more aware of both your business expenses and your personal expenses. This means that every month you should have a month-end budget/financial statement for your business as well as one for your personal life. This will help you understand your cash flow and organize your finances.

In order to create these month-end statements, you’ll need to organize your finances using the following three steps:

Read more

SEC Obtains $58 Million Judgment Against Perpetrator of International Pump-and-Dump Scheme Involving Marley Coffee

William Byrnes, Tax Advisor

The Securities and Exchange Commission obtained a $58 million judgment against a UK and Canadian resident charged with perpetrating a multi million-dollar, international pump-and-dump scheme involving the stock of Jammin’ Java Corp., a company that used trademarks of the late reggae artist Bob Marley to sell coffee products.

The final judgment against Wayne Weaver, entered on October 2, 2017, permanently enjoins Weaver from violating Section 5 of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and Section 13(d) of the Exchange Act and Rules 13d-1 and 13d-2 thereunder; permanently bars Weaver from participating in penny stock offerings; and orders Weaver to pay disgorgement of $26,371,585, prejudgment interest of $5,221,809, and a civil penalty of $26,371,585, for a total of $57,964,979. On September 15, 2017, Weaver filed a notice of appeal.

Read more

You are Invited! View TEI-SJSU’s High Tech Tax Institute Conference Agenda

Annette Nellen, Tax Advisor

The SJSU MST Program manages and co-sponsors three annual tax conferences. Our hallmark High Tech Tax Institute, started in 1988, is a two-day conference held each November. Speakers and attendees come from around the world. Leading edge topics relevant to high tech companies and their tax professionals are addressed by nationally and internationally recognized practitioners and government representatives who have practical experience of implementation. The learning and networking opportunities makes the annual TEI-SJSU High Tech Tax Institute an invaluable educational tax experience for accountants, attorneys, and corporate representatives who serve high technology businesses.

33rd Annual TEI-SJSU High Tech Tax Institute – November 13 & 14, 2017

Read more

What Happened to the IRS OVDP Website?

Ronald Marini, Tax Advisor

Where you represent as many taxpayers as we do in relation to cleaning up their previously undeclared offshore investments and bank accounts, your are on the IRS’ website daily to review the current elements required by the IRS to qualify for an OVDP (Offshore Voluntary Disclosure Program) filing or an OVDP streamline filing.

You can imagine my surprise when my desktop link to each relevant IRS OVDP page, that I’ve been using for the last 8 years no longer worked.

Read more

Mamma Mia! Italian Tax Court Rules On Inter-Company Loan Interest Withholding Tax, Beneficial Owner Withholding Exemption

Marco Rossi, Tax Advisor

With its Ruling n. 4091 of June 12, 2017, the Eighth Department of Tax Commission (District Tax Court) of Milan, Italy ruled that upon the cancellation of an inter company loan from a Dutch parent company to its Italian subsidiary, the interest accrued on the loan and deducted by the Italian subsidiary on an accrual basis, during the course of the loan, is deemed “constructively received” by the foreign parent, and is potentially subject to the Italian interest withholding tax (at the rate of 20 percent, pursuant to article 26, paragraph 5 of Presidential Decree n. 600 of 1973, recently increased to 26 percent).

However, the Tax Court also ruled that the Dutch parent company qualified as “beneficial owner” of the interest, and was eligible for the withholding tax exemption granted under article 26-quater of Presidential Decree n. 600 of 1973, which implemented the EU Directive n. 2003/49/CE (so called interest and royalties directive).

Read more

What Expenses Does Mileage Reimbursement Cover?

MileIQ, Business Miles Tracker

A mileage reimbursement program can be key for many businesses. But, often employees ask, “What expenses does a mileage reimbursement cover?” Let’s go over that, as well as some tips for a great reimbursement program.

What’s Included In The Mileage Reimbursement?

The mileage reimbursement covers the cost of operating a personal vehicle for business reasons. This includes the cost of things like gasoline, oil, maintenance and wear-and-tear.

Your business can decide how to handle other driving-related expenses. This may include the costs of parking and tolls.

Read more

TaxConnections