Tag Archive for tax help

IRS Released “Get Transcript” Application for Real Time Downloading of Information on Your Tax Account

My friend Bill Nemeth from Georgia informed me this morning of the IRS’ new application roll out that allows any individual taxpayer to view, print or download their own transcripts on-line in Real-Time using a computer or Smartphone. You simply go to www.IRS.gov and enter GET TRANSCRIPT in the site search bar, or go here http://www.irs.gov/Individuals/Get-Transcript#!

This is a giant leap forward for those of us working with the IRS. Once in their system a user creates a user profile by identifying himself (SSN and DOB) and answering a number of security questions (standard public database questions like what what year did you purchase your home, how much did you pay for your home, etc). Read More

Written by | Posted in IRS

Basis And Depreciation: A Review For Tax Professionals – Part I

Depreciation is one of the standards of tax preparation that every tax professional must have a firm grip on to do right by their client. In order to understand depreciation you must first understand basis. Over the next several posts in this series we will review basis and depreciation, discuss the relationships of them to each other, and review old, new and expiring depreciation provisions.

Basis is generally defined as the taxpayer’s investment in the asset and depreciation is defined as the allocation of an asset’s cost over a period of time that is in line with the useful life of the asset. This allows the recovery of normal wear and tear on an asset throughout it’s useful life. Read More

Written by | Posted in Property Tax

Foreign Corporate Acquisitive Reorganizations

Generally

As a general proposition, when a United States person makes a transfer of property to a foreign corporation to which Sections 354, 356, and 361 of the Internal Revenue Code, hereinafter the Code, would be applicable the transferee foreign corporation is not considered a corporation for statutory purposes. (1) It is this general rule that provides domestic corporations’ nonrecognition treatment by virtue of Section 354, 356, and 361 of the Code and requires a foreign corporation to recognize gain when it would otherwise be accorded a tax-free reorganization.

Reorganizations are only those transactions constructed in Section 368 of the Code. (2) It is Read More

Written by | Posted in Corporate • International

7 Habitual Mistakes Companies Make – Chapter 3 (15)

TaxConnections Blog Post
ABS Ltd. Case Study Report Generated after the Tax Risk Management Strategy Workshop
Background

ABS LTD. HAS exposure on tax in numerous areas. Tax issues have been identified as significant with an estimated worst-case exposure in excess of $300m (determined after assessing and quantifying the tax risk in the areas set out below) and if not speedily rectified will have both financial and reputational implications for ABS Ltd.

It is clear that the following key tax risk areas exist: Read More

Written by | Posted in Tax Risk Management

OECD vs. Tax Havens, Part I: What Is A Tax Haven?

Recently, the OECD ramped up its conflict with tax havens by issuing a report titled, Action Plan on Base Erosion and Profit Sharing. Obviously, the purpose of this report is to provide a set of options that OECD countries can enact to counter the negative impact of tax base erosion, or the shifting of tax revenue away from developed/higher tax countries to lower tax/tax havens. But before I get to the report, a bit of background is necessary to provide some context to the conflict.

First, how did tax havens develop? As I noted in a post I wrote on my economic blog about the Cyprus situation:

Read More

Written by | Posted in OECD

Offshore Voluntary Disclosure Program: The Basics (2013)

Let us start with the fact that the 2009 Offshore Voluntary Disclosure Program and the 2011 Offshore Voluntary Disclosure Initiative had deadlines but the new Offshore Voluntary Disclosure Program (OVDP) does not. This new program will be available until further notice to taxpayers who wish to come forward and disclose their foreign bank assets.

What Does the OVDP do? This program seeks to bring taxpayers who had undisclosed foreign bank accounts or undisclosed foreign entities for the purpose of evading or avoiding tax into compliance with the laws of the United States.

This program is a counter-part of the Criminal Investigation’s Voluntary Disclosure Practice. It Read More

Written by | Posted in FATCA • OVDP

Year End Tax Planning: US Expats Making Charitable Contributions

Many Americans living and working overseas are involved in charitable causes. The question often arises whether US expats living abroad can obtain the tax benefit for a charitable contribution deduction? The answer depends on various factors, including those discussed below.

Where is the Charity Organized or Created?

The mere fact that a United States taxpayer is living abroad will not prevent the taking of a charitable deduction on the tax return. The more critical consideration involves where the charity is created to which he is making the contribution. Under the US tax laws governing charitable deductions, the organization must be “created or organized in the United States or Read More

Written by | Posted in Expatriate

Income Tax Aspects of Non-business Capital Gains and Losses – Part IV

Non Government Debt Securities – General Aspects

Price of a Bond

The price of a bond is the present value of future interest payments (an annuity) plus the present value of the maturity (face) value at its yield rate (rate to maturity). There is an inverse relationship between the yield rate and selling price (present value). The higher the yield rate, the lower the present value (selling price); the lower the yield rate, the higher the present value (selling price).

Bond Quotation Prices Read More
Written by | Posted in Capital Gains • Income Tax

A Practical Guide To Identifying, Gathering, And Documenting A Sustainable Research Tax Credit Claim

Introduction

The Research and Experimentation Tax Credit (hereinafter “RTC”) was added to the Internal Revenue Code (hereinafter “the Code”) in 1981 as a temporary provision of the Code at a time when research and development based jobs were significantly declining in the United States due to these jobs being moved overseas where labor rates and overall operating costs were considerably less. For this very reason, the RTC was introduced into the Code in 1981 to motivate business entity taxpayers to incur significant and qualifying research and development expenditures with the high expectations that such an advantageous tax incentive would facilitate in stimulating job growth and investment in the United States and Read More

Written by | Posted in Tax Provision/Tax Reporting

7 Habitual Mistakes Companies Make – Chapter 3 (14)

TaxConnections Blog Post
Determine the Closure Date

A CLOSURE DATE for the tax risk management process is important. Setting open-ended goals will defocus the participants. The closure date may, however, change, depending upon the outcomes of some of the tax risk issues.

Set the Parameters of the Future Maintenance Process

THIS WILL BE driven by the nature of the tax risk issues dealt with in the tax risk management process. The Tax Risk Management communication system will also be implemented to ensure effective communication. This is dealt with in greater detail under chapter 7 of this special report. Read More

Written by | Posted in Tax Risk Management

7 Habitual Mistakes Companies Make – Chapter 3 (13)

TaxConnections Blog Post
Plan the Factual Gathering Process

TAKE EACH ON-the-radar screen and off-the-radar screen tax risk identified and create a unique file number, file (hard copy and electronic [pdf] copy), and start assembling all correspondence, documents, notes, agreements, opinions, memoranda, and any other relevant information into date order.

Priorities will differ on a case-by-case basis. The factual gathering process is dealt with in more detail in chapter 5 of this special report.

Plan the Analytical and Solutions Process

Read More

Written by | Posted in Tax Risk Management
« Older Entries   Recent Entries »