Tag Archive for tax

What Do You Do Next After You’ve Been Pre-accepted Into OVDP?

You’ve submitted your OVDP letter and attachments to the Voluntary Disclosure Coordinator and are reclining in your arm chair watching the “big game” while opening up the day’s mail. The upper left-hand corner of one of the envelopes in your pile is adorned with the IRS’s logo. You open it up. The letter is but a few paragraphs long and as you start glancing at it you breathe a sigh of relief. It says that your disclosure has been preliminarily accepted by CI as timely.

It provides instructions for the second phase: completing and submitting the full voluntary disclosure package to the Austin Campus within 90 days of the date of the timeliness determination (and cooperating with the examiner in resolving all civil liability). You’ve made it this far, but you are uncertain about what is meant by a “full voluntary disclosure Read More

Written by | Posted in OVDP

Should A Convicted Congressman Be Allowed To Keep His Seat In Congress And Continue To Receive Benefits?

Seems like politicians are having a problem staying out of trouble these days. The latest one to “bite the dust” did so in grand fashion, not failing to live up to the hypocrisy that makes for scintillating newspaper headlines. Who was this person? None other than United States Congressman, Michael Grimm. To use a cliché, Mr. Grimm’s “naughtiness” earned him a stocking full of coal from Santa this Christmas.

Amid a drumbeat of calls for his resignation, Rep. Michael Grimm pleaded guilty to aiding and assisting in the preparation of a false tax return on December 23, 2014. The ink on the signature at the bottom of Mr. Grimm’s plea agreement wasn’t even dry before the embattled Congressman vowed to hold onto his Staten Island congressional seat.

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Written by | Posted in Tax Fraud/Evasion/Crimes

2014 Depreciation Limits on Luxury Autos: IRS Rev Proc 2014-21

According to 26 U.S. Code § 280F – Limitation on depreciation for luxury automobiles the first year’s depreciation expense for a newly procured vehicle should be prorated over the tax year based on the in service date not to exceed the limitations spelled out in IRS Rev Proc 2014-21

For passenger automobiles the 2014 Tax Year Amount is:

1st Tax Year $ 3,160
2nd Tax Year $ 5,100
3rd Tax Year $ 3,050

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Written by | Posted in IRS

Australian Tax Office (ATO) Also Warns On Scams

This week the ATO warned taxpayers to “…be aware of fraudsters as they target people lodging their income tax returns by the 31 October deadline”. It was revealed that 45,588 reports of actual or attempted tax scams had been recorded during the year to 30 June. The ATO encouraged taxpayers to report scams directly to them.

Chief Technology Officer Todd Heather said “This year we are seeing more targeted scams sent to taxpayers where the perpetrators make the email more convincing by using the latest ATO website imagery and the names and signatures of real ATO staff”. He also noted “…a nasty phone scam where taxpayers are threatened with arrest if they do not pay a fake tax debt over the phone”. Read More

Written by | Posted in Australia/Oceania • Tax Fraud/Evasion/Crimes

5 Survival Tips For Tax Season

Tax Season Stress Relievers –

It’s almost that time of year that we all look forward to, especially accountants buckling down with their survival kits! It goes without saying that money and stress go hand in hand. For that reason it is easy to understand that the tax preparation season can be a stressful time of year for CPAs. It is not uncommon for them to put in 70-80 hours/week during the tax season including sleepless nights, lots of coffee, and weekends at the office. To help reduce some stress for our CPAs this tax season, we have put together a list of tips to help ease the stress and make these coming weeks as painless as possible: Read More

Written by | Posted in Individual • Tax Tips

Are You Missing the Boat? Do You Find Tax Credits Too Complex? We Don’t!

Today, there currently are nearly 3,000 tax credits and incentives programs in the United States, sponsored by federal, state and local governments to drive job creation, employee training, capital investment and new business development. These statutory and negotiated opportunities – including point-of-hire tax credits, to property & sales tax incentives, to utility & infrastructure abatements, to name a few – are available to companies of all sizes, across a broad range of industries.

But a relatively small number of companies, regardless of their size or financial sophistication, are benefiting fully from the tax credit and incentive-related benefits to which they are entitled. Industry estimates suggest that fewer than 25 percent of eligible US businesses participate in Read More

Written by | Posted in Affordable Healthcare Act • Corporate • Federal • Individual • IRS • North America • Tax Policy

California’s Governor Brown Signs Bill Increasing Minimum Wage – Increasing Enterprise Zone Credit Value

Governor Brown has signed AB 10 which will increase the minimum wage from $8 an hour to $9 an hour on July 1, 2014 and again to $10 an hour starting January 1, 2016.

An unintended consequence of the legislation will be an increase in the amount of Enterprise Zone tax credits qualified employers will be able to claim. Employers may still claim credits for qualified employees hired through December 31, 2013 for up to five years of employment. The credit is calculated as a function of the hourly wage with a limit of 150% of the minimum wage per hour. Currently, the maximum credit an employer can claim is $12 for an hour of qualified work; starting in July of next year that cap will increase to $13.50. Read More

Written by | Posted in Individual • North America

CPAs: Review California Clients Today for Enterprise Zone Credits (Up to $50,000 Per Qualified Employee)

TaxConnections Blogger PostsOn June 27, 2013, the California State Assembly passed AB 93, which eliminates the current Enterprise Zone (EZ) program, replacing it with a new set of incentives, which will be statewide in application. This change requires businesses to take action now to get the most out of existing credits while also preparing to take advantage of the new credits that will be effective January 1, 2014.

The EZ program was first established in 1986 and has been used to attract business to depressed areas in California and to support new and existing businesses located in depressed areas of the state. The program has allowed qualified businesses to claim hiring credits on qualified employees and sales tax credits on qualified purchases.

Do your clients need help understanding the immediate steps they must take? If your clients (CPAs: review your California clients) are in one of California’s 42 EZs, pay California income tax, and have employees, they are a prime candidate to review the various credits that remain available. These credits and refunds can be reviewed for the last four (4) open tax years. The time to act is now. After December 31, 2013 — your clients will have forfeited up to $50,000 per qualified employee. Read More

Written by | Posted in Corporate • Individual • North America • Sales/Use Tax • Specialty Tax Incentives • State And Local Tax (SALT) • Tax Controversy • Tax Policy • Tax Provision/Tax Reporting

What Do I Do? Received Florida Sales and Use Tax Audit Notice – Part 2

TaxConnections Blogger Jerry Donnini post what to do for a Florida Sales and Use AuditPart 2 Common Pitfalls

There are several issues that often surface during the audit. Many of the issues that surface are that the client does not have records, the client does not have a complete or updated QuickBooks or accounting software file, or the client has collected and remitted the incorrect amount of tax.

The most common issue we face is the situation in which the Florida taxpayer does not have adequate records to do a complete audit. Based on many of our clients, Florida is an extremely dangerous place to live. Until I became a Florida sales and use tax attorney, I was not aware of the high number of floods, fires, earthquakes, tsunamis and other natural disasters that destroy all of a business’s records. On a serious note, many taxpayers believe that not having any records is the best way to escape tax liability. However, generally the opposite is true. The more records that are available, generally, the more we can do to explain discrepancies that arise during the audit. Therefore, we recommend that a Taxpayer does its very best to salvage as many records as possible for review even if they are extremely damaged due to mother nature. Read More

Written by | Posted in Sales/Use Tax • United States

Australian Government Seeks to Increase Capital Gains Tax on Expats and Foreigners

In the 2012 Australian Federal Budget, it was announced that the current 50% discount on Capital Gains Tax would be removed for Foreign Individuals.

This will impact the many thousands of Australian expatriates and foreign nationals that own property in Australia and may have a dire consequence on the construction industry if there is a contraction of buyer activity as a result of the higher Capital Gains tax cost.

We have prepared a submission to seek the Government to change its position on this and are asking for your support on this important issue.

If the changes come into effect, they will only apply to gains after the 8th may 2012.  Profits before the date will continue to enjoy the 50% discount on Capital Gains.

For more information connect with me at: Steve Douglas on TaxConnections

Written by | Posted in Australia/Oceania • Expatriate • International • Property Tax
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