Nanette's Feed
Apr 29, 2013
via Tax Break

Essential reading: Republicans pursue tax reform, and more

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Welcome to the top tax and accounting headlines from Reuters and other sources.

* GOP moves away from entitlements and toward tax reform in budget deal. Lori Montgomery – The Washington Post. With another fight over the national debt brewing this summer, congressional Republicans are de-emphasizing their demand for politically painful cuts to retirement programs and focusing on a more popular prize: a thorough rewrite of the U.S. tax code. Link  

* Push to require online sales tax divides the GOP. Jonathan Weisman – The New York Times. Legislation that would force Internet retailers to collect sales taxes from their customers has put antitax and small-government activists like Grover Norquist’s Americans for Tax Reform and the Heritage Foundation in an unusual position: they’re losing. Link   

Apr 29, 2013

Tax strategy may be key to Verizon Wireless deal

By Kevin Drawbaugh and Nanette Byrnes

(Reuters) – Verizon Communications Inc’s chances of buying the 45-percent stake in Verizon Wireless owned by the UK’s Vodafone Group Plc will hinge, at least in part, on the quality of tax advice it is getting.

Verizon (VZ.N: Quote, Profile, Research), the No. 2 U.S. telecommunications company, may have found a way to structure a purchase of the stake so that Vodafone (VOD.L: Quote, Profile, Research) can avoid a multi-billion dollar U.S. capital gains tax bill, sources familiar with Verizon’s plans said. The possibility of a huge tax bill has previously been regarded by analysts as a big hurdle to any such deal.

Apr 29, 2013

Analysis: Tax strategy may be key to Verizon Wireless deal

By Kevin Drawbaugh and Nanette Byrnes

(Reuters) – Verizon Communications Inc’s chances of buying the 45-percent stake in Verizon Wireless owned by the UK’s Vodafone Group Plc will hinge, at least in part, on the quality of tax advice it is getting.

Verizon, the No. 2 U.S. telecommunications company, may have found a way to structure a purchase of the stake so that Vodafone can avoid a multi-billion dollar U.S. capital gains tax bill, sources familiar with Verizon’s plans said. The possibility of a huge tax bill has previously been regarded by analysts as a big hurdle to any such deal.

Apr 24, 2013

Audit regulator offers carrot to cooperators

By Nanette Byrnes

(Reuters) – Auditors and audit firms that offer “extraordinary” cooperation to their primary U.S. regulator will be in line for special accommodations under a policy announced on Wednesday.

The enforcement division of the Public Company Accounting Oversight Board, which regulates U.S. auditors, has been criticized at times as slow moving. Under the provisions of the Sarbanes-Oxley Act, the regulator must keep all enforcement matters private until they reach a final review.

Apr 24, 2013

U.S. audit regulator offers carrot to cooperators

April 24 (Reuters) – Auditors and audit firms that offer
“extraordinary” cooperation to their primary U.S. regulator will
be in line for special accommodations under a policy announced
on Wednesday.

The enforcement division of the Public Company Accounting
Oversight Board, which regulates U.S. auditors, has been
criticized at times as slow moving. Under the provisions of the
Sarbanes-Oxley Act, the regulator must keep all enforcement
matters private until they reach a final review.

Apr 23, 2013

State tax reform efforts snarled by politics but backers persist

By Nanette Byrnes

(Reuters) – From Louisiana to Ohio, Massachusetts and Nebraska, bold proposals to upend state tax laws are losing momentum in the face of political squabbles and special interest opposition.

Just a short time ago, it looked as if several state leaders would show gridlocked Washington, D.C., how to do tax reform. Then some harsh realities set in.

Apr 22, 2013

Internet sales tax faces Senate vote, Obama backs

WASHINGTON (Reuters) – A measure that would empower states to require out-of-state retailers to collect online sales tax won backing from President Barack Obama on Monday and is expected to pass a legislative test vote in the Senate later this evening.

Fiercely opposed by most online merchants, including eBay Inc, the bill will be the subject of a procedural motion that, if approved, will clear the way for a final vote in the Democratic-controlled Senate later this week.

Apr 19, 2013
via Tax Break

Calendar

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Some important events in the week ahead:

 Monday, April 22

* New York University program on the future of pass-through entity taxation. 12:30 – 1:30 p.m. ET, Furman Hall, NYU. New York.

 Tuesday, April 23

* Internal Revenue Service hearing on proposed regulations providing guidance on large employers’ health insurance coverage responsibilities. 10 a.m. ET, IRS Auditorium. Washington.

Apr 18, 2013

IRS rejects reward claim by tax whistleblower

By Nanette Byrnes

(Reuters) – The Internal Revenue Service has rejected a reward claim made by a whistleblower, former banker Joseph Insinga, who had sued the agency in a closely watched case.

In a letter dated April 15, the IRS told Insinga that he was not entitled to a reward. A copy of the letter was provided to Reuters by his attorney Andrew Carr.

Apr 12, 2013
via Tax Break

Essential reading: Derivatives tax plan concerns industry, and more

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Welcome to the top tax and accounting headlines from Reuters and other sources.

*Derivatives-tax plan concerns industry. John D. McKinnon and Siobhan Hughes – The Wall Street Journal. The Obama administration’s proposal this week to change the way some derivatives are taxed signals common ground with Republicans on a potentially difficult and divisive tax issue that could have far-reaching implications for investors. Link

* Ex-KPMG auditor freed on $150,000 bond in tips-for-cash scheme. Emily Flitter – Reuters. U.S. authorities filed criminal and civil charges on Thursday against Scott London, who is accused of passing non-public information about five of KPMG’s clients to a friend. Link