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Mar 14, 2013

Louisiana’s Jindal details plan to end state’s income tax

By Nanette Byrnes

(Reuters) – In a year in which sweeping tax reforms are on the table in several states, Louisiana’s Bobby Jindal on Thursday became the first U.S. governor to offer a detailed plan to eliminate his state’s income tax, a goal embraced by some conservatives.

Seen as a potential candidate for national office, the second-term Republican proposed eliminating Louisiana’s personal income tax and its corporate franchise tax, which together generated $2.9 billion in tax receipts last year.

Mar 14, 2013

Road funds on empty; more U.S. states weigh gasoline tax hikes

March 14 (Reuters) – Tight state budgets and jammed roadways
this year are prompting some U.S. state governments to make one
of the most politically unpopular moves imaginable: raising
gasoline taxes.

Because they hit everyone, gas taxes are widely disliked and
rarely increased. But after decades of underinvestment in roads,
bridges and public transport, states face heavy infrastructure
costs and lack the money to handle them.

Mar 7, 2013
via Tax Break

State defections impact U.S. interstate tax compact

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Worried about challenges to their corporate tax base, some U.S. states have started to modify their participation in the Multistate Tax Compact, with a few withdrawing altogether.

The 45-year-old compact was forged to ensure companies operating in multiple states do not pay tax on the same income in more than one state. It also benefited the states by helping them fight off then-pending federal intervention on the topic.

Mar 6, 2013

States’ compact on taxes faces more defections

By Nanette Byrnes

(Reuters) – At a time when more states are using tax policy as a way to attract businesses and compete for economic growth with neighboring states, a long-standing cooperative tax agreement among the states is under increasing threat.

The Multistate Tax Compact (MTC), created in 1967 in an effort to ensure that companies operating in multiple states do not pay tax on the same income to more than one state, has lost two members in recent months and faces a reduced role in a third.

Feb 26, 2013
via Tax Break

Essential reading: Treasury nominee gets tax questions, and more

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U.S. President Barack Obama walks with Jacob Lew in 2012. REUTERS/Jonathan Ernst

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

* Treasury pick tries to cast his history as right for the job. Jessica Silver-Greenberg – The New York Times. Jacob Lew had a $56,000 investment in the Citigroup fund, leading to questions from Republican senators about whether the investment had been put there to dodge taxes. Link 

* Republican Senator open to tax hike for entitlement-cut deal. Janet Hook – The Wall Street Journal. Senator Lindsey Graham of South Carolina Monday diverged from the Republican party line by saying he would be willing to raise $600 billion in new tax revenue if Democrats would accept major entitlement reforms in a big deficit-reduction package. Link 

Feb 20, 2013

“Amazon tax” payoff starts to arrive in some U.S. states

By Nanette Byrnes

(Reuters) – Sales tax from Internet commerce, a prize pursued for years by U.S. state governments, is starting to arrive in California and a few other states, providing millions of dollars in new revenue, though not as much as a benchmark study once forecast.

After fighting hard to get e-tailers such as Amazon.com Inc to start charging sales tax, and eventually passing a law requiring collection, the California Board of Equalization reported last week it took in $96.4 million in September-December 2012, its first full quarter of collections.

Feb 13, 2013

IRS paid record $125 million to whistleblowers in 2012

By Nanette Byrnes

(Reuters) – The U.S. Internal Revenue Service paid a record $125.4 million in 2012 to whistleblowers who provided evidence of tax cheating, most of it to a former employee of Swiss bank UBS AG, according to an IRS report made public on Wednesday.

The IRS whistleblower program has been criticized for moving too slowly and being given inadequate resources, causing whistleblowers to grow reluctant to file claims. The program was overhauled by Congress in 2006 amid such criticism.

Feb 13, 2013

IRS paid record $125 million to whistleblowers in 2012: report

By Nanette Byrnes

(Reuters) – The Internal Revenue Service paid a record $125.4 million in 2012 to whistleblowers who provided evidence of tax cheating, including a massive payout to a former employee of Swiss bank UBS AG, according to an IRS report made public on Wednesday.

The IRS whistleblower program has been criticized for moving too slowly and putting inadequate resources behind its efforts, causing whistleblowers to grow reluctant to file claims. The program was overhauled by Congress in 2006 amid such criticism.

Feb 7, 2013
via Tax Break

Calendar

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Some important tax and accounting events in the week ahead:

 Monday, Feb. 11 – Tuesday, Feb. 12

International Bar Association Taxation Section/Chartered Institute of Taxation European Branch conference on the taxation of offshore income of financial institutions, transfer pricing, the Foreign Account Tax Compliance Act (FATCA) and other topics. London.

Wednesday, Feb. 13

Practicing Law Institute Webcast on FATCA. 1 p.m. ET.

The International Tax Institute seminar on FATCA. 12:15 p.m. – 2 p.m. ET, Grand Hyatt New York. New York.

Feb 6, 2013

New York defends its “Amazon tax” in court

By Nanette Byrnes

(Reuters) – Major online retailers Amazon.com Inc and Overstock.com on Wednesday told a New York state court that they should be allowed to not charge state sales tax.

The case, in the State of New York Court of Appeals, represents one of the first legal tests of recent “Amazon taxes” meant to make online retailers start charging state sales taxes.