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Jun 20, 2014

U.S. tax chief won’t apologize to Republicans in ‘Tea Party’ probe

WASHINGTON (Reuters) – The head of the U.S. Internal Revenue Service refused to apologize on Friday for the loss of emails that Republican investigators want as part of a year-old inquiry into the tax agency’s scrutiny of politically conservative groups.

“I don’t think an apology is owed,” IRS Commissioner John Koskinen told Republican Representative Dave Camp in a tense exchange at a hearing about the emails, the latest fallout from 2013′s so-called IRS Tea Party targeting affair.

Jun 19, 2014

Supreme Court rules taxpayer can challenge IRS summons

WASHINGTON (Reuters) – The U.S. Supreme Court on Thursday ruled unanimously that taxpayers have a right to challenge an Internal Revenue Service summons enforcement action in court when they can show the tax agency might have issued the summons in bad faith.

But the nine justices sent the case back to the 11th U.S. Circuit Court of Appeals and said that court had wrongly decided that IRS agents could be examined at an evidentiary hearing based on a taxpayer’s mere “conclusory allegations.”

Jun 17, 2014

U.S. Senate’s tax writer sees 15-month ‘window’ for tax reform

WASHINGTON, June 17 (Reuters) – The U.S. Senate’s chief tax
law writer on Tuesday vowed to work on overhauling the federal
tax code by August 2015, citing a move by Medtronic Inc
to shift its tax home base to Ireland as a spur to congressional
action.

Senator Ron Wyden, the chairman of the Senate Finance
Committee, said he wants to cut the corporate income tax rate to
24 percent from 35 percent, chiefly by eliminating loopholes.
Wyden has advocated this proposal for years. Multinational
companies have been clamoring for a tax cut.

Jun 16, 2014

Medtronic deal draws Washington scrutiny of tax relocations

WASHINGTON, June 16 (Reuters) – The threat of U.S. tax
revenue losses from Medtronic Inc’s plan to buy rival
Covidien Plc and move its base to Ireland is stoking
concerns from lawmakers and the Obama administration about
corporate tax “inversion” deals.

While such deals used to be rare, a recent flurry of them
has motivated Democrats to propose legislation to make it harder
for companies to use inversion deals that reap tax benefits from
reincorporating in low-tax jurisdictions overseas.

Jun 16, 2014

Medtronic deal draws Washington scrutiny of corporate tax relocations

WASHINGTON (Reuters) – The threat of U.S. tax revenue losses from Medtronic Inc’s (MDT.N: Quote, Profile, Research, Stock Buzz) plan to buy rival Covidien Plc (COV.N: Quote, Profile, Research, Stock Buzz) and move its base to Ireland is stoking concerns from lawmakers and the Obama administration about corporate tax “inversion” deals.

While such deals used to be rare, a recent flurry of them has motivated lawmakers to propose legislation to make it harder for companies to use inversion deals that reap tax benefits from reincorporating in low-tax jurisdictions overseas.

Jun 13, 2014

Owner of Triple Crown-contending racehorse loses tax case vs IRS

WASHINGTON (Reuters) – A California businessman and prominent figure in horse racing on Friday lost a multimillion-dollar tax-shelter dispute in an appeals court decision favoring the U.S. Internal Revenue Service.

Canadian-born John Paul Reddam, owner of I’ll Have Another, a horse that won two legs of U.S. racing’s elusive Triple Crown in 2012, was also the founder of DiTech, a home loan business.

Jun 12, 2014

Cantor shock stalls offshore corporate tax break in Congress

WASHINGTON (Reuters) – The defeat of House of Representatives Majority Leader Eric Cantor shifted the political ground under U.S. multinational corporations this week, just as they seemed to be gaining traction in their push for a $95 billion tax break on bringing foreign profits home.

With House Republicans in turmoil after their leader’s loss, lobbyists and policy analysts said the proposal, known as the offshore corporate income tax holiday, was losing momentum.

Jun 10, 2014

U.S. senators weigh tax ‘holiday’ to help fund highway repairs

WASHINGTON, June 10 (Reuters) – Top U.S. Senate Democrats
and Republicans on Tuesday said they were considering offering
American companies a one-time tax break if they repatriate
profits stashed abroad.

The senators anticipate the proposal would generate a
windfall in revenue that would be used to fund federal
transportation projects.

Jun 9, 2014

Illinois parts-maker fights U.S. IRS over cross-border tax deal

WASHINGTON, June 9 (Reuters) – The U.S. Internal Revenue
Service and manufacturer Illinois Tool Works Inc are
battling in U.S. Tax Court over a $356.8 million dispute that
highlights a type of cross-border tax avoidance strategy facing
increased scrutiny worldwide.

As governments crack down on tax-driven profit-shifting,
the IRS is asserting that a loan used by Illinois Tool to bring
foreign cash from a Bermuda-based subsidiary into the United
States was not a tax-free transaction.

Jun 5, 2014

Most big US companies use offshore ‘tricks’ to avoid taxes-activists

WASHINGTON, June 5 (Reuters) – Most Fortune 500 corporations
have offshore tax haven units that they use to avoid paying U.S.
taxes through “accounting tricks,” two left-leaning tax activist
groups said on Thursday.

U.S. multinationals each year avoid paying about $90 billion
in federal income tax, the groups said in a report that comes
amid increased attention to corporate tax avoidance worldwide.