Patrick's Feed
Oct 17, 2013

Wisconsin adds sales tax to Amazon.com shopping cart

WASHINGTON (Reuters) – Wisconsin next month will become the 14th U.S. state to begin collecting sales tax on online purchases through Amazon.com Inc, joining a trend toward squeezing more revenue from e-commerce.

Effective November 1, the Midwestern state said sales tax will be added by Amazon to purchases made by Wisconsin residents because the online retailer is opening a distribution center in Kenosha, giving it a physical presence in the state.

Oct 14, 2013

U.S. multinationals to have say on OECD tax-base erosion project

WASHINGTON (Reuters) – U.S. multinationals will next month be able to weigh in for the first time on recent proposals from the Organisation for Economic Co-operation and Development (OECD) on tightening oversight of tax-reducing “transfer pricing” strategies.

These financial strategies, involving how multinationals value and price assets they move around the globe from one unit to another, have been criticized by tax fairness advocates and the OECD, a Paris-based club of rich countries.

Oct 9, 2013

Tax penalty for two Texans? Supreme Court weighs partner problem

WASHINGTON (Reuters) – The U.S. Supreme Court on Wednesday grappled with a case about a steep penalty the Internal Revenue Service imposed on two Texas businessmen over a sham tax shelter, with legal arguments centered on whether their partnership shielded them or not.

The case involves Billy Joe “Red” McCombs, a Texas billionaire and former owner of the Minnesota Vikings football team, and his business partner Gary Woods.

Oct 8, 2013

Congressional panel to review U.S. IRS progress on healthcare law

WASHINGTON (Reuters) – The U.S. Internal Revenue Service executive in charge of enforcing President Barack Obama’s new healthcare law will be the lone witness on Wednesday before a congressional panel run by Republicans resolutely opposed to the law.

As if that were not daunting enough, Sarah Hall Ingram also likely will be questioned by Republicans about her previous IRS job. She headed the IRS tax-exempt division at the time it started subjecting conservative groups allied with the Tea Party movement to extra scrutiny.

Oct 8, 2013

U.S. Supreme Court to weigh penalty on sham tax shelter

WASHINGTON, Oct 8 (Reuters) – The U.S. Supreme Court on
Wednesday will hear arguments about whether the Internal Revenue
Service can slap a 40 percent penalty on certain financial
transactions in a case involving a tax shelter used by a Texas
billionaire.

The shelter itself – known as a “current options bring
reward alternatives,” or COBRA – is not in dispute, only the
IRS’s attempt to collect the penalty. Lower courts have ruled
COBRA shelters are a sham meant solely to avoid taxes.

Oct 4, 2013

Shutdown halts rebates on Build America Bonds, dents appeal

WASHINGTON (Reuters) – The inability of the U.S. Treasury to send Build America Bond payments to state and local governments during the federal government shutdown is the latest blow to hopes these securities might grow into an alternative to tax-exempt municipal bonds.

Taxable Build America Bonds, created in the 2009 economic stimulus plan, pay issuers federal rebates equal to 35 percent of the bonds’ interest costs. The rebates were so attractive that state and local governments rushed to sell $181 billion BABs in the 20 months of the program’s existence.

Oct 4, 2013

Good news for tax delinquents: shutdown halts new asset seizures: IRS

WASHINGTON (Reuters) – The U.S. Internal Revenue Service said on Friday that it has stopped initiating new asset seizures from tax delinquents during the government shutdown and is enforcing seizures only in “extremely limited” instances.

During the shutdown, the “IRS is not sending out levies or liens,” an agency spokeswoman said in a statement to Reuters.

Oct 4, 2013

Good news for tax delinquents: shutdown halts new asset seizures -IRS

WASHINGTON, Oct 4 (Reuters) – The U.S. Internal Revenue
Service said on Friday that it has stopped initiating new asset
seizures from tax delinquents during the government shutdown and
is enforcing seizures only in “extremely limited” instances.

During the shutdown, the “IRS is not sending out levies or
liens,” an agency spokeswoman said in a statement to Reuters.

Oct 4, 2013

Shutdown slows U.S. bilateral talks to fight offshore tax dodgers

WASHINGTON (Reuters) – The federal government shutdown has interrupted U.S. efforts to negotiate agreements with other countries on implementing an anti-tax evasion law that is to take effect next year, tax lawyers said on Friday.

The Foreign Account Tax Compliance Act (FATCA), enacted in 2010, is to take effect next July. It will require foreign financial institutions to tell the U.S. Internal Revenue Service about Americans’ offshore accounts worth more than $50,000.

Oct 2, 2013

Shutdown leaves some U.S. taxpayers defenseless against IRS

WASHINGTON, Oct 2 (Reuters) – The shutdown of the federal
government has left some tax delinquents defenseless against
U.S. Internal Revenue Service (IRS) asset seizures, tax
professionals said on Wednesday.

Some IRS tax collectors who pursue individuals and
businesses that are delinquent are working through the shutdown,
but IRS staff who help these taxpayers defend themselves from
collectors have been furloughed, lawyers said.