IRS watchdog urges simpler tax code to cut costs, confusion
WASHINGTON, Jan 9 (Reuters) – U.S. tax breaks need to be
pared back to spare taxpayers costs and complexity, according to
an Internal Revenue Service watchdog report released on
Wednesday even as political chances for a tax code overhaul may
be receding.
Congress should consider rebuilding the tax code from
scratch and permit tax breaks only if the costs and complexities
are justified, the Taxpayer Advocate Service, an oversight arm
of the IRS, wrote in its annual report to Congress.
Essential reading: After Sandy, tax cuts fade from Christie plan, and more
Ortley Beach, New Jersey after super storm Sandy REUTERS Tom Mihalek
Welcome to the top tax and accounting headlines from Reuters and other sources.
* After Sandy, tax cuts fade from Christie plan. Heather Haddon – The Wall Street Journal. In his annual address to the state on Tuesday, New Jersey Gov. Chris Christie laid out what he said would be a difficult road ahead as the state recovers from Sandy—a somber departure from last year, when he extolled the state’s economic health and centered his agenda around an aggressive income-tax cut. Link
* Despite promise, federal tax-refund debit cards a no go. Ann Carrns – The New York Times. Giving consumers who lack accounts at a bank or credit union the option of getting tax refunds on multiuse, prepaid debit cards may help bring them into the financial mainstream, a report from the Urban Institute finds. But the accounts must be low-cost, easy to use and available early in the tax season to encourage their use. Link
IRS delays start of tax filing season to January 30
WASHINGTON (Reuters) – The Internal Revenue Service said on Tuesday it will begin accepting 2012 tax filings on January 30, eight days later than originally planned, meaning millions of early-filing taxpayers will have to wait until February at the earliest for a refund.
More than 120 million households should be able to start filing tax returns on January 30, the agency said.
U.S. IRS delays start of tax filing season to Jan. 30
WASHINGTON, Jan 8 (Reuters) – The U.S. Internal Revenue
Service said on Tuesday it will begin accepting 2012 tax filings
on Jan. 30, eight days later than originally planned, meaning
millions of early-filing taxpayers will have to wait until
February at the earliest for a refund.
More than 120 million households should be able to start
filing tax returns on Jan. 30, the agency said.
Essential reading: Insiders benefited from special dividends, and more
Welcome to the top tax and accounting headlines from Reuters and other sources.
* Insiders benefited from special dividends. Maxwell Murphy and Emily Chasan – The Wall Street Journal. Many big companies raced to pay special dividends in the fourth quarter, ahead of potentially large tax increases on cash distributions this year. Most of the one-time payouts, however, came from smaller companies that had higher-than-average ownership by their management, employees and directors. Link
* Dealing on a deadline. Carmel Melouney – The Wall Street Journal. With an increase in capital-gains tax looming over the market, commercial property sales volume spurted in the weeks leading up to the new year. Sellers scrambled to close deals, worried that if they waited until 2013 their tax bill on the transactions would be higher. Link
Insight: In “fiscal cliff” bill, White House was key to corporate tax breaks
WASHINGTON (Reuters) – As the Congress rushed last week to approve a “fiscal cliff” tax bill that raised income taxes on the wealthy, Washington lobbyists were fretting over a drama that was playing out within the negotiations: whether the bill would include about $64 billion in tax breaks for businesses.
The bill extended several tax breaks backed by both parties, including $14.3 billion in credits for research and development projects for thousands of U.S. businesses. But it also had other provisions – breaks for companies involved in wind energy, auto racing, rum, Hollywood films and much more.
In ‘fiscal cliff’ bill, White House was key to corporate tax breaks
WASHINGTON, Jan 7 (Reuters) – As the U.S. Congress rushed
last week to approve a “fiscal cliff” tax bill that raised
income taxes on the wealthy, Washington lobbyists were fretting
over a drama that was playing out within the negotiations:
whether the bill would include about $64 billion in tax breaks
for businesses.
The bill extended several tax breaks backed by both parties,
including $14.3 billion in credits for research and development
projects for thousands of U.S. businesses. But it also had other
provisions – breaks for companies involved in wind energy, auto
racing, rum, Hollywood films and much more.
Essential reading: More tax revenue to IRS before cliff, and more
Welcome to the top tax and accounting headlines from Reuters and other sources.
* U.S. tax bonanza may be tapped out. Spencer Jakab – The Wall Street Journal. All the talk about the fiscal cliff and the inadequacy of the last-minute deal to avert it obscures one fact: It probably provided the government with tens of billions of dollars in unexpected tax receipts. Link
* Tax code may be the most progressive since 1979. Annie Lowrey – The New York Times. With 2013 bringing tax increases on the incomes of a small sliver of the richest Americans, the country’s top earners now face a heavier tax burden than at any time since Jimmy Carter was president. Link
Essential reading: Inquiry into tech giants’ tax strategies nears end, and more
Welcome to the top tax and accounting headlines from Reuters and other sources.
* Inquiry into tech giants’ tax strategies nears end. Charles Duhigg and David Koieniewski – The New York Times. Congressional investigators are wrapping up an inquiry into the accounting practices of Apple and other technology companies that allocate revenue and intellectual property offshore to lower the taxes they pay in the United States. Link
* Step 1: Corporate tax giveaways. Step 2: Outcry. Step 3: Profit. Suzy Khimm – The Washington Post. Pundits on both left and right were outraged when they realized a whole flotilla of corporate tax giveaways were buried in the fiscal cliff deal, ranging from a tax break for race-car track owners to electric-scooter makers. Link
U.S. Congress tax panels welcome fresh faces
WASHINGTON (Reuters) – The rosters of the powerful, tax-writing panels of the U.S. Congress were nearly filled out on Thursday, with three prominent Republicans named to the Senate Finance Committee.
At a time when tax-and-spending issues are at center stage, Republican Senators Pat Toomey of Pennsylvania, Johnny Isakson of Georgia and Rob Portman of Ohio are joining the finance panel. It is chaired by Montana Democrat Max Baucus.
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