Patrick's Feed
May 22, 2013

IRS official refuses to answer questions at scandal hearing

WASHINGTON (Reuters) – The Internal Revenue Service official at the center of a tax scandal about extra scrutiny of conservative groups told a congressional hearing on Wednesday she had done nothing wrong but asserted her constitutional right not to answer questions.

“I have not done anything wrong. I have not broken any laws,” Lois Lerner, head of the IRS tax-exempt unit, told the House Oversight and Government Reform Committee.

May 22, 2013

Apple CEO makes no apology for company’s tax strategy

WASHINGTON (Reuters) – Apple Inc Chief Executive Tim Cook made no apology on Tuesday for the iPad maker saving billions of dollars in U.S. taxes through Irish subsidiaries and told lawmakers that his company backs corporate tax reform, even though it may end up paying more.

The Senate Permanent Subcommittee on Investigations has found that Apple in 2012 alone avoided paying $9 billion in U.S. taxes, using a strategy involving three offshore units with no discernible tax home, or “residence.”

May 21, 2013

U.S. Senate panel peels back Apple’s offshore taxes

WASHINGTON (Reuters) – Apple Inc’s chief executive officer defended the company’s tax record at a Tuesday Senate hearing where lawmakers said the maker of iPads, iPods and Mac computers kept billions of dollars in profits in Irish subsidiaries to avoid U.S. taxes.

The hearing marked another foray by the Senate’s most powerful investigative committee into corporate offshore tax avoidance, which is increasingly a target of many governments from the United States to Western Europe.

May 21, 2013

U.S. Senate panel hammers Apple over offshore tax strategies

WASHINGTON, May 21 (Reuters) – Apple Inc came under
fire on Tuesday at a Senate hearing over an investigation that
alleged the U.S. high technology icon has kept billions of
dollars in profits in Irish subsidiaries and paid little or no
taxes to any government.

“Apple effectively shifts billions of dollars in profits
offshore, profits that under one section of the tax code should
nonetheless be subject to U.S. taxes, but through a complex
process avoids those taxes,” said Senator Carl Levin.

May 20, 2013

Apple, Congress spar over taxes ahead of Tuesday hearing

WASHINGTON/SAN FRANCISCO, May 20 (Reuters) – Using an
unusual global tax structure, Apple Inc has kept
billions of dollars in profits in Irish subsidiaries to pay
little or no taxes to any government, a U.S. Senate report on
the company’s offshore tax structure said on Monday.

In a 40-page memorandum released a day before Apple CEO Tim
Cook is scheduled to testify before Congress, the Senate’s
Permanent Subcommittee on Investigations identified three
subsidiaries that have no “tax residency” in Ireland, where they
are incorporated, or in the United States, where company
executives manage those companies.

May 20, 2013

Apple’s stateless subsidiaries lower tax bills- Senate report

WASHINGTON, May 20 (Reuters) – Using an unusual global tax
structure, Apple Inc has held billions of dollars in
profits in Irish subsidiaries to pay little or no taxes to any
government, a U.S. Senate report on the company’s offshore tax
structure concluded on Monday.

In a 40-page memorandum released a day before Apple CEO Tim
Cook is scheduled to testify before Congress, the Senate’s
Permanent Subcommittee on Investigations identified three
subsidiaries that have no “tax residency” in Ireland, where they
are incorporated, or in the United States, where company
executives manage those companies.

May 20, 2013

Pressure builds on officials to take heat for IRS scandal

WASHINGTON (Reuters) – Pressure was building on Monday for the Obama administration to fire more people linked to the Internal Revenue Service’s extra scrutiny of conservative groups, possibly including another top IRS official.

More than a week after a mid-level IRS employee apologized publicly for IRS agents’ use of terms such as “Tea Party” and “patriots” to target groups’ applications for tax-exempt status, Congress was preparing for two days of hearings on the matter.

May 20, 2013
via Tax Break

Essential reading: White House knew of IRS scandal in April, and more

Photo

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

* IRS inquiry status told to White House in April. Jonathan Weisman and Brian Knowlton – The New York Times. The chief White House lawyer, Kathryn Ruemmler, learned last month that a Treasury inspector general had concluded an audit of the Internal Revenue Service’s targeting of conservative groups, weeks before the matter became public, according to a senior White House official. Link 

* How the IRS seeded the clouds in 2010 for a political deluge three years later. Zachary Goldfarb and Kimberly Kindy – The Washington Post. The story of the IRS’s policy of targeting right-leaning groups was one of a bureaucracy caught in a morass of uncertainty and outside pressure. Link    

May 17, 2013
via Tax Break

Essential reading: Apple CEO to propose tax overhaul, and more

Photo

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

* Apple CEO Tim Cook to propose tax overhaul. Cecilia Kang – The Washington Post. Apple chief executive Tim Cook plans to propose a “dramatic simplification” of corporate tax laws when he testifies for the first time before Congress next week, just as lawmakers are considering an overhaul of the tax code. Link    

 * U.S. Republicans eye Obamacare on the back of IRS controversy. Stephanie Kirchgaessner – The Financial Times. The Internal Revenue Service controversy threatens to complicate implementation of Barack Obama’s 2010 healthcare law, reinforcing Republican opposition to funding the agency’s work on the legislation at a critical moment. Link    

May 17, 2013

IRS chief declines to identify employees involved in scandal

WASHINGTON (Reuters) – The outgoing head of the Internal Revenue Service provided little help on Friday to lawmakers investigating who at the tax-collection agency was responsible for targeting conservative groups for extra scrutiny.

As Congress kicked off the first of several investigations into a scandal that has put President Barack Obama on the defensive, acting IRS Commissioner Steven Miller said he could not say who had come up with the idea to single out conservative groups for intense scrutiny when they applied for tax-exempt status.