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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.

May 17, 2013

Obama picks temporary IRS head as Tea Party decries scandal

WASHINGTON (Reuters) – President Barack Obama on Thursday chose a White House budget official to lead the beleaguered Internal Revenue Service and vowed to ensure that the tax-collection agency will not single out any more groups based on their political beliefs.

Danny Werfel, who has been Obama’s point man in overseeing the controversial “sequestration” budget cuts, will tackle the biggest scandal of Obama’s presidency when he takes charge of the IRS on May 22.

May 16, 2013

Obama picks temporary IRS head as Tea Party rallies on scandal

WASHINGTON (Reuters) – President Barack Obama on Thursday chose a White House budget official to lead the beleaguered Internal Revenue Service and vowed to ensure that the tax-collection agency will not single out any more groups based on their political beliefs.

Danny Werfel, who has been Obama’s point man in overseeing the controversial “sequestration” budget cuts, will tackle the biggest scandal of Obama’s presidency when he takes charge of the IRS on May 22.

May 16, 2013

Finding permanent IRS chief now difficult job for Obama

WASHINGTON (Reuters) – Finding a permanent Internal Revenue Service commissioner who is ready to endure a grueling Senate confirmation hearing could be a challenging task for President Barack Obama in the wake of the controversy engulfing the agency over its targeting of conservative groups seeking tax-exempt status.

Under law, Danny Werfel, the acting commissioner appointed Thursday by President Barack Obama, can only serve until early June. On Wednesday, reacting to the scandal, Obama replaced Steven Miller, who was also an acting commissioner.

May 16, 2013

Obama’s new tax chief will need to be manager, apolitical and ‘insane’

WASHINGTON (Reuters) – After forcing out acting Internal Revenue Service commissioner Steven Miller amid a scandal over targeted scrutiny of conservative groups, President Barack Obama is looking for a new tax chief.

The informal job requirements might include a willingness to make treks to Capitol Hill to take a grilling from antagonistic members of Congress.