WASHINGTON (Reuters) – The U.S. Internal Revenue Service’s practice of slapping steep, 40-percent penalties on participants in certain alleged tax shelters will soon come to trial before the Supreme Court.
Though it rarely hears tax matters, the court has decided to weigh in on a case involving Texas billionaire Billy Joe “Red” McCombs, a former owner of professional sports teams.
Welcome to the top tax and accounting headlines from Reuters and other sources.
* Intangibles targeted in tax audits. Emily Chasan – The Wall Street Journal. Intangible assets such as intellectual property, technology processes and copyrights have grown over the past decade to account for a greater portion of corporate profits, and tax regulators are taking notice. Link
* Tax panel: Democrats’ budget needs to cut more tax breaks. Siobhan Hughes – The Wall Street Journal. A congressional tax report found that President Barack Obama’s strategy for raising taxes won’t fly on its own since it couldn’t raise the $975 billion called for under the Senate Democratic budget. Link
* Trading clamps spur lobby effort. Jenny Strasburg and Scott Patterson – The Wall Street Journal. High-speed trading firms and exchanges are being forced into the lobbying game by taxes on trades in Europe, proposals for similar levies in the U.S. and beefed-up regulatory scrutiny. Link
* U.S. seeks answers in Liechtenstein on tax cheats. Dylan Griffiths – Bloomberg. The U.S. has asked Liechtenstein to hand over data on foundations that may have been used to hide untaxed American money from the Internal Revenue Service, a step that may threaten Swiss banks. Link
WASHINGTON, March 22 (Reuters) – President Barack Obama’s
2010 healthcare law left many tax details to be worked out by
the U.S. Internal Revenue Service.
Here are some of the key issues ahead for the IRS as the law
nears implementation in 2014.
WASHINGTON, March 22 (Reuters) – The tax reform tempo is
picking up in the U.S. Congress, with lawmakers meeting, task
forces floating proposals and lobbyists scurrying to get in on
the action – a small piece of which recently took place in an
historic Capitol Hill meeting room.
There, officials from Exxon Mobil Corp, the world’s
largest publicly traded oil company, and refiner Tesoro Corp
met on March 14 for almost three hours with
Representative Kevin Brady, a Texas Republican, as well as with
Representative Mike Thompson, a California Democrat, and others.
* Figuring athletes’ taxes is, well, taxing. Callum Borchers – The Boston Globe. The complicating factor for pro athletes is not how much they earn — though they often make millions of dollars per year — but where they earn it. With few exceptions, athletes owe income taxes in every state where they play. Link
* Renewed tax credit buoys wind-power projects. Diane Cardwell – The New York Times. Beyond the next year or so, the industry’s future remains in doubt, given the uncertainty over whether Congress will again extend the tax credit as part of an 11th-hour budget agreement or take up its purpose and ultimate fate as part of a broader corporate tax overhaul. Link
WASHINGTON/BRASILIA, March 21 (Reuters) – The United States
and Brazil are moving toward closer cooperation on fighting tax
evasion, with Brazil recently ratifying a formal tax information
exchange agreement between the two countries, tax professionals
said on Thursday.
After languishing in the Brazilian Senate for six years, the
agreement, which provides for limited sharing of tax
information, was approved last week, thus opening the door to a
pact on the more comprehensive U.S. Foreign Account Tax
Compliance Act, or FATCA.
* As Senate passes spending measure, stark budget views are on display in House. Jeremy Peters and Jonathan Weisman – The New York Times. House Republicans brought to a vote the budget proposed last week by Senate Democrats in the hope that they could divide their opponents’ ranks and put them on record supporting its $1 trillion in tax increases. Link
* Rewrite of partnership tax rules could shake real estate. Richard Rubin – Bloomberg. The more dramatic of two tax proposals from Dave Camp, the top Republican tax writer in Congress, would remove some of the flexibility that has made partnerships attractive legal structures for real estate investors and hedge funds. Link
* In shift, lobbyists look for a bipartisan support to repeal a tax. Eric Lipton – The New York Times. Lobbyists across Washington are redoubling their efforts to build bipartisan coalitions — not just on the 2.3 percent medical device excise tax, but other hot topics, like the possible rewriting of corporate tax laws. Link
* Albany near deal on budget, taxes. Erica Orden and Laura Nahmias – The Wall Street Journal. Gov. Andrew Cuomo and legislative leaders were close to reaching a deal to pay for about $700 million in new tax cuts or credits proposed by Republicans. Among the options debated: extending the so-called millionaires tax to raise money for other tax cuts. Link
* Those returning to school can find help in the tax code. Walecia Konrad – The New York Times. Some of the existing tax credits and deductions for education that were extended as part of tax legislation passed in January are particularly well suited to continuing education students. Link