* Tax credits or spending? Labels, but in Congress, fighting words. Annie Lowrey – The New York Times. In budget proposals put forward last week, both Democrats and Republicans called for scrubbing billions of dollars’ worth of the popular deductions, loopholes and credits that litter the tax code. But the two sides are sharply divided what should happen to any revenue raised. Link
* Republican Sen. Corker opens the door to new tax revenue. Sean Sullivan – The Washington Post. Republican Sen. Bob Corker of Tennessee said Sunday that he believes Republicans would consider adding new tax revenues by closing loopholes if Democrats show a willingness to embrace “true” entitlement reform. Link
WASHINGTON (Reuters) – Spanish golfer Sergio Garcia has won a U.S. Tax Court ruling that could have repercussions for famous international sports stars who cash in on corporate sponsorship deals, tax professionals said on Friday.
In a dispute with the Internal Revenue Service over a $1.7 million tax bill, the court ruled largely, though not entirely, in Garcia’s favor. Lawyers said others might benefit from the ruling, depending on how their home countries tax royalties.
* Congress begins meetings on tax reform. Zachery Goldfarb and Lori Montgomery – The Washington Post. Members of the Senate Finance Committee from both parties met for the first time Thursday to start laying the groundwork for legislation to overhaul the tax code, as the House Ways and Means Committee engages in a similar bipartisan effort. Link
* Mining austerity era is bad news for the tax collector. Tom Gara – The Wall Street Journal. The mining industry boom is now coming to an end, and governments that grew accustomed to healthy tax and fee revenue from miners are feeling the pinch. Link
WASHINGTON/HONG KONG, March 13 (Reuters) – The success of a
broad U.S. crackdown on offshore tax dodging will be determined
in part by China’s cooperation, but talks with Chinese officials
are making little headway, former U.S. Treasury Department
officials and tax professionals said.
FATCA requires foreign financial institutions to tell the
United States about Americans’ offshore financial holdings.
* Democrats’ budget mixes tax increases, spending cuts. Kristina Peterson – The Wall Street Journal. Senate Democrats will propose on Wednesday raising $975 billion in new taxes over the next decade in the budget they will release this week, setting up a sharp contrast with a House Republican plan to balance the budget over 10 years without new tax increases. Link
* Ryan sets stage for a budget duel, targets healthcare law. Lori Montgomery – The Washington Post. The Obama administration official acknowledged that the dueling budget blueprints illustrate the immense challenge of trying to forge a compromise between a president and Republicans, who refuse to consider any additional revenue beyond the relatively modest tax increase adopted Jan. 1. Link
Welcome to the top tax and accounting headlines from Reuters and other sources.
* Penny-pinching in pinstripes? Yes, the Yanks are reining in pay. David Waldstein – The New York Times. The Yankees no longer want to pay Major League Baseball’s luxury tax, after spending years of happily soaring beyond the payroll threshold that determines that tax. Link
* More U.S. profits parked abroad, saving on taxes. Scott Thurm and Kate Linebaugh – The Wall Street Journal. A Wall Street Journal analysis of 60 big U.S. companies found that, together, they parked a total of $166 billion offshore last year. That shielded more than 40 percent of their annual profits from U.S. taxes. Link
* As momentum builds toward tax reform, lobbyists prepare for a fight. Jerry Markon – The Washington Post. Lobbying over the tax code has more than tripled since President Barack Obama took office, disclosure records show. Link
* Michigan Sen. Carl Levin will not seek reelection. Rachel Weiner and Aaron Blake – The Washington Post. As chairman of the Senate Permanent Subcommittee on Investigations, Carl Levin has investigated Enron, the credit card industry, the 2008 financial crisis, and offshore tax havens. Link
* IASB loan-loss proposal a test for convergence. Emily Chasan – The Wall Street Journal. International accounting rulemakers have, for now, agreed to disagree with U.S. accounting standard setters on a new model for companies to account for credit losses, adding another delay to the convergence process between the two rulemakers. Link
WASHINGTON, March 7 (Reuters) – The U.S. Internal Revenue
Service has revoked access to an amnesty program for some U.S.
taxpayers with accounts at Israeli banks who were already taking
part in it, said three lawyers representing the customers on
In an unusual move that could scare others away from the
program, the IRS has told dozens of customers of Israel’s Bank
Leumi they have been disqualified from participating,
said lawyers for the customers.
* Offshore tax probe picks up. Laura Saunders – The Wall Street Journal. After getting a guilty plea from Switzerland’s oldest private bank, which was ordered Monday to pay a total of $74 million for violating U.S. tax laws, federal investigators have fresh momentum thanks to leads gathered from interviews with confessed tax cheats. Link
* House GOP plans a budget that retains tax increases and Medicare cuts. Jonathan Weisman – The New York Times. House Republicans will preserve Medicare cuts and accept tax increases they sternly opposed just months ago in a new tax-and-spending blueprint, senior Republicans said Wednesday. Link