Patrick's Feed
Mar 28, 2013

Gay marriage rights may carry bigger U.S. tax burden for some

WASHINGTON, March 28 (Reuters) – If the U.S. Supreme Court
strikes down a federal law defining marriage as between a man
and woman, the newfound rights for gay married couples may bear
something not so welcome – a bigger tax burden.

That’s because with equality, gay couples will face the same
tax woes of many heterosexual couples with similar incomes,
including the tax hit known in America as the marriage penalty.

Mar 28, 2013
via Tax Break

Essential reading: Sports betting raises state coffers, and more

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

* Cash-hungry states eye sports betting, to leagues dismay. Joe Drape – The New York Times. Nevada took in more than $3.4 billion in bets on sports last year, generating $15 million to $20 million in tax revenue. Link     

* A new variation of a costly tax-time offer. Ann Carrins – The New York Times. Some tax preparation firms, like Liberty Tax Service and Jackson Hewitt, continue to make the refund anticipation loans using nonbank partners. Link    

Mar 27, 2013
via Tax Break

Essential reading: TurboTax’s lobbying fight, and more

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

 * How the maker of TurboTax fought free, simple filing. Liz Day – ProPublica. Intuit has spent about $11.5 million on federal lobbying in the past five years. Although the lobbying spans a range of issues, Intuit’s disclosures pointedly note that the company “opposes IRS government tax preparation.” Link 

 * Post analysis of Dow 30 firms shows declining tax burden as a share of profits. Jia Lynn Yang – The Washington Post. Most of the 30 companies listed on the country’s most famous stock index, the Dow Jones industrial average, have seen a dramatically smaller percentage of their profits go to U.S. coffers over time. Link    

Mar 26, 2013

Supreme Court to weigh IRS penalties on alleged tax dodges

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.

Mar 26, 2013
via Tax Break

Essential reading: Intangible assets under audit, and more

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    

Mar 25, 2013
via Tax Break

Essential reading: Proposals to tax trades spark financial firm lobbying, and more

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

* 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

Mar 22, 2013

U.S. IRS preparing key rules ahead of healthcare law

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.

Mar 22, 2013

As U.S. Congress talks tax reform, corporate lobbyists crowd in

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.

Mar 22, 2013
via Tax Break

Essential reading: Athletes’ tough tax bills, and more

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

* 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 

Mar 22, 2013

U.S.-Brazil tax deal advances anti-tax evasion dragnet -lawyers

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.