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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.

Mar 21, 2013
via Tax Break

Essential reading: Senate votes on tax hikes in budget, and more

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

* 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

Mar 20, 2013
via Tax Break

Essential reading: Tax reform spurs bipartisan lobbying, and more

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

 * 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

Mar 19, 2013
via Tax Break

Essential reading: NY State near budget, tax cuts, and more

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

* 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    

Mar 18, 2013
via Tax Break

Essential reading: Tax breaks versus spending, and more

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

 * 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    

Mar 15, 2013

Golfer Garcia scores birdie, not quite eagle, in U.S. Tax Court

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.

Mar 15, 2013
via Tax Break

Essential reading: Congress begins tax reform talks, and more

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

* 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 

Mar 13, 2013

U.S.-China anti-tax evasion deal seen as crucial, but elusive

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.

Mar 13, 2013
via Tax Break

Essential reading: Senate Democrats propose new taxes, and more

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

* 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    

Mar 12, 2013
via Tax Break

Essential reading: Yankees embrace frugality to dodge tax, and more

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New York Yankees then manager Joe Torre (L) puts a Yankees cap on Alex Rodriguez, one of the  highest paid players in baseball. February 17, 2004 REUTERS/Peter Morgan

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