Patrick's Feed
Jan 21, 2014

Republican Party to vote for repeal of U.S. anti-tax dodging law

WASHINGTON (Reuters) – The Republican Party is expected to approve a resolution this week, calling for repeal of an Obama administration law that is designed to crack down on offshore tax dodging.

In what would be the party’s first appeal to scrap the law -

the Foreign Account Tax Compliance Act (FATCA) – a panel was slated to vote at the Republican National Committee’s (RNC) winter meetings in Washington, likely approving the resolution on Friday, according to party members driving the repeal effort.

Jan 17, 2014

U.S. IRS budget drops as watchdog gets 2014 funding bump

WASHINGTON (Reuters) – The inspector general of the U.S. Internal Revenue Service is slated to get a budget increase in 2014, but the tax-collecting agency itself will get less funding.

The Treasury Inspector General for Tax Administration (TIGTA), which oversees the IRS, will get $156 million for the year, a 2.6 percent funding increase, under a U.S. congressional budget pact passed this week.

Jan 17, 2014

U.S. IRS needs ‘Plan B’ on stalled tax preparer rules: watchdog

WASHINGTON (Reuters) – The U.S. Internal Revenue Service needs a fallback option that would encourage thousands of tax return preparers to voluntarily become certified, with the agency’s mandatory training program now facing uncertainty in court, an IRS watchdog told Reuters.

Nina Olson, the National Taxpayer Advocate, who defends taxpayers’ rights as the ombudsman within the IRS, said: “We are recommending Plan B to be going to a voluntary approach.

Jan 14, 2014

U.S. judge tosses bankers’ suit over rules to fight tax-dodging

WASHINGTON, Jan 13 (Reuters) – In a win for the Obama
administration’s fight against offshore tax evasion, a U.S.
federal judge on Monday dismissed a lawsuit challenging new
rules forcing U.S. banks to tell the Internal Revenue Service
about certain accounts held by foreigners.

Set to take effect in March, the rules are part of a
fast-emerging global web of bank information-sharing agreements
between the United States and many other countries meant to
combat the hiding of assets abroad to avoid paying taxes.

Jan 13, 2014

Taxes on severance pay? U.S. Supreme Court to hear case

WASHINGTON (Reuters) – The Obama administration on Tuesday will fight before the Supreme Court to keep a defunct retailer from potentially triggering a wave of tax refund claims that could drain $1 billion from major U.S. social programs.

In oral arguments before the high court, the Obama administration will ask the justices to overturn an appeals court ruling in favor of issuing a tax refund to Quality Stores Inc, a rural retailer that declared bankruptcy in 2001.

Jan 9, 2014

IRS should create, adopt U.S. taxpayer bill of rights: watchdog

WASHINGTON (Reuters) – The U.S. Internal Revenue Service should take steps to restore public trust in its work, including adopting a taxpayer bill of rights that clearly states individuals’ rights to fair treatment from the tax agency, an IRS watchdog said on Thursday.

With its reputation for political neutrality hurt by a 2013 uproar over its treatment of conservative political groups, the IRS needs to reassure Americans of their tax rights, said the Taxpayer Advocate Service, an oversight arm of the agency.

Jan 8, 2014

Boeing, manufacturers press U.S. IRS on R&D tax rule changes

WASHINGTON (Reuters) – Boeing Co and other manufacturers asked the U.S. Internal Revenue Service on Wednesday to scrap parts of a proposed rewrite of the federal tax deduction for corporate research and development that they said could make it harder to claim it.

Warning of possible costly legal fights ahead, a lawyer for the aerospace company said Boeing Co (BA.N: Quote, Profile, Research, Stock Buzz) is worried the changes as proposed could prevent it from deducting the R&D costs for an airplane if, for example, separate engine parts were upgraded.

Jan 6, 2014

IRS chief says may face budget crunch on Obamacare rollout

WASHINGTON (Reuters) – The U.S. Internal Revenue Service may need to spend money on its Obamacare implementation at the expense of other agency programs due to budget constraints, its new commissioner said on Monday.

John Koskinen, sworn in on December 23 to lead the tax agency, did not elaborate on what programs might suffer to ensure full funding for the IRS’s numerous jobs in putting into effect President Barack Obama’s Affordable Care Act (ACA) of 2010.

Dec 26, 2013

U.S. Tax Court rules against MBA student seeking tuition tax break

WASHINGTON (Reuters) – The U.S. Tax Court has dealt a setback to young MBA students with little work experience who try to claim their tuition costs as a tax-deductible business expense, lawyers and accountants said on Thursday.

In a ruling on Monday, a Tax Court judge denied Adam Hart of Florida, who was studying for a Master of Business Administration degree in finance, a $17,138 tax deduction he claimed for his tuition costs in 2009. The IRS billed Hart for $2,572 in unpaid taxes.

Dec 23, 2013

New York regulates tax preparers as U.S. IRS effort drifts

WASHINGTON (Reuters) – New York this month became the fourth U.S. state to regulate unlicensed tax return preparers, at a time when consumer advocates are pushing for more state oversight as a federal crackdown stalled.

Nearly 80 million Americans pay someone to prepare their tax returns. While most of this work goes smoothly, some does not.