Brazil royalties dispute lands 3M, IRS in U.S. Tax Court
WASHINGTON, April 3 (Reuters) – The U.S. Internal Revenue
Service and 3M Co are fighting over royalty payments
from the company’s Brazilian unit to its U.S. headquarters in a
case that highlights how tax complications often emerge from
doing business in Brazil.
Brazil has no tax treaty with the United States. Last year,
it was the largest U.S. trading partner lacking such an
agreement. As a result, the country is often at the center of
tax disputes between U.S. companies and the IRS.
Victoria’s Secret case tests U.S. manufacturing tax break
WASHINGTON, April 2 (Reuters) – If an outside contractor
makes lotions sold by Victoria’s Secret, should the lingerie
retailer known for its curvaceous models get to claim a tax
deduction for manufacturing products in the United States?
That is the basic issue before the U.S. Tax Court in
Washington, D.C., as L Brands Inc, owner of Victoria’s
Secret and Bath & Body Works stores, quarrels with the Internal
Revenue Service over about $25.4 million in tax breaks.
Analysis: Gay marriage rights may carry bigger U.S. tax burden for some
WASHINGTON (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.
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.
Essential reading: Sports betting raises state coffers, and more
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
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
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.
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
Essential reading: Proposals to tax trades spark financial firm lobbying, and more
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
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.
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