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Dec 3, 2013

Supreme Court rules Texas billionaire owes tax shelter penalty

WASHINGTON (Reuters) – The U.S. Supreme Court on Tuesday unanimously ruled that Texas billionaire Billy Joe “Red” McCombs must pay steep penalties to the Internal Revenue Service related to more than $45 million he tried to shield from taxes.

The decision could lead to the payment of hundreds of millions of dollars in penalties and interest that the government has alleged other taxpayers owe in disputes similar to the McCombs case.

Dec 2, 2013

U.S. top court declines to hear online retailers tax case

WASHINGTON (Reuters) – The U.S. Supreme Court declined on Monday to tackle the long-standing question of whether Internet retailers like Amazon.com Inc should be required to collect sales taxes in states where they have no physical presence.

In a case brought by Amazon and Overstock.com Inc, the Supreme Court was asked to decide whether a New York state law that requires online retailers to collect taxes is valid under the U.S. Constitution. Because the court declined to hear the case, the retailers’ challenge to the law has failed.

Dec 2, 2013

U.S. Supreme Court throws out Ford tax ruling

WASHINGTON (Reuters) – The U.S. Supreme Court on Monday sent a $470 million tax dispute between Ford Motor Co and the Internal Revenue Service back to a lower court for further review.

The justices threw out a 6th U.S. Circuit Court of Appeals ruling in favor of the government and asked the court to take a second look at the case.

Nov 26, 2013

IRS proposes new rules for tax-exempt political groups

WASHINGTON (Reuters) – The Obama administration proposed new rules on Tuesday that would restrict the political advertising and fundraising abilities of certain tax-exempt groups, which were at the center of the Internal Revenue Service’s Tea Party targeting scandal this year.

According to a Treasury Department statement, the proposed rules will change the definition of “social welfare” in the 501(c)(4) section of the tax code, which allows tax-exempt groups to engage in limited campaigning activities.

Nov 25, 2013

Ingersoll-Rand fights IRS ‘treaty shopping’ case in U.S. Tax Court

WASHINGTON, Nov 25 (Reuters) – Manufacturer Ingersoll-Rand
Plc has gone to court to challenge a $109.8 million tax
bill from the U.S. Internal Revenue Service for alleged “treaty
shopping” whereby multinationals move money around the world for
tax benefits.

In U.S. Tax Court documents filed this month, the IRS said
Ingersoll owed U.S. taxes and penalties on money it moved in
2002 into Bermuda, where the company was headquartered at the
time.

Nov 22, 2013

Hand over tax audit information, clock is running: IRS

WASHINGTON (Reuters) – The U.S. Internal Revenue Service audit, already a feared ordeal, will get even sharper teeth in January when the IRS will start setting strict deadlines for delivery of information it wants from companies and wealthy people it is auditing.

No such deadlines now exist. So taxpayers can put off IRS requests for documents or personal interviews and drag out audits for months, sometimes even years, said tax experts familiar with the rules.

Nov 22, 2013

Hand over tax audit information, clock is running -U.S. IRS

WASHINGTON, Nov 22 (Reuters) – The U.S. Internal Revenue
Service audit, already a feared ordeal, will get even sharper
teeth in January when the IRS will start setting strict
deadlines for delivery of information it wants from companies
and wealthy people it is auditing.

No such deadlines now exist. So taxpayers can put off IRS
requests for documents or personal interviews and drag out
audits for months, sometimes even years, said tax experts
familiar with the rules.

Nov 20, 2013

Top U.S. Senate tax writer urges revamp of corporate offshore taxation

WASHINGTON, Nov 19 (Reuters) – Taxation of large U.S.
multinational corporations would be dramatically overhauled by a
raft of proposals unveiled on Tuesday by the U.S. Senate’s top
tax writer, though there is broad skepticism that they could
become law anytime soon.

Democratic Senator Max Baucus issued a “discussion draft”
that called for, among other things, repealing the present tax
code provision that allows U.S. multinationals to park hundreds
of billions of dollars in foreign profits offshore tax-free.

Nov 19, 2013

Top U.S. Senate tax writer offers corporate global tax proposals

WASHINGTON (Reuters) – Taxation of large U.S. multinational corporations would be dramatically overhauled by a raft of initial proposals unveiled on Tuesday by the U.S. Senate’s top tax writer, though there is broad skepticism that they could become law anytime soon.

Democratic Senator Max Baucus issued a “discussion draft” that called for, among other things, repealing the present tax code provision that allows U.S. multinationals to park hundreds of billions of dollars in foreign profits offshore tax-free.

Nov 18, 2013

Adding Obamacare data to W-2 tax form may confuse: IRS

WASHINGTON (Reuters) – U.S. Internal Revenue Service officials fretted on Monday about an idea being pushed by some businesses to expand the ubiquitous W-2 tax form to include more healthcare data in an effort to avoid the creation of a new IRS form.

“The number of fields on the W-2 is a little sacrosanct,” said Stephen Tackney, an IRS lawyer working on new agency rules to implement President Barack Obama’s healthcare law.