Tax Break

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

 * In tax overhaul debate, large vs small companies. Graham Bowley – The New York Times. Some of the biggest companies in the United States are fighting for a cut in the official corporate tax rate. But the nation’s millions of small businesses fear they will be the ones paying for it. Link  

* States’ rift on taxes widens. Mark Peters – The Wall Street Journal. Minnesota’s move to raise new taxes puts it among a handful of states controlled by Democrats that are adopting more liberal fiscal policies at a time when many Republican-dominated statehouses are pushing to cut taxes. Link 

* The joys of no income tax, the agonies of other kinds. Aman Batheja – The New York Times. In Texas the state’s tax system is not universally beloved. The way the state employs property, sales and business taxes to finance services, particularly education, draws criticism and debate across the political spectrum. Link  

* Tax relief proposed for victims of Hurricane Sandy. Brian Tumulty – USA Today. A bipartisan group of House members from New York, New Jersey and Connecticut said Thursday they will revive an effort to enact temporary tax relief for victims of Hurricane Sandy. Link  

* A final peek at Bloomberg’s tax returns. Kate Taylor – The New York Times. For the final time, City Hall reporters were ushered on Thursday into the office of Michael Bloomberg’s accountant for an annual ritual: a chance to look at a redacted version of the mayor’s tax returns, as well as public disclosures of his property holdings and income. Link

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

* Push on corporate tax rules goes global. Howard Schneider – The Washington Post. A global effort to tighten corporate tax rules is gaining momentum as politicians in Europe and the United States take aim at American tech giants whose savvy use of international tax laws has provoked a public backlash. Link    

* Europe pushes to shed stigma of a tax haven. Andrew Higgins – The New York Times. There is relentless pressures being piled on opaque money centers around the world amid a sweeping global assault on tax evasion and the secrecy that enables it. Link    

* Tax fairness top agenda at European summit. Gebriele Steinhauser and Sam Schechner – The Wall Street Journal. Faced with public outrage over tax-evasion scandals at a time of austerity budgets, European leaders pledged Wednesday to ensure that everybody—from high rollers to big multinationals—pay their fair share to cash-strapped governments. Link 

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

* IRS inquiry status told to White House in April. Jonathan Weisman and Brian Knowlton – The New York Times. The chief White House lawyer, Kathryn Ruemmler, learned last month that a Treasury inspector general had concluded an audit of the Internal Revenue Service’s targeting of conservative groups, weeks before the matter became public, according to a senior White House official. Link 

* How the IRS seeded the clouds in 2010 for a political deluge three years later. Zachary Goldfarb and Kimberly Kindy – The Washington Post. The story of the IRS’s policy of targeting right-leaning groups was one of a bureaucracy caught in a morass of uncertainty and outside pressure. Link    

 * How the IRS spun out of control. Joseph Tanfani – The Los Angeles Times. With little oversight from Washington, agents in Ohio had been singling out some conservative groups for extra scrutiny, seeking to make sure they were not too heavily involved in politics to qualify as tax-exempt. Link    

Some important dates in the week ahead:

 Monday, May 20

Securities and Exchange Commission accountants address SEC financial reporting at the Compliance Week annual conference. Washington.

 Monday, May 20 – Tuesday, May 21

The American Institute of Certified Public Accountants conference on income and estate taxes and high-income taxpayers, and other topics. Las Vegas.

 Monday, May 20 – Wednesday, May 22

The Council on State Taxation program on state income and franchise taxes. New Orleans.

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

* Apple CEO Tim Cook to propose tax overhaul. Cecilia Kang – The Washington Post. Apple chief executive Tim Cook plans to propose a “dramatic simplification” of corporate tax laws when he testifies for the first time before Congress next week, just as lawmakers are considering an overhaul of the tax code. Link    

 * U.S. Republicans eye Obamacare on the back of IRS controversy. Stephanie Kirchgaessner – The Financial Times. The Internal Revenue Service controversy threatens to complicate implementation of Barack Obama’s 2010 healthcare law, reinforcing Republican opposition to funding the agency’s work on the legislation at a critical moment. Link    

 * The surprisingly muddled history of the 501(c)4 exemption. Jacob Gershman – The Wall Street Journal. It turns out that the origins of section 501(c)(4), providing exemptions for “social welfare” groups, are surprisingly foggy. Link

President Barack Obama announcing that the Internal Revenue Service acting commissioner had been ousted, May 15, 2013. REUTERS/Kevin Lamarque

Welcome to the top tax and accounting headlines.

 * Tax scandal fells IRS chief. John McKinnon – The Wall Street Journal. The acting commissioner of the Internal Revenue Service was forced to resign Wednesday in connection with the inappropriate targeting of conservative political groups. Link

* Acting chief of IRS forced out over tea party targeting. Jonathan Weisman – The New York Times. President Obama announced Wednesday night that the acting commissioner of the Internal Revenue Service had been ousted after disclosures that the agency gave special scrutiny to conservative groups. Link  

Welcome to the top tax and accounting headlines:   

* Uneven IRS scrutiny seen in political spending by big tax-exempt groups. Nicholas Confessore – The New York Times. For the I.R.S.’s bipartisan legion of critics, the agency’s record has underscored its contradictory and seemingly confused response to the fastest-growing corner in the world of unlimited political spending. Link    

 * Q&A: Details of the IRS controversy. Laura Saunders – The Wall Street Journal. The Internal Revenue Service is embroiled in a controversy over its handling of applications by tea-party and other conservative groups seeking to set up as tax-exempt nonprofits known as 501(c)(4)s. Link 

* IRS officials in Washington were involved in targeting of conservative groups. Juliet Eilperin – The Washington Post. Internal Revenue Service officials in Washington and at least two other offices were involved with investigating conservative groups seeking tax-exempt status, making clear that the effort reached well beyond the branch in Cincinnati that was initially blamed. Link    

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

* Health insurance tax ‘scares the daylights’ out of some small-business owners. J.D. Harrison. Many small-business owners worry that a new tax on insurance providers in the health-care law will mean higher premiums for them, undermining the law’s capacity to lower their health-care costs. Link  

* IRS targeted groups critical of government, documents from agency probe show. Juliet Eilperin – The Washington Post. At various points over the past two years, Internal Revenue Service officials singled out for scrutiny not only groups with “tea party” or “patriot” in their name but also nonprofit groups that criticized the government and sought to educate Americans about the U.S. Constitution. Link  

* IRS focus on conservatives gives Republicans an issue to seize on. Jonathan Weisman and Matthew Wald – The New York Times. The accusations of IRS abuse are sure to fuel an effort that appears to be uniting dispirited Republicans and their conservative political base: investigating President Barack Obama and his administration. Link  

Some important tax and accounting events in the week ahead.

Monday, May 13 – Thursday, May 16

* Government and private sector attorneys and accountants speak to Practicing Law Institute program, Basics of Accounting for Lawyers. New York.

* Federation of Tax Administrators electronic filing symposium. New Orleans.

Tuesday, May 14

Voters in south Florida’s Miami-Dade County go to polls to decide whether to increase local hotel taxes to help pay for a $350 million upgrade to the Miami Dolphins stadium.

Wednesday, May 15

Financial Accounting Standards Board meeting on not-for-profit financial reporting. 1300ET, Norwalk, Connecticut.

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

* Falling deficit alters debate. Damian Palleta – The Wall Street Journal. Rising government revenue from tax collections and bailout paybacks are shrinking the federal deficit faster than expected, delaying the point when the government will reach the so-called debt ceiling and altering the budget debate in Washington. Link    

* Who would win or lose on online sales tax. Jayne O’Donnell and Hadley Malcolm – USA Today. Major retailers and local stores will be the big winners if the House follows the Senate and requires Internet retailers to collect sales taxes on online purchases. Link    

* Weigh taxes when picking a state for retirement. Arden Dale – The Wall Street Journal. When it comes to choosing the best state in which to retire, some people look beyond traditional needs like nice weather and recreational opportunities. Link