Essential reading: Treasury nominee gets tax questions, and more
Welcome to the top tax and accounting headlines from Reuters and other sources.
* Treasury pick tries to cast his history as right for the job. Jessica Silver-Greenberg – The New York Times. Jacob Lew had a $56,000 investment in the Citigroup fund, leading to questions from Republican senators about whether the investment had been put there to dodge taxes. Link
* Republican Senator open to tax hike for entitlement-cut deal. Janet Hook – The Wall Street Journal. Senator Lindsey Graham of South Carolina Monday diverged from the Republican party line by saying he would be willing to raise $600 billion in new tax revenue if Democrats would accept major entitlement reforms in a big deficit-reduction package. Link
* New 1099 forms pressure taxpayers to be honest. This year the form 1099b includes new details that affect tax returns and will force some taxpayers, and their tax advisers, to be more accurate. Link
* Marijuana dealers get slammed by taxes. Steve Hargreaves – CNN Money. Thanks to a decades-old law targeting drug runners, entrepreneurs in the nascent medical marijuana industry face a unique burden: an effective federal income tax rate that can soar as high as 75 percent. Link
* India to foreign firms: Pay more taxes. Amol Sharma – The Wall Street Journal. India’s tax authorities are seeking billions of dollars from some of the world’s biggest multinational companies, saying that they haven’t properly valued transactions with their Indian subsidiaries. Link
* Is Obama overconfident? Jason Riley – The Wall Street Journal opinion. Republicans feel that the president has been negotiating in bad faith, pocketing their concessions on tax hikes and spending and then asking for more. Link