Tax Break

Essential reading: Tax filings slow as collection rises, and more

April 16, 2013

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

 * Tax filing is slow, but collections rise. John McKinnon – The Wall Street Journal. The fiscal-cliff deal continues to slow tax filing, thanks to changes that required the Internal Revenue Service to delay the tax season’s opening. Link

 * House votes to crack down on tax-delinquent contractors but not individuals. Josh Hicks – The Washington Post. The House on Monday unanimously backed legislation to bar federal funding for contractors that fall behind on taxes but rejected a proposal to prohibit tax-delinquent individuals from working for the federal government. Link 

* UK moves to end extreme tax avoidance. Vanessa Houlder – The Financial Times. Tax planners who exploit defects in poorly drafted laws will fall foul of the new general anti-abuse rule (GAAR), according to guidance issued on Monday that aimed to sweep away the idea that taxation was a “game” in which taxpayers could use their ingenuity to reduce their tax bills by any lawful means. Link 

* CEO group: It’s time to shift focus of business tax policy. John McKinnon – The Wall Street Journal. The Business Roundtable suggests in a new paper that it’s time to consider shifting the focus of U.S. business-tax policy away from targeted subsidies that aim to boost investment in plant and equipment. Link 

* To reinvigorate production, Alaska grants a tax break to oil companies. Clifford Krauss – The New York Times. Hoping to reverse two decades of declining oil production in Alaska, the State Legislature in Juneau has granted oil companies an estimated $750 million in annual tax relief to increase investment in the giant North Slope oil field. Link 

* Cuomo’s 2012 tax forms show income similar to 2011. Thomas Kaplan – The New York Times. Gov. Andrew M. Cuomo’s tax returns, released on Monday, show that he earned about $230,000 last year from his state salary and investment income. Link

* Death tax made more deadly. The Wall Street Journal editorial. It’s not surprising that the President’s new budget includes an increase in the estate tax only three months after the last increase. Link

* What people think about taxes. Bruce Bartlett – The New York Times opinion. Possibly the greatest dissatisfaction with the tax system is not with taxes per se, but the widespread feeling that the money is simply wasted. Link 

* The top 10 private equity loopholes. Victor Fleischer – The New York Times opinion. If any of your friends work in private equity, they probably won’t tell you their tax rate. Link

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