Unstructured Finance

Calendar

Some important tax and accounting events in the week ahead:

Monday, June 10 – Wednesday, June 12

Federation of Tax Administrators annual meeting. Hyatt Regency. Albuquerque, New Mexico.

 Tuesday, June 11

U.S. Internal Revenue Service and Treasury Department officials join panel on recent changes to corporate taxation regulations covering corporate sales or distribution of stock in another corporation. Noon – 1:45 p.m. ET, D.C. Bar Conference Center. Washington

 Tuesday, June 11 – Thursday, June 13

IRS and Treasury Department officials, among others, speak to the Practising Law Institute’s seminar on tax planning for domestic and foreign partnerships and other alliances. San Francisco.

 Wednesday, June 12

Speaker of the U.S. House of Representatives John Boehner, Congressman Bob Goodlatte, chairman of the House Judiciary Committee, and Congressman Dave Camp, chairman of the House Ways and Means Committee, among other members of Congress, address BakerHostetler’s Tax, Budget & Health Care Policy Seminar. 7:30 a.m. – 1:30 p.m. ET, Hyatt Regency Capitol Hill. Washington.

Wednesday, June 12 – Friday, June 14

American Bar Association meeting on wealth and asset planning, and U.S.-Latin America tax planning strategies. Mandarin Oriental Hotel. Miami.

Essential reading: IRS staff say Washington officials helped direct the probe of tea-party groups, and more

Welcome to the top tax and accounting headlines.

* IRS staff cite Washington link. John McKinnon and Dionne Searcey – The Wall Street Journal. Two Internal Revenue Service employees in the agency’s Cincinnati office told congressional investigators that IRS officials in Washington helped direct the probe of tea-party groups that began in 2010. Link

* Corporate taxes don’t cause recessions. But do they hurt growth? Dylan Matthews – The Washington Post. It’s hard to look at the body of research on this topic and not notice that there’s something of a consensus around the idea that increases in the corporate tax rate hurt growth and cuts to it help growth. Link

* Rep. Gutierrez pays Chicago lobbyist with tax dollars. Paul Singer – USA Today. Over the past 10 years, Rep. Luis Gutierrez has paid a Chicago lobbyist more than $500,000 in taxpayer funds to work side-by-side with his congressional staff. Link

Essential reading: Calculating Apple’s true U.S. tax rate, and more

Welcome to the top tax and accounting headlines.

 * Calculating Apple’s true U.S. tax rate. Victor Fleischer – The New York Times. One lesson from the Senate hearing about Apple’s offshore tax planning is that figuring out what a multinational company actually pays in taxes is harder than it should be. Link    

* Conservatives’ top five grievances against the IRS. Juliet Eilperin – The Washington Post. The House Ways and Means Committee hearing Tuesday has offered leaders of conservative groups a chance to detail their biggest grievances against the Internal Revenue Service. Link   

* Scandals prompt doubts about honesty. Patrick O’Connor and Rebecca Ballhaus – The Wall Street Journal. Recent controversies surrounding the Internal Revenue Service and other government agencies have sown doubts about the honesty of the Obama administration, but most people don’t hold the president personally responsible for the agency actions, a new Wall Street Journal/NBC News poll finds. Link    

Essential reading: IRS scandal prompts hope for tax reform, and more

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

* Some Republicans see IRS troubles as means to a big goal: tax overhaul. Jonathan Weisman – The New York Times. For Congressman Dave Camp, spotlighting the tax-collecting agency — and stoking voter antipathy for it — are ways to build momentum for his plan to rewrite and simplify the entire tax code, a goal he has set for the end of the year. Link 

 * New business group ACT pushes tax overhaul. John McKinnon – The Wall Street Journal. A group of 42 U.S. companies is announcing a potentially powerful new coalition on Tuesday to push for a comprehensive tax overhaul. The group – representing a broad cross-section of both multinational and domestic-focused big businesses – could give a boost to the slow-moving effort on Capitol Hill. Link    

 * Tax havens lose their veneer. Christopher Matthews – The Wall Street Journal. European countries seem to have decided that is no longer cool to be a tax haven. Link    

Essential reading: Republican donors drew IRS scrutiny, and more

Welcome to the top tax and accounting headlines.

 * Donors to Republican group drew IRS scrutiny. John McKinnon – The Wall Street Journal. At the same time the Internal Revenue Service was targeting tea-party groups, the tax agency took the unusual step of trying to impose gift taxes on donors to a prominent conservative advocacy group formed in 2007 to build support for President George W. Bush’s Iraq troop surge. Link    

 * IRS training videos spoof ‘Star Trek,’ Gilligan’s Island’ and ‘Cupid Shuffle.’ Ed O’Keefe – The Washington Post. The Internal Revenue Service is acknowledging that the agency spent tens of millions of dollars in recent years on conferences for thousands of its employees. Link    

* Don’t expect special prosecutor for IRS, Plouffe says. David Jackson – USA Today. David Plouffe, a long-time adviser to President Obama, rejecting the idea of a special prosecutor for the Internal Revenue Service citing ongoing reviews by the Justice Department, Treasury Department, and various congressional committees into the IRS targeting of conservative groups over their tax-exempt status. Link   

Calendar

Important tax and accounting events in the week to come:

Monday, June 3

Acting IRS Commissioner Danny Werfel and Treasury Inspector General for Tax Administration J. Russell George testify before a U.S. House of Representatives Appropriations subcommittee. 3 p.m. ET, Rayburn House Office Building. Washington, D.C.

 Monday, June 3 – Tuesday, June 4

Treasury and tax officials from around the world discuss transfer pricing, profit shifting, cross-border compliance and other issues at the Organisation for Economic Co-operation and Development’s international tax conference. Four Seasons Hotel. Washington, D.C.

Tuesday, June 4

* Financial Accounting Standards Board advisory council meeting on FASB’s future agenda and other topics. 8:30 a.m. – 3 p.m. ET, FASB offices. Norwalk, Connecticut.

Essential reading: EU’s trading tax takes slow road, and more

 

A banner featuring a Euro coin at the European Commission headquarters building in Brussels. REUTERS/Yves Herman

Welcome to the top tax and accounting headlines.

 * EU’s trading tax takes slow road. Tom Fairless – The Wall Street Journal. Deep disagreements among 11 European Union states that have pledged to introduce a tax on financial transactions mean the proposal faces delays and could be significantly scaled back, EU diplomats involved in the discussions said on Thursday. Link    

 * North Carolina’s far-reaching Senate tax plan closes loopholes, adds sales tax. Dan Kane and John Frank – The News and Observer. Senate leaders on Thursday rolled out the most comprehensive proposal to overhaul the state’s tax code, eliminating dozens of loopholes, but also shutting down popular tax breaks on food, mortgage interest payments and prescription drugs that would bring in more than $1 billion in revenue to help reduce income tax rates and the overall sales tax rate. Link    

Essential reading: Evidence that tax breaks favor the rich, and more

Welcome to the top tax and accounting headlines.

* Richest 20 percent get half the overall savings from U.S. tax breaks, CBO says. Lori Montgomery – The Washington Post. The 10 largest breaks in the U.S. tax code will save taxpayers more than $900 billion this year, with just over half the benefits flowing to the richest 20 percent of households, congressional budget analysts said Wednesday. Link 

* Swiss bow to pressure for more bank data. Laura Saunders and John Letzing – The Wall Street Journal. The U.S. government won a victory against tax cheats with offshore bank accounts after Swiss officials agreed Wednesday to let banks release information on the overall holdings of their American clients. Link    

* To tax or not? The NFL’s relationship with the IRS. Brent Schrotenboer – USA Today. Now some think it’s time to add another expense to the NFL — federal income taxes. For decades, the NFL and other big-time sports leagues such as the PGA Tour and NHL haven’t been required to pay any. Link    

Essential reading: IRS gets a new risk officer, and more

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

 * New IRS chief taps GAO’s Fisher as senior adviser. John McKinnon – The Wall Street Journal. Danny Werfel, acting commissioner of the embattled Internal Revenue Service, went outside the agency for a top lieutenant, tapping David Fisher of the Government Accountability Office to be the tax agency’s chief risk officer and senior adviser to the commissioner. Link  

* Republicans stoking fire of IRS scandal with eye toward 2014. Josh Hicks – The Washington Post. Republicans have been trying to take advantage of the Internal Revenue Service’s politically toxic targeting scandal to better position their party for the 2014 midterm elections. And one big area of focus is President Obama’s new health-care law. Link 

* Nokia’s India tax troubles widen. Prasanta Sahu – The Wall Street Journal. India has demanded that Nokia Corp. pay about 2.09 billion rupees ($37.53 million) of taxes that it alleges the Finnish handset maker didn’t pay claiming an exemption given on software exports. Link  

Essential reading: Groups test political tax rules, and more

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

 * Groups targeted by IRS tested rules on politics. Nicholas Confessore and Michael Luo – The New York Times. A close examination of some conservative groups and others reveals an array of election activities that tax experts and former IRS officials said would provide a legitimate basis for flagging them for closer review. Link  

* High-end health plans scale back to avoid ‘Cadillac tax’. Reed Abelson – The New York Times. Companies hoping to avoid the tax are beginning to scale back the more generous health benefits they have traditionally offered and to look harder for ways to bring down the overall cost of care. Link  

* Former IRS chief recalls defying Nixon. David Dykes – USA Today. In the early 1970s, when embattled President Richard Nixon sought to use the Internal Revenue Service as a weapon to investigate his enemies, the administration turned to Johnnie Mac Walters, head of the tax agency, to do the dirty work. Walters, now 93, said he refused. Link  

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