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December 29, 2014
Targeted 385 Stripping Guidance Is Path of Least Resistance
by Andrew Velarde
As tax observers speculate that the IRS and Treasury could issue earnings stripping guidance under section 385 or section 163(j), practitioners say that the more broadly written section 385 may offer the government more freedom when drafting guidance and that targeted guidance under that section might be the path of least resistance.
December 22, 2014
Pascal Saint-Amans -- the Face of BEPS
by Stephanie Soong Johnston
If there were such a thing as a tax celebrity, then Pascal Saint-Amans, director of the OECD's Centre for Tax Policy and Administration (CTPA), would be an A-lister. He fits the part well with his French accent, stylish glasses, finely tailored suits, and magnetic personality. However, it's his role in overseeing the OECD's base erosion and profit-shifting project -- arguably the most high-profile international tax reform initiative in recent history -- that is turning heads and grabbing headlines, as well as making him TNI's person of the year.
December 22, 2014
Hacked Sony E-mails Show Executives Closely Tracking Film Incentives
by Brian Bardwell
The recent hacking of Sony Pictures Entertainment resulted in the public release of large amounts of data about the company's tax practices; a cache of e-mails from Sony Pictures Entertainment shows that studio executives at the highest levels are constantly tracking changes in the availability and use of film incentives.
December 22, 2014
Robert Stack -- BEPS and the United States
by Kristen Parillo
As the lead U.S. delegate to the OECD's Committee on Fiscal Affairs, Robert Stack, Treasury deputy assistant secretary (international tax affairs), has the daunting task of defending the U.S. position while also trying to find consensus on tough policy issues.
December 22, 2014
Sol Picciotto -- BEPS and the Developing World
by David D. Stewart
Lending his voice to the cause of leveling the playing field for developing countries, Sol Picciotto, senior adviser to the Tax Justice Network and coordinator of the BEPS Monitoring Group, has emerged as a key contributor to the OECD's work to curb international tax avoidance. The BEPS Monitoring Group brings together specialists on international taxation to collaborate on comments to the OECD and ensure that the concerns of developing countries are heard throughout the process.
December 22, 2014
William Morris and Carol Doran Klein -- BEPS and Business
by Amanda Athanasiou and Margaret Burow
The business community's participation in the OECD's base erosion and profit-shifting project reveals divided opinions about BEPS. "Some are quite angry that settled tax rules are being overturned," while others feel that the project can provide emerging economies the opportunity to participate in "a new and hopefully more stable international tax regime," said William Morris, chair of the Taxation and Fiscal Policy Committee of the Business and Industry Advisory Committee to the OECD (BIAC). No one knows the importance of business's participation in the process better than Morris and Carol Doran Klein of the United States Council for International Business (USCIB), both of whom have played an influential role in the BEPS discussions on behalf of business this year.
December 15, 2014
Person of the Year
State Tax Notes is pleased to announce its annual year in review edition, featuring person of the year, given to the individual or organization that had the most influence on state tax policy and practice. The editorial staff has compiled a list of the best in our profession.
December 11, 2014
Marketplace Fairness Act Dead This Year, but Chaffetz Promises New Bill
by Jennifer DePaul
Although the Marketplace Fairness Act is effectively dead for this year, U.S. Rep. Jason Chaffetz, R-Utah, plans to introduce a separate bill to replace it after the New Year that he says addresses concerns from conservative members of Congress.
December 8, 2014
Taxing the Sins of the Poor: Do Two Wrongs Make a Right?
by Martin A. Sullivan
In an article from March 20, 2000, Chief Economist Martin A. Sullivan questions the fairness of taxing cigarettes.
December 8, 2014
Republicans Should Choose a New CBO Director
by Diana Furchtgott-Roth
Diana Furchtgott-Roth argues that with the expiration of the term of Congressional Budget Office Director Douglas Elmendorf, Republicans should choose a new director, even though The Washington Post and some Republicans are calling for Elmendorf's reappointment.
December 3, 2014
Washington State Falls Short on Transparency
by Cara Griffith
By insisting on keeping the contents of its letter rulings and most written determinations a secret known only to tax administrators, the Washington Department of Revenue is leaving taxpayers with no way to navigate the state's tax laws, practitioners said.
December 1, 2014
H&R Block Addresses EITC Improper Payments and Related Fraud
by William Cobb
H&R Block's William Cobb has commented on ways to reduce the earned income tax credit improper payment rate and associated fraud, saying that a key issue he thinks has been largely ignored is the migration of improper payments from paid preparer returns to self-prepared returns and suggesting that the IRS require all EITC taxpayers to submit additional eligibility information.
November 26, 2014
White House Veto Threat Imperils Potential Extenders Deal
by Lindsey McPherson and Luca Gattoni-Celli
The White House on November 25 issued a veto threat against a potential tax extenders deal congressional leaders had been discussing that would have made 10 provisions permanent while renewing others through 2015, raising questions about whether congressional leaders would continue to work toward a deal providing for any permanent policy.
November 25, 2014
NCSL Task Force Needs More Persuading on Merits of Film Incentives
by Brian Bardwell
Proponents of tax credits for film productions faced a tougher panel than anticipated November 21 when they spoke before a National Conference of State Legislatures task force.
November 21, 2014
News Analysis: Will London's Mayor Enter the OVDP?
by Ajay Gupta
In news analysis, Ajay Gupta explores the possibility that Boris Johnson, London's present mayor and the United Kingdom's possible future prime minister, will become the next high-profile participant in the IRS's offshore voluntary disclosure program.
November 3, 2014
Illinois Judge Rules Against Chicago 'Whistleblower' in False Claims Case
by Amy Hamilton
Writing that the purpose of the Illinois False Claims Act "is not to penalize frank differences of opinion or innocent errors made despite the exercise of reasonable care," an Illinois circuit court judge has ruled against a Chicago-based law firm serving as the whistleblower in a qui tam tax case.
November 3, 2014
Karen L. Hawkins Appointed Director of IRS Office of Professional Responsibility
by Michael Joe and Jeremiah Coder
In an article on March 4, 2009, Tax Analysts reported that Karen L. Hawkins, who had been slated to chair the American Bar Association Section of Taxation, instead had been chosen to direct the IRS Office of Professional Responsibility.
November 3, 2014
More Talk of Monetary Sanctions From OPR
by Jeremiah Coder
In an article from July 15, 2009, Tax Analysts reported that Karen Hawkins, director of the IRS Office of Professional Responsibility, again highlighted the role monetary sanctions would play in enforcing Circular 230 under her watch.
November 3, 2014
News Analysis: New OPR Director Finds Many Admirers
by Jeremiah Coder
In news analysis from October 26, 2009, Jeremiah Coder described the role of the new director of the IRS Office of Professional Responsibility, Karen Hawkins, and the reaction of tax practitioners.
November 3, 2014
Is Treasury's New Reg Scheme for Return Preparers Lawful?
by Allen Buckley
In an article from October 15, 2012, Allen Buckley argued that there is no statutory basis for the new regulations of the tax return preparation industry except for the requirement that a preparer tax identification number be acquired.
October 30, 2014
Michigan's Retroactive Repeal of Compact Now an Issue in Multiple Courts
by Amy Hamilton
In news analysis, Amy Hamilton says the Michigan Department of Treasury is raising the issue of the state's retroactive repeal of the Multistate Tax Compact as an intervening event at three court levels, with one upshot being that several taxpayer challenges to the new law are now being pursued concurrently.
October 23, 2014
Should Corporate Inverters Worry About a Federal Contract Ban?
by Lindsey McPherson and Andrew Velarde
While lawmakers and administration officials have focused primarily on proposals to change the tax code when debating how to stop tax-motivated inversions, it is possible they could take action outside the world of taxes and institute a federal contract ban on inverters -- although some observers question whether such a ban would be effective.
October 21, 2014
Koskinen Warns Filing Season Could Be Most Complicated Yet
by William Hoffman
Implementation of new tax laws combined with a tight budget and the possibility of Congress passing a late package of tax extenders threatens to make 2015 "the most complicated filing season before us in a long time, if ever," IRS Commissioner John Koskinen told Tax Analysts during an exclusive interview on October 17.
October 21, 2014
Koskinen Interview Transcript Available
by Tax Analysts
The transcript is available of an October 17 interview of IRS Commissioner John Koskinen at Tax Analysts' offices in Falls Church, Virginia, where he answered questions concerning corporate inversions, the IRS targeting controversy, partnership audits, and the coming filing season, among other subjects.
October 16, 2014
India Seeks to Move Past 'Aggressive Assessments'
by Ajay Gupta
The need to restore India's luster, the imperative of reestablishing the country's preeminence as an offshoring destination, and the importance of presenting a more business-friendly image of its government were all palpable as the weeklong 68th Congress of the International Fiscal Association began on October 12 in Mumbai.
October 8, 2014
FATCA 'Tormenting' Taxpayers, Olson Says
by William Hoffman
By the time lawmakers and taxpayers have figured out whether the Foreign Account Tax Compliance Act was worth the trouble, it might be too late to undo any damage, National Taxpayer Advocate Nina Olson said October 7.
October 7, 2014
Former IRS Head Miller Unsure if FATCA's Benefits Outweigh Costs
by William Hoffman
Former acting IRS Commissioner Steven Miller on October 6 said that while he hopes the Foreign Account Tax Compliance Act leads to less offshore tax evasion, he's not sure if the benefits of the law will outweigh its costs.
September 29, 2014
Pension Smoothing Risks Losing Money, but Few Alternatives Seen
by Luca Gattoni-Celli
Despite its use as an offset in the recently enacted bill replenishing the Highway Trust Fund, policy analysts say that pension smoothing does not ultimately increase tax revenue and risks costing money, but even those who question its legitimacy see few politically viable alternative offsets.
September 25, 2014
Inversion Guidance Hits Pending Deals, Not Previous Inverters
by Andrew Velarde and Kristen A. Parillo
New Treasury guidance aimed at making inversions more difficult to accomplish as well as substantially reducing the tax benefit from inverting includes several significant changes to existing rules, but only punishes yet-to-be completed inversions, a practitioner said September 23.
September 24, 2014
Practitioners Highlight State Guidance on Taxability of Cloud Computing
by Amy Hamilton
Several states within recent months have published administrative guidance on the taxability of cloud computing services, while two states have adopted statutory language or regulations addressing the matter, prominent attorneys said September 22.
September 22, 2014
Professor Shay Got It Right: Treasury Can Slow Inversions
by Steven M. Rosenthal
In a recent Tax Notes article, Shay argued that Treasury could write regulations to reduce the tax incentives for U.S. corporations to expatriate. Rosenthal agrees with Shay and analyzes the legal support for regulations under section 385.
September 12, 2014
40 Years in SALT: An Interview With Art Rosen
by Doug Sheppard
This edition features an interview with SALT luminary Art Rosen of McDermott Will & Emery, who is celebrating his 40th year in state and local tax. Though perhaps best known in recent years for his advocacy on federal business activity tax legislation, not to mention electronic commerce, Rosen has also racked up a long list of other accomplishments, some of which are touched on here.
September 10, 2014
News Analysis: Will New Anti-Inversion Measures Save Allergan?
by Ajay Gupta
In its struggle to fend off a $53 billion hostile takeover bid by Canada's Valeant Pharmaceuticals, California-based Botox maker Allergan Inc. is marshaling all available defenses, including reaching out to officials in the Obama administration, but it is uncertain whether additional anti-inversion measures will help its cause.
September 10, 2014
News Analysis: Grossing Up an Inversion Tax
by Ajay Gupta
Medtronic Inc. will pay $63 million to insulate its executive officers and directors from the consequences of an excise tax that will be triggered on completion of a transaction announced June 15 in which the company will merge with Covidien PLC and concurrently invert to Ireland.
September 5, 2014
Kentucky Judge Orders DOR to Release Administrative Rulings
by Jennifer Carr
A Kentucky circuit court judge has ordered the Department of Revenue to release redacted copies of its final rulings under the state's Open Records Act.
August 20, 2014
Oregon Deal to Give Intel $3 Billion in Incentives Draws Fire
by Brian Bardwell
Officials with Intel Corp. are closing in on a multibillion dollar agreement with local leaders in Oregon that would allow the company to cap its taxes on personal property, in a deal criticized as too generous for a company with deep roots in the state.
August 18, 2014
Tax Analysts Exclusive: Conversations: Sen. Carl Levin
by Meg Shreve
Sen. Carl Levin, D-Mich., chair of the Senate Homeland Security and Governmental Affairs Permanent Subcommittee on Investigations, recently spoke with Tax Analysts' Meg Shreve about his time on the subcommittee, his accomplishments, and the future of the subcommittee's investigation into IRS enforcement of section 501(c)(4) regulations.
August 7, 2014
Michigan Owes $1.1 Billion in Tax Refunds Following IBM Decision
by Amy Hamilton
Michigan owes $1.09 billion in tax refunds plus interest to out-of-state corporations as a result of the Michigan Supreme Court's July 14 decision in favor of IBM; the figure is on par with the size of the biggest tax packages designed by Republican Gov. Rick Snyder's administration.
August 7, 2014
House Amendments Slash IRS Budget
by Luca Gattoni-Celli
The House late July 14 approved more than $1.1 billion in further cuts to the IRS budget -- a 10 percent reduction to a package that IRS officials had already said would harm the Service's ability to fulfill its duties.
August 5, 2014
Who Pays Your Lawyer? A Scorecard of SALT Attorney Fee Provisions
by Stephen P. Kranz, Diann L. Smith, and Eric Carstens
In State Tax Policy Exchange, Stephen P. Kranz, Diann L. Smith, and Eric Carstens analyze the statutes, administrative rules, and court procedures governing taxpayers' ability to recover attorney fees in tax litigation in the 50 states and the District of Columbia.
August 4, 2014
Federal Lawmakers Call on State to Expand Film Tax Credit
by Maria Koklanaris
Twenty-nine Democratic members of the California congressional delegation on July 29 asked leaders of the California State Senate and State Assembly to reauthorize the state's film tax credit and make it more generous.
July 31, 2014
Tax Analysts Exclusive: Conversations: John Koskinen
by William Hoffman
IRS Commissioner John Koskinen recently spoke with Tax Analysts' William Hoffman regarding the IRS exempt organizations targeting controversy, new exempt organization forms, the challenges of retaining talented personnel, and the agency's ongoing budget problems.
July 31, 2014
Exclusive: Congress May Never Be Satisfied by IRS Probes, Koskinen Says
by William Hoffman
Even if the exempt organizations controversy ends with the exoneration of the IRS on charges that it hid information from congressional investigators and conspired with the White House, some in Congress will simply shift the argument to a new accusation, IRS Commissioner John Koskinen said in an exclusive interview July 29.
July 28, 2014
Does the Belgian Fairness Tax Conform With EU Law?
by Eric Ntini Kasoko
This article is one of the winning entries in Tax Analysts' inaugural student writing competition.
July 28, 2014
Mr. Secretary, Take the Tax Juice Out of Corporate Expatriations
by Stephen E. Shay
In this article, Shay describes the principal tax benefits companies seek from expatriating, and he outlines regulatory actions that can be taken without legislative action to materially reduce the tax incentive to expatriate.
July 28, 2014
Economic Analysis: Lessons From the Last War on Inversions
by Martin A. Sullivan
In an economic analysis that first appeared in Tax Notes on May 27, 2014, Martin A. Sullivan looks at the history of anti-inversion legislation in Congress, starting with Democratic efforts in 2002 and culminating in the enactment of section 7874 in 2004.
July 24, 2014
Sales-Factor Apportionment of Profits to Broaden the Tax Base
by Michael Udell and Aditi Vashist
Michael Udell and Aditi Vashist argue that a single-sales-factor apportionment of global profits could redefine the corporate income tax base and address some of the challenges of the current corporate income tax.
July 14, 2014
Small Organizations Seeking Charitable Status Can Use Short Form
by Fred Stokeld
Small organizations seeking tax-exempt status as charitable entities can now use a shorter, simpler application introduced by the IRS July 1, although some practitioners who raised questions when the IRS released the draft form in spring remain concerned.
July 14, 2014
Blame It on the ROO: Form 1023-EZ and Decline of EO Determinations
by Brad Bedingfield
With the development of streamlined procedures for processing applications for tax-exempt status, including the new Form 1023-EZ, the IRS EO division appears to be moving toward a self-certification system. The success of that strategy will depend largely on how well the IRS can strengthen its examination programs, including its Review of Operations Unit, also known as the "ROO."
July 14, 2014
Streamlined Exemption Application Could Pose Compliance Problems
by Fred Stokeld
The IRS has released a draft of a simplified exemption application for charities in an apparent effort to reduce burdens on smaller organizations, but some attorneys worry it could make it more difficult to get charities to comply with the tax laws.
July 11, 2014
OECD's BEPS Action Items on Track for Submission to G-20 in September
by Mindy Herzfeld
The OECD capped off the first half of a busy year with an intense week of consensus meetings the week of June 23 in Paris on the seven items in the base erosion and profit-shifting action plan that are scheduled to be delivered to the G-20 in September.
July 11, 2014
Opposition Party Unveils Plans for 'Fairer' Tax System
by Stephanie Soong Johnston
Country Digest: United Kingdom. Labour Shadow Chancellor Ed Balls on June 30 unveiled a new "pro-business but not business as usual" plan to promote long-term investment, under which the U.K. would maintain the lowest corporate tax rate among G-7 nations and introduce a lower capital gains tax rate for long-term investors.
July 11, 2014
Koskinen Denies Any Change of Focus at LB&I
by Andrew Velarde
Despite several recent departures of high-ranking officials from the IRS Large Business and International Division, IRS Commissioner John Koskinen insisted on July 9 that the resignations do not indicate a change in the Service's focus on international tax issues.
July 10, 2014
Tax Analysts Exclusive: Maloy Addresses Speculation Over LB&I Course Change
by Amy S. Elliott
In an interview with Tax Analysts, Heather Maloy, IRS Large Business and International Division commissioner, discusses rumors of divisional changes that might compromise LB&I's international operations, saying she wants to preserve the line authority the deputy commissioner (international) got over international examiners in the 2010 realignment.
July 10, 2014
Things to Know About the Tax Extenders' History
by Lindsey McPherson
With members of Congress often citing recent history as they debate what to do with the tax extenders that expired at the end of 2013, it is worth examining the trends in extenders over the last 10 years, including their timing and vehicles for passage, their renewal frequency, and whether they have been offset.
July 7, 2014
State Tax Spotlight on Phil Berger
by Maria Koklanaris
State Tax Spotlight regularly features a close-up of a person or organization influential in the state and local tax world; this month's spotlight is on Sen. Phil Berger (R), president pro tem of the North Carolina Senate.
July 7, 2014
Qui Tam Troubles, Part IV: Does New York Have the Answer?
by Amy Hamilton
In the final article in a series on qui tam issues, Randall Fox, the former chief of the New York attorney general's Taxpayer Protection Bureau, argues that a False Claims Act litigation approach can be crucial to encouraging whistleblowers to assist government in detecting tax fraud.
July 3, 2014
Major Shake-Up at LB&I?
by Jaime Arora, Amy S. Elliott, and Andrew Velarde
The resignation of two more top officials in the IRS's Large Business and International Division has prompted questions about the reasons behind what is proving to be a major shake-up of division leadership.
July 3, 2014
Major Shake-Up at LB&I?
by Jaime Arora, Amy S. Elliott, and Andrew Velarde
The resignation of two more top officials in the IRS's Large Business and International Division has prompted questions about the reasons behind what is proving to be a major shake-up of division leadership.
June 30, 2014
Where Is Delaware Headed on Unclaimed Property?
by Doug Sheppard
Delaware unclaimed property collection legislation (SB 215) stemming from a recent contingent fee audit controversy is the focus of the first installment of Raising the Bar. The pending bill would prohibit paying auditors on a contingent fee basis and would require the rebidding of third-party auditing contracts a minimum of once every three years.
June 30, 2014
News Analysis: Live Free and Be Censored: What's New Hampshire Hiding?
by Cara Griffith
In news analysis, Cara Griffith asks why the New Hampshire Department of Revenue Administration is so intent on controlling the seemingly innocuous content of a website that provides information on the state's tax system.
June 27, 2014
New IRS FATCA Form Instructions Clear Up Some Questions
by Jaime Arora
The latest set of instructions for IRS forms that have been updated to reflect the requirements of the Foreign Account Tax Compliance Act provide helpful clarity, but they also contain references that could be difficult for users to understand, practitioners told Tax Analysts.
June 24, 2014
Wyden Transportation Mark to Include $9 Billion in Revenue
by Lindsey McPherson
Senate Finance Committee Chair Ron Wyden, D-Ore., is planning to release a mark of a six-month surface transportation funding bill on June 24 that will include a handful of tax provisions that together raise about $9 billion, a Senate aide told Tax Analysts June 23.
June 24, 2014
Wyden and Hatch Ask GAO to Look Into IRS Whistleblower Program
by Lindsey McPherson
Concerned that the IRS whistleblower program does not process awards in a timely fashion, Senate Finance Committee leaders are asking the Government Accountability Office to look into the IRS processes and resources devoted to administering the program, according to a letter a Senate aide shared with Tax Analysts.
June 23, 2014
Qui Tam Troubles, Part 2: A Relator Seeking to Second-Guess Audits
by Amy Hamilton
In the second article in a series on Illinois qui tam tax litigation, officials and advisers say the Chicago firm filing actions of questionable merit is starting to claim the right to second-guess audits, is seeking discovery, and is alleging collusion between taxpayers and the state.
June 20, 2014
BEPS Failure Is an Option, Says U.S. Treasury Official
by David D. Stewart
Though some of the issues raised the by OECD's base erosion and profit-shifting project lend themselves to multilateral solutions, Robert Stack, U.S. Treasury deputy assistant secretary (international tax affairs), said at a June 17 International Fiscal Association U.S. Branch meeting that others may be best left unresolved.
June 20, 2014
Indian Tax Uncertainty a Global Risk
by Conrad Mapp and David D. Stewart
The shareholder reports of two "Fortune 100 brand-name, iconic U.S. companies" rank Indian tax uncertainty among the top five global risks, Melissa Frakman, director of financial policy at the U.S.-India Business Council, said in Washington June 16.
June 18, 2014
INTERSTATE TAX COMPETITION: THE GOOD, THE BAD, AND THE UGLY.
by Harley T. Duncan
In a special report/viewpoint from August 24, 1992, Harley Duncan provides his perspective on interstate tax competition.
June 16, 2014
News Analysis: What's Next in Inversion Land?
by Mindy Herzfeld
In news analysis, Mindy Herzfeld discusses IRS and Treasury attempts to shut down tax-motivated inversions and what types of transactions might be used in the future to achieve favorable tax results.
June 13, 2014
EU to Investigate Apple, Starbucks, and Fiat Tax Rulings
by Stephanie Soong Johnston
The European Commission on June 11 formally launched three separate investigations to examine whether Apple in Ireland, Starbucks in the Netherlands, and Fiat in Luxembourg all received transfer pricing-related tax rulings that violated EU state aid rules.
June 13, 2014
U.S. Senators Still Negotiating Repatriation Plan Details
by Luca Gattoni-Celli
U.S. Senate Majority Leader Harry Reid, D-Nev., and Sen. Rand Paul, R-Ky., are still working out the details of a plan to replenish highway funding with repatriated corporate earnings, and the Senate's top taxwriters still have to sign on to the idea for it to advance, a Reid aide told Tax Analysts June 11.
June 13, 2014
U.S. Working With Other Countries to Ensure Data Security
by Jaime Arora
The United States is engaging in bilateral examinations with foreign governments to ensure that a "culture of care" is in place for the electronic exchange of taxpayer information under the Foreign Account Tax Compliance Act and other regimes, an IRS official said June 11.
June 12, 2014
Tax Analysts Files Suit to Compel Disclosure of California Tax Audit Worksheets
by David Sawyer
Tax Analysts on June 11 filed an initial complaint in the California Superior Court for Los Angeles County seeking to compel the Franchise Tax Board to comply with the California Public Records Act by disclosing two forms that the FTB uses during audit.
June 11, 2014
Qui Tam Troubles, Part 1: An Illinois Informant With No Inside
by Amy Hamilton
The first in a series examining the use of false claims acts to address noncompliance with state tax laws, this article provides an overview of two rounds of qui tam cases causing distress for Illinois taxpayers and describes the issue at the root of the problem: an informant who arguably has no inside information.
June 6, 2014
News Analysis: Political Reality Catches Up With BEPS
by Mindy Herzfeld
In a news analysis from February 3, 2014, Mindy Herzfeld discusses the failure of the OECD's harmful tax competition initiative and whether its base erosion and profit-shifting project will suffer a similar fate.
June 2, 2014
News Analysis: A Quick Overview of the BEPS Project
by Mindy Herzfeld
In news analysis, Mindy Herzfeld summarizes the ongoing OECD project on base erosion and profit shifting, including the deliverables expected before the September G-20 meeting.
June 2, 2014
Levin Considering Sunset in Anti-Inversion Legislation
by Lindsey McPherson and Luca Gattoni-Celli
As he finalizes legislation to restrict companies from inverting for tax purposes, Sen. Carl Levin, D-Mich., told reporters May 14 that he is considering including a sunset in the bill as a sweetener for lawmakers who think tax reform is the only real solution to inversions.
June 2, 2014
Inversion Rule Tightening to Wait for Tax Reform, Wyden Says
by Andrew Velarde and Lindsey McPherson
Just after the introduction of legislation May 20 to tighten inversion rules under section 7874 that attempt to prevent U.S. companies from moving their tax residence overseas to avoid U.S. taxation, the top Senate taxwriter threw cold water on the idea of changing stock ownership rules before enacting comprehensive tax reform.
June 2, 2014
The Resident Income Tax Credit: Did Maryland Misapply the Commerce Clause?
by Robert J. Firestone
In a special report, Robert J. Firestone, a commissioner on the New York City Tax Appeals Tribunal, examines the Maryland v. Wynne decision in which the Maryland Court of Appeals ruled that state residents working in other states, within the other states' nonresident income tax laws, was interstate commerce.
May 30, 2014
Brazil Establishes Special Incentive for CFCs in Oil and Gas Sectors
by Clemens Philipp Schindler and Murillo Estevam Allevato Neto
Brazilian President Dilma Rousseff recently approved Law 12,973/14, which establishes new tax rules for controlled foreign corporations and associated foreign corporations in Brazil, as well as a special incentive for CFCs engaged in the exploration and extraction of oil and gas.
May 30, 2014
Singapore Tax Authority Issues Guidelines for Hybrid Financial Instruments
by Slim Gargouri
Singapore's Inland Revenue Authority on May 19 published guidelines that establish the income tax treatment of hybrid instruments, including the factors generally used to determine whether they are debt or equity instruments for income tax purposes.
May 29, 2014
Tax Analysts Exclusive: Revised Transfer Pricing Discussion Draft Kept Under Wraps
by Margaret Burow
The OECD released confidential copies of a revised draft on action 13 (transfer pricing) of the base erosion and profit-shifting action plan to working party members and select consultative members in advance of the May 19 public consultation on transfer pricing documentation and country-by-country reporting.
May 27, 2014
SALT Practitioners Stepping In as States Get More Aggressive With Unclaimed Property
by Maria Koklanaris
With states turning more and more to third-party auditors to find unclaimed property and generate revenue without raising taxes, state tax practitioners have by default become the private-sector's first line of defense.
May 23, 2014
Stakeholders Lock Horns Over Execution of OECD's CbC Reporting Proposal
by Stephanie Soong Johnston
At the OECD's May 19 public transfer pricing documentation consultation in Paris, representatives from governments, the business sector, and civil society engaged in a heated debate over the method of filing and sharing corporate information through a country-by-country reporting template.
May 23, 2014
SEC Exam of Google Leads to More Disclosure of Foreign Earnings
by Thomas Jaworski
A recently completed review of Google Inc.'s regulatory filing for 2012 by the U.S. Securities and Exchange Commission included a request for expanded disclosure on the company's plan for its undistributed foreign earnings, according to documents released May 20.
May 22, 2014
Tax Analysts Exclusive: Australia's 'Secret' International Tax Symposium?
by Kristen A. Parillo
Kristen A. Parillo examines the appropriateness of the Australian Treasury's decision to solicit funding from accounting firms and professional bodies to host a May 9-10 symposium in Tokyo on the G-20's tax agenda, and its decision to close the substantive sessions to the media.
May 22, 2014
Credit Suisse to Pay $2.6 Billion as Part of Tax Evasion Plea
by Andrew Velarde
Credit Suisse has pleaded guilty to criminal charges related to allegations that it helped some of its U.S. clients evade U.S. taxes and has agreed to pay $2.6 billion as part of its plea agreement, government officials announced May 19.
May 22, 2014
Credit Suisse Plea a Sign of Things to Come?
by Jaime Arora
With Credit Suisse's guilty plea May 19 to criminal charges that it facilitated tax evasion, the bank became the largest in 20 years to plead guilty in the U.S., and the $2.6 billion fine imposed set a record as the largest ever monetary penalty in a criminal tax case, leaving practitioners to wonder what the plea means for banks worldwide.
May 21, 2014
News Analysis: BEPS and Tax Haven Islands
by Lee A. Sheppard
In news analysis, Lee A. Sheppard looks at how the OECD's base erosion and profit-shifting project will affect smaller tax havens.
May 15, 2014
Former IRS Commissioner Says ABA Tax Section Can Help IRS
by Lawrence B. Gibbs
The American Bar Association Section of Taxation can help the IRS identify and deal with challenges facing the agency and "play the role of an honest broker" to politicians and the public, former IRS Commissioner Lawrence B. Gibbs said in May 10 remarks on accepting the tax section's Distinguished Service Award.
May 15, 2014
ABA Meeting: Gibbs Warns of Tax Administration Challenges
by William R. Davis
Former IRS Commissioner Lawrence B. Gibbs on May 10 warned of the perilous state of the Service and the need for meaningful tax reform and adequate funding for the agency.
May 15, 2014
General Assembly Overrides Veto of Income Tax Cut
by Jennifer DePaul
Ending a political fight, the Missouri General Assembly on May 6 approved a $621 million bill to implement the state's first income tax cut in nearly a century, overriding the veto of Gov. Jay Nixon (D), who denounced the measure as fiscally reckless.
May 12, 2014
In Memoriam: C.A. Daw
by Dan Bucks
Dan Bucks, Montana director of revenue from 2005 to 2013, remembers friend and colleague C.A. Daw, who served as chief counsel of the Montana DOR until his death May 1.
May 9, 2014
Guidance Issued on Transition Period for FATCA Implementation
by Tax Analysts
The IRS has announced (Notice 2014-33) that calendar years 2014 and 2015 will be considered a transition period for purposes of IRS enforcement and administration of the due diligence, reporting, and withholding provisions under the Foreign Account Tax Compliance Act, as well as related due diligence and withholding provisions under chapters 3 and 61 and section 3406.
May 9, 2014
Chinese E-Commerce Giant's IPO Filing Exposes Tax Risks
by Amanda Athanasiou
Chinese e-commerce giant Alibaba's initial public offering filing this week exposed the company's single-digit tax rate and risk factors relating to heightened enforcement of VAT, the company's Cayman Islands residence, and agreements with its variable interest entities.
May 9, 2014
Levin Brothers to Introduce Obama-Inspired Anti-Inversion Bill
by Luca Gattoni-Celli and Lindsey McPherson
Two senior Democratic lawmakers are preparing legislation that will closely follow the Obama administration's plan to disallow for tax purposes corporate inversions under which the U.S. subsidiary is larger than the foreign parent company.
May 6, 2014
Union Is Target of IRS Attorney's Latest Accusations
by David Cay Johnston
David Cay Johnston reports on new accusations by IRS attorney Jane Kim, this time directed at union representatives who she says do nothing to protect overworked personnel in the IRS Office of Chief Counsel's Manhattan office.
May 5, 2014
Did Ways and Means' EO Data Dump Break the Law?
by David van den Berg
Karl Rove and Miss America have something in common: Organizations affiliated with each of them had their confidential tax information made public last month by the House Ways and Means Committee.
May 5, 2014
SALT Solutions: Through the Looking Glass: 'Tax Reform' in the Tar Heel State
by Kay Miller Hobart and Ray N. Stevens
In the first of this two-part article, Hobart and Stevens review the tax measures recently enacted by the North Carolina General Assembly and discuss broader proposals that were not enacted. The second part will focus on what to expect both during and after the legislative short session that begins in May.
May 2, 2014
High U.S. Tax Rates Responsible for Pfizer Inversion, Camp Argues
by Andrew Velarde
The proposed merger of Pfizer Inc. and AstraZeneca PLC that would result in a corporate inversion of the $200 billion U.S. pharmaceutical giant to the United Kingdom is at least partly the result of high U.S. tax rates, House Ways and Means Committee Chair Dave Camp, R-Mich., said April 29.
May 1, 2014
Taxwriters Request Unredacted Report on IRS Bonuses
by Meg Shreve
The Senate Finance Committee has requested unredacted copies of a recent Treasury Inspector General for Tax Administration report that found that some non-tax-compliant IRS employees received bonuses, a committee spokesperson told Tax Analysts April 30.
April 30, 2014
News Analysis: Oklahoma Supreme Court Protects Coffers, Mangles Commerce Clause
by Jennifer Carr
In news analysis, Jennifer Carr questions a recent Oklahoma Supreme Court decision addressing a capital gains deduction for taxpayers whose primary headquarters are in the state.
April 28, 2014
Marking Derivatives to Market Seen as Necessary and Practical
by William R. Davis
Marking financial derivatives to market is the optimal solution to the complex state of derivative taxation because most taxpayers already mark their portfolios to market, but there is disagreement on how to implement the system, according to panelists at Tax Analysts' Marking Derivatives to Market for Tax Purposes conference April 25.
April 28, 2014
IRS Failing to Audit High-Value Electing Large Partnerships
by Amy S. Elliott
Over the seven-year period spanning fiscal 2007 to fiscal 2013, the IRS didn't complete a single audit of a large partnership that elected into the simplified electing large partnership audit rules that Congress put in place in 1997, according to a Government Accountability Office preliminary report (GAO-14-379R) released April 17.
April 25, 2014
German Court Questions Constitutionality of Interest Barrier Rule
by Pia Dorfmueller and Hardy Fischer
In a decision in an interim measures proceeding published on April 16, the first chamber of the German Federal Fiscal Court suspended enforcement action against a taxpayer, expressing serious doubts about the constitutionality of Germany's interest barrier rule.
April 25, 2014
Maine Lawmakers Send Tax Havens Bill to Governor
by Douglas Rooks
Lawmakers gave final approval on April 16 to a bill (LD 1120) that would make Maine the third state to list specific foreign countries as tax havens where multinational companies are offshoring profits and require companies to report income from those countries.
April 24, 2014
IRS Employees With Compliance Issues Got Rewards, TIGTA Says
by Tax Analysts
Although the IRS complied with federal regulations to limit employee award expenditures, employees with conduct and tax compliance issues received awards, the Treasury Inspector General for Tax Administration said in a March 21 report.
April 23, 2014
Marketplace Fairness Act: The Fallacy of Simplification and the Private Reporting-Based Solution
by James H. Sutton Jr.
In a viewpoint, James H. Sutton Jr. with Moffa, Gainor & Sutton PA writes about how the problems states experience with their sales and use tax systems won't be solved by the Marketplace Fairness Act and proposes a consumer private reporting system as a more viable solution.
April 23, 2014
Belgium and U.S. to Sign FATCA Agreement
by Kristen A. Parillo
Belgium and the United States are expected to sign an intergovernmental agreement implementing the U.S. Foreign Account Tax Compliance Act in Brussels on April 23.
April 21, 2014
Is There a Mark-to-Market in Your Future?
by Yoram Keinan
This article is based on a paper presented by the author in February at The Tax Club in New York titled "Is There a Mark-to-Market in Your Future? -- Rethinking the Recent Ways and Means Committee's Proposal to Mark Derivatives to Market." The author wishes to thank the members of The Tax Club for their invaluable input.
April 9, 2014
Black Liquor: The Loophole That Won't Quit
by William Hoffman
Major U.S. paper products manufacturers and distributors are squeezing the last dollars out of a controversial tax credit discontinued years ago but given new life after the IRS declared the refunds would not be taxable income.
April 8, 2014
New Jersey's Alternative Minimum Assessment Is Unconstitutional
by Leah Robinson
In The Jersey Short, Leah Robinson of McDermott Will & Emery describes the unconstitutional application of business taxes to out-of-state companies that do business in the Garden State.
April 7, 2014
News Analysis: Why It Matters That the IRS Has Trouble Auditing Partnerships
by Amy S. Elliott
Most of us have a moment when filing our annual tax returns when we consider the possibility that the IRS might question us about them. The IRS can audit taxpayers, and that audit could lead to additional taxes, interest, and penalties.
April 7, 2014
Audit Proof: The Other IRS Scandal
A video produced by Tax Analysts considers the implications of the IRS's audit practices, in which it closely monitors large corporations but leaves partnerships essentially audit proof.
April 7, 2014
Camp's Tax Reform Would Add Pressure on States
by Jennifer DePaul
Tucked away in the 979-page tax reform proposal of House Ways and Means Committee member Dave Camp, R-Mich., is a provision that would repeal a federal tax benefit that businesses receive from state and local governments for moving or expanding operations to their jurisdiction.
April 7, 2014
Camp Draft's Choices on Extenders Could Shape Ways and Means Discussions
by Lindsey McPherson
House Ways and Means Committee Chair Dave Camp, R-Mich., didn't need to repeal any of the tax provisions that expired at the end of 2013 in his comprehensive tax reform draft because their removal doesn't raise any revenue for him to use elsewhere in the plan.
April 7, 2014
State Tax Spotlight on Jordan M. Goodman
by Maria Koklanaris
State Tax Spotlight will regularly feature a close up view of a person or organization influential in the SALT world. The first spotlight is on Jordan M. Goodman, a partner at Horwood Marcus & Berk in Chicago.
April 2, 2014
Pomp Responds to the MTC Uniformity Committee Vote
by Amy Hamilton
In an interview with Tax Analysts, hearing officer Richard Pomp expresses his disappointment that the Multistate Tax Commission Uniformity Committee couldn't find in his report "a nugget worth incorporating" into its proposed amendments to the Uniform Division of Income for Tax Purposes Act.
April 2, 2014
How to Stop Corporate Income Shifting
by Dan Bucks
In this article, Bucks criticizes corporate income shifting and suggests ways for states to determine what constitutes a tax haven.
April 2, 2014
News Analysis: Colorado's TABOR Troubles
by Jennifer Carr
In news analysis, Jennifer Carr writes that March has been a rough month for Colorado's Taxpayer Bill of Rights, with the Tenth Circuit holding that members of the General Assembly have standing to challenge the strict taxing and spending limitation provision.
April 1, 2014
IRS Has Stopped Ruling on Publicly Traded Partnership Qualifying Income
by Amy S. Elliott
The IRS has temporarily stopped considering private letter ruling requests on whether a publicly traded partnership (PTP) satisfies the qualifying income requirements of section 7704, according to Clifford Warren, special counsel to the IRS associate chief counsel (passthroughs and special industries).
March 28, 2014
In Search of a Taxpayer Bill of Rights With Teeth
by David van den Berg
A taxpayer bill of rights may be a good idea in principle, but unless taxpayers are empowered to seek redress when those rights are violated, it will be just a piece of paper, participants said March 27 at a panel discussion in Washington sponsored by Tax Analysts.
March 28, 2014
Transcript Available of Tax Analysts' Forum on Taxpayer Bill of Rights
The transcript is available of a March 27 discussion sponsored by Tax Analysts on whether the IRS should adopt a comprehensive taxpayer bill of rights.
March 26, 2014
Netflix Streaming Suits Highlight Tax-Tech Mismatch
by David Sawyer
Netflix and other streaming video services have become an ubiquitous part of U.S. entertainment consumption, but few states have contemplated how purely streaming services should fit within their sales and use tax regimes.
March 20, 2014
News Analysis: The Tax Implications of Bitcoin
by Stephanie Soong Johnston
Bitcoin, the software-based peer-to-peer payment system with no government and no central bank, has raised several tax and legal questions.
March 19, 2014
Exclusive: Attorney Details Mismanagement in IRS Chief Counsel's New York Offices
by David Cay Johnston
David Cay Johnston reports on a complaint by IRS attorney Jane Kim to 10 senators alleging that "gross mismanagement" by Office of Chief Counsel staff in New York and Long Island is damaging staff morale and jeopardizing casework.
March 18, 2014
Ways and Means Working Groups Influenced Portions of Camp Tax Reform Draft
by Lindsey McPherson
The bipartisan working groups the House Ways and Means Committee formed last spring to study different areas of the tax code were never meant to produce concrete reform proposals, but the groups' discussions served as a springboard for some of the policy changes incorporated into the chair's draft legislation released last month.
March 13, 2014
Tax Administration: Where the Rubber Meets the Road
by Heather C. Maloy
Heather C. Maloy, in her remarks at the 2012 Laurence Neal Woodworth Lecture, offers her perspective on challenges faced in providing a sound tax administration system.
March 11, 2014
States Tap Into Tobacco Vendors' Customer Lists to Pursue Back Taxes
by Henry J. Reske
Several states have quietly been receiving customer lists of online tobacco purchases from the federal Bureau of Alcohol, Tobacco, Firearms, and Explosives and at least one, Arizona, is using the information to pursue consumers for unpaid luxury and use taxes.
March 10, 2014
The Hidden Repeal of the Mortgage and Charitable Deductions
by John L. Buckley
John L. Buckley argues that the tax reform discussion draft by House Ways and Means Committee Chair Dave Camp, R-Mich., would effectively repeal long-standing incentives for charitable giving and home ownership for all but 5 percent of individual taxpayers.
March 7, 2014
Camp Interested in Discussing Tax Reform Baseline Adjustment to Tune of $1 Trillion
by Lindsey McPherson
If House Ways and Means Committee Chair Dave Camp, R-Mich., had an extra $1 trillion in revenue to work with in his tax reform plan, he could further lower rates, save the plan from making some unpopular tax changes like slowing depreciation, or extend an olive branch to Democrats and use it for deficit reduction.
March 6, 2014
House Oversight Committee Considering Options After Lerner Maintains Silence
by Fred Stokeld
The chair of a House committee investigating the IRS's mishandling of exemption applications from conservative organizations said the committee will consider its options after a central figure in the controversy again refused to answer the panel's questions at a hearing March 5, prompting an abrupt hearing adjournment.
March 5, 2014
News Analysis: Can a State Decline to Disclose Tax Forms? California Says Yes
by Cara Griffith
Two little-known California Franchise Tax Board forms could be among the deciding factors when auditors determine whether a company will be subject to a unitary audit, yet taxpayers and practitioners have heard only rumors about the forms' existence, and the FTB isn't forthcoming with information about them.
February 28, 2014
Economic Analysis: The Beginning of the End of Tax Reform
by Martin A. Sullivan
In economic analysis, Martin A. Sullivan argues that the tax reform draft released by House Ways and Means Committee Chair Dave Camp, R-Mich., reinforces the low likelihood of major reform happening in the near future.
February 27, 2014
Camp Tax Reform Draft Would Cut Rates While Cutting Back on Popular Tax Breaks
by Lindsey McPherson, Meg Shreve, and Luca Gattoni-Celli
House Ways and Means Committee Chair Dave Camp, R-Mich., on February 26 released his long-awaited plan to overhaul the tax code, proposing sweeping cuts and changes to individual and business tax breaks to pay for significant tax rate cuts.
February 25, 2014
News Analysis: What Wyden Can Learn From Baucus's Tenure as Finance Committee Chair
by Lindsey McPherson
Before resigning February 6 to serve as U.S. ambassador to China, former Democratic Sen. Max Baucus chaired the Finance Committee on and off since 2001 -- the off years being when Republicans were in the majority -- leaving behind nearly a decade's worth of leadership dos and don'ts from which Wyden can learn.
February 24, 2014
A New California NOL With Carrybacks
by Kathleen K. Wright
In this article, Wright explains the 2013 California net operating loss carryback changes, including potential traps for the unaware taxpayer and practitioner.
February 20, 2014
News Analysis: The Gatsby Effect and the Middle Class
by Lee A. Sheppard
The late Sir James Goldsmith predicted that if globalization went too far and the elites got too piggy, the middle class would disappear and with it consumption. Everything he predicted is happening. Consumption, except at the highest and lowest ends of the spectrum, is falling off a cliff. Goldsmith also predicted social unrest, which has not come to pass in the heavily policed United States, except sporadically with outbursts like the Occupy movement.
February 13, 2014
News Analysis: Should Donor Countries Push Tax Reform?
by Stephanie Soong Johnston
The highest echelons of Pakistan's government were rattled as 2013 came to a close, and for good reason. A December 23 report from the Centre for Investigative Reporting in Pakistan (CIRP), an independent nonprofit organization, showed that nearly half of all lawmakers who won in Pakistan's May 2013 general elections paid no income taxes, and that more than 10 percent didn't even have national tax numbers, which are required in order to file tax returns.
February 12, 2014
Mississippi House Approves Bill to Prevent Another Equifax
by Ted Carter
The Mississippi House on February 7 approved a bill to undo what supporters perceive as damage to the state's "business friendly" reputation from last summer's state supreme court ruling in Equifax Inc. et al. v. Dep't of Revenue.
February 11, 2014
Beyond BEPS: The Problem of Double Taxation
by Mindy Herzfeld
Contributing editor Mindy Herzfeld discusses the growing need for countries to develop a coordinated multilateral approach to dispute resolution over double taxation.
February 11, 2014
What's In and What's Out for SALT in 2014
by Stephen P. Kranz, Diann L. Smith, and Charles C. Capouet
In the State Tax Policy Exchange, Stephen P. Kranz, Diann L. Smith, and Charles C. Capouet of McDermott Will & Emery do a quick review of state and local tax trends in 2013 and offer predictions for 2014.
February 11, 2014
Letters From Ambassadors Show Fight Against Tax Haven Label
by Amy Hamilton
Two years before then-Ambassador of Ireland Michael Collins would write members of a U.S. Senate subcommittee to dispute claims that Ireland is a tax haven and that his government negotiated a special tax deal with Apple Inc., he was dealing with a variation on the same theme at the state level.
February 10, 2014
News Analysis: What's in the OECD BEPS Hybrid Draft?
by Lee A. Sheppard
In news analysis, Lee A. Sheppard reviews the leaked OECD base erosion and profit-shifting report on hybrid entities.
February 6, 2014
Koskinen Denies Targeting of Tax-Exempt Political Groups' Donors for Audit
by William Hoffman
House Ways and Means Oversight Subcommittee members repeatedly sought assurances during a February 5 hearing with IRS Commissioner John Koskinen that the Service is not targeting for audits donors to conservative groups like those whose applications for tax-exempt status were scrutinized by the agency in recent years.
February 3, 2014
Conversations: Jeffrey Owens and Michael Lennard
by Jeffrey Owens
In this installment, Owens speaks with Michael Lennard about his work on the U.N. tax committee.
February 3, 2014
U.S. PIRG Advocates Listing Tax Havens in State Statutes
by Amy Hamilton
States that have enacted combined reporting regimes could collect an additional $1 billion in corporate tax revenue if they followed Montana and Oregon by maintaining in statute a list of tax haven jurisdictions, according to the U.S. Public Interest Research Group (PIRG) Education Fund.
January 31, 2014
Coburn Endorses Campaign Against NFL Tax Benefits
by Andy Sheets
Sen. Tom Coburn, R-Okla., has been joined in his efforts to end the tax exemption for professional sports leagues by a new grassroots campaign, SackNFLTaxBreaks.org.
January 30, 2014
Tax Reform Is Popular Idea for GOP Agenda, Camp Says
by Lindsey McPherson
Tax reform was the most frequently mentioned idea during a discussion among House Republicans about what issues should drive the GOP's agenda in 2014, Ways and Means Committee Chair Dave Camp, R-Mich., told reporters January 30.
January 27, 2014
Give to Charity, Turn a Profit
by David Cay Johnston
In Johnston's Take, David Cay Johnston writes that five Arizona tax credits for charitable donations that could put money back in donors' pockets might raise constitutional questions.
January 27, 2014
Changing Your Mind With Check-the-Box
by Gabe B. Gartner and Neha Prabhakar
In this article, the authors explore the ability of taxpayers to use a check-the-box election to change the tax treatment of a prior stock transfer into that of a reorganization under section 368(a)(1)(D).
January 27, 2014
Short on Revenue, State and Local Governments Turn to Nonprofits
by Jennifer DePaul
Recession-related fiscal problems are forcing lawmakers around the country to closely review tax expenditures and look for innovative ways to save money. That has left nonprofits, particularly universities, colleges, and hospitals, on the defensive as they increasingly find their tax benefits on the chopping block.
January 27, 2014
Economic Analysis: The Treasury Bailout of Puerto Rico
by Martin A. Sullivan
It may be off the radar of the public and media, but the fragile state of the economy and government finances in Puerto Rico is not being ignored by the White House.
January 27, 2014
OECD BEPS Project Unlikely to Endorse Digital PE
by Lee A. Sheppard
In news analysis, Lee A. Sheppard writes that negotiators on the OECD base erosion and profit-shifting project are unlikely to try to define a digital permanent establishment.
January 27, 2014
Sense and Nonsense of the European Elections
by Frans Vanistendael
In May 2014 there will be elections for the second largest "parliament" in the world, but nobody seems to notice. After the People's Congress in China, the European Parliament is the largest representative body on earth. With 750 members, it is bigger than the Parliament of India, the House of Representatives in the U.S., and the House of Commons in the U.K.
January 23, 2014
IRS Awarded About $50 Million to Whistleblowers in Fiscal 2013
by Andrew Velarde
The IRS paid out about $50 million in whistleblower awards in fiscal 2013, IRS Whistleblower Office Director Stephen Whitlock said on January 22.
January 23, 2014
Defending Cross-Border Debt-Equity Cases
by Lee A. Sheppard
Former IRS Chief Counsel Donald Korb of Sullivan & Cromwell LLP speculated January 21 about why the IRS is bringing an increasing number of debt-equity cases and advised practitioners how to handle debt-equity questions on audit.
January 17, 2014
IRS Releases EO Determinations Training Materials Under FOIA
The IRS on January 15 released to Tax Analysts documents subject to a Freedom of Information Act request calling for training materials dating back to January 1, 2009, that the agency used to train its exempt organizations determinations unit in handling applications from organizations seeking tax exemption.
January 16, 2014
Omnibus Appropriations Bill Would Further Gut IRS Funding
by Eric Kroh
The IRS, already hampered by a tight budget, would be further constricted under a fiscal 2014 omnibus appropriations bill released late January 13 that would make more cuts to the agency's funding, even as IRS officials have warned Congress about the risks of underfunding.
January 10, 2014
Guidance Needed on Virtual Currencies, Report Says
by Eric Kroh
The need for the IRS to issue guidance addressing the tax treatment of virtual currencies such as Bitcoin is one of the most serious problems facing the agency, according to National Taxpayer Advocate Nina Olson.
January 6, 2014
Year in Review: Tax Notes' 2013 Person of the Year
Last year was a struggle for the IRS. The effects of years of frozen or cut budgets began to take their toll on tax administration. The agency had a tough tax season because of the late passage of the American Taxpayer Relief Act of 2012.
January 6, 2014
Transfer Pricing Is Still Dead . . .: But It Is Feeling Much Better Every Day!
by Ajay Gupta
2013 was a banner year for heralding transfer pricing's death. Many high-profile events reconfirmed fatal flaws in the worldwide system of pricing goods and services transferred between commonly controlled entities.
January 2, 2014
Person of the Year
State Tax Notes is pleased to announce its annual year in review edition, featuring person of the year, given to the individual or organization that had the most influence on state tax policy and practice.