US – IRS issues 2014 foreign housing tax deduction limits
In the US the Internal Revenue Service (IRS) has issued Notice 2014-29. The Notice sets out the inflation-adjusted limitations in respect of foreign housing expenses for tax year 2014. The figures included in the Notice show that Hong Kong, Moscow,
See MoreUS: GAO Reports that Large Partnerships are Avoiding the IRS Net
In a preliminary report from the United States Government Accountability Office (GAO) it is shown that the IRS is currently conducting a tax audit in respect of only around one percent of the largest partnerships in the US. The GAO report suggests
See MoreUS: Annual study shows heavy tax compliance burdens
According to the US National Taxpayers Union (NTU) the US has lost billions of hours of productivity owing to the burden of compliance with the complex tax code. The NTU has computed the total cost of tax compliance at USD224.3bn a year. This
See MoreUS: Budget proposals for 2015 have implications on inbound investors
In March 2014, the Obama Administration (the Administration) released its fiscal year 2015 Budget proposals (the Budget). In addition to the transfer pricing rules the earnings stripping rules also apply to transactions with foreign related parties
See MoreUS: Tax Foundation Considers Future of US Tax Breaks
The Tax Foundation (TF) in the US considers that a number of corporate and individual tax breaks should be recognized as fulfilling a beneficial purpose, even though the US government is currently considering their abolition. Many of the tax breaks
See MoreUS: IRS Gives Bonuses to Tax-Delinquent Employees
In the US the Treasury Inspector General for Tax Administration (TIGTA) provides independent oversight of the activities of the Internal Revenue Service (IRS). TIGTA aims to ensure economy and efficiency of administration within the IRS and is
See MoreFATCA agreement between Belgium and the US
An intergovernmental agreement (IGA) between Belgium and the US is to be signed on 23 April 2014 in relation to the implementation of the US Foreign Account Tax Compliance Act (FATCA). The IGA requires the tax administrations of the two countries to
See MoreItaly Consults on FATCA Agreement with US
Italy commenced a consultation on 23 April 2014 on the content of the inter-governmental agreement (IGA), concluded on 10 January 2014, to carry out the requirements of the Foreign Account Tax Compliance Act (FATCA) between Italy and the United
See MoreUS: IRS Should Improve Efficiency to Counteract Reduced Funding
The United States Government Accountability Office (GAO) is an independent agency that reports to the Congress and is often referred to as the congressional watchdog. The organization is headed up by the Comptroller General of the United States and
See MoreUS Pension Uptake Lags Despite Tax Incentives
In order to encourage taxpayers to make provision for their pensions various incentives are provided by the tax system. The US Government Accountability Office (GAO) has however reported that the number of new pension plans taken out by individuals
See MoreTax Freedom Day Comes Later For USÂ Taxpayers
An organization known as the Tax Foundation (TF) computes the date of a day called Tax Freedom Day each year. This date is found by applying the average tax burden, expressed as a percentage, to the number of days in the year. The Tax Freedom Day is
See MoreUS: IRS Confirms Deductibility of Puerto Rican Excise Tax
The IRS has confirmed in a document published recently (Letter 2014-0006) that the IRS will not challenge the claim that Puerto Rico’s manufacturers excise tax is a tax that can be credited against United States federal income tax. In October
See MoreUS: IRS Assists Taxpayers on Estimated Tax Payments
In the US the IRS has given some assistance to taxpayers who are due to make estimated tax payment. This group of taxpayers includes individuals who are not subject to tax withholding tax source from wages, such as self employed persons, and people
See MoreUS Congress Examines Small Business Tax Problems
The burden of tax compliance is often much greater for small businesses than for larger enterprises. A new National Small Business Association (NSBA) tax survey indicates that a majority of small businesses spend around 40 hours preparing their tax
See MoreJapan and US Hold Talks On TPP
Talks were held between Japan and the US on 9 and 10 April 2014 to consider the remaining issues relating to the terms of the planned Trans-Pacific Partnership (TPP) trade agreement. The main problems between the US and Japan concern Japan’s
See MoreUS – Tax Extenders Survive Senate Committee Vote
The United States Senate Finance Committee has been examining the various tax reliefs given to different sectors within the economy. The Committee has now passed the bipartisan Expiring Provisions Improvement Reform and Efficiency Act which
See MoreUS: IRS Told To Tackle Pension Plan Contribution Tax Abuse
A report issued by the Treasury Inspector General for Tax Administration (TIGTA) suggests that the IRS is permitting large deductions to be incorrectly claimed each year in relation to retirement plans for the self-employed. These retirement plans
See MoreUS – IRS Reviewing Tax Exemption For Political Donation
The Commissioner of IRS has suggested that advice on the tax relief for social welfare organisations will not be available before next year. Organizations have to be sure that they are operating within the scope of the relief in areas such as
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