US – IRS issues 2014 foreign housing tax deduction limits

27 April, 2014

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,

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US: GAO Reports that Large Partnerships are Avoiding the IRS Net

27 April, 2014

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

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US: Annual study shows heavy tax compliance burdens

27 April, 2014

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

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US: Budget proposals for 2015 have implications on inbound investors

27 April, 2014

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

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US: Tax Foundation Considers Future of US Tax Breaks

27 April, 2014

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

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US: IRS Gives Bonuses to Tax-Delinquent Employees

27 April, 2014

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

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FATCA agreement between Belgium and the US

27 April, 2014

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

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Italy Consults on FATCA Agreement with US

27 April, 2014

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

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US: IRS Should Improve Efficiency to Counteract Reduced Funding

25 April, 2014

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

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US Pension Uptake Lags Despite Tax Incentives

24 April, 2014

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

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Tax Freedom Day Comes Later For US Taxpayers

20 April, 2014

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

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US: IRS Confirms Deductibility of Puerto Rican Excise Tax

20 April, 2014

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

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US: IRS Assists Taxpayers on Estimated Tax Payments

20 April, 2014

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

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US Congress Examines Small Business Tax Problems

20 April, 2014

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

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Japan and US Hold Talks On TPP

20 April, 2014

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

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US – Tax Extenders Survive Senate Committee Vote

16 April, 2014

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

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US: IRS Told To Tackle Pension Plan Contribution Tax Abuse

16 April, 2014

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

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US – IRS Reviewing Tax Exemption For Political Donation

16 April, 2014

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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