US: 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 US 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
See MoreUS – Corporate Tax Rate has been World’s Highest For Two Years
The RATE Coalition (Reforming America’s Taxes Equitably) has drawn attention to the fact that as from April 1, 2014 the US has for two years had the highest corporate tax rate among OECD countries. The group which demands tax reform to increase
See MoreUS – Businesses Seek Retention of LIFO Accounting
The House Ways and Means Committee Chairman has been requested by the LIFO coalition to reject a proposal for the repeal of last-in, first-out (LIFO) accounting from the tax reforms. The LIFO coalition has 126 members and is an advocacy group on
See MoreUS: Budget Committee Chairman Delivers Republican House Budget For 2015
The House of Representatives Budget Committee Chairman has introduced the 2015 budget calling on Congress to reform the tax code to simplify the provisions; lower the individual and corporate tax rates to a 25% top rate; reform many tax reliefs;
See MoreUS: Bankruptcy Court rejects IRS transfer pricing adjustment
The US Bankruptcy Court for the Middle District of North Carolina (Greensboro Division) has rejected an IRS transfer pricing adjustment because the taxpayer would incorrectly considered to be an independent distributor Re: Case No. 09-10846C-11G, 18
See MoreUS Approves Delay to EU Aviation ETS Implementation
A member of the relevant Senate Committee has welcomed the European parliament’s recommendation to extend to 2017 the moratorium on aviation emission taxes on international flights entering or leaving the EU. Various countries outside the EU have
See MoreUS Prepares To Enforce 45 FATCA Pacts
The US has announced that the agreements signed by foreign countries with the US in respect of the implementation of the FATCA legislation will be regarded as in effect until the end of 2014. The agreements are intended to ease compliance by
See MoreNew treaty between Hungary and US submitted to US Senate for ratification
The US Senate Foreign Relations Committee gave its approval to the new Hungary-United States double tax agreement (DTA) on 1 April 2014. This revised agreement is replace the existing Hungary-United States treaty when it enters into force. The
See MoreHong Kong signs tax information exchange agreement with the US
Hong Kong signed a tax information exchange agreement (TIEA) with the US on 25 March 2014. This agreement will strengthen the ability of the two jurisdictions to take action in respect of the enforcement of their taxes. Tax information exchange
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