Appeals Court Upholds Half Percent Texas Franchise Tax Rate For Rent To Own Business... [ read ]
In a recent decision, the Third Court of Appeals in Texas held that Rent-A-Center, Inc. was entitled to use the .5% tax rate for Texas franchise tax purposes which is generally available to retailers and wholesalers. Rent-A-Center, Inc. v. Hegar, 2015 Tex. App. LEXIS 5865 (Tex. App. – Austin, no pet., June 11, 2015).
It's About Time - Slowly But Surely the IRS Finally Agrees to Let Employers Off the Hook When They Use a Professional Employer Organization (PEO)... [ read ]
According to the National Association of Professional Employer Organizations, approximately 2 to 3 million people are currently covered under a PEO arrangement. After TIPA is fully implemented, with many provisions effective January 1, 2016, expect these numbers to increase in the coming years.
Tax Amnesty Programs... [ read ]
Several states have amnesty programs that begin this month and have limited duration. Taxpayers who may be interested should seek legal counsel before approaching any state about past due taxes. Read the full article to see what states have amnesty programs.
TIGTA Report Weighs in on Penalty Abatements... [ read ]
On July 30, 2015, the Treasury Inspector General for Tax Administration ("TIGTA") released a report evaluating whether penalties assessed by the IRS against taxpayers are being abated in accordance with IRS Appeals criteria. The report underscores the need for skilled advocacy when it comes to penalty abatement requests and the importance of ensuring that taxpayers' requests for penalty abatements both comply with the governing standards of penalty relief and contain sufficient information to justify the relief requested.
ACA Section 4980D Penalties Apply to Large and Small Employers... [ read ]
Internal Revenue Code section 4980D imposes a $100.00 per day per employee excise tax on any employer that fails to meet certain group health plan requirements. In testimony before the Senate Finance Committee, a policy analyst with the National Federation of Independent Business testified that 18 percent of small businesses are engaged in practices that may subject the employers to the $100.00 per day per employee penalty.
Eleventh Circuit Holds "Cash Hoard" Exceeding $10k Currently is Not Required for a Structuring Indictment... [ read ]
In U.S. v. Sperrazza, the U.S. Eleventh Circuit recently affirmed the conviction of a Georgia physician who was convicted of three counts of tax evasion, in violation of 26 U.S.C. § 7201, and two counts of structuring currency transactions, in violation of 31 U.S.C. § 5324(a)(3). U.S. v. Sperrazza, No. 14-11972 (11th Cir. Aug. 17, 2015).
The IRS Has Issued You a Notice of Tax Lien, Now What?... [ read ]
After a taxpayer fails to remit payment on an outstanding tax liability and the IRS issues a demand for payment, the Internal Revenue Code imposes a statutory lien in favor of the government on all property and property rights of the taxpayer. I.R.C. § 6321. The lien dates back to the date of assessment and continues until the liability is satisfied or becomes unenforceable. I.R.C. § 6322.
Major Changes for FBAR and Tax Return Due Dates... [ read ]
On July 31, 2015, President Obama signed into law H.R. 3236, the "Surface Transportation and Veterans Health Care Choice Improvement Act of 2015." In addition to providing a 3-month, stop-gap reauthorization of the Highway Trust Fund and transferring over $8 billion to the Fund, the Act alters a number of tax-return due dates—for instance, moving the due date for partnership tax returns a month ahead of the due date for corporate tax returns—and changes the due date for filing an FBAR (FinCEN Form 114) to match the filing deadline for individual tax returns.
Court Upholds FBAR Penalties, but Rejects Government's Assessed Interest and Late Charges... [ read ]
In Moore v. U.S., No. C13-2063 (W.D. Wash. July 24, 2015), Judge Richard Jones examined a case in which FBAR penalties of $10,000 were assessed for each year from 2005 through 2008. The Court held the IRS's decision to assess the FBAR penalties was not arbitrary, capricious or an abuse of discretion.
A Look Back at More than a Century: The Federal Income Tax... [ read ]
Every April, millions of Americans brave the spring ritual of filing an income tax return. In the rush to complete their returns (and, if they are lucky, claim a refund), most give little thought to the fascinating origin and history of the tax that will celebrate its 102nd birthday this October. Our modern federal income tax represents a defining marker in our nation's history and character, with foundational - and, some might say, uniquely American - economic theory. A tax with Civil War origins, it played a key role in the course of American class politics, evolving from a limited-scope "class tax" to the "mass tax" that became the backbone of our federal system.
This article was originally published in Today's CPA, July/August 2015 (a publication of the Texas Society of CPAs).
