Category Archives: Tax Law

Making Life Difficult for Taxpayers: Another Congressional “Accomplishment”

Friday a week ago the legislation to keep the federal government operating became law. But that legislation did much more. Among other things, it restored some tax deductions and credits that had expired more than a year ago. What does this mean in practice? It means that tax forms already prepared, printed, and made available online are incorrect. It means that tax preparation software is incorrect. It means that some taxpayers who already filed 2017 tax returns need to amend those returns. It means that the IRS must reprint forms and retool its software. It means that tax software developers must recode their products. It means that taxpayers using tax preparation software must download and install updates. Note that all of this must occur during tax filing season.Is this any way to run a country? Of course not. But the Congress isn’t known for its ability to run a country, let alone run it efficiently and effectively. Do the members of Congress and members of their….. To continue reading this legal news please click Read full information...

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OOOps! Excise Taxes Count Toward 5 Years of Expatriation “Tax Compliance”

Many US persons living abroad have foreign life, sickness or accident insurance or a foreign annuity. Yet, only a handful have any knowledge of the US Foreign Insurance Excise Tax provisions affecting these policies.  A significant problem lies in wait for US persons who are “expatriating” when they lack knowledge of the excise tax rules.  As used in this post, expatriating refers to giving up one’s US status whether by relinquishing US citizenship or, a green card held for a certain number of years (generally 8 tax years out of the past 15 tax years).  An individual can inadvertently become a“covered expatriate” unless he or she has met their US tax obligations, including excise tax obligations, with regard to these policies. Who is a “Covered Expatriate”? A “covered expatriate” is an individual who was a former US citizen or long-term permanent resident if the individual met certain requirements at the time….. To continue reading this legal news please click Read full information...

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Testimony: Idaho Should Consider Decoupling from the Pass-Through Deduction

Written Testimony to the House Revenue and Taxation Committee, Idaho Legislature February 17, 2018 Chairman Collins, Acting Vice Chair Kauffman, and Members of the Committee: My name is Nicole Kaeding, and I’m an economist and the Director of Special Projects at the Tax Foundation. For those unfamiliar with us, we are a nonpartisan, nonprofit research organization that has monitored fiscal policy at all levels of government since 1937. We have produced the Facts & Figures handbook since 1941, we calculate Tax Freedom Day each year, we produce the State Business Tax Climate Index, and we have a wealth of other data, rankings, and information at our website, www.TaxFoundation.org. I’m pleased to submit written testimony on House Bill 463 and House Bill 558, which deal with updating Idaho’s conformity to the Internal Revenue Code. These bills are similar in many ways, but differ on Idaho’s treatment of Internal Revenue Code Section 199A, created by the….. To continue reading this legal news please click Read full information...

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10 Facts About Presidents And Tax – And Why It’s Not Really Presidents’ Day

President Barack Obama stands with former presidents, from second from left, George W. Bush, Bill Clinton, George H.W. Bush, and Jimmy Carter at the dedication of the George W. Bush presidential library on the campus of Southern Methodist University in Dallas. (Photo by Brooks Kraft LLC/Corbis via Getty Images) Happy Birthday, President Washington! Okay, it’s not really George Washington’s birthday (that’s February 22), but each year, we celebrate the birthday of our first president in February. Congress made it a federal holiday beginning in 1879, and the date was officially moved to the third Monday in February as part of a law signed by President Johnson on June 28, 1968, to “help Americans to enjoy more fully the country that is their magnificent heritage.” I know what you’re thinking: What about the rest of the presidents? They’re not officially included in today’s celebration and never have been by federal law. We tend to….. To continue reading this legal news please click Read full information...

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Nonprofit Tweets of the Week – 2/16/18

Stay informed of the week’s notable events and shared resources with this curated list of Nonprofit Tweets of the Week. Notable Events of the Week: Another shooting at a school, leaving at least 17 dead, and prayers and condolences (but no promises of action despite over 200 school shootings and 400 people shot after Sandy Hook in 2012) from President Trump. NY Times Top 10 Nonprofit Tweets: Melinda Gates: .@BillGates and I get a lot of questions about our work—not all of them easy. For our 10th Annual Letter, we decided to answer 10 of the toughest. http://m-gat.es/2o2P9rj Philantopic: Outlook for 2018-19 Charitable #Giving Mixed, Report Finds http://ow.ly/ncvr30inSgr @IUPhilanthropy #philanthropy #taxpolicy [Ed. The Report projects that “strong growth in personal income, net worth, and consumption will help offset the dampening effect on individual giving, while corporate and foundation giving will remain strong.”] Gene: When do-good nonprofits are….. To continue reading this legal news please click Read full information...

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