Pass of ABLE Act Sees Hope in Congress Hot Issues

The Achieving a Better Lifer Experience (ABLE) Act, which aims to remove bureaucratic obstacles to help Americans save for future, has passed Congress. Under the ABLE Act, people with disabilities are allowed a saving account up to $100,000 with tax-free treatment. Thus the ABLE Act helps pay for disability-related expenses … Continue reading

Tax Court Rules Captive Insurance Arrangement Allows Deductions for Insurance Premiums

The Tax Court recently determined that the captive insurance arrangement regarding SHI Group, a subsidiary of the Swedish company Securitas AB, constituted insurance.  According to the ruling, the insurance premiums paid by SHI Group are deductible, as in accordance with the Internal Revenue Code. This effectively overturns IRS’s disallowance of the deductions … Continue reading

CRS Examines Four Recently Expired Charitable Tax Provisions That Are Being Considered for Extension

The Congressional Research Service released a report examining four of the temporary charitable tax deduction provisions that are expired or expiring, and being considered for renewal in the 113th Congress. The tax provisions being discussed are the enhanced charitable deduction for food inventory donations, tax-free distributions from individual retirement accounts … Continue reading

Three Insights for Individuals on IRA Transfers

  • Charitable IRA Transfers: It is yet uncertain if this year the Congress will extend the individual retirement account (IRA) charitable transfer provision, which, if likely, will not happen before November election. The charitable IRA transfer allows individuals to transfer directly from IRA to charity while leaves it aside from counting
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IRS Clarified Statutory Definition for Codification of Economic Substance Doctrine and Related Penalties

The Internal Revenue Service released Notice 2014-58 entitled “Additional Guidance under the Codified Economic Substance Doctrine and Related Penalties”. This newly announced notice provides further guidance on applying the economic substance doctrine and related and accuracy-related penalty, covering mainly two following topics: 1) definition of “transaction” for purpose of codification under … Continue reading

Citizens for Tax Justice Eye Revenue-Raising Options

Citizens for Tax Justice has outlined why an increase in federal revenue collection is appropriate and necessary, and suggested several tax policies to aid that goal.   These changes would mostly affect high-income persons, businesses, and multinational corporations.  Some of the larger revenue-increasing proposed changes include:

  • Taxing capital gains and
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