Wealth Strategies Journal

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Category: Legislation (page 1 of 2)

Members of Congress Move to Repeal Estate Tax This Week

House Ways and Means Committee member Kevin Brady, R-Texas, said March 17 that he expected the committee to mark up his estate tax repeal bill this week 23, and Senate Finance Committee member John Thune, R-S.D., said he planned to introduce a repeal bill that same week.

Brady said that … Continue reading

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

Hawkins Urged for Legislation to Clarify Circular 230

On October 28, the 30th Annual Tax Controversy Institute conference, Karen Hawkins, Director of the IRS Office of Professional Responsibility (OPR) urged for legislation to strengthen Circular 230. Showing her concern on Circular 230 being chipped away by practitioners, Hawkins commented on Ridgely v. Lew, No. 1:12-cv-00565 (D.D.C. 2014), … Continue reading

IRS Releases 2015 Inflation-Adjusted Items

The IRS released its new Revenue Procedure, which sets the inflation-adjusted items for taxable years beginning in 2015. The major changes set forth in this procedure come from the addition of §36B to the Internal Revenue Code by the Patient Protection and Affordable Care Act of 2010.

The IRS … 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 Announced Modified Applicability Dates to Temporary Coordination Regs

The IRS released Notice 2014-59 on October 10, announcing its intention to amend certain provisions of the temporary coordination regulations under Foreign Account Tax Compliance Act (FATCA) regime with regard to modified applicability dates. The IRS stated in the notice that it will provide withholding agents, foreign financial institutions (FFIs) … Continue reading

IRS Releases Additional Guidance on Economic Substance Doctrine

IRS amplifies in its newly released Notice 2014-58 the definition of “transaction” as codified under section 7701(o) for the purpose of determining when the economic substance doctrine applies, and clarifies the meaning of “similar rule of law” under section 6662(b)(6) for the purpose of accuracy-related penalty. Jasper L. Cummings, Jr. … Continue reading

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

IRS Simplifies Procedures for Taxpayers with Canadian Retirement Plans

IRS has announced that U.S. taxpayers who hold Canadian registered retirement savings plans (RRSPs) or registered retirement income funds (RRIFs) are automatically qualified for tax deferral. Originating from U.S.-Canada tax treaty, this change grants special tax treatment to eligible U.S. citizens and resident aliens as long as they file U.S. … Continue reading

Supreme Court Stays Out of Cases of Same-Sex Marriage

On Monday October 6, the Supreme Court (SCOTUS) rejected to take actions on pending cases from five states requesting immediate review of bans on same-sex marriage. With issuance of the Monday’s order by SCOTUS, the lower courts in Indiana, Utah, Oklahoma, Virginia and Wisconsin will proceed in favor of same-sex … Continue reading

Notice and Comment for Form 1041-A

To reduce paperwork and the burden on taxpayers, the IRS has issued notice and asked for comments on Form 1041-A, the information return for trust accumulation of charitable amounts.  All comments must be received by September 8, 2014.

See “Proposed Collection; Comment Request for Form 1041-A,” 79 Fed. Reg. … 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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Biometrics Provide Better Protection but Taxpayers and IRS Wary

Although biometrics could be an important tool that the IRS can utilize to protect taxpayer identities, reluctance on both sides may pose a significant challenge to its implementation.  Biometrics such as fingerprint and iris scans can directly connect taxpayers to their personal information.  Further, biometric data can only be used … Continue reading

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