AccountingToday Article Provides Tax Primer: “Global Commerce 101”

Owners of small to mid-size U.S. businesses are finding the world is a smaller place, which can be very good for business. However, the opportunities of the international marketplace come with additional responsibilities, especially in the area of global taxation. AccountingToday’s July 2016 magazine contains a good “primer” on international business ...

Use State Voluntary Taxpayer Disclosure When Complying with Expanded Nexus

I. Introduction

Over the past 25 years new types of expanded non-physical nexus have come to be recognized. These types of expanded nexus are:
  • Economic Nexus: Income Taxes
  • Click-Through or Agency Nexus: Sales Taxes
  • Affiliate and Attributional Nexus: Sales Taxes and Income Taxes
Failing to comply with those expanded nexus standards can be ...

The Power of Voluntary Taxpayer Disclosure

Today the Boston Globe reported that PTC, Inc. (“PTC”) voluntarily disclosed that its Chinese subsidiaries allegedly provided about $1.5 million in bribes to foreign officials over a period of five years (from 2006 through 2011) in violation of the United States Foreign Corrupt Practices Act. PTC is a publicly held ...

State Voluntary Taxpayer Disclosure Programs: An Overview

State Voluntary Disclosure Programs: An Overview[1]

By Attorney Morris N. Robinson, CPA, LLM[2]

What is Voluntary Disclosure? Most state departments of revenue[3] allow certain categories of noncompliant taxpayers to come forward voluntarily and pay taxes accrued during a limited lookback period.[4] Taxpayers ...

UPDATE: IRS Withdraws Proposed Regulations on Substantiation of Donations in Response to Taxpayer Comments

Back in September of 2015, the Treasury and IRS issued proposed regulations related to section 170(f)(8)(D) providing an alternate framework for substantiating charitable donations. The proposal would require a donee organization to obtain the donor’s taxpayer identification number, along with other identifying information such as name and address. This information ...

Will Travel Insurance Cover This? Your Passport Can Be Denied or Revoked for Seriously Delinquent Taxes

If you wrote “travel more” on your 2016 New Year’s resolutions list, you may want to make sure you’re in good standing with the IRS before you make plans to wander too far from home. In early December 2015, legislation was enacted to add section 7345 titled “Revocation or Denial ...

The United States Taxation of Bitcoins and Transactions Denominated in Bitcoins

Introduction On March 25, 2014 the Internal Revenue Service published Notice 2014-21 which described the United States taxation of Bitcoins[1] and the United States taxation of transactions denominated in Bitcoins. This Notice generally treats Bitcoins as “property.”[2] The IRS guidance tracked a Financial Crimes Enforcement Network "Guidance" ...

Flynn v. Commissioner of Revenue: What Are the Prerequisites for a Massachusetts Tax Appeal?

Recent decisions by the Massachusetts Appellate Tax Board (ATB) illustrate that a taxpayer must fulfill three prerequisites in order to obtain ATB jurisdiction in tax appeals against the Commissioner of Revenue:
  • File all required tax returns.
  • File a Form CA-6: Application for Abatement, with the Department of Revenue. The CA-6 filing
  • ...

    IRS Raises Safe Harbor Threshold and Simplifies Recordkeeping for Small Businesses to Deduct Certain Expenditures

    The Internal Revenue Service (IRS) announced on November 24, 2015 that it has raised the safe harbor threshold for small businesses to deduct certain capital expenditures from $500 to $2,500. The $2,500 threshold applies to small businesses that do not have audited financial statements.  For larger businesses with audited financial ...

    Year-End Tax Tips Update: Qualified Charitable Distributions Permanently Extended

    We’ve been waiting all year to find out which tax provisions will be extended and today, in the 11th hour, Congress has passed the “Protecting Americans from Tax Hikes Act of 2015." This bill is expected to be was signed by President Obama  shortly and made law. The importance of this bill ...