It's About How the US Effective Corporate Tax Rate Ranks Globally
The debate over US Corporate tax rates recently has been a hot topic of debate among politicians, economists, the media, and more. Some have stated that the US has the highest corporate statutory tax rate in the world, while others state that the effective tax rate is lower. They are both right, but what about the US effective corporate tax rate vs. other developed countries?
Updates to the IRS Fresh Start Program Helps Taxpayers In Need
One of the most discouraging financial situations to be in has to do with being unable to pay your tax obligation. Thousands of Americans feel this sensation every year. However, the IRS has a program designed to ease some of the burden.
Since a great deal of the burden associated with an inability to pay taxes has to do with failure to pay penalties, the IRS offers the Fresh Start Penalty Relief program to those who qualify.
Presidential Tax Quotes
Happy Presidents Day! Taxes are as old as this country. Here are what some of our U.S. Presidents, Founding Fathers and presidential hopefuls have had to say over the years (some more profound than others)...
George Washington - Founding Father & U.S. President (1789 – 1797)
"...it is essential that you should practically bear in mind that towards the payment of debts there must be revenue; that to have revenue there must be taxes; that no taxes can be devised which are not more or less inconvenient and unpleasant."
Latest Celeb Tax Liens: Robin Thicke & Paula Patton, The-Dream
January has been a popular month for celebrity tax liens.
The IRS has hit singer-songwriter Robin Thicke and his wife, actress wife Paula Patton, with a $492,583 tax lien.
Although the tax lien was filed against the stars' Los Angeles mansion in December, sources close to the couple say that they were only made aware of it a few days ago.
Overview of the FairTax: Definition, Benefits & Criticism
Since 1999, the FairTax has been a proposal regularly brought forth in Congress. The main goal of the FairTax is to replace federal taxes on income and capital gains with a national sales tax. That way, taxes are collected on consumption, rather than on income. The national sales tax would be collected on top of state and local sales taxes.
In addition to replacing the income tax, the law creating the FairTax is also designed to abolish the IRS. Proponents also want the 16th Amendment - which codifies the income tax - repealed. The FairTax would be levied only on new goods and services (not on used goods).
Emmanuel Lewis Fails to Pay Taxes, Loses Home
Former child actor Emmanuel Lewis has lost his home to foreclosure as a result of his failure to pay taxes.
According to documents obtained by TMZ, Lewis neglected to pay a total of $44,081.41 in state, county and school taxes between 2007 to 2010.
The 40-year-old, 4'3" tall television star's Fayette County, GA home was foreclosed on and then sold for only $56,000 at an auction back in September.
Taxing Soda and Candy: Making Money from Obesity
With the recent recession on, it makes sense for states to cast about, looking for revenue. One source of revenue for many states has been through so-called "sin taxes." These taxes, levied on cigarettes and alcohol bring in revenue - and few people complain much about them because they are considered "vices."
According to the Tax Foundation, 17 states have candy taxes that charge more for sweets than for other grocery items. Additionally, four states collect an extra tax on soda. During 2011, two states proposed new candy taxes, and 14 states considered soda taxes. With so much focus on obesity and health in recent years, there are hopes that legislatures can pass these taxes without too much opposition.
IRS Files $530k IRS Tax Lien Against Christie Brinkley
Christie Brinkley reportedly owes $531,720 in back taxes on her $30 million Bridgehampton, NY mansion. The IRS filed a tax lien against the 57-year-old former supermodel on November 21st.
Brinkley – who was once famously married to rock star Billy Joel – had been trying to sell the beach house that she lives in since 2008, but took it off the market in 2010. It is one of five homes that the Sports Illustrated cover model owns in the Long Island area.
IRS Inflation Adjustments for Tax Year 2012
Every year, the IRS reviews the rate of inflation, and adjusts tax benefits and tax brackets to reflect the changes. For years, there haven't be changes in a number of items, due to fact that inflation metrics reported by the government were not significant.
However, inflation has picked up that the IRS is ready to make some inflation adjustments for the 2012 tax year. These adjustments won't be applicable for tax year 2011 (tax return due in April 2012), but they will be in effect next year (tax return due in April 2013).
IRS Launches Worker Misclassfication Amnesty Program
The Internal Revenue Service (IRS) has launched a program called the Voluntary Classification Settlement Program (VCSP) or amnesty which enables employers to reclassify certain workers from independent contractors to employees going forward without being liable for all federal employment tax liabilities that would be due for misclassifying workers in the past.
In short, employers can get into compliance with tax laws with a small payment to cover past prior payroll tax obligations instead of waiting for the bigger penalties that could come about with an audit.
Summary of Oil & Gas Tax Changes in the American Jobs Act
The American Jobs Act of 2011 proposal was posted this week, and it contained a few tax related changes or repeals for oil and gas subsidies in order to help pay for the bill.
The complexities of the oil and gas industry with regards to tax subsidies is not easy to summarize, but the bill's section-by-section analysis did a great job of breaking it all down.
Tax Provisions Summary of the American Jobs Act of 2011
President Obama revealed an overview of the American Jobs Act of 2011 (AJA) in a speech to both chambers of congress last week. This week, the legislative proposal was released.
This proposal is roughly 155 pages, with a 41-page section-by-section analysis at the end.
The tax provisions and/or changes in the proposal are numerous, but the tax overview or analysis below should give you a better understanding of what's inside the proposal from a tax perspective.
Cindy Sheehan Receives IRS Intent to Levy Notice for Tax Debt
Cindy Sheehan, the well-known anti-war activist who created a stir in 2005 after her son was killed in combat during the Iraq war, recently posted on her Facebook page that she received an Intent to Levy Notice from the IRS. Although still unknown, the IRS could be coming after her for income taxes she may have not paid on speaker's fees and her book contract.
Latrell Sprewell the No. 1 Delinquent Taxpayer in Wisconsin
Former-NBA player Latrell Sprewell has secured the number one spot on a list of Wisconsin's top 100 delinquent taxpayers. Sprewell's NBA career famously ended in 2005 after he scoffed at a three-year, $21 million contract with the Minnesota Timberwolves, publicly stating that the money offered would not be enough to feed his family. Now, the Wisconsin native owes more than $3.5 million in state back taxes.
The list, which is also known as the "Web Site of Shame," was first launched by the Wisconsin Department of Revenue in 2006 to humiliate delinquent taxpayers into settling their tax debt. The site has been relatively successful, collecting $17 million in back taxes in 2010.
IRS Reverses 2-Year Limit on Innocent Spouse Relief Claims
Effective immediately, the IRS today reversed the 2 year statue of limitations on Innocent Spouse Relief equitable relief claims that was put into place after the Seventh Circuit Court of Appeals ruled in favor of the IRS request to put a reasonable time limit on thse relief requests last year. It seems the IRS made this policy change simply because sometimes former spouses may not know or find out about IRS collection efforts until years later.
IRS Taxpayer Help Centers Open This Saturday July 16th
In an effort to assist taxpayers who work Monday through Friday, or for some other reason are unable to get to an IRS office during the work week, the IRS will open Taxpayer Assistance Centers this weekend at 74 locations nationwide. The Saturday Open House will take place this Saturday, June 16, 2011, from 9:00 a.m. to 2:00 p.m.
Free assistance will be provided to taxpayers who have general tax-related questions, who need help with tax filing issue, who have account questions or want to arrange or make account payments, or who want to work with the IRS to have a tax lien withdrawn through setting up an installment agreement or other payment plan.
Yankees Fan Who Caught Derek Jeter's 3000th Hit May Owe IRS Taxes
Christian Lopez, a 23-year-old from Highland Mills, NY, caught Derek Jeter's 3,000th hit home run ball. Instead of selling the ball – as many others in similar situations have done in the past – or holding on to the ball as a keepsake, Lopez chose a much more generous route: he gave the ball back, no strings attached. His selflessness will now be rewarded with the warm feeling of giving, several luxury box tickets and some autographed Yankees memorabilia – and a tax bill exceeding $10K.
IRS Ups Moving, Medical & Business Mileage Rates for Q3/Q4 2011
The IRS today announced that the per mile deductible rate for operating an automobile for business purposes is going up to 55.5 cents from 51 cents a mile. Moreover, the rate for calculating deductible medical and moving expenses also increased by 5.5 cents to 23.5 cents a mile.
This change takes effect starting in July. Therefore, for the first six months of 2011, the rate is 51 cents for business expenses (19 cents for medical and moving) and from July through December 31st it is 55.5 cents (23.5 cents for medical and moving).
More Federal Tax Returns E-Filed Than Ever Before, Says IRS
The IRS reported today that the biggest percentage ever of tax returns were e-filed this year. Over 101 million tax returns were e-filed up to Monday morning, which represents over an 8% increase since last year. This number will be higher as many individuals and businesses have yet to e-file today. The IRS states that in 2010, 98.7 million returns were e-filed.
You Can Purchase US Series I Bonds With Your 2010 Tax Refund
A tax refund is issued when the tax liability of the filer is less than the taxes withheld or paid during the tax year.