Taxpayer asks: Two years ago, I gave my son a considerable amount of money so that he could finish graduate school without having to take out any student loans. Last year, he announced that he was “taking a break” from school. Since he was no longer going to school, I asked him to give the…
As states scramble to find revenue, two states had the same thought: why not try to woo those taxpayers that already owe money rather than just raise taxes? With that, Connecticut and Maryland have announced state tax amnesty programs. Maryland’s tax amnesty program runs from September 1, 2009, through October 31, 2009. Under the current…
Wanted: Assistant Treasury Secretary for Tax Policy. Must love taxes and be willing to undergo grueling nomination process. Also important to demonstrate understanding that everyone will hate what you do. As it turns out, nobody seems to want that job. Funny, at a time when the public is highly critical of the Treasury – clearly…
It’s rare that decisions regarding transfer pricing make big news. But this one is different. An IRS victory in the Ninth Circuit against chip company Xilinx Inc. earlier this week may change the way that companies allocate their costs for purposes of transfer pricing. The decision already has international tax practitioners abuzz. The facts of…
I contend that for a nation to try to tax itself into prosperity is like a man standing in a bucket and trying to lift himself up by the handle. Winston Churchill
Taxpayer asks: I have an employee whose child care center fees just went up. So to take some of the burden off her shoulders we are paying for the rest it adds up to $300 a month. Now-her babysitter is her sister in law who works part time but does babysitting on the side. My…
A couple of years ago, I was speaking about fiduciary taxes at a CLE when I was passed a note. It said, “Trust investment advisory fees subject to the 2% floor. Knight vs. Commissioner.” Whoa. This, you see, was a fairly significant development in the world of fiduciary income tax. It later went on to…
It turns out that May was a pretty good month for Helio Castroneves. On last Friday, the last remaining criminal charge against Castroneves – for conspiracy – was dropped. The month before, Castroneves was acquitted of six counts of tax evasion; the jury did not reach a verdict on the conspiracy charge. The feds initially…
Taxpayer asks: In your articles about the states, you keep saying that sales tax is regressive. But since everybody is paying the same percent, doesn’t that make it a flat tax which means it’s not regressive? I’m confused. Taxgirl says: Good question! Most sales taxes are flat-rate taxes in that the same percentage is levied…
Without revenues, a government can have no power. – Alexander Hamilton, First Secretary of the US Treasury You will find no federal holiday dedicated to our love of taxes. There will be no parades in honor of taxes. No ceremonies, concerts, or TV specials. This is because many in the US think of taxes as…