tax Archive

West Virginia Tax Relief Plan: Details & Analysis
March 1, 2023
No Comments
TweetShareSharePin0 Shares West Virginia’s long road to tax relief was beginning to feel older than the trees, but after many years of efforts, the state’s lawmakers are finally taking home a win. Under an agreement reached over the weekend and pending final action in the House, lawmakers and Gov. Jim Justice (R) reached a deal

Lookback period extended for refunds related to pandemic postponements
March 1, 2023
No Comments
TweetShareSharePin0 Shares On Monday, in Notice 2023-21, the IRS lengthened the lookback period for refund claims for returns with due dates that were deferred by Notice 2021-21 or Notice 2020-23, which postponed the due dates for filing certain tax returns and making certain tax payments during the COVID-19 pandemic. Under the new notice, in determining

Penalties, Revenues, and Extensions | Tax Policy Center
March 1, 2023
No Comments
TweetShareSharePin0 Shares SCOTUS: Bank Secrecy Act penalty applies per FBAR, not per foreign account. Via Tax Notes (paywall), the US Supreme Court ruled yesterday in favor of the taxpayer in a 5-4 decision. In the case, a dual citizen of Romania and the US submitted five years’ worth of annual Reports of Foreign Bank and

Supreme Court holds FBAR penalty is imposed per report, not per account
March 1, 2023
No Comments
TweetShareSharePin0 Shares The U.S. Supreme Court held Tuesday in a 5-4 decision that the $10,000 penalty for a nonwillful failure to file a Report of Foreign Bank and Financial Accounts (FBAR) for foreign accounts accrues per report, not per account (Bittner, No. 21-1195 (U.S. 2/28/23)). The decision resolves a split between the Fifth and Ninth
Failure to File Information Returns For Foreign Trust Keeps Statute Of Limitations Open For Individual’s Income Tax
February 28, 2023
No Comments
TweetShareSharePin0 Shares Fairbank v Commissioner is the latest in a long line of important cases originating from the IRS’s use of the John Doe Summons (JDS) process to gather information about US individuals who had money parked in overseas accounts. Fairbank involves Section 6501(c)(8). That section provides that an individual who fails to file information

Maybe A Senate Confirmation; Ways & Means Sets Tax Priorities
February 28, 2023
No Comments
TweetShareSharePin0 Shares Will the Senate confirm a new IRS Commissioner this week? Senate Finance Committee Chairman Ron Wyden (R-OR) said a vote could come as early as this week on the confirmation of Danny Werfel to serve as IRS Commissioner. The panel released its questions and Werfel’s full responses; not all were able to be

Income Tax Rates in Europe
February 28, 2023
No Comments
TweetShareSharePin0 Shares Most countries’ personal income taxes have a progressive structure, meaning that the tax rate paid by individuals increases as they earn higher wages. The highest tax rate individuals pay differs significantly across European OECD countries—as shown in today’s map. The top statutory personal income tax rate applies to the share of income that

District Court holds IRS owes tax preparers partial refund of PTIN fees
February 27, 2023
No Comments
TweetShareSharePin0 Shares The IRS must determine the appropriate partial refund amount for tax return preparers who it overcharged for their preparer tax identification numbers (PTINs) from 2011 to 2017, a district court held in an opinion unsealed last week (Steele, No. 1:14-cv-1523-RCL (D.D.C. 1/23/23)). The district court’s decision, issued Jan. 23 and unsealed Feb. 21,

Cities Want to Tax Streaming Services, but They’re Not Sure Why
February 27, 2023
No Comments
TweetShareSharePin0 Shares Keen technophiles may recall that the internet is “a series of tubes” (not a “big truck”), and sometimes those tubes get congested. The late Sen. Ted Stevens (R-AK) fretted about streaming services crowding out other data packets. The analysis is highly technical, but do your best to follow: “Ten movies streaming across that
East Coast Bias
February 27, 2023
No Comments
TweetShareSharePin0 Shares The case of Park v. United States, Dk. No. 3312-22S shows a bias in the Tax Court’s electronic filing system that disadvantages petitioners in time zones to the west of Washington, D.C. Think of the Park decision as the Tax Court’s equivalent of the View of the World from 9th Avenue. It also