ONESOURCE Blog - Latest Comments

Re: Form 1099: Pennsylvania has new requirement for 1099-MISC reporting for 2012

VonRue — Wed, 16 Jan 2013 13:32:07 -0000

I am the treasure at a church in PA and I'm a little unclear if this new rule means all 1099-misc forms sent to the IRS also need to be reported to PA, or does this only apply for oil and gas leases?

Re: Form 1099: Pennsylvania has new requirement for 1099-MISC reporting for 2012

VonRue — Wed, 16 Jan 2013 13:29:19 -0000

I'm a little unclear if this new rule means all 1099-misc forms sent to the IRS also need to be reported to PA, or does this only apply for oil and gas leases?

Re: Kansas Department of Revenue announces changes to 2013 property tax interest rates

John Stark — Tue, 28 Aug 2012 19:02:18 -0000

With in the next 20 days I will be fully responsible for selling the home that I paid off to 0.00 Balance..I will become a Displaced veteran because of how this legislation has affected my house hold after the primary wage earner passed away suddenly from Cancer...The DOMA statute is now causing direct extreme financial harm to a wide demographic segment of the LGBT community who are either married or registered Domestic partners. DOMA makes it impossible to solve all debts from an estate should it be done correctly for a LGBT household estate....I urge any one reading this to submit This typed message to the President for actual review...The social security benefits earned over a life time was not used at all to solve the intended problem of taking care of the survivor of this estate..Of which was enough to pay for the entire Tax liability that arose from how the Bank Mis Handled the Estates' fiscal TAX obligations upon the death of the account holder. This in turn would solve the 5 years of combined taxes incurred by forcing the estate to start liquidating all accounts of which each account was hit for a 20% withholding per account plus a rate of 3 times the expected Tax liability for the entire yearby the IRS of what was inherited.If the money from the Social Security account had been used to satisfy the bulk of the Tax obligations that arose...The Social Security Administration would have still netted $44,400.00 from my partners Life time earnings , thus leaving the estate less burdened and able to be closed out and finalized by common expected standards and practices.I had a Community property agreement when I went into our local Credit union..Of which did not know how to address a document between 2 men as registered Domestic partners..I hope DOMA is Defeated I was denied any use of accounts from our bank and also not permitted due access to the Safety deposit box that was verified with wrong address credentials and social security # by the bank!This past year will have placed a burden upon this estate of $62,000.00 versus taking care of all accounts a losing $106,800.00 back to the Social Security administration. To Mitt Romney And Paul Ryan!I hope one day you have to watch the person you love actually dies of AML Leukemia, then spend over 2.21Million dollars on their health care in less than 6 months...and then be asked to clean up the financials afterwards...Your callous betrayal of fiscal responsibility of how DOMA is being deployed is making me not like you at all...I am saying the amount the Social Security Administration kept/stole from his life time account belonged to the Estate..It would have solved the Estate correctly after this huge burden was placed on the non head of the household.A community property agreement says clearly all accounts all amounts are granted or inherited to the estate and passed on to the remaining spouse or manager of the estate matters....I find that your apparently not able to understand the legal terms of court sanctioned documents such as that of a Community Property agreement...The lifetime benefit money earned should have been applied towards the tax burden it was in essence responsible for, thus leaving the Social Security administration at least netting at $44,400.00 from his earned benefits! Having to adjust your yearly income tax by $62,000.00 is not normal in any ones world..let alone watching alot of Callous people sitting by that are not able to understand it! The balance of the situation is the money that is withheld from the persons' lifetime earnings is the actual money that belongs to the estate of the deceased and should be made available to those who are compromised by the sudden death of the household wage earner. DOMA restricts this type of fiscal responsibility to the dependents of a deceased partner or loved one that is regarded as the head of household upon their death. They simply take back the money without any fiscal regard of the harm it causes to the household after a person dies...The lifetime earned benefit money belongs to the estate of the deceased..not the Social Security Administration.

Re: The Mayor of Sacremento Does not Support a Sales Tax Increase

Ricky Brooker — Thu, 23 Aug 2012 18:23:50 -0000

The Mayor's office drops the ball and fails to present the opposition to this sales tax increase on the November ballot.

http://sacramento.cbslocal....

Re: New W-8BEN and W-8BEN-E Forms: Drafts Released by the IRS

Briggs David — Fri, 17 Aug 2012 17:50:52 -0000

Is this form required for gifts to individuals such as, personal gifts, charitable gifts, religious offerings, donor funds, etc?

Re: New Excise Tax on Medical Devices a Sales Tax?

Andy — Wed, 11 Jul 2012 12:26:28 -0000

I just looked up the cost of a total hip replacement (http://www.orthomercy.com/w... and was not surprised to find that the cost of the medical devise was a small fraction of the total cost. Moreover most such proceedures are paid for by Medicare. It will be interesting to learn if manufacturers are able to pass along the excise tax to patients, surgeons or hospitals of if they will have to absorbe the cost of the tax.

Re: President’s Budget Proposes Making R&D Credit Permanent

corporate tax planning — Tue, 19 Jun 2012 10:44:04 -0000

Where goes
the border between tax planning and tax fraud, or is it constantly moving as
laws are changing?

Re: Survey Says…80% of Taxpayers Want A Reduced Corporate Tax Rate

swedish holding company — Tue, 19 Jun 2012 10:26:40 -0000

Swedish
holding companies are supposed to be attractive for corporate tax planning
purposes; do you know in which exact way they are favorable?

Re: FATCA Public Hearing: Requests for Postponement of Effective Dates but No Immediate IRS Response

wjeretidwell — Mon, 04 Jun 2012 23:01:38 -0000

Congress amounts to no more than a high school debating society. They mull over questions and come to conclusions as individuals, but when it comes to passing real solutions, they are not even as good as the debate team I was on in High School. We were powerless and so are they.
There is one thing they can do and that is spend taxpayer money and we couldn't.
Is it any wonder that their approval rating is 8%. With that approval rating you'd think they would have trouble getting re elected, but 95% are sent back to the debating society every two and every six years.
The FairTax is the only solution to fair taxation and a totally new congress is the solution to over spending.
If the FairTax was passed all the other FATCA problems would fade away. Spending is another more entrenched problem. A trillion of wasteful spending goes on every year and those getting the money won't give up easily.

Re: FATCA Public Hearing: Requests for Postponement of Effective Dates but No Immediate IRS Response

wjeretidwell — Mon, 04 Jun 2012 22:44:59 -0000

R,
The unfortunate part of this is that both major parties have supported citizenship based taxes. Each has had a chance to repeal or replace the insane Marxist Income Tax and neither has even proposed it. Way and Means has not held any serious hearings on repeal of the insane tax code. The only really sane taxing system is the FairTax and every major candidate and every politician has opposed hearings. They would rather eat their children than give up campaign contributions and they can pass 7 or 8 thousand private bills annually that causes these contributions and every one of the incumbents gets theirs, and they really love their children.

Re: FATCA Public Hearing: Requests for Postponement of Effective Dates but No Immediate IRS Response

markcarswell — Mon, 04 Jun 2012 15:04:21 -0000

Ms. Couch: RogelioC has covered this issue very well. I can add little. Dugan

Re: FATCA Public Hearing: Requests for Postponement of Effective Dates but No Immediate IRS Response

RogelioC — Mon, 04 Jun 2012 14:22:04 -0000

Mariann: Push the
effective date back until when? Until Hell Freezes over? Does anybody think for
one moment that the 192 nations of the world are all going to repeal their
privacy laws which currently punish their banks for releasing the kind of
information that they are demanded to provide to the IRS by US Law? And none of
them are showing any indication they are going to amend their sovereign
constitutions to transform their banks into uncompensated agents of the IRS by
collecting taxes and remitting this revenue to Washington.

This is the most
imperialistic legislation piece of legislation ever dreamed up on Capitol Hill.
Senator Levin deserves the Nero Medal of Honor for introducing FATCA and IRS
Commissioner Doug Schulman the Titanic award for lowering the boom on foreign
financial institutions if they do not Kow Tow to US demands.

Do you suppose either of
these, or anybody else in Washington,
will get the message when foreign investors start massive withdrawal of their
trillions of dollars in capital investments from the US
and what's left of our economy heads down the tubes? Oh yes, they will both
probably be gone by that time, thus leaving the mess they have created to
someone else to try to get out of it. Unfortunately the Republicans are
ignoring the chaos they helped create by massively voting in favor of FATCA as
well

Meanwhile foreign banks,
who refuse to violate the laws of their own countries, are cancelling the
accounts of US
citizens living abroad, without which they cannot survive. The want nothing to
do with this toxic legislation. Just watch as our $747 billion trade deficit
soars to new heights, while more American manufacturing jobs are lost, because of
the already reduced number of Americans living abroad; vainly trying to compete
with tens of millions of citizens of our high-cost trade competitors to sell
our exports. Foreigners, unlike Americans, are not discouraged by US-style
double taxation because they are never double taxed when working abroad by
their home countries. Only the US
does that. The purpose for which is to keep Americans from going abroad to sell
our exports. So the few that do go are totally overwhelmed by their foreign competitors
whose countries praise them as patriots for going abroad to sell the products
that create jobs at home. The tax
revenue generated for the US
treasury by double taxing Americans living abroad is roughly half as much as
the IRS pays out in Refundable Child Tax Credits to illegal aliens with alleged
dependent children living in foreign countries. Yet Senator Reed refuses to plug this massive
drain on the US Treasury by allowing a vote on the Hosed passed bill HR 5652 by
even allowing a vote on it in the Senate.
That’s not a priority, but insuring that Americans stay home is.

It is now abundantly
clear: If you are an American abroad the only way you can survive is, if you
are not already a citizen of the country where you live and work, do it right
away, and renounce your US
citizenship as soon as you can. You are branded as a tax-evading traitor by
Levin and Schulman for living abroad. Not incidentally, renunciations last year
were up 800% of the year before, even though most of them live in countries
with higher taxes than in the US.

Re: FATCA Public Hearing: Requests for Postponement of Effective Dates but No Immediate IRS Response

Just_Me_Also — Mon, 04 Jun 2012 11:16:19 -0000

Marianne.

Thanks for writing about this....

After all the opening patronizing comments about supporting the goals of FATCA thanking the IRS for "allowing" them to comment, the speakers got down to some pretty serious criticism and concern about FATCA rules as now in draft form.

Sadly, there was very little outright push back at all these extraterritorial compliance requirements, other than to say, by some, "we can't do that!" Maybe those that stayed home are sending a message with their absence!

The strongest statements of what was wrong with FATCA, in my opinion came from Japan, Sweden and Black Rock.

Not only were implementation delays requested, but many many other serious concerns were expressed. The general consensus was that it would take 18-24 months from the point of finalization to implementation, if it was doable at all.
Here are a few quotes.

Only the Bank of New York Mellon, said "Of course we will be compliant."

The Canada Banking Association said, “Financial institutions cannot be expected to start building systems until the regulations and the FFI agreements are finalized.”

Another speaker said "We cannot even begin implementation in earnest until the regulations, intergovernmental agreements, and relevant forms are finalized."

Also, in my reading of the comments, I was struck by the general pessimism about the rules and how unworkable they are. Many concerns about the unintended consequences and systemic risks to the international financial markets were expressed.

Certainly the NYC and AML were mentioned often as a better method to be used in place of the obnoxious and unworkable documentation requirements of FATCA. There was much pleading for using Risk assessment models as a better way of assessing who needed to comply. There were also many pleas for this or that entity or group to be "deemed compliant" and lots of exceptions requested.

For the readers interest, here is a non exhaustive list of comments I noted and jotted down.

-Rules unfairly favor U.S. banks over FFIs

-Need a risk based approach

-Due diligence inconsistent with AML/KYC

-Conflicts with local and foreign law

-Documentation renewal and records very expensive, eliminates the convenience of opening an online account.

-Entity documentation should be made considerably less burdensome

-superannuation and retirement funds must be deemed compliant

-Implementation should be delayed ~18-24 months after final regs.

-Treasury has not considered FATCA's impact on investors, capital markets, and penalizes U.S. funds

-extremely unreasonable and unfair that punitive withholding tax would be imposed

-Regarding Mutual funds- one-size-fits-all approach doesn't work in practice

- FFIs will need to quarantine some branches/affiliates in countries where compliance cannot be achieved.

-Regs a step backward, unnecessary impediments, a very negative effect on U.S.
competitiveness, U.S. jobs, and U.S. capital markets.

-The definition of a "U.S. person" very complicated for IT support criteria.

-Our lawyers read the text of the regs and no one understands it. (Laughter)

-Impossible for financial institutions to meet required target dates

-Certain "so called" Entities are not really entities so need exceptions

-Unnecessary and costly duplication of effort and must be modified in the final regulations

Thinking about what I read, you have to wonder what is the likelihood that the IRS is going to resolve all those problems in the short time left before the final Regs are due this fall?

Or will they just press ahead without any consideration of the testimony and this was just kabuki theater?

There certainly were no questions asked by the IRS and Treasury group who were there to listen, so not sure what, if anything, they actually heard and took on board.

BTW, I have put up links to 4 of the testimonies which were of interest to the Isaac Brock Society in Canada.

The Canadian Bankers Association bit.ly/JFEuG2

TD Bank Group, a worldwide financial services group headquartered in Toronto, Canada http://bit.ly/NcbwmX

Australian and New Zealand Banking Industry http://bit.ly/LsDHK6

World Council of Credit Unions. http://bit.ly/KV3FqM

Cheers, and enjoy!

Re: 3 simple ways to think about data management for your provision

kalpana ganesan — Fri, 11 May 2012 04:44:28 -0000

Informatics Outsourcing is an Offshore Data Management service company. Data Management Service includes all types of Data Conversion, File Conversion, XML Conversion, HTML Conversion,SGML Conversion, Document Conversion,Data Entry, Data Extraction and Validation,OCR and ICR Services with affordable price. Our team to give the solution quickly and given requirements.

Re: Fun with International Tax Provision Issues

Charlesp Sparano — Mon, 07 May 2012 09:32:37 -0000

Good initial discussion. However, like a good book, it left me wanting more. And yes, tax provision can be fun.

Re: 2013 Property Tax Assessment Notices Mailed in Washington DC

How to Appeal Property Taxes — Mon, 30 Apr 2012 10:05:31 -0000

Property tax information in Manhattan is always something everybody wants to confirm, this will be a very useful blog topic.

Re: 2013 Property Tax Assessment Notices Mailed in Washington DC

How to Appeal Property Taxes — Thu, 26 Apr 2012 12:17:46 -0000

Great info…the other sites didn’t really provide anything new like this..Thanks a lot

Re: A Simpler Way to Keep Track of Indirect Tax

Luis_Perez — Wed, 25 Apr 2012 17:49:19 -0000

One of the gaps we've come across with ONESOURCE Indirect Tax is leasing. Dell had to procure VERTEX as well as ONESOURCE Indirect Tax to compenstate for this gap.

Re: New Cost Basis Rules May Be Lost on Many

Netbasis — Thu, 12 Apr 2012 17:13:51 -0000

Unfortunately many investors, and more importantly, tax professionals are still extremely uniformed or blind to the changes facing them this year. Even more alarming is the fact that these issues will compound again next year during filing with more of the changes coming into use.

Re: Tax Document Processing: It’s your bottom line – control it!

Katrina Najm — Tue, 20 Mar 2012 12:38:15 -0000

Very interesting article!