As a follow up to our recent Tax Flash reporting the House of Representatives passage of the Extenders Act on December 3, on December 16, the Senate passed the Tax Increase Prevention Act of 2014 ("Extenders Act").
United States citizens (and green card holders) residing outside the U.S. often lose sight that they are required to file an annual income tax return with the Internal Revenue Service and report their world-wide income. An expatriate who learns about the U.S. filing requirement often does not know where to begin, especially if they have been living overseas for many years and have not been filing U.S. tax returns.
As we mentioned last week in an earlier Insights and Alerts Tax Flash, on December 3, the House voted to retroactively restore for 2014 nearly all of the tax provisions that expired at the end of 2013.
Be prepared for the new requirements of Accounting Standards Update 2013-08 (the “ASU”) and so that you can evaluate the requirements of this ASU to make sure that you maintain compliance with this new standard.
On December 3, the House overwhelming voted, 378-46, to retroactively restore nearly all of the 55 tax provisions that expired at the end of 2013. The new legislation would give taxpayers immediate relief for 2014, but once again, leave us all in unknown status for 2015.
The IRS has recently released Revenue Procedure 2014-61, providing its annual inflation adjustments for various tax provisions, including the tax rate schedules, standard deduction, personal exemptions, and other items.
The IRS has recently issued Notice 2014-58, which provides additional guidance on certain aspects of the economic substance doctrine. A transaction has economic substance if the transaction changes (in a meaningful way) the taxpayer's economic position and the taxpayer also has a non-federal income tax business purpose for entering into the transaction.
As mentioned in our prior News & Events Alerts, during June 2013, Governor Andrew Cuomo unveiled a START-UP NY program which aims to foster entrepreneurialism and job creation through the introduction of tax-free zones throughout the state. These zones are created through partnerships with New York colleges and universities.
New York State withholding tax returns (Form NYS-1- "Return of Tax Withheld" and NYS-45- "Quarterly Combined Withholding, Wage Reporting, and Unemployment Insurance Return") due on or after April 30, 2015 must be electronically filed and electronically paid using the NYS Department of Taxation and Finance website.
On December 30, 2013, the Internal Revenue Service (IRS) issued guidance explaining the circumstances in which it will not challenge partnership allocations to its partners under IRC Section 47, The Rehabilitation Credit.
The New Jersey Division of Taxation has announced a limited-time opportunity for individuals and businesses with unpaid tax liabilities to enter into closing agreements with the state and resolve these liabilities. The program covers all types of taxes from 2005 through 2013 and will end on November 17, 2014.
The Massachusetts Department of Revenue has granted a limited amnesty program for taxpayers with existing personal and/or business liabilities. Participation in this program for eligible taxpayers could result in significant savings of assessed penalties.