Tax

This tax season had fewer bumps than many expected

For tax preparers who were somewhat dismayed by the recent IRS statistics indicating a slight drop-off in the number of taxpayers who were using a professional to prepare their taxes as opposed to do-it-yourself tax software, take heart.

The push for a corporate tax holiday to encourage repatriation of an estimated $2.1 trillion in foreign profits seems to have gained traction again, thanks to a recent proposal from former President Bill Clinton, but such an idea could provide multinational companies with the incentive for earnings manipulation, according to a new study.

U.S. corporations have reported to the Internal Revenue Service that 54 percent of their offshore profits are earned in 12 tax haven countries that, combined, only account for 4 percent of economic output among all countries where U.S. corporations do business.

Thomson Reuters has released a pair of new client marketing newsletters for CPA firms seeking to grow their accounting, auditing and international tax practices.

A site that connects people to online accounting degree programs has created a new infographic on Taxes Around the World, including some strange taxes such as a tax on cow flatulence in Denmark and a tax break in Canada for makers of breakfast cereal who put toys inside the boxes.

The recently released discussion draft of the Tax Reform Act of 2014 by the House Ways and Means Committee is intended to simplify the existing tax code, make it fairer to taxpayers and strengthen the U.S. economy by lowering tax rates.

A new report from the advocacy group Citizens for Tax Justice finds that 301 Fortune 500 companies hold a combined $2 trillion offshore, collectively avoiding $550 billion in U.S. corporate income taxes, while a contrasting report from the Tax Foundation found that U.S. multinational corporations reported paying more than $128 billion in corporate taxes to foreign countries on $470 billion of taxable income in 2010—an effective rate of 27.2 percent before also paying U.S. taxes.

The economic benefits of the income exclusion for U.S. citizens working abroad are uncertain, according to a new government report.

Thomson Reuters has released a tax act overview and monthly client marketing newsletter focused on the Affordable Care Act that tax, accounting and employee benefits firms can provide to clients, prospects and other contacts.