Key Takeaways
- Tax Policies
- 1099-K Update
- AI and Tax Authorities
- Foreign E-Filers
- In Tax Court
Tax Policies
The Tax Angle: TCJA Debate, S Corp. Compliance - Stephen K Cooper, Law360 Tax Authority ($). "From a look at congressional lawmakers ramping up their debate over the expiration of the GOP's 2017 tax overhaul law to the IRS' plans to provide more oversight for pass-through businesses and S corporations, here's a peek into a reporter's notebook on a few of the week's developing tax stories."
Johnson Says Congress Will ‘Do the Math’ on Key Trump Tax Pledge - Alicia Diaz, Bloomberg Tax($). "House Speaker Mike Johnson said Donald Trump’s plan to end income tax on tips would have to be paid for, injecting a note of caution into one of the president-elect’s key campaign pledges.
SALT Cap Opponents Empowered in Narrow House Majority Next Year - Zach C. Cohen, Bloomberg Tax($):
But a narrow majority in the House empowers members from high-tax states determined to help constituents with their tax bills. These lawmakers can threaten to buck the entire package without a concession on the issue.
Hedge Fund Group Urges Trump To Reject 'Punitive' Policies - Tom Zanki, Law360 Tax Authority ($). "A leading industry group representing hedge funds and other alternative asset managers is urging President-elect Donald Trump to abandon "punitive" economic policies and instead propose tax and regulatory relief, including business-friendly priorities at the U.S. Securities and Exchange Commission."
PayPal, eBay Gear Up for 1099-K Headaches While Chasing a Fix - Erin Slowey, Bloomberg Tax($):
While the new threshold doesn’t change what anyone owes, it does change what companies report and which tax forms a casual seller receives. The e-commerce industry has warned that more taxpayers may over-report and be at greater risk for audits.
AI and Tax Authorities
NY AI Regulation Bill May Impede Tax Dept. Operations - Paul Williams, Law360 Tax Authority ($):
The legislation, S.B. 7543, would require state agencies to have human oversight of certain "automated decision-making systems" and to disclose any such operations to the state's top lawmakers and governor. This would be done through "impact assessments" that would evaluate, among other things, whether an automated system produces results that discriminate against a class of individuals, including by their race, gender or sources of income.
Foreign E-Filers
IRS to Introduce Identity Assurance Process for Foreign E-Filers - Kiarra M Strocko, Tax Notes($):
The authentication process is intended to alleviate the challenges foreign filers face in obtaining a transmitter control code (TCC) for identity verification purposes.
Need International Tax Consulting? Contact Eide Bailly International Tax Services.
In Tax Court
Poor Counsel Led To Unjust Tax Convictions, Justices Told - Kat Kucero, Law360 Tax Authority ($). "A North Carolina actuary asked the U.S. Supreme Court to review a Fourth Circuit decision denying his bid to reverse his 2016 tax fraud convictions, saying the ruling was based on bad decisions made by his then-trial counsel."
Man Gets 6 Years For Tax Evasion With Watches, Casino Chips - Anna Scott Farrell, Law360 Tax Authority ($). "A former New Jersey businessman was sentenced to more than six years in prison and ordered to pay roughly $10.3 million in restitution to the Internal Revenue Service after being convicted of evading taxes using ploys involving luxury watches and casino chips."
IRS Highlights Passive Voice in Fraud Limitation Period Statute - Nathan J. Richman, Tax Notes($). "The plain language of the fraud exception to the normal three-year statute of limitations on assessment shows that the identity of the fraudster is irrelevant, the government told the Third Circuit."
Amgen Questions IRS’s One-Size-Fits-All Approach at Tax Court - Alexander F. Peter, Tax Notes($). "In a pretrial memorandum in its $11 billion transfer pricing dispute, Amgen asserts that the IRS’s indiscriminate use of the comparable profits method is a flawed approach to transfer pricing."
New York’s Embattled Tax on Remote Workers Faces Key Court Test - Danielle Muoio Dunn, Bloomberg Tax($):
Edward Zelinsky, a Cardozo Law School professor, will argue New York owes him a refund for taxes imposed on his income when he worked remotely from his Connecticut home in 2019 and 2020, including when he was unable to access his New York City classroom because of the Covid-19 pandemic.
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