The resignation of two more top officials in the IRS's Large Business and International Division has prompted questions about the reasons behind what is proving to be a major shake-up of division leadership. Samuel Maruca, transfer pricing director, and Diana Wollman, director of international strategy, are the latest to resign. Maruca will leave the agency on August 1; no date has been announced for Wollman's exit. Last week the IRS confirmed that Michael Danilack, deputy commissioner (international) and U.S. competent authority, will leave the agency on July 2.
Featured articles are a combination of selected articles from Tax Analysts' Tax Notes publications and other articles important to the fair administration of taxation.2014
July 3, 2014
June 30, 2014
June 27, 2014
The latest set of instructions for forms that have been updated to reflect the requirements of the Foreign Account Tax Compliance Act provide helpful clarity, but they also contain references that could be difficult for users to understand, practitioners told Tax Analysts. The IRS on June 25 released the long-awaited instructions to the Form W-8BEN-E, "Certificate of Status of Beneficial Owner for United States Tax," as well as instructions to Form 8966, "FATCA Report."
June 24, 2014
Senate Finance Committee Chair Ron Wyden, D-Ore., is planning to release a mark of a six-month surface transportation funding bill on June 24 that will include a handful of tax provisions that together raise about $9 billion, a Senate aide told Tax Analysts June 23. The revenue measures in the mark are expected to include an extension of the heavy vehicle use tax for vehicles up to 80,000 pounds, a mortgage interest deduction compliance provision that would require additional information reporting from banks but not taxpayers, and a "stretch IRA" provision that would require
June 24, 2014
Concerned that the IRS whistleblower program does not process awards in a timely fashion, Senate Finance Committee leaders are asking the Government Accountability Office to look into the IRS processes and resources devoted to administering the program, according to a letter a Senate aide shared with Tax Analysts. In the June 20 letter to GAO Comptroller General Gene L. Dodaro, Finance Committee Chair Ron Wyden, D-Ore., and ranking minority member Orrin G.
June 23, 2014
A situation in Illinois that practitioners and tax administrators alike already described as a nightmare has taken a turn for the worse. The Chicago-based class action law firm that for more than a decade has been stepping into the role of whistleblower and filing hundreds of qui tam actions of questionable merit under the Illinois False Claims Act is now starting to claim the right to second-guess completed audits.
June 20, 2014
Though some of the issues raised by the OECD's base erosion and profit-shifting project lend themselves to multilateral solutions, Robert Stack, U.S. Treasury deputy assistant secretary (international tax affairs), said that others may be best left unresolved. Speaking at an International Fiscal Association U.S. Branch D.C. Region meeting in Washington June 17, Stack said that BEPS makes sense for addressing arbitrage opportunities such as hybrid mismatches, interest expenses, treaty abuse, and intangibles. He noted that one area the U.S.
June 20, 2014
The shareholder reports of two "Fortune 100 brand-name, iconic U.S. companies" rank Indian tax uncertainty among the top five global risks, Melissa Frakman, director of financial policy at the U.S.-India Business Council in Washington, said June 16. Speaking at Bloomberg BNA's Investing Into India: Legal and Tax Update in Crystal City, Va., Frakman said that for these companies, "U.S. fiscal budget concerns and Africa political concerns are up there with India tax concerns."
June 18, 2014
This paper was prepared for the National Tax Association's 84th Annual Conference at Williamsburg, Virginia, November 10-13, 1991. The Federation of Tax Administrators is an association of the principal tax and revenue collection agencies in the 50 states, the District of Columbia, New York City, and the Provinces of Ontario and Quebec, Canada. The views expressed herein are those of the author and do not represent the position of the federation or any of its members.
June 16, 2014
The U.S. government has made regular efforts since the 1990s to prevent companies from moving their business out of the United States. However, those efforts have been only partially successful as companies continue to seek lower corporate rates overseas. Even while lawmakers debate how to stop the current wave of inversions, the next set of transactions is already taking shape. The Problem
June 13, 2014
The European Commission on June 11 formally launched three separate investigations to examine whether Apple in Ireland, Starbucks in the Netherlands, and Fiat in Luxembourg all received transfer pricing-related tax rulings that violated EU state aid rules. Joaquín Almunia, the EU executive arm's vice president and competition commissioner, said the commission has "serious doubts" about the compatibility of three specific tax rulings with EC Treaty rules on state aid, but he clarified that the commission is not questioning tax rulings as a general concept.
June 13, 2014
The United States is engaging in bilateral examinations with foreign governments to ensure that a "culture of care" is in place for the electronic exchange of taxpayer information under the Foreign Account Tax Compliance Act and other regimes, according to Douglas O'Donnell, assistant deputy commissioner (international), IRS Large Business and International Division. The IRS is working with other jurisdictions to analyze their legal frameworks for information exchange, technology systems, and policies and procedures for the monitoring of access to the shared data, O'Donnell
June 13, 2014
U.S. Senate Majority Leader Harry Reid, D-Nev., and Sen. Rand Paul, R-Ky., are still working out the details of a plan to replenish highway funding with repatriated corporate earnings, and the Senate's top taxwriters still have to sign on to the idea for it to advance, a Reid aide told Tax Analysts June 11. The aide said Reid's proposal for a one-year repatriation holiday with a rate of 9.5 percent is not a final product but rather a basis for ongoing negotiations. "We are building this airplane while we try to fly it," the aide said.
June 12, 2014
Tax Analysts on June 11 filed an initial complaint in the California Superior Court for Los Angeles County seeking to compel the Franchise Tax Board to comply with the California Public Records Act (CPRA) by disclosing two forms that the FTB uses during audit.
June 11, 2014
This document originally appeared in the April 9, 2014 edition of State Tax Today.
June 6, 2014
In January French President François Hollande, attempting to deflect attention from revelations of his scandalous affair with a French actress, proposed a radical shift away from the tax policies of the leftist wing of his Socialist Party. After pursuing a multiyear agenda of tax increases and, most recently, a special 50 percent payroll tax on salaries in excess of €1 million, Hollande on January 14 proposed a substantial reduction of French corporate taxes. (Prior coverage: Tax Notes Int'l, Jan. 27, 2014, p.
June 2, 2014
A bill that Sen. Carl Levin, D-Mich., plans to introduce this week to restrict companies from inverting for tax purposes could include a sunset provision as an incentive for lawmakers who think tax reform is the only real solution to inversions.
June 2, 2014
Robert J. Firestone is a commissioner on the New York City Tax Appeals Tribunal and an adjunct professor of law in the graduate tax program at New York Law School. The views expressed are strictly the author's. In this article, Firestone argues that the Maryland Court of Appeals erred in its decision in Wynne v. Treasury and that the court's rationale, if applied throughout the country, would undermine the privileges and immunities clause and states' authority to tax their residents.
June 2, 2014
Just after Michigan Democrats and brothers Sen. Carl Levin and Rep. Sander M. Levin introduced legislation May 20 to tighten inversion rules under section 7874 that attempt to prevent U.S. companies from moving their tax residence overseas to avoid U.S. taxation, the top Senate taxwriter threw cold water on the idea of changing stock ownership rules before enacting comprehensive tax reform.