A gap in the Tax Cuts and Jobs Act allowing hedge funds to avoid a new carried interest rules may not be as easy to fix as Treasury Secretary Steven Mnuchin has suggested.
Featured articles are a combination of selected articles from Tax Analysts' Tax Notes publications and other articles important to the fair administration of taxation.2018
February 22, 2018
February 20, 2018
The White House’s chief economist stepped up to bat for President Trump’s deficit priorities, arguing that the tax cuts’ $1.5 trillion price tag was needed to improve U.S. tax competitiveness.
February 16, 2018
The White House is determined to make the Tax Cuts and Jobs Act’s expiring individual income tax provisions permanent, though a legislative push to do so may have to wait until 2019.
February 15, 2018
Fund managers using shell companies to avoid stricter limits on the use of carried interest aren't likely to see the tax benefits they were expecting. The IRS will be issuing guidance in the next two weeks that will prevent investment fund managers from using such maneuvers to sidestep the three-year holding period for assets created under the Tax Cuts and Jobs Act, Treasury Secretary Steven Mnuchin said February 14.
February 14, 2018
The new tax law’s corporate-friendly changes welcomed by most businesses have left investors and brokers involved in the tax credit financing industry spinning.
February 13, 2018
Of the state and local tax deduction workarounds proposed by several high-tax states, allowing taxpayers to claim state tax payments as donations in order to claim the federal charitable deduction seems the likeliest to succeed.
February 9, 2018
New Jersey and New York governors refuse to let up in their assault against the new federal law that caps the deduction for state and local taxes. New Jersey Gov. Phil Murphy (D) February 8 called on state lawmakers to send him a bill that would allow taxpayers to pay property taxes as charitable contributions to circumvent the new $10,000 cap on the federal deduction for state and local taxes.
February 8, 2018
Democrats are offering a taste of their election year argument against the GOP’s new tax law, pointing out that corporations, not individuals, disproportionately reap the benefits. Senate Finance Committee ranking minority member Ron Wyden, D-Ore., told reporters Feb. 7 that companies have “announced nearly $100 billion in corporate stock buybacks” since Republicans passed the Tax Cuts and Jobs Act, while only 2 percent of adults have seen any benefit from the law.
February 7, 2018
Differences between how the chained consumer price index and the standard CPI are published may complicate estate tax planning by forcing taxpayers to rely on estimated adjustments.
February 6, 2018
Lawmakers are working to make technical corrections to a provision in the Tax Cuts and Jobs Act that puts many grain suppliers at a competitive disadvantage to agricultural cooperatives. The provision, which offers a deduction to farmers and ranchers who sell to cooperatives, was a last-minute addition to the month-old tax law (P.L. 115-97) and prompted howls from independent grain companies unintentionally threatened by the change.
February 1, 2018
The tax law’s public image could still use some help, but some recent polls suggest Republicans have a reason for optimism.
February 1, 2018
California tax officials have been quietly arranging for loads of cash to be deposited with Bank of America, a process that's frightened employees tasked with receiving money that reeks of marijuana. Selvi Stanislaus, executive officer of the California Franchise Tax Board, confirmed January 30 that state tax authorities have been working with Bank of America to make it easier for cannabis businesses to turn over cash to comply with their state tax obligations.
January 31, 2018
President Trump took credit for tax reform and the strong economy during his first State of the Union address, and in doing so pitched a message that Republicans hope will resonate with voters ahead of the 2018 elections.
January 30, 2018
More than two dozen conservative groups renewed their effort to get the White House to index capital gains to inflation by executive fiat, but doing so would raise both legal and practical questions.
January 30, 2018
The new 21 percent corporate tax rate is high enough that many businesses are likely to keep pursuing tax-free transactions, even as others consider the advantages of taxable transactions, two former Treasury officials agreed January 29. “I think just the rate itself probably isn’t changing the landscape too much,” Marc Countryman of EY, a former Treasury associate tax legislative counsel, said at the University of Southern California Gould School of Law Tax Institute in Los Angeles.
January 29, 2018
New York, New Jersey, and Connecticut are organizing a multistate coalition to challenge the constitutionality of the new restrictions on the federal deduction for state and local taxes.
January 26, 2018
Treasury officials harbor reservations about a new tactic some states are considering to avoid high property taxes — allowing tax-deductible donations to state-affiliated charities — but are not outright rejecting it.
January 25, 2018
On the same day its director sought more funding from Congress for staffing and transparency efforts, the Congressional Budget Office announced that the release of its annual budget and economic outlook would be delayed.
January 24, 2018
It’s unclear if the carried interest provision in the new tax law is intended to apply only to C corporations or to S corps as well. The IRS may not be able to fix the oversight in guidance if the problem isn’t addressed by Congress in technical corrections, according to practitioners.
January 23, 2018
Since the U.S. Supreme Court agreed to hear South Dakota v. Wayfair Inc., Tax Analysts has heard from dozens of practitioners, academics, interested parties, and members of Congress. While there is a clear consensus that the Court did not take the case to simply reaffirm Quill, there is a wide range of opinion on just what the justices will do and how. Here, in their own words, is their take.