Accounting
Business Deduction or Entertainment?
Does the Tax Cuts and Jobs Act (TCJA) help you save money on your business deductions? Many businesses were frustrated by changes in allowed dining and entertainment deductions. Did you know there are proposed regulations addressing that elimination of deductions for entertainment, amusement or recreation activities related expenditures? New guidance will be offered to determine whether…
Read MoreState and Local Individual Income Tax Collections per Capita
The individual income tax is one of the most significant sources of revenue for state and local governments. In fiscal year 2017, the most recent year for which data are available, individual income taxes generated 23.3 percent of state and local tax collections, right behind general sales taxes (23.6 percent). The map below shows combined…
Read MoreCommon Tax Mistakes to Avoid
AcctServices.org reminds you of several common taxpayer errors that can impact your refund, and possibly your taxes, this year and beyond. A quick check before filing can save you much pain later. Here’s the list from the IRS of frequently received tax filing mistakes: Missing or Wrong Social Security Numbers, or EIN numbers. Unless this…
Read MoreHow Do You Find a Great, Affordable Tax Preparer?
Are you looking for a good tax preparer or do you want to prepare your own tax return? Maybe you have concerns about your income or your expenses. A professional tax preparer can help answer your questions and file on your behalf but how do you find a good preparer? The IRS offers guidance on…
Read MoreSummary of the Latest Federal Income Tax Data, 2020 Update
The Internal Revenue Service (IRS) has released data on individual income taxes for tax year 2017, showing the number of taxpayers, adjusted gross income, and income tax shares by income percentiles.[1] The data demonstrates that the U.S. individual income tax continues to be very progressive, borne primarily by the highest income earners.[2] In 2017, 143.3…
Read MoreHow Controlled Foreign Corporation Rules Look Around the World: Colombia and a Perspective of Latin America
The Colombian CFC regime was enacted in 2016 (Law 1819). An entity in Colombia is considered a CFC if it is not a resident in the country and is controlled by one or more Colombian tax residents. Colombia is not part of the OECD but is one of the Latin American countries that has done…
Read MoreAnalysis of the Economic, Revenue, and Distributional Effects of Repealing Step-up in Basis
With Super Tuesday approaching, the six top Democratic presidential candidates continue to hone their tax proposals in order to address income inequality and raise additional federal tax revenue. Some candidates propose changing the tax treatment of deferred assets, specifically assets passed onto heirs after death. For example, shortly after launching his campaign, former Vice President…
Read MoreInsights into the Tax Systems of Scandinavian Countries
Scandinavian countries are well-known for their broad social safety net and their public funding of services such as universal healthcare, higher education, parental leave, and child and elderly care. High levels of public spending naturally require high levels of taxation. In 2018, Denmark’s tax-to-GDP ratio was at 44.9 percent, Norway’s at 39.0 percent, and Sweden’s at 43.9 percent.…
Read MoreMaryland Lawmakers Consider Sales Tax Hike on Businesses
Last week, Maryland House Majority Leader Eric G. Luedtke (D) introduced HB1628 which, if enacted, would expand the state sales tax base to include services and raise an estimated $2.6 billion annually by 2025. The concept of broadening the sales tax base to include retail service consumption is one that tax economists across the spectrum…
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