Archive for August, 2012

How to Get a Transcript or Copy of a Prior Year’s Tax Return from the IRS

Friday, August 24th, 2012

Taxpayers should keep copies of their tax returns, but if they cannot be located or have been destroyed during natural disasters or by fire, the IRS can help. Whether you need your prior year’s tax return to apply for a loan or for legal reasons, you can obtain copies or transcripts from the IRS.
Here are 10 things to know if you need federal tax return information from a previously filed tax return.

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Creating More Sales Tax Collectors

Friday, August 24th, 2012

How the enactment of so-called “Amazon” or “affiliate nexus” laws may provide states with more sales tax collectors.

In the first half of 2011, five states enacted laws that modify the definition of retailer for sales-tax purposes in the hopes of making certain remote retailers become tax collectors in their states.

Read More » [cpa2biz]

Trademarks alone are not enough for income tax nexus

Friday, August 24th, 2012

A recent West Virginia case is a reminder that the use of intangibles in a state does not automatically lead to a finding of income tax nexus.

In May, the West Virginia Supreme Court, famous for its 2006 MBNA ruling on economic nexus, found that ConAgra Brands, which received royalties from intangible trademarks used in the state, satisfied neither the “purposeful direction” test under the Due Process Clause nor the “significant economic presence” test under the Commerce Clause to be subject to the state’s corporate net income or business franchise tax.

Read More » [cpa2biz]

Deducting Employee MBA Expenses

Friday, August 24th, 2012

The deductibility of the cost of a Master of Business Administration (MBA) degree under Sec. 162(a) as a trade or business expense for an employee is a complex subject, with several factors to consider. The costs of an MBA are generally deductible if the degree maintains or improves skills required by the individual’s employment or trade or business or meets the express requirements of the individual’s employer or the requirements of applicable law.

Read More » [aicpa]

Taxation of Frequent Flyer Miles

Friday, August 24th, 2012

A benefit has only lately received attention after flying under the radar for many years: tax-free receipt of frequent flyer miles.
Earlier this year, several news outlets reported that Citibank surprised many of its customers by issuing Forms 1099-MISC, Miscellaneous Income, to report the value of frequent flyer miles the customers had received in exchange for opening new accounts as part of an ongoing promotion. Understandably, the customers were upset because, the value of the miles notwithstanding, many of them ended up paying dearly (through potentially as much as several hundred dollars in taxes) merely for opening an account.

Read More » [aicpa]

Offshore disclosure program makes a third go-round

Friday, August 24th, 2012

After two successful offshore voluntary disclosure programs, the IRS on Jan. 9 announced a new 2012 Offshore Voluntary Disclosure Program (2012 OVDP). Under the previous two programs, the 2009 Offshore Voluntary Disclosure Program (2009 OVDP) and the 2011 Offshore Voluntary Disclosure Initiative (2011 OVDI), which closed on Sept. 9, 2011, the IRS received over 33,000 disclosures and collected more than $4.4 billion in taxes and penalties (IR-2012-5).

Read More » [cpa2biz]

E-mails spread concern about a new “real estate transaction tax”

Thursday, August 9th, 2012

The impending 3.8% Medicare surtax has fueled a spate of chain e-mails regarding a federal “real estate transaction tax” on home sales, and practitioners are hearing from worried clients. This article separates fact from fiction to help practitioners educate clients about how the Medicare surtax works and how it won’t apply to most home sales.

Read More » {Journal of Accountancy}