Congress returned to business as usual this week — gridlock, that is. Read the rest of this entry »
Friday Wrapup
July 30, 2010Push for Sales Tax on Internet Orders
July 30, 2010The idea has been out there for years, but a new push could turn it into a reality: companies selling over the Internet to individuals and businesses in states that impose sales tax could be required to collect and remit the tax. The days when you can avoid paying sales tax by ordering from Amazon or eBay could be numbered. Read the rest of this entry »
Small Business Tax Bill Stalls
July 29, 2010A day after it appeared there was a breakthrough to permit Senate action on the small business tax bill, negotiations hit a snag that apparently will prevent movement until after the August recess. The parties were unable to reach agreement on what amendments Republicans would be permitted to offer for floor consideration, and sixty votes to close debate are not available without such agreement.
GRAT Restrictions Removed From Law
July 28, 2010[Corrected] Congress has approved a war funding bill that does not include the new restrictions on grantor retained annuity trusts, or GRATs, that had appeared in an earlier version of the bill. The key provision imposes a minimum ten-year term on these trusts used in estate planning. Although the provision was eliminated from this law, it is likely to appear in later legislation as it is part of President Obama’s budget proposal.
For fuller discussion see our earlier reporting on this development: Last Gasp for Short GRATs?
Correction: An earlier version of this entry indicated that the GRAT restrictions were included in the bill as passed by Congress.
Senate to Act on Small Business Tax Bill
July 28, 2010Following agreement by Majority Leader Harry Reid to allow floor consideration of Republican amendments, the Senate appears poised to move forward with the small business tax bill. In addition to providing various tax benefits to small business, the Senate version of the bill would permit rollovers from regular 401k accounts to designated Roth accounts within the same plan. The most recent version would also eliminate the advance earned income credit.
It isn’t clear what amendments Republicans will offer, but a likely candidate is a repeal of the expanded Form 1099 reporting requirement that was included in the healthcare legislation.
Kentucky Disaster Relief
July 27, 2010The IRS has announced an extension of certain deadlines for taxpayers residing or having a business in Pike County, Kentucky, scene of severe storms beginning July 17.
Reprieve for Noncompliant Organizations
July 27, 2010A 2006 tax law changed the filing requirements for many smaller tax-exempt organizations, and says they lose their tax-exempt status if they fail to comply for three consecutive years. With thousands of these organizations facing this fate, the IRS has offered a limited, one-time reprieve. Read the rest of this entry »
Value Stocks and Growth Stocks
July 26, 2010Investors often encounter the terms value stock and growth stock. Perhaps you participate in a 401k that offers mutual funds that invest in one type of stock or the other. The terms may seem confusing. How can a stock be a good value unless it produces growth? Read the rest of this entry »
Friday Wrapup
July 23, 2010Tax news of interest to investors came mainly from the courts this week, though the IRS gave paid tax return preparers something to groan about. Read the rest of this entry »
Stock Loan Treated as Sale
July 23, 2010The Tax Court has sided with the IRS in a case where they sought to collect over $100 million in taxes from billionaire Philip Anschutz. At issue was a complicated arrangement known as a variable prepaid forward contract, in which Anschutz received cash up front for a sale to occur later. Anschutz loaned the shares that were covered by this contract to the firm providing the up front payment, permitting that firm to sell the shares. The court found that the prepaid contract and the lending arrangement had to be seen as part of a single deal, with the result being that the sale is viewed as taking place at the time of the up front payment rather than later as Anschutz intended. Read the rest of this entry »
