The Internal Revenue Service recently suspended a half dozen of its modernization programs, including two deemed essential to its plans for replacing its aging systems, according to a new report. The report, released Tuesday by the Government Accountability Office, urged the IRS to complete its long-delayed modernization plans and fully address its cloud computing requirements. … Read more
A just-released report on sales taxes has found that while the total number of transaction tax changes across the US declined, most jurisdiction categories actually continued to see rate increases. The overall number of sales tax rates and rule changes appears to have reached the lowest level in eight years, according to Vertex’s “End-of-Year Sales … Read more
The Organization for Economic Cooperation and Development unveiled technical guidance for its far-reaching reform of the global tax system in which multinational companies would be subject to a minimum tax of 15% on their profits. The OECD and the G20 agreed on a so-called Pillar Two framework in 2021 for imposing a 15% minimum tax … Read more
The next generation of tax is focused on digitization of operations. The modern-day tax department is faced with tackling numerous operational, legislative and technical challenges. We are seeing significant shifts in the approach to handling international taxation owing to initiatives such as the OECD’s Base Erosion and Profit Sharing (BEPS) 2.0 framework, and handling tax … Read more
The Internal Revenue Service audits Black taxpayers at 2.9 to 4.7 times the rate of non-Black taxpayers, mainly due to automated algorithms that flag discrepancies in claims for tax credits, according to a new academic study that looked at racial disparities in tax audits. The study, released this week by Stanford University’s Institute for Economic … Read more
This year’s tax season, the first post-COVID, began on Jan. 23 with anticipation of a return to normal. Tax preparers went in with two hopes, according to Roger Harris, president of Padgett Business Services and former chairman of the Internal Revenue Service Advisory Council: “The first is that we’re back to normal, whatever that means … Read more
Tax-related fraud more than doubled in 2020 compared to 2019, according to John Gilmore, head of research at private security firm DeleteMe. Between 2016 and 2019 the trend had been declining, according to Gilmore. “There are ‘boom years’ where fraud rings relaunch mass scams, often prompted by special provisions or credits which may create opportunities … Read more
Donald Trump demanded reams of information from the Internal Revenue Service as it was preparing to turn over his personal tax returns to a congressional committee, papering the agency with a deluge of Freedom of Information Act requests in search of a behind-the-scenes look at its deliberations, new documents show. The former president routinely works … Read more
General Motors Co. has taken a central role in pushing the Treasury Department to change how the government defines a sport utility vehicle and expand how many buyers can get electric-vehicle tax credits under President Biden’s Inflation Reduction Act. Billions of dollars in EV incentives over the next decade are at stake as the government … Read more
To leave “no traces” as they hid billions in Canadian trusts for rich French families, a group of asset managers and lawyers referred to clients as “the old lady” or “the painter.” They periodically destroy office computers. But relationships soured and spilled into court, and now their methods have been exposed in a ruling that … Read more
