The document summarizes key provisions of the Bush-era tax cuts that are set to expire at the end of 2012 unless extended by Congress. It discusses lowering of individual income tax rates, capital gains rates, the estate tax exemption, and the alternative minimum tax. It also provides an update on efforts by Mexico to expand its tax information exchange agreement with the US.
President Obama was re-elected, setting the stage for difficult negotiations over expiring tax provisions. Key issues include the Bush-era tax cuts, automatic spending cuts, and over 50 expiring tax extenders. Obama supports allowing tax cuts to expire for higher incomes and increasing rates on capital gains and dividends for them. The fiscal cliff forces Congress to act by year-end on these issues.
The document discusses how the Uniform Commercial Code (UCC) secretly took over contractual agreements worldwide following the US bankruptcy in 1933. It explains how the UCC uses presumptions and implied consent rather than true contracts requiring full transparency and consent. If statements go unrebutted, they can become enforceable agreements under the UCC. It also introduces the concept of reserving rights using "without prejudice UCC 1-308" to prevent presumptive contracts from being enforced. The document seeks to increase understanding of the opaque legal system and empower individuals to protect their rights.
The document discusses the legal and financial framework underlying the US prison system. It explains that courts operate under statute law, which includes bonds like statute merchant and statute staple that allowed creditors rights over debtors' property. It then outlines that the modern criminal legal system involves commercial statutes and bills of exchange, with the indictment as a three-party draft. Private prison corporations like CCA are publicly traded and their financial troubles, including mergers, lawsuits, and stock price declines are discussed.
14 06-19 U.S. Treaties - How To Understand And Plan With ThemBruce Givner
IRS publications and forms; list of countries with which the U.S. has income and estate and gift tax treaties; reasons for both types of treaties; situs vs. status transfer tax treaties; German estate tax treaty as an example; treaties vs. the Internal Revenue Code; review of the basic provisions of income tax treaties, including tie-breakers, independent workers, directors, artists and athletes, students and teachers, interest, dividends, royalties, real property income and gains, Publication 901 table examples, double Irish structure.
Implications of Tax Cuts on Commercial Real Estatekottmeier
The document discusses the implications of various tax cut scenarios on the commercial real estate industry. Extending current income tax cuts for two years is the most likely outcome and would cost between $200-500 billion. This could shift some commercial real estate transactions to 2010 due to potentially higher capital gains taxes in 2011. Limiting itemized deductions and changes to estate tax laws could also impact commercial real estate markets and property values. Both short-term and long-term tax cuts carry economic and public debt implications.
This document discusses municipal bankruptcy and alternatives to bankruptcy for financially distressed municipalities. It provides background on municipal bankruptcy filings in the US since 1937, noting that few major cities have filed until more recently. It also summarizes key lessons from court challenges to municipal bankruptcy provisions, including that the federal government cannot interfere with state sovereignty. The document then outlines various mechanisms states have used to provide oversight and assistance to municipalities in financial distress, such as control boards and emergency financing. It concludes by arguing that working with the state to develop a recovery plan may be the best path forward for Detroit to avoid prolonged litigation in bankruptcy court.
Michael Western Reserve financial reform primer- march 2010Michael Durante
This document summarizes potential outcomes of ongoing debates around financial services reform in the US Senate. It argues that the Senate will likely expand the Federal Reserve's oversight role over large financial institutions and its authority to resolve "too big to fail" institutions. It also predicts the Senate will establish an advisory council for the Federal Reserve but leave it with independent authority. A new consumer protection agency may be established but with limited powers housed at the Federal Reserve. Proposals for new bank taxes and an strict "Volcker Rule" will likely be watered down or rejected.
The document discusses beliefs regarding the individual income tax. It asserts that:
1) The right of redress of grievances includes the right to withhold taxes until grievances are addressed.
2) The income tax is a tax on labor prohibited by the 13th Amendment, as the Supreme Court has defined income as gain derived from capital, labor, or both.
3) Under various Internal Revenue Code provisions like sections 61, 1001, 1011, 1012, individuals receiving wages do not realize any gain from the sale of their labor and therefore have no taxable income or requirement to file a return.
President Obama was re-elected, setting the stage for difficult negotiations over expiring tax provisions. Key issues include the Bush-era tax cuts, automatic spending cuts, and over 50 expiring tax extenders. Obama supports allowing tax cuts to expire for higher incomes and increasing rates on capital gains and dividends for them. The fiscal cliff forces Congress to act by year-end on these issues.
The document discusses how the Uniform Commercial Code (UCC) secretly took over contractual agreements worldwide following the US bankruptcy in 1933. It explains how the UCC uses presumptions and implied consent rather than true contracts requiring full transparency and consent. If statements go unrebutted, they can become enforceable agreements under the UCC. It also introduces the concept of reserving rights using "without prejudice UCC 1-308" to prevent presumptive contracts from being enforced. The document seeks to increase understanding of the opaque legal system and empower individuals to protect their rights.
The document discusses the legal and financial framework underlying the US prison system. It explains that courts operate under statute law, which includes bonds like statute merchant and statute staple that allowed creditors rights over debtors' property. It then outlines that the modern criminal legal system involves commercial statutes and bills of exchange, with the indictment as a three-party draft. Private prison corporations like CCA are publicly traded and their financial troubles, including mergers, lawsuits, and stock price declines are discussed.
14 06-19 U.S. Treaties - How To Understand And Plan With ThemBruce Givner
IRS publications and forms; list of countries with which the U.S. has income and estate and gift tax treaties; reasons for both types of treaties; situs vs. status transfer tax treaties; German estate tax treaty as an example; treaties vs. the Internal Revenue Code; review of the basic provisions of income tax treaties, including tie-breakers, independent workers, directors, artists and athletes, students and teachers, interest, dividends, royalties, real property income and gains, Publication 901 table examples, double Irish structure.
Implications of Tax Cuts on Commercial Real Estatekottmeier
The document discusses the implications of various tax cut scenarios on the commercial real estate industry. Extending current income tax cuts for two years is the most likely outcome and would cost between $200-500 billion. This could shift some commercial real estate transactions to 2010 due to potentially higher capital gains taxes in 2011. Limiting itemized deductions and changes to estate tax laws could also impact commercial real estate markets and property values. Both short-term and long-term tax cuts carry economic and public debt implications.
This document discusses municipal bankruptcy and alternatives to bankruptcy for financially distressed municipalities. It provides background on municipal bankruptcy filings in the US since 1937, noting that few major cities have filed until more recently. It also summarizes key lessons from court challenges to municipal bankruptcy provisions, including that the federal government cannot interfere with state sovereignty. The document then outlines various mechanisms states have used to provide oversight and assistance to municipalities in financial distress, such as control boards and emergency financing. It concludes by arguing that working with the state to develop a recovery plan may be the best path forward for Detroit to avoid prolonged litigation in bankruptcy court.
Michael Western Reserve financial reform primer- march 2010Michael Durante
This document summarizes potential outcomes of ongoing debates around financial services reform in the US Senate. It argues that the Senate will likely expand the Federal Reserve's oversight role over large financial institutions and its authority to resolve "too big to fail" institutions. It also predicts the Senate will establish an advisory council for the Federal Reserve but leave it with independent authority. A new consumer protection agency may be established but with limited powers housed at the Federal Reserve. Proposals for new bank taxes and an strict "Volcker Rule" will likely be watered down or rejected.
The document discusses beliefs regarding the individual income tax. It asserts that:
1) The right of redress of grievances includes the right to withhold taxes until grievances are addressed.
2) The income tax is a tax on labor prohibited by the 13th Amendment, as the Supreme Court has defined income as gain derived from capital, labor, or both.
3) Under various Internal Revenue Code provisions like sections 61, 1001, 1011, 1012, individuals receiving wages do not realize any gain from the sale of their labor and therefore have no taxable income or requirement to file a return.
This document summarizes a recent court case that applied fraudulent conveyance statutes to a pre-bankruptcy sale of assets. In the Crown Stock Distribution case, the debtor sold all its assets to a new company (Newco) financed by a bank loan, then defaulted on the notes and filed for bankruptcy. The court ruled the sale was a fraudulent conveyance, as the debtor received inadequate value and was left with too much debt to avoid bankruptcy. The trustee was entitled to recover cash payments made to shareholders from the sale. The case shows unsecured creditors using legal theories to assert claims against third parties to recover funds for creditors.
Foreign bank account reporting requirements were established in 1970 to address concerns about US persons hiding assets and evading taxes through foreign accounts. In recent years, the IRS has stepped up enforcement of these FBAR reporting requirements, including increasing penalties, expanding the definition of foreign accounts, and collaborating with foreign governments like Switzerland to obtain client names. Tax preparers must also exercise due diligence in inquiring about foreign accounts to avoid penalties for themselves.
This presentation looks at the issues involved in determining whether a state might become unable to pay its bills and what might happen if it does. It explores the history of state insolvency and the merits of adding a new chapter to the federal bankruptcy laws to accommodate such a situation.
Investment Tax Landscape Countdown To 2013dvanderjagt
The document discusses the tax landscape between now and 2013 as Congress wrestles with budget deficit issues. It may represent a stay of execution for higher taxes rather than a pardon. Several types of investors should pay attention to planning, including those with substantial capital gains, those reliant on dividends/bonds for income, and those investing in small businesses. Capital gains and dividend tax rates may increase after 2012, and tax-free municipal bonds may become relatively more attractive for high-income investors. The 100% capital gains exclusion was extended for qualifying small business stock issued before January 2012.
What Is Life After Coronavirus? State and Local Tax: First Wave Response & Se...Rea & Associates
This free, high-level coronavirus overview is designed to help employers make sense of the state and local tax decisions to consider as the COVID-19 (coronavirus) crisis continues to unfold. Presented by Joe Popp, JD, LLM, a principal with Rea & Associates and the firm's director of state and local tax services, the hour-long presentation will cover the first wave of state and local tax department responses and will then move on to guidance for businesses and individuals who are preparing for the second wave of crisis response.
Specifically, this webinar will cover:
- Insight about the first wave of state and local tax responses and how tax departments are answering individuals and businesses during the COVID-19 crisis.
- Guidance on how to prepare for the next wave of decisions made by your state and local tax departments.
- Predictions on what states will do in the future as a result of the COVID-19 crisis.
LEXIS® FEDERAL TAX JOURNAL QUARTERLY September 2013LexisNexis
Tax laws are constantly evolving. In fact, the only thing you can count on is change—and industry-leading tax content from LexisNexis®.
Find the latest LEXIS® FEDERAL TAX JOURNAL QUARTERLY and other tax related publications on the LexisNexis® Store - http://www.lexisnexis.com/store/catalog/catalog.jsp?pageName=catalogProducts&catId=992&id=137
From assessing tax ramifications of acquisitions, spin-offs, recapitalizations and other actions … to coordinating compliance requirements … to international tax planning, LexisNexis delivers a wealth of tax resources and time saving tools to help you keep pace with rapidly morphing tax regulation.
The document summarizes the uncertainty around extending various tax cuts enacted in 2001 and 2003 ("Bush-era tax cuts") that are set to expire after 2012. Key provisions that could change if not extended include higher individual income tax rates, reduced estate and gift tax exclusions, and reduced alternative minimum and child tax credits. Extending all the tax cuts would cost $2.84 trillion over 10 years. Failure to extend them could have negative economic impacts on taxpayers and businesses.
This document provides an overview of the historical events surrounding a proposed global currency reset and revaluation of currencies. It claims that in 2015, the Chinese Royal Red Dragon Family settled all sovereign debts through international treaties, allowing 200+ nations to reset their currencies to a common gold standard backed by Chinese gold assets. As part of this process, all fiat currencies will be redeemed and replaced with new gold-backed bills in a transition intended to end economic abuse and private central banking. However, existing media owners who also own central banks have restricted information about this event. The document disclaims any professional advice and states the information is for educational purposes only.
The American Taxpayer Relief Act of 2012:
1) Allowed Bush-era tax rates to expire for individuals earning over $400,000 and families over $450,000, raising their tax rate to 39.6%;
2) Permanently patched the AMT by increasing exemption amounts; and
3) Provided for a maximum 40% estate tax and $5 million exemption.
It effectively raised taxes for all by not extending a payroll tax cut and delayed mandatory spending cuts. Congress will revisit tax and spending policies when addressing the debt limit in February, with entitlement reforms and the "chained CPI" likely to be controversial topics.
MTBiz is for you if you are looking for contemporary information on business, economy and especially on banking industry of Bangladesh. You would also find periodical information on Global Economy and Commodity Markets.
Signature content of MTBiz is its Article of the Month (AoM), as depicted on Cover Page of each issue, with featured focus on different issues that fall into the wide definition of Market, Business, Organization and Leadership. The AoM also covers areas on Innovation, Central Banking, Monetary Policy, National Budget, Economic Depression or Growth and Capital Market. Scale of coverage of the AoM both, global and local subject to each issue.
MTBiz is a monthly Market Review produced and distributed by Group R&D, MTB since 2009.
The document provides guidance from the California Committee on Municipal Accounting (CCMA) on accounting and financial reporting considerations for successor agencies of California redevelopment agencies following their dissolution. Key points include:
- Successor agencies should report the assets of former redevelopment agencies in a private-purpose trust fund rather than as a blended component unit.
- Dissolution on February 1, 2012 requires a change in financial presentation, separating activities before and after that date.
- Transfers, gains/losses, and fund balances will be impacted by the change in reporting structure from governmental to fiduciary funds.
Fears of the U.S. economy falling off a “fiscal cliff” have been percolating among investors, conjuring up frightening images of a deep recession. But the chances of it actually happening in its entirety are slim, say Allianz experts.
The rise and rise of the administrative stateJason Nix
This article discusses how the modern American administrative state contravenes the original U.S. constitutional design of separated powers and limited federal government. It argues that Congress now exercises general legislative powers beyond what is enumerated in the Constitution. Congress also frequently delegates broad legislative authority to administrative agencies. Additionally, agencies sometimes exercise executive and judicial powers in violation of the separation of powers. The result is that the administrative state concentrates legislative, executive, and judicial functions in the same institutions, which openly flouts the American constitutional structure.
This document discusses retirement and estate planning. It covers topics like planning for retirement needs, saving for retirement through personal accounts, employer-sponsored plans, and government programs. Specific retirement tools covered include IRAs, 401(k)s, pensions, Social Security, estate planning documents like wills and trusts, and taxes on estates. The overall document provides an overview of key considerations and options for retirement and estate planning.
- Instructional pamphlet for Schedule 3taxman taxman
This document provides guidance on claiming the Schedule 3 credit for income taxes paid to other jurisdictions on a Maine individual income tax return. It outlines who is eligible for the credit, how to calculate the credit amount, and rules around sources of income, taxable years, amended returns, and other jurisdictions. The key aspects are:
1) Residents of Maine may claim a credit for income taxes paid to other states or jurisdictions on income sourced to that location.
2) The credit is limited to the portion of Maine tax related to income taxed by the other jurisdiction, up to the amount of tax actually paid.
3) A worksheet is provided to calculate the credit amount using Maine adjusted gross income and income/tax
The document discusses recent legislative activity in Congress and regulatory actions by federal agencies. It covers topics such as the fiscal cliff negotiations, defense appropriations, agriculture issues including a potential one-year farm bill extension, education reforms, and energy policies including a natural gas export study. Upcoming hearings are also noted on various topics.
The Fiscal Cliff and 10 Moves Every Investor Should Consider Making Now (...B...D.B. Geehan
Originally published Oct 2012 -- White Paper regarding moves every investor should consider making in the run-up to December 31, 2012 and the Fical Cliff.
Current Thinking, November/December 2012Kevin Lenox
- If lawmakers cannot agree on a deal by the end of the year to avoid the "fiscal cliff", $560 billion in tax increases and $136 billion in spending cuts will automatically go into effect in 2013, resulting in a 3.6% decline in GDP and average household tax bills rising by $3,500.
- With many popular tax deductions and credits set to expire, tax planning strategies are more important than ever given the uncertainty around which provisions will be extended or changed.
- Estate and gift tax exemptions could be reduced substantially if Congress does not act, so accelerating gifts may help move assets out of estates before year-end.
This document provides an overview and agenda for a presentation on U.S. anti-abuse rules. It discusses the various sources of anti-abuse rules in the U.S, including tax treaties, the Internal Revenue Code, regulations, and administrative guidance. It also outlines the common law doctrines that serve as anti-abuse rules, including substance over form, business purpose, and sham transactions. The presentation will compare these U.S. approaches to issues around crafting anti-abuse rules for Brazil.
In this powerpoint presentation, tax attorney Mike DeBlis discusses the mechanics of FATCA, the ripple effect that this law has had on those with unreported foreign assets, and why it is one of the most controversial laws that no one has ever even heard about.
The document outlines 5 possible scenarios for how Congress may respond to the approaching fiscal cliff:
Scenario A has Congress passing a short-term stopgap deal to buy more time to tackle the problem in 2013. Scenario B has Congress unable to reach a deal, allowing the automatic spending cuts and tax increases to take effect. Scenario C finds a middle-ground compromise with some provisions expiring and tax rates increasing for high incomes. Scenario D is a "grand bargain" cutting the deficit by $4 trillion through historic compromises. Scenario E is a "down payment" of deficit cuts through a fast-tracked vote if no further action is taken in 2013.
The document summarizes key fiscal issues facing Congress and the Obama administration. It reports that the Congressional Budget Office warned that allowing the Bush tax cuts to expire and automatic spending cuts to take effect would likely trigger a recession, but continuing high deficits would hamper the government's ability to respond to future crises. It also notes that House Democratic Leader Nancy Pelosi predicted Congress would address the fiscal cliff in the lame duck session to avoid going over it.
This document summarizes a recent court case that applied fraudulent conveyance statutes to a pre-bankruptcy sale of assets. In the Crown Stock Distribution case, the debtor sold all its assets to a new company (Newco) financed by a bank loan, then defaulted on the notes and filed for bankruptcy. The court ruled the sale was a fraudulent conveyance, as the debtor received inadequate value and was left with too much debt to avoid bankruptcy. The trustee was entitled to recover cash payments made to shareholders from the sale. The case shows unsecured creditors using legal theories to assert claims against third parties to recover funds for creditors.
Foreign bank account reporting requirements were established in 1970 to address concerns about US persons hiding assets and evading taxes through foreign accounts. In recent years, the IRS has stepped up enforcement of these FBAR reporting requirements, including increasing penalties, expanding the definition of foreign accounts, and collaborating with foreign governments like Switzerland to obtain client names. Tax preparers must also exercise due diligence in inquiring about foreign accounts to avoid penalties for themselves.
This presentation looks at the issues involved in determining whether a state might become unable to pay its bills and what might happen if it does. It explores the history of state insolvency and the merits of adding a new chapter to the federal bankruptcy laws to accommodate such a situation.
Investment Tax Landscape Countdown To 2013dvanderjagt
The document discusses the tax landscape between now and 2013 as Congress wrestles with budget deficit issues. It may represent a stay of execution for higher taxes rather than a pardon. Several types of investors should pay attention to planning, including those with substantial capital gains, those reliant on dividends/bonds for income, and those investing in small businesses. Capital gains and dividend tax rates may increase after 2012, and tax-free municipal bonds may become relatively more attractive for high-income investors. The 100% capital gains exclusion was extended for qualifying small business stock issued before January 2012.
What Is Life After Coronavirus? State and Local Tax: First Wave Response & Se...Rea & Associates
This free, high-level coronavirus overview is designed to help employers make sense of the state and local tax decisions to consider as the COVID-19 (coronavirus) crisis continues to unfold. Presented by Joe Popp, JD, LLM, a principal with Rea & Associates and the firm's director of state and local tax services, the hour-long presentation will cover the first wave of state and local tax department responses and will then move on to guidance for businesses and individuals who are preparing for the second wave of crisis response.
Specifically, this webinar will cover:
- Insight about the first wave of state and local tax responses and how tax departments are answering individuals and businesses during the COVID-19 crisis.
- Guidance on how to prepare for the next wave of decisions made by your state and local tax departments.
- Predictions on what states will do in the future as a result of the COVID-19 crisis.
LEXIS® FEDERAL TAX JOURNAL QUARTERLY September 2013LexisNexis
Tax laws are constantly evolving. In fact, the only thing you can count on is change—and industry-leading tax content from LexisNexis®.
Find the latest LEXIS® FEDERAL TAX JOURNAL QUARTERLY and other tax related publications on the LexisNexis® Store - http://www.lexisnexis.com/store/catalog/catalog.jsp?pageName=catalogProducts&catId=992&id=137
From assessing tax ramifications of acquisitions, spin-offs, recapitalizations and other actions … to coordinating compliance requirements … to international tax planning, LexisNexis delivers a wealth of tax resources and time saving tools to help you keep pace with rapidly morphing tax regulation.
The document summarizes the uncertainty around extending various tax cuts enacted in 2001 and 2003 ("Bush-era tax cuts") that are set to expire after 2012. Key provisions that could change if not extended include higher individual income tax rates, reduced estate and gift tax exclusions, and reduced alternative minimum and child tax credits. Extending all the tax cuts would cost $2.84 trillion over 10 years. Failure to extend them could have negative economic impacts on taxpayers and businesses.
This document provides an overview of the historical events surrounding a proposed global currency reset and revaluation of currencies. It claims that in 2015, the Chinese Royal Red Dragon Family settled all sovereign debts through international treaties, allowing 200+ nations to reset their currencies to a common gold standard backed by Chinese gold assets. As part of this process, all fiat currencies will be redeemed and replaced with new gold-backed bills in a transition intended to end economic abuse and private central banking. However, existing media owners who also own central banks have restricted information about this event. The document disclaims any professional advice and states the information is for educational purposes only.
The American Taxpayer Relief Act of 2012:
1) Allowed Bush-era tax rates to expire for individuals earning over $400,000 and families over $450,000, raising their tax rate to 39.6%;
2) Permanently patched the AMT by increasing exemption amounts; and
3) Provided for a maximum 40% estate tax and $5 million exemption.
It effectively raised taxes for all by not extending a payroll tax cut and delayed mandatory spending cuts. Congress will revisit tax and spending policies when addressing the debt limit in February, with entitlement reforms and the "chained CPI" likely to be controversial topics.
MTBiz is for you if you are looking for contemporary information on business, economy and especially on banking industry of Bangladesh. You would also find periodical information on Global Economy and Commodity Markets.
Signature content of MTBiz is its Article of the Month (AoM), as depicted on Cover Page of each issue, with featured focus on different issues that fall into the wide definition of Market, Business, Organization and Leadership. The AoM also covers areas on Innovation, Central Banking, Monetary Policy, National Budget, Economic Depression or Growth and Capital Market. Scale of coverage of the AoM both, global and local subject to each issue.
MTBiz is a monthly Market Review produced and distributed by Group R&D, MTB since 2009.
The document provides guidance from the California Committee on Municipal Accounting (CCMA) on accounting and financial reporting considerations for successor agencies of California redevelopment agencies following their dissolution. Key points include:
- Successor agencies should report the assets of former redevelopment agencies in a private-purpose trust fund rather than as a blended component unit.
- Dissolution on February 1, 2012 requires a change in financial presentation, separating activities before and after that date.
- Transfers, gains/losses, and fund balances will be impacted by the change in reporting structure from governmental to fiduciary funds.
Fears of the U.S. economy falling off a “fiscal cliff” have been percolating among investors, conjuring up frightening images of a deep recession. But the chances of it actually happening in its entirety are slim, say Allianz experts.
The rise and rise of the administrative stateJason Nix
This article discusses how the modern American administrative state contravenes the original U.S. constitutional design of separated powers and limited federal government. It argues that Congress now exercises general legislative powers beyond what is enumerated in the Constitution. Congress also frequently delegates broad legislative authority to administrative agencies. Additionally, agencies sometimes exercise executive and judicial powers in violation of the separation of powers. The result is that the administrative state concentrates legislative, executive, and judicial functions in the same institutions, which openly flouts the American constitutional structure.
This document discusses retirement and estate planning. It covers topics like planning for retirement needs, saving for retirement through personal accounts, employer-sponsored plans, and government programs. Specific retirement tools covered include IRAs, 401(k)s, pensions, Social Security, estate planning documents like wills and trusts, and taxes on estates. The overall document provides an overview of key considerations and options for retirement and estate planning.
- Instructional pamphlet for Schedule 3taxman taxman
This document provides guidance on claiming the Schedule 3 credit for income taxes paid to other jurisdictions on a Maine individual income tax return. It outlines who is eligible for the credit, how to calculate the credit amount, and rules around sources of income, taxable years, amended returns, and other jurisdictions. The key aspects are:
1) Residents of Maine may claim a credit for income taxes paid to other states or jurisdictions on income sourced to that location.
2) The credit is limited to the portion of Maine tax related to income taxed by the other jurisdiction, up to the amount of tax actually paid.
3) A worksheet is provided to calculate the credit amount using Maine adjusted gross income and income/tax
The document discusses recent legislative activity in Congress and regulatory actions by federal agencies. It covers topics such as the fiscal cliff negotiations, defense appropriations, agriculture issues including a potential one-year farm bill extension, education reforms, and energy policies including a natural gas export study. Upcoming hearings are also noted on various topics.
The Fiscal Cliff and 10 Moves Every Investor Should Consider Making Now (...B...D.B. Geehan
Originally published Oct 2012 -- White Paper regarding moves every investor should consider making in the run-up to December 31, 2012 and the Fical Cliff.
Current Thinking, November/December 2012Kevin Lenox
- If lawmakers cannot agree on a deal by the end of the year to avoid the "fiscal cliff", $560 billion in tax increases and $136 billion in spending cuts will automatically go into effect in 2013, resulting in a 3.6% decline in GDP and average household tax bills rising by $3,500.
- With many popular tax deductions and credits set to expire, tax planning strategies are more important than ever given the uncertainty around which provisions will be extended or changed.
- Estate and gift tax exemptions could be reduced substantially if Congress does not act, so accelerating gifts may help move assets out of estates before year-end.
This document provides an overview and agenda for a presentation on U.S. anti-abuse rules. It discusses the various sources of anti-abuse rules in the U.S, including tax treaties, the Internal Revenue Code, regulations, and administrative guidance. It also outlines the common law doctrines that serve as anti-abuse rules, including substance over form, business purpose, and sham transactions. The presentation will compare these U.S. approaches to issues around crafting anti-abuse rules for Brazil.
In this powerpoint presentation, tax attorney Mike DeBlis discusses the mechanics of FATCA, the ripple effect that this law has had on those with unreported foreign assets, and why it is one of the most controversial laws that no one has ever even heard about.
The document outlines 5 possible scenarios for how Congress may respond to the approaching fiscal cliff:
Scenario A has Congress passing a short-term stopgap deal to buy more time to tackle the problem in 2013. Scenario B has Congress unable to reach a deal, allowing the automatic spending cuts and tax increases to take effect. Scenario C finds a middle-ground compromise with some provisions expiring and tax rates increasing for high incomes. Scenario D is a "grand bargain" cutting the deficit by $4 trillion through historic compromises. Scenario E is a "down payment" of deficit cuts through a fast-tracked vote if no further action is taken in 2013.
The document summarizes key fiscal issues facing Congress and the Obama administration. It reports that the Congressional Budget Office warned that allowing the Bush tax cuts to expire and automatic spending cuts to take effect would likely trigger a recession, but continuing high deficits would hamper the government's ability to respond to future crises. It also notes that House Democratic Leader Nancy Pelosi predicted Congress would address the fiscal cliff in the lame duck session to avoid going over it.
The document discusses America's growing debt problem and some potential solutions. It outlines several "hidden debt bombs" not captured in official debt figures, such as losses from Fannie Mae and Freddie Mac, unfunded promises for Social Security and Medicare, and reduced tax revenue from tax breaks. Some proposed solutions mentioned include raising the Social Security retirement age, reducing health insurance tax breaks, broadening the tax base, and considering new revenue options like a value-added tax.
This summary provides the key information from the document in 3 sentences:
The document discusses recent changes to estate planning laws, including the extension of certain expiring tax provisions and the new Achieving a Better Life Experience (ABLE) Act, which allows tax-free savings accounts to support disabled individuals. It outlines the key aspects of ABLE programs and accounts, including eligibility, contribution limits, tax treatment, and potential "clawback" of funds by states. The document also briefly summarizes two estate tax court cases related to reliance on an incompetent attorney and valuation of a partnership interest.
Do I Pay North Dakota Taxes When Someone Leaves Me Money?Raymond German
The document discusses various taxes that may apply when an individual inherits money or assets from someone who has passed away. It states that in North Dakota, there is no state-level estate or inheritance tax. It also explains that the federal estate tax only applies to estates worth more than $5.43 million and that inherited assets and money are not considered taxable income.
The Foreign Account Tax Compliance Act (FATCA) was enacted in 2010 in response to lost US tax revenues from accounts held overseas. It requires foreign banks to report financial information of US persons directly to the IRS. Implementation has been delayed and phased in over time to allow for compliance efforts. FATCA has significant impacts on individuals, financial institutions, and international tax information exchange standards. The OECD has developed a global standard called GATCA that is based on but goes beyond the FATCA model by requiring automatic exchange of financial account information for taxpayers based on residence rather than citizenship.
This document discusses tax treaties between countries. [1] It provides an example of how a company could face double taxation by selling goods in a foreign country without a tax treaty. [2] Tax treaties aim to avoid double taxation by allocating taxing rights between countries, enhancing trade, preventing tax evasion, and allowing information exchange. [3] The document then discusses key concepts in tax treaties like permanent establishment and residency.
This document provides an overview and summary of Canada-U.S. cross-border tax issues presented by Alpesh Joshi, CA, CPA. It discusses the services provided by AJPCA related to cross-border tax compliance, international tax, and consulting. It highlights some key impacts of the new fifth protocol to the Canada-U.S. Tax Treaty, including changes to the definition of permanent establishment and treatment of hybrid entities. It also covers issues like foreign bank reporting requirements, obtaining an ITIN number, and nexus for U.S. income and sales tax purposes. The presentation aims to make bankers aware of common cross-border tax concerns faced by individuals and corporations.
Recent changes to federal laws and increased IRS scrutiny have prompted South Florida accountants to advise clients on smart financial practices. The Affordable Care Act and American Taxpayer Relief Act of 2012 have resulted in higher taxes for some. The IRS is also closely examining overseas bank accounts and claims of dependents. Accountants recommend establishing retirement accounts, investing in municipal bonds, and taking advantage of an IRS voluntary disclosure program for overseas accounts to reduce penalties. Meanwhile, overall mortgage lending has declined nationally due to increased regulations, though some local lenders have seen annual gains of 10% due to personalized service.
This document provides an overview of Canada-U.S. cross-border tax issues presented by Alpesh Joshi, CA, CPA. It discusses current tax issues, services provided related to cross-border tax compliance, and how recent changes to the Canada-U.S. tax treaty may impact Canadian companies doing business in the U.S. It also briefly summarizes issues like personal tax obligations for snowbirds, property ownership structures to minimize estate taxes, and transfer pricing regulations.
Fatca high cost initiative to curb tax evasionAranca
Enacted by the United States Congress in March of 2010, the Foreign Account Tax Compliance Act (FATCA) is a federal law meant to deter tax evasion. Read details from Aranca's Business Research Experts here.
The document outlines 5 potential scenarios for how Congress may respond to the approaching fiscal cliff: A) Congress buys time with a short-term stopgap deal; B) Congress fails to reach a deal; C) A middle ground compromise is reached; D) A "grand bargain" cuts the deficit by $4 trillion; E) A "down payment" is made through fast-tracked cuts and expirations if no further action is taken. The fiscal cliff poses tax hikes and spending cuts that could trigger another recession if not addressed.
1. Panorama
January 2012 VOLUME 1, ISSUE 2
Remind Me, What Are The Bush
Tax Cuts?
There has been rigorous debate in Congress over the pending expiration of
some tax provisions affecting individuals. A portion of these cuts were enacted
in 2001 and some additional provisions followed in 2003. Since these individ-
In this Issue: ual tax cuts were implemented during the first term of President George W.
Bush’s administration, they are collectively referred to as the “Bush Tax Cuts”.
Remind Me, What Are The As enacted, the cuts were scheduled in the original legislation to expire, or
Bush Tax Cuts? “sunset”, at the end of 2010. Republicans and Democrats have opposite views
on extending the tax cuts, and whether the wealthiest taxpayers should be pay-
Status Report on the ing more tax. President Obama agreed in late 2010 to temporarily extend the
Mexico-U.S. Tax expiration of those provisions until December 31, 2012, in order to buy more
Information Exchange time to get a political deal on taxes negotiated.
We are now early in 2012, so it might be helpful to give a refresher on the spe-
What Is A Durable Power cific provisions that are scheduled to change at the end of this year. We will
of Attorney? limit the discussion to those provisions affecting high income taxpayers and that
are most relevant to those taxpayers. The following summary identifies the key
New Disclosure provisions of the Bush Tax Cuts, as well as the prior rule that we will revert to
Requirement For Foreign at the end of the year:
Financial Assets!
• Lowered the top rates on ordinary income to 35% from 39.6%.
• Lowered long-term capital gains rates to 15% from 20%.
• Gradually raised the estate exemption to $3.5 million by 2009, and at the
same time lowered the top estate rate to 45% from 55% over the same pe-
riod. (President Obama agreed to temporarily raise the estate exemption to
$5 million per person and further lower the estate tax rate to 35% through
the end of 2012).
Story continues inside ...
2. Story continued from front ... would provide both countries with a powerful tool to
detect, prevent and combat tax evasion, money laun-
Remind Me, … dering, terrorist financing, drug trafficking and organ-
ized crime. However, as of the date of this newsletter,
• Lowered the tax rate on qualified dividends to there has been no formalization of the requested agree-
15% from 39.6%. ment.
• Indexed the alternative minimum tax for infla-
What seems to be the holdup, you might ask? There
tion.
has been no official comment by Secretary Geithner,
• Certain itemized deductions are phased out
but there has been some speculation. About the same
above specified levels of income.
time that Secretary Carstens sent his request, the U.S.
• Personal exemptions are phased out above speci- had begun a sizeable and formidable undertaking
fied levels of income. against Swiss banks who were facilitating U.S. citi-
zens and residents in tax evasion through the use of
Keep in mind that the Bush Tax Cuts expire on De- unreported bank accounts in Switzerland, and cloaked
cember 31, 2012 absent new legislation to extend or in Swiss bank secrecy laws.
modify those rules. This means that the pre-Bush
Tax Cut law will automatically be reinstated as of In fact, there is only one country with which the U.S.
January 1, 2013. has such an expanded tax information exchange agree-
ment as that requested by Carstens – Canada. Some
commentators have surmised that the U.S. lack of re-
sponse to Mexico is motivated by its desire to protect
Status Report On The Mexico-U.S. its own financial institutions. If the U.S. were to re-
Tax Information Exchange port tax information to Mexico on accounts held by
Agreement. Mexicans in U.S. banks, the funds would likely leave
the U.S. banking system, which is still fragile from the
In February, 2009, Mexico’s Secretary of Finance, 2008 meltdown.
Agustin Carstens, sent a formal request to the U.S.
Secretary of the Treasury, Tim Geithner proposing So, while it would seem that universal tax information
to expand the information exchanged between the sharing among all countries would be acceptable with-
two countries under the current treaty. There is cur- out objection, that does not appear to be the case.
rently a treaty between the U.S. and Mexico for the
bulk exchange of information on the payment of in- Perspective
terest (between corporations), dividends and royal-
ties. However, the two countries have historically Strength
not exchanged information regarding the payment
by banks in one country to residents of the other
country. What Is A Durable Power of
Attorney?
Secretary Carstens expressed his concern in that let-
ter that the current U.S. and Mexico treaty is not A power of attorney is a written authorization for an
enough by itself to deter tax evasion by individuals, individual to act on behalf of another in dealing with a
or to prevent criminals from hiding profits obtained third party. The parties to the arrangement are the
from illicit sources in one country in banks in the principal, who is the person granting authority to an-
other country. He believes that this can be done to- other to act on his behalf, and the agent, who is the
day by simply opening a bank account in the other person to whom authority has been granted by the
country. principal. As an agent, there is a fiduciary obligation
The argument behind Carstens’ request was that an to act with honesty and loyalty to his principal.
expanded tax information exchange agreement
Continued next page
3. A power of attorney may grant broad or very narrow New Disclosure Requirement for
authority to the agent to act, and the scope of his au-
thority is spelled out in writing. A principal can grant Foreign Financial Assets!
the authority to perform any legal act that he could
The IRS released new Form 8938, Statement of Speci-
have performed for himself. Since powers of attor-
fied Foreign Assets (“SFFA”) that some individuals may
ney derive from contract law principles, the principal
need to complete and attach to their 2011 Form 1040.
must have legal capacity to act for himself, before he
The attached chart will help you identify whether the
can transfer such authority to his agent.
new filing requirement affects you.
For example, if Sam appoints David as his agent, to
Generally, this form furthers the IRS’ continuing efforts
act on behalf of Sam for any matter, and Sam has full
to ensure that U.S. taxpayers are reporting and paying
mental and legal capacity to enter the arrangement,
tax on all their worldwide sources of income. Simply
then David’s appointment should be respected by any
stated, if you are a “specified individual” who owns
third party that he deals with at Sam’s instruction.
“specified foreign financial assets” whose total value
However, if Sam becomes mentally disabled because
exceeds the “reporting threshold”, then you need to con-
of age, David’s authority will end because of that dis-
firm with your tax preparer your filing requirements for
ability.
this new Form. Also note that this form is required in
addition to the annual requirement to report Foreign
To remedy that particular situation, we have the dura-
Bank and Financial Accounts (“FBAR”) on Form 90-
ble power of attorney. The principal makes his
22.1.
power survive his disability, by specifying in writing
that the power is durable, meaning that it survives the
Following are some examples of foreign financial ac-
principal’s disability. Durable powers of attorney are
counts and foreign financial assets that need to be con-
commonly used in U.S. estate planning to address
sidered in determining your filing requirements:
one of the risks we all face – who can act for me on
financial matters if my legal capacity becomes im-
paired? A word of caution – while durable powers of • Financial accounts maintained by a foreign financial
attorney are highly recommended components of any institution (“FFI”) are SFFA’s. However, a foreign
branch of a U.S. financial institution is not consid-
individual’s estate plan, third parties are not obligated
ered a foreign financial institution.
to deal with an agent attempting to transact with the
third party pursuant to your validly executed power • A FFI includes investment vehicles such as foreign
of attorney. You should check in advance with any mutual funds, foreign hedge funds and foreign pri-
third party with whom you wish your agent to deal vate equity funds.
with on your behalf. • Stock issued by a foreign corporation.
• A capital or profits interest in a foreign partnership.
• A note, bond, debenture, or other form of indebted-
ness issued by a foreign person.
Integrity • An interest in a foreign trust or foreign estate.
• Swap contracts with a foreign counterparty.
• Options or other derivatives entered into with a for-
Innovation eign counterparty.
Don’t take this lightly. Failure to timely (with your
Character 2011 Form 1040) and accurately file this form could re-
sult in penalties of $10,000, plus another $50,000 for
continuing the failure to file after being notified of the
failure by the IRS.
4. If you answer all 3 questions yes, you must file Form 8938 with your
2011 Form 1040
• A U.S. citizen
• A Resident Alien for any part of
the tax year (Green card or
Are you a Specified substantial presence test)
Individual? • A Nonresident Alien electing to
be a Resident Alien for joint
tax return purposes
• A financial account maintained
by a foreign financial institution
• Foreign financial investment as-
Do you own Specified sets not held in a financial insti-
Foreign Financial tution account:
• Stock or securities from a non-
Assets? U.S. issuer
•Any interest in a foreign entity
• Any financial instrument from a
non U.S. issuer
Unmarried &
SFFA Value as of:
Lives in U.S. Lives Abroad
Last day of tax year, or
> $50,000 USD > $200,000 USD
Any time during year
> $75,000 USD > $300,000 USD
Is the value of those
SFFA assets above the
Reporting Threshold? Married filing joint &
SFFA Value as of:
Lives in U.S. Lives Abroad
Last day of tax year, or
> $100,000 USD > $400,000 USD
Any time during year
> $150,000 USD > $600,000 USD
5. View Capital Advisors, LLC was founded in 2004 by its
principals with the mission of providing sophisticated
Contributing to this issue: investment asset management and financial and estate
planning to our U.S. and Non-U.S. clients.
R. Craig Brubaker
I. Michael Goodrich We seek to bring wealth planning best practices and a
wide range of non-proprietary solutions to our clients.
We also conduct our own research and diligence on
2000 McKinney Avenue, Suite 600
world markets and investment alternatives.
Dallas, TX 75201
For further information, please contact your investment
214-855-2550 representative or one of our wealth planning specialists:
www.view-cap.com
R. Craig Brubaker 214-855-2556
cbrubaker@view-cap.com
I. Michael Goodrich 214-855-2552
mgoodrich@view-cap.com
To ensure compliance with requirements imposed by U.S. Treasury Regulations, View Capital Advisors, LLC, and its affiliates,
informs you that any U.S. tax advice contained in this communication was not intended or written to be used, and cannot be
used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending
to another party any transaction or matter addressed herein.
View Capital Advisors, LLC provides asset allocation and investment advisory services through its affiliated registered invest-
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