By Phil Karter The Quality Stores employment tax refund case was argued before the Supreme Court on January 14, 2014. An explanation about the issue at stake can be found in prior Taxblawg.net postings. Although the outcome of the case remains in doubt, the possibility of a taxpayer victory means that employers should start thinking … Continue reading Quality Stores Day Of Reckoning Draws Near – What Should Employers Be Thinking About?
By Phil Karter Is the IRS getting closer to ferreting out “quiet disclosures” by taxpayers who chose that route to address the problem of previously unreported offshore accounts rather than by participating in the Service's offshore voluntary disclosure program (OVDP)? That’s the conclusion of an increasing number of tax professionals and if taxpayers in this … Continue reading Are Quiet Disclosures of Offshore Accounts Becoming Even Riskier?
By Phil Karter and John Hackney In a blog posting earlier this year, we talked about the Sixth Circuit's decision in United States v. Quality Stores (Civil No. 10-1563, 6th Cir. 2012) affirming a lower court’s decision that supplemental unemployment compensation benefit (SUB) payments are not taxable as wages and are consequently exempt from FICA … Continue reading Squib Note: The Opera Isn’t Over Yet on FICA Tax Refunds Until The Supreme Court Sings
It has been universally reported that under the newly passed American Taxpayer Relief Act of 2012, net capital gain tax rates have risen to 20% for taxpayers with taxable income greater than $400,000 for single filers and $450,000 for joint filers. To clarify this broad statement, under section 102 of the new law, the higher … Continue reading Squib Note: Clarifying the 2013 Capital Gains Rates
By Phil Karter With the looming increase in tax rates on investment income and capital gains in particular, a large number of stock market investors have been selling long-term positions to lock in the 2012 rate, which currently tops out at 15%. Come January 1,2013, gain on the same sale could be taxed at a … Continue reading Could The New Economic Substance Statute Apply To End-Of-Year Stock Sales And Repurchases?
Employment Tax: Yet Another Opportunity to Come Clean - Whether a worker is performing services as an employee or as an independent contractor depends on the facts and circumstances. This determination may be difficult for many companies and may lead to significant exposure. In order to facilitate voluntary resolution of potential worker classification issues and … Continue reading Employment Tax: Yet Another Opportunity to Come Clean –
By Sebastien Chain and Tamara Woods For tax year 2011, individual taxpayers with certain specified foreign financial assets found themselves subject to a new reporting requirement, Form 8938, Statement of Specified Foreign Financial Assets. Form 8938 is required if a taxpayer has a specified foreign financial asset in excess of various thresholds. See Form 8938 – Foreign Reporting … Continue reading What is Form 8938 and How is it Different From an FBAR?