Tax News

PRISMA Professional Services offers you a compilation of tax-related news

Taxing Carbon At The Border

Tax Notes chief correspondent Amanda Athanasiou discusses the growing global popularity of carbon border adjustment mechanisms, the EU’s new regime, and how border adjustments can be used to support carbon pricing and environmental policy.

Supreme Court Will Hear Case That Could Upend The Current Tax System

The Supreme Court will hear oral arguments in Moore v. U.S. The case centers on a 2017 provision that requires companies to pay tax on previously untaxed foreign profits.

Supreme Court Hears Landmark Tax Case—Here’s Why It Could Destroy Democrats’ Wealth Tax Plans

Justices could deliver the wealthiest Americans a win by striking down a tax on unrealized income.

Swiss Banque Pictet Admits Conspiring With Americans To Hide Funds

Swiss Private Bank Banque Pictet Admits to Conspiring with U.S. Taxpayers to hide income. The Bank has also entered into a Deferred Prosecution Agreement.

Despite Deficit Handwringing, Congress Proposes More Spending And Tax Cuts

The plan, now exceeding $100 billion, will package an assortment of initiatives to satisfy the demands of both parties by, as usual, running up the deficit.

So You’re Getting A Divorce: Do You Need A Forensic Accountant?

They show up in celebrity divorces (think Kevin Costner), big bankruptcies (think FTX) and financial fraud cases. But you don’t have to be famous to benefit from the help of a deep diving accounting pro.

The Overshadowed OECD Tax Project

Nana Ama Sarfo discusses global implementation of the OECD’s automatic exchange of information framework.

Is That Social Security Email About Form W-2 Filing Changes For Real?

An email advising businesses to register to file Forms W-2 with Social Security by the deadline is legit. Here’s why you might have received one.

Is It Time To Convert Your IRA To A Roth?

If you have a big wad in a pretax IRA, sit down with your accountant now.

Tax Court Finds That Silent Settlement Agreement Means Big Tax Bill

For the recipient, the payment may be taxable, not taxable, or partially taxable. Moreover, if the payment is taxable, it may be subject to ordinary income tax rates.

In SCOTUS Moore Case, Taxation Without Receipt Of Cash Is Fair Game

This article offers a short, simple answer to a difficult question: Why is taxation without receipt fair?

Tax Preparer Sentenced For False Tax Claims, Including Improper Use Of Augusta Rule

Jeffrey Harmon was sentenced to 24 months in prison for preparing and filing false individual income tax returns for himself and his clients.

Bill In Congress Aims To Stop Kombucha From Being Taxed Like Beer

Sen. Finance Chairman Ron Wyden (D-Ore.) and U.S. Rep. Earl Blumenauer (D-Ore.), have reintroduced legislation to end federal alcohol taxes on kombucha companies.

Florida Man Sentenced To 27 Months In Prison For Tax Fraud Scheme

A Florida man was sentenced to 27 months in prison for promoting a scheme to file false documents with the IRS to fraudulently obtain large tax refunds.

Building Housing Lowers Prices But “Supply Skeptics” Don’t Believe It

Housing prices continue rising, but “supply skeptics” block development, wrongly believing that adding more supply won’t lower prices.

Tax Court Again Holds That 90-Day Deadline Is Jurisdictional

In a recent case, the Tax Court again considered whether the 90-day time period to file a deficiency petition in the Tax Court is jurisdictional in nature.

If You Act Before Year-End, IRS Respects Do-Overs Unwinding Taxes

Going back to square one sounds simple, but the tax system is rigid. Even so, the IRS accepts unwound transactions if everything occurs in the same tax year.

Options To Improve Child Tax Credit For Low-Income Families: An Update

At year-end, families are waiting to see if Congress will expand the Child Tax Credit (CTC). Several modest options can help low-income families.

California Rakes In $269.3M Taxes From Cannabis For 3rd Quarter 2023

California tax officials are reporting recent cannabis tax revenue. Since January 2018, total cannabis tax revenue in the state to date is nearly $5.5 billion.

Cryptoassets And State Taxation

Wally Hellerstein of the University of Georgia Law School discusses the emerging state guidance for taxing cryptoassets.

The (Foreign) Gift That Keeps On Giving – IRS Penalties

The IRS has been busy in the international realm triggering several court decisions that should get the attention of all taxpayers with any level of global reach.

IRS Warns Taxpayers To Watch Out For Scams During The Holiday Season

The IRS is warning taxpayers about email and text message scams involving refunds, as well as holiday-related schemes.

IRS Still Has Millions Of Returns To Process As Next Tax Season Approaches

Some taxpayers are still waiting for returns to be processed. According to the IRS, they are “working hard to get through the inventory.”

Different Donations, Same Tactics: New IRS Challenges To Gifts Of Art

A key issue with all charitable donations is value. The IRS might encounter several problems in the realm of art donations if it sticks with its standard procedures.

IRS Doesn’t Need The Blocked Income Tax Regulations In Coca-Cola

Ryan Finley explains that Coca-Cola’s prospects for success in its blocked income dispute with the IRS are bleak even if the blocked income regulations are ultimately struck down on appeal.

Most Married Couples File Taxes Jointly With IRS, But Should You?

Approximately 95% of married couples file taxes jointly. That usually save money, but a joint return means that both spouses are on the hook for any mistakes.

The Legacy IRA: The New $50,000 QCD For IRAs

A new law increases tax-free ways to give from IRAs.

Year-End Tax Trouble—And How To Avoid It

Some mutual funds cause year-end tax pain with their capital gains. Here are the offenders—and preventive steps to take.

Which Trusts Save Taxes, Which Do Not, And Which Are Illegal?

Trusts are common, and there are many variations. There are revocable, irrevocable, domestic and foreign trusts, and different tax rules apply to each. Some go to far.

12 Days Of Christmas Are More Expensive In 2023, Mirroring The Economy

The PNC Christmas Price Index (PNC CPI) is calculated using a method similar to the government’s consumer price index (CPI).

Alert Issued To Financial Institutions Related To ERC Fraud Schemes

The alert includes ERC fraud red flags which overlap with warning signals of financial crimes related to Economic Impact Payments, or stimulus checks.

Beyond Productivity: The AI Outlook For Tax, Legal And Risk Professionals

It’s been just one year since GenAI mania hijacked the news cycle and set in motion a tidal wave of rampant speculation about our work lives changing forever.

Taxpayer Wins Big In Federal Court—Tax Treaty Governs FBAR Reporting

Because the taxpayer was within the treaty exception, the court found that the taxpayer did not have an FBAR reporting obligation.

Taxpayer Advocate And Others Weigh In On IRS Decision To Delay Form 1099-K Reporting

It didn’t take long after the IRS announced an additional delay in enforcing the new $600 reporting threshold for Forms 1099-K to garner reactions.

Taxing The Fast-Fashionistas

Tax Notes contributing editor Nana Ama Sarfo discusses how lawmakers across the globe are looking to taxes to address problems with fast fashion.

IRS Announces Big Changes To Form 1099-K, Including Another Reporting Delay

The IRS announced that it would delay the new $600 Form 1099-K reporting threshold for third-party settlement organizations for 2023.

It’s Benefits Season. Can You Use Your HSA Or FSA For Alternative Medicine?

Wellness start-up Apothékary is aiming to link its plant-based medicine and supplement company to tax savings by promoting HSAs and FSAs.

Zaxby’s Cofounder Sues U.S. For $166 Million Conservation Deduction

What drove the nearly billion dollar AGI was net gain of $932,707,897 from Tony Townley bowing out of Zaxby’s in favor of Zach McElroy’s new partner, Goldman Sachs.

Tax Court Provides Evidentiary Lesson On Professional-Reliance Defense

Generally, taxpayers fall within the contours of reasonable cause if they can show that they exercised ordinary business care and prudence—for example, with respect to…

There’s Still Time Left To Claim Your Stimulus Checks

The IRS has issued a reminder to those who may be entitled to the Recovery Rebate Credit to file a tax return and claim their money before the deadline.

Late Actor James Caan’s Estate Reveals Trap In Self-Directed IRAs

True self-directed IRAs have potential pitfalls other IRAs don’t have.

Senate Passes Stop-Gap Spending Bill, Keeps The Lights On Through January

The Senate has passed a stop-gap spending bill to keep the government funded and avert a shutdown at the end of the week.

Children Deserve More Than Shutdown Threats And Continuing Resolutions

Although a government shutdown was avoided, operating government programs under continuing resolutions leaves many children’s programs to stagnate.

New Poll Shows Working-Class Voters Want Lower Prices And Public Debt

These voters see the Democratic Party as out of sync with not only their cultural values but also their economic priorities.

Shakira Reaches Last-Minute Agreement In Spanish Tax Evasion Case

Shakira has reached an agreement to settle a years-long legal dispute related to accusations that she had evaded taxes for the years 2012, 2013 and 2014.

Moores Lean On 1916 Tax Expert To Argue No Realization Means No Income

Joseph J. Thorndike examines the Moore case through the lens of economist Edwin R.A. Seligman’s view that the 16th Amendment hinges on the concept of realization.

From Donor-Advised Funds To QCDs, How Taxpayers Can Maximize Charitable Gifts

So, how can taxpayers maximize their charitable gifts? Matthew Foster, Senior Wealth Advisor for The Colony Group, offers a few tips.

IRS Programs Offer Relief For Late-Filed International Information Returns

As the world has grown smaller, more taxpayers similar to John have found themselves subject to these international information return reporting rules.

Pennsylvania Business Owners Plead Guilty To Employment Tax Fraud

A Pennsylvania couple, Theodore Shearba and Jennifer Cemini, has pleaded guilty to conspiring to defraud the United States related to their efforts to evade paying employment taxes.

How To Use Tax Harvesting Before Year End To Lower Your Taxes

Everyone loves to save money on taxes. Not everyone know how to use tax loss harvesting to save money on taxes. We share how to lowere you taxes before year end.