Trusts won big over the IRS yesterday. The Tax Court ruled that trusts can “materially participate” in business activities. Taxpayers who materially participate in an activity don’t have to pay the Obamacare net investment income tax on income from the activity. I have a full writeup, Tax Court decision cuts 3.8% Obamacare Net Investment Income Tax for many trusts.
We submit these comments in the hope that they will help lawmakers and the public understand that FATCA, while intended to catch tax evaders, is poised instead to impose serious and unjustified harms on people who live around the world as non-resident U.S. citizens and green card holders, as well as their family members and business associates.
After all, you have to shoot the jaywalkers so you can slap the real international tax evaders on the wrist.
Quoted text from “Submission to Finance Department on Implementation of FATCA in Canada” by Allison Christians and Arthur Cockfield, via the TaxProf.
William Perez, Tips for Same Sex Married Couples Filing Their Tax Returns.
Steven Rosenthal, You Could Owe Capital Gains Taxes When You Spend Bitcoin (TaxVox)
Scott Schumacher, Does Equity Have a Role in Offers in Compromise? (Procedurally Taxing)
William McBride,New Study Finds U.S. Multinationals Pay Extremely High Effective Tax Rate. (Tax Policy Blog). Since Iowa corporate rates are the highest in the U.S., that makes us number 1 in the world, baby!
TaxProf, The IRS Scandal, Day 323
Tax Justice Blog, Tax Cuts Fall Flat in Idaho
False choice. The Drive for Tax Reform: Hitting the Breaks or the Gas? (Renu Zaretsky, TaxVox)
Career Corner. The More Money Your Parents Made, the Less Likely You Are to Become an Accountant (Going Concern)
If all poverty were like this, monasteries would be more popular. A Pennsylvania taxpayer is accused of trying the old “I’m a church” dodge. From Lehighvalleylive.com:
Erik Von Kiel, formerly of Macungie, falsely told the federal government he was a minister with a Utah-based religious organization, and that he had renounced any interest in property or income, authorities said.
He did so while concealing his salary and assets, including a seven-bedroom Macungie home he bought with his wife in 2006 and later sold for $175,000, according to court documents.
Seven bedrooms? Not bad for poverty. Probably more accessible than many monastic residences, too.