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The Tax Exchange - October 2016

RSM UK predicts future tax trends

RSM UK predicts future tax trends

A new OECD report “Tax Policy Reforms in the OECD” reviews the tax reforms which were announced, legislated or implemented by OECD member states during 2015. This report, which is the first step in what will become a regular OECD monitoring process, identifies tax policy trends across the OECD.

  • October 31, 2016
New guidance on REIT asset tests; income tests guidance forthcoming

New guidance on REIT asset tests; income tests guidance forthcoming

Real estate investment trusts (REITs) must adhere to both quarterly asset tests and annual income tests, amongst a host of other administrative requirements, to maintain the tax-advantaged REIT designation. The Treasury and the IRS recently released new final regulations regarding the definition of real property for purposes of the REIT quarterly asset tests.

  • October 27, 2016
Follow new guidance when correcting qualified retirement plan errors

Follow new guidance when correcting qualified retirement plan errors

The IRS has released updated guidance that should help companies that have made errors in the form or operation of their qualified retirement plans. If your company offers such plans, you understand that the tax consequences for compliance mistakes can be drastic.

  • October 26, 2016
Year-end international tax considerations

Year-end international tax considerations

As we move past the tax filing deadlines and towards year-end planning, taxpayers should be aware of several important international tax considerations. Here are some of the key issues you may wish to consider.

  • October 24, 2016
Have you accidentally created a split dollar life insurance arrangement?

Have you accidentally created a split dollar life insurance arrangement?

Businesses normally know when they have created a split dollar life insurance arrangement. However, sometimes these arrangements happen accidentally.

  • October 21, 2016
Apple's influence on international tax policy

Apple's influence on international tax policy

A month ago the European Commission (EC) announced that Apple Inc. would have to pay Ireland over $14.5 billion, plus interest, for having received what the EC now considers illegal tax benefits over the past decade. The EC’s ruling instantly resulted in significant media coverage—largely due to the size of the back taxes owed.

  • October 19, 2016
Musings on the great US tax debate

Musings on the great US tax debate

Businesses across the country, and no doubt around the world, are watching the upcoming U.S. election very closely. Despite the personal attacks and rhetoric, there are major economic issues that may be impacted by the results.

  • October 18, 2016
Draft remote seller legislation provides unique federal solution

Draft remote seller legislation provides unique federal solution

In recent years, there has been quite a lot of discussion among retailers and state and federal governments over state revenue losses stemming from e-commerce and remote sales. Some states have taken legislative and regulatory approaches to enhance use tax collection, encourage voluntary sales tax collection and remittance by remote sellers, and directly challenge the physical presence standard adopted in Quill v. North Dakota.

  • October 17, 2016
IRS rules payment of M&A breakup fee generated capital loss

IRS rules payment of M&A breakup fee generated capital loss

Many M&A transactions include provisions for breakup fees payable if a party to the transaction backs out of the deal. Many taxpayers generally view a breakup fee as an ordinary expense deductible by the payor. However, the IRS recently issued a Field Attorney Advice ruling that a breakup fee generated a capital loss.

  • October 14, 2016
Missouri passes pro-ESOP legislation

Missouri passes pro-ESOP legislation

The Missouri legislature recently overturned the governor’s veto of a bill that allows business owners to defer up to 50 percent of the tax resulting from a stock sale to an employee stock ownership plan (ESOP) if the ESOP owns at least 30 percent of the company. What is it about ESOPs that gave this bill enough bipartisan support to lead to a successful override?

  • October 12, 2016
B&O reconciliation due October 31 to avoid substantial penalty risk

B&O reconciliation due October 31 to avoid substantial penalty risk

Washington state taxpayers apportioning service income under the Business and Occupation (B&O) Tax must file an annual reconciliation form by October 31 of each year to avoid substantial penalties.

  • October 10, 2016
Fourth Amendment protection not extended to state auditor actions

Fourth Amendment protection not extended to state auditor actions

Recently, the Minnesota Tax Court determined that the constitutional protection from unlawful search and seizure was not applicable to the actions of a state auditor. Those actions, however, provide an important reminder to taxpayers on handling state audits.

  • October 06, 2016
Expensing business property for S corporation shareholders

Expensing business property for S corporation shareholders

The Missouri legislature recently overturned the governor’s veto of a bill that allows business owners to defer up to 50 percent of the tax resulting from a stock sale to an employee stock ownership plan (ESOP) if the ESOP owns at least 30 percent of the company. What is it about ESOPs that gave this bill enough bipartisan support to lead to a successful override?

  • October 04, 2016