TSCPA Federal Tax Policy Blog

AICPA LAUNCHES TAX INSIGHTS CALCULATOR

The AICPA this week announced a new online tool called Total Tax Insights calculator to help taxpayers understand where their tax dollars are being spent. This free resource allows users to have a clear picture of estimated totals of federal, state and local taxes.

The AICPA worked with a vendor and created more than 3,000 formulas that generate estimated taxes based on more than two dozen data inputs. The calculator and database, however, does not include some types of taxes nor does it cover all tax deductions and credits but additional features are being considered for future versions.

Learn More

http://journalofaccountancy.com/News/20125662.htm

HOUSE OF REPRESENTATIVES PASSES MOBILE WORKFORCE BILL

The U.S. House of Representatives on Tuesday passed the Mobile Workforce State Income Tax Simplification Act of 2011 (H.R. 1864) which establishes a uniform national standard governing the withholding of state income tax for non-resident employees.

Barry Melancon, CPA, CGMA and president and CEO of AICPA called the passage “a critical step toward balancing and streamlining onerous recordkeeping and reporting requirements for workers who are required to file non-resident personal income tax returns because they work temporarily outside their home state.”

Several state societies including TSCPA worked tirelessly with representatives to push the bill along. TSCPA recognizes Texas Congressman Lamar Smith (R-21) for bringing the bill to the House floor for passage. 

Learn More

http://www.aicpa.org/Press/PressReleases/2012/Pages/AICPA-Applauds-Passage-of-Mobile-Workforce-Bill-by-House-of-Representatives.aspx

TSCPA letter to Representative Kay Granger

TSCPA ltr to Rep Granger HR 1864 Mobile Workforce Act 5-4-12

LAWMAKERS INTRODUCE BILL TO PUNISH TAX PREPARERS WHO DEFRAUD CLIENTS

Bipartisan members of the House Ways and Means Committee lead by Rep. Erik Paulsen (R-Minn.) introduced legislation to increase the penalties on tax preparers who defraud taxpayers and the IRS by altering tax returns for personal benefit without their clients’ knowledge. The legislation came from a recommendation by National Taxpayer Advocate Nina Olson.

The “Fighting Tax Fraud Act” would double the current penalties for tax preparers who are involved with identity theft, with the goal of giving the IRS greater incentive to prosecute this type of theft.

http://www.accountingtoday.com/news/Congress-Bill-Increase-Tax-Preparer-Penalties-62586-1.html

New Franchise Tax Minimum Revenue Floor

The 2011 Texas Legislature extended the $1 million minimum revenue requirement for paying franchise taxes through Dec. 31, 2013. The amount is subject to inflations adjustments and State Comptroller Susan Combs announced that the inflation adjusted minimum revenue is now $1,030,000 for reports due in 2012.  The minimum revenue amount drops to $600,000 Jan. 1, 2014.

http://window.state.tx.us/taxinfo/taxpnw/tpn2012/tpn1204.html#issue1

TSCPA COMMITTEE ISSUES COMMENTS TO IRS ON REPAIR REGULATIONS

TSCPA’s Federal Tax Policy Committee issued comments to the IRS on temporary and proposed regulations on the capitalization of costs associated with tangible property, also known as “repair regulations.” The committee expressed concerns in several areas including the de minimis expensing rule and Code section 481(a) adjustments. It also urged the IRS to provide a generous transition time for taxpayers to comprehend and comply with the 200-page regulations.

Proposed repair regs 4-16-12

IRS EXPECTS COURT TO UPHOLD LICENSING OF TAX PREPAPERS

The IRS and Commissioner Doug Shulman believe its plan to license tax preparers will stay intact despite a lawsuit filed by a libertarian group claiming the agency is overreaching it authority.

http://thehill.com/blogs/on-the-money/domestic-taxes/220465-irs-confident-courts-will-uphold-effort-to-license-tax-preparers

TSCPA SENDS LETTER TO APPROPRIATIONS COMMITTEE ABOUT BUDGET

In the letter crafted by the Federal Tax Policy Committee, TSCPA is asking the U.S. Senate and House Appropriations Committees to support full funding of the IRS FY 13 budget to help improve fiscal responsibility and fairness to taxpayers.

TSCPA Ltr to Appropriations on IRS Budget Concerns 3-19-12

TSCPA TO SEND OIL AND GAS ANALYSIS TO KEY FEDERAL LEGISLATORS

TSCPA is preparing its updated report on proposed legislation for taxation changes to domestic oil and gas development to U.S. Senate Finance Committee, House Ways and Means Committee, and other key lawmakers (including all Texas members of congress). The Federal Tax Policy Committee produced the report as a resource to legislators as they consider possible changes to tax law.
Read the report.

MANDATORY FBAR E-FILING POSTPONED

The Treasury Department’s Financial Crimes Enforcement Network has postponed until July 1, 2013, its requirement that Form TD 90-22.1 Report of Foreign Bank and Financial Accounts (FBAR) be filed electronically. The initial e-file mandate was starting with FBARs due June 30, 2012. However, taxpayers with an FBAR filing obligation will still have to paper file their FBARs by the usual due date.

Read more from the Journal of Accountancy

http://www.journalofaccountancy.com/Web/20125219.htm

TSCPA SENDS LETTER TO CONGRESS ON STATE AND LOCAL SALES TAX DEDUCTION

On behalf of TSCPA, the Federal Tax Policy Committee sent a letter to select members of Congress for support on the state and local sales tax deduction legislation.  In the letter, the committee urges lawmakers to make the deduction permanent in order to provide fairness and certainty to millions of taxpayers.

http://www.tscpa.org/Content/Files/pdf/Resource%20Center/Tax%20Issues%20Community/Letters/LTRCongressSupportSALTdeductionLegpdf.pdf