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Andrew Presti

Deducting receivables as bad business debts

While the economy continues to slowly recover, many businesses continue to face customers struggling to pay outstanding bills for services or goods. The Tax Code provides relief to businesses faced with the inability to collect on accounts receivable. Businesses that are unable to get customers to pay the bill can claim a deduction for the […]

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Andrew Presti

Congress readies enhanced small business tax bill

A package of small business tax incentives, as part of the larger Small Business Jobs Act of 2010 (H.R. 5297) has been slowly making its way through Congress over the past several months. However, on July 29 members of the Senate effectively blocked a final vote on the H.R. 5297, pushing the prospects for passage […]

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Andrew Presti

Preparing for the possible return of pre-EGTRRA individual tax rates

In less than six months, unless Congress acts, the individual marginal income tax rate reductions under the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) will expire. While the timetable for addressing the EGTRRA tax cuts is not certain, the approaching sunset of the individual rate reductions, the possibility for their extension, and […]

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Andrew Presti

Treasury: 5.6M hires qualify for new tax break

WASHINGTON – Businesses have hired 5.6 million workers under a new program that provides tax breaks for hiring unemployed workers, the Treasury Department said Monday. The report, however, does not estimate how many of those jobs would have been added without the tax break. President Barack Obama signed a law in March that exempts businesses […]

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Andrew Presti

Dividends Rise, Tax Hikes May Follow

Starbucks, GE, and others are boosting dividends, but it’s up to Congress to decide how much dividend income shareholders will keep. U.S. shareholders are seeing companies boost dividends again, after two years of sharp declines in payouts. However, at the same time, taxes on their dividends could be heading higher, taking a bite out of […]

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Andrew Presti

The Foreign Account Tax Compliance Act

A key component of the federal government’s push for heightened tax compliance among U.S. taxpayers with foreign accounts and assets is the Foreign Account Tax Compliance Act (FATCA). In an interview in February this year with the JofA, IRS Commissioner Doug Shulman called the then-pending legislation “the next big thing” in international tax compliance and […]

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Andrew Presti

TIGTA Finds IRS Doesn’t Always Protect Taxpayers, Follow Rules When Filing Liens

A report issued by the Treasury Inspector General for Tax Administration (TIGTA) says the IRS does not always follow legal requirements when issuing liens and lien notices. The report also concludes that, as a result, action is needed to protect taxpayer rights during the lien process. A federal tax lien arises when the IRS attaches […]

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Andrew Presti

A Double Taxation Warning

U.S. companies with overseas subsidiaries may want to heed the warning of an older tax case that discusses what constitutes ownership for purposes of foreign tax credits. As the global economy begins to show signs of recovery, it may be a good time to review an Internal Revenue Service ruling, upheld by two courts, related […]

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Andrew Presti

Making Work Pay tax credit set to expire

Get ready for a smaller paycheck. At least that’s what could happen if Congress doesn’t approve President Obama’s proposal to extend the Making Work Pay tax credit soon. The credit, introduced last year as part of the government’s stimulus package, boosts paychecks by up to $400 for single filers and up to $800 for joint […]

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Andrew Presti

“Glimmers of improvement,” but state woes remain

WASHINGTON (Reuters) – State tax revenue is improving, but only slightly, and may not be enough to end steep spending cuts or replace the loss of assistance from the federal stimulus plan that expires in December, according to a report on Tuesday. The National Conference of State Legislatures said states faced a collective budget gap […]

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