Welcome to the IMA Tax Policy Blog. The blog format reflects our efforts to provide IMA members with timely, relevant and thought provoking information in a form that is accessible for easy reference. IMA’s Tax Policy Blog will be updated on a regular basis. Weekly news update emails will be sent out to notify subscribers of new information posted on the blog. IMA members are welcome to submit material for the blog, or request specific information. Simply email Editor Stefany Henson at shenson@ima-net.org with your information or request. Editorial submissions are subject to review. 

Wednesday
Apr162014

Legislation to renew expired tax incentives moves one step forward

EXPIRE Act passes Senate Finance Committee — TAX ALERT, April 09, 2014, from IMA member McGladrey — Expired tax credits and incentives clear first hurdle towards extension — Senate Finance Committee passes extenders legislation.

Many federal tax credits and other incentives are not permanent provisions of the Internal Revenue Code and must be periodically reapproved by Congress. This approach was originally intended to result in more careful Congressional oversight of each provision requiring periodic renewal–much like the concept of “zero-based” budgeting. In reality, the almost constant, recurring need for short-term “extenders” legislation creates tremendous uncertainty in the business community and may actually stifle the activities these incentives were created to encourage.

Click to read more ...

Wednesday
Apr162014

The Tax Impact of Arranging a Common Carrier for Shipping

From IMA member Sikich’s blog … Posted in Accounting, Audit and Tax | Tax | State & Local Tax on March 28, 2014

Shipping Tax

In years past, when a seller sold goods, it would generally be the party that arranged for the transportation of the goods to the buyer’s location. In cases in which the seller did not have its own transportation equipment (trucks, etc.), it would generally contract for the shipment of the goods with a common carrier.

That is often no longer the case. Due to arrangements a buyer might have with a common carrier, it might be able to obtain much more favorable shipping charges from a common carrier than the seller can, making it cheaper for the buyer to contract for the shipment of the purchased goods.

Click to read more ...

Tuesday
Apr082014

Illinois Tax Proposals Would Increase Taxes on Most Employers

New tax proposals in Illinois would raise taxes on a majority of employers, says Liz Malm, an economist with the Center for State Tax Policy at the Tax Foundation.

Currently, Illinois has a single five percent tax rate on all individual incomes (set to decrease to 3.75 percent in 2015 upon expiration of tax increase legislation), and the Illinois state constitution prohibits the use of a graduated rate individual income tax. But there are three proposed plans in front of the Illinois General Assembly that would amend the constitution and allow for such a graduated rate tax.

• One plan from Rep. Naomi Jakobsson would institute a top rate of 9 percent on incomes above $500,000.

Click to read more ...

Tuesday
Apr082014

IRS Seeks Applications for Information Reporting Program Advisory Committee

The Internal Revenue Service is requesting membership nominations for the Information Reporting Program Advisory Committee (IRPAC), a federal advisory committee that advises the IRS on various tax administration issues.

The IRPAC presents a report to the IRS Commissioner at a public meeting each fall. Members are appointed to three-year terms, but terms are staggered so that approximately one-third of the committee membership changes each year. Nominations are currently being accepted for up to six appointments that will begin in January 2015.

The deadline for submitting applications is May 30, 2014.

Click to read more ...

Wednesday
Apr022014

President Obama’s fiscal 2015 tax proposals in brief

TAX ALERT from IMA member McGladrey …

The tax proposals in the Obama administration’s fiscal 2015 budget (the Greenbook) would raise revenue through higher taxes on many businesses and individuals and increase spending by expanding on a variety of tax credits for low-income individuals and favored local development projects. Although it contains some base-broadening proposals similar to those contained in Congressman Dave Camp’s recently unveiled tax reform proposal, the revenue raised by the Administration’s proposal would not be used directly to reduce individual or corporate tax rates. Instead, the plan contains a reserve of $248 billion for an unspecified revenue-neutral business tax reform, which holds out the hope of tax reform but does not make many of the difficult decisions that a comprehensive plan would require.

Click to read more ...