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
Dec172014

2014 Year End Tax Planning Guide

Posted on December 9, 2014 by Ryan Giolitto, Tax Manager, in the Corbett, Duncan & Hubly PC blog

As 2014 nears a close, the focus shifts from the election to post-election tax planning. Although Congress is still divided on many key issues, we expect an extenders bill coming soon. In the meantime, the following are suggested planning tips to take prior to year end.

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Wednesday
Dec172014

New Standard Mileage Rates Now Available; Business Rate to Rise in 2015

The Internal Revenue Service has issued the 2015 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. Beginning on Jan. 1, 2015, the standard mileage rates for the use of a car, van, pickup or panel truck will be: 57.5 cents per mile for business miles driven, up from 56 cents in 2014 23 cents per mile driven for medical or moving purposes, down half a cent from 2014 14 cents per mile driven in service of charitable organizations

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Wednesday
Dec102014

Participation Payments to Manufacturer Currently Deductible

IRS private letter ruling (PLR) 201447004 issued Nov. 21, 2014, holds that component manufacturers may be able to take a deduction for payments for marketing and product development expenses made as part of a product development agreement with another manufacturer.

Taxpayers are required to capitalize payments made to create a separate and distinct intangible asset or other future benefit, to create or acquire an intangible asset, and to facilitate the creation or acquisition of an intangible asset. In the situation addressed in the PLR, the taxpayer entered into an agreement with another manufacturer to develop a component that would become part of a new product.

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Wednesday
Dec102014

Business in America: Illustrated

From the Tax Foundation … New report examines what American businesses look like and what would happen to them if we fixed the tax code

As the American economy continues its slow recovery, both sides of the aisle are looking to business tax reform as a means of fixing present financial woes and avoiding future pitfalls. Some policymakers and taxpayers argue for higher taxes on business investment, while others fight for lessening the corporate tax burden. However, the conversation is often driven by misinformation about what the U.S. economy, business landscape, and tax code look like and how they function together.

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Thursday
Nov202014

As 2015 FATCA deadlines approach, some questions to consider

Under the Foreign Account Tax Compliance Act (Chapter 4 or FATCA), certain foreign financial institutions (FFIs) must report information on U.S. account holders to the IRS. Noncompliant taxpayers are subject to a 30 percent withholding on any “withholdable” payments made to the foreign payee. U.S. withholding agents must collect this tax and are liable for any failure to withhold and deposit the correct amount with the IRS in a timely fashion. In addition, U.S. withholding agents must report all payments subject to FATCA to the IRS.

FATCA information reporting is based on pre-FATCA withholding rules (Chapter 3 withholding) and, as such, utilizes many of the same forms. Forms W-9, W-8BEN, W-8IMY, W-8ECI, W-8EXP and 1042-S have all been updated to include FATCA-related classifications and representations. In addition, the IRS has put forth a new Form W-8BEN-E, which will be required for many foreign entities to represent their FATCA status to U.S. withholding agents.

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