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
Apr152015

The Internal Revenue Service meets the Affordable Care Act

By: Elaine Kamarck, Brookings

As tax day is on April 15, 2015, the Internal Revenue Service (IRS), the government agency Americans love to hate, will be implementing the mandate in the Affordable Care Act (ACA) for the first time ever. This is a law that a large part of the public, mostly conservative, loves to hate as well. Regardless of the reality of how things go, the combination of the IRS and the ACA guarantees complaints from politicians and the public alike. Whether these complaints represent a significant critique or are simply growing pains that will fade away, they will have repercussions for the 2016 elections and beyond.

Ever since its passage, the mandate that every American have health insurance has been at the heart of the controversy over the ACA. It is enforced through the tax code, which is enforced by the IRS. Beginning this year, citizens will find some new boxes to check and some new forms to fill out as they complete their tax returns.

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Tuesday
Mar312015

Rubio-Lee Tax Reform Plan: Good but could be Better

Senator Marco Rubio (R-FL) and Mike Lee (R-UT) recently introduced the Economic Growth and Family Fairness Tax Reform Plan in an effort to incrementally reform the U.S. tax system. The plan is not without its problems. To begin with, the top tax rate will be 35 percent, down only from 39.6 percent. Even worse, the 35 percent tax rate will be levied against any taxable income above $75,000 for single tax payers and $150,000 for married taxpayers. As a result, a significant number of taxpayers will face higher marginal tax rates. On the bright side, Rubio and Lee’s proposal does include attractive pro growth features. They include:

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Tuesday
Mar312015

Obamacare Regulations Creating Confusion for Taxpayers Ahead of Filing Deadline

Posted by Alexander Hendrie on Tuesday, March 31st, 2015, in the Americans for Tax Reform blog

With a little over two weeks until the April 15 filing deadline, experts are predicting this year’s tax season to be one of the most chaotic and uncertain ever. The reason? Several major Obamacare regulations, including the employer mandate and the individual mandate are in effect for the first time.

The US tax code is already one of the most complex in the world. The IRS estimates that complying with the tax code costs Americans 6.6 billion hours per year and new Obamacare mandates will add yet another layer of complexity on top of an already confusing process. This year, many taxpayers will unknowingly owe the federal government more in taxes, or will owe a penalty fee. Others may believe they owe a penalty, but in fact do not.

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Thursday
Mar262015

Going international can mean new IRS attention—are you ready?

Internationally active companies are scrutinized by the Large Business and International (LB&I) Division of the IRS. Managing IRS examinations: large business and international taxpayers will help you better understand this division and how it could affect you. This white paper provides: An overview of the LB&I Division Discussion of how LB&I selects returns for examination An outline of how to prepare for an LB&I examination

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Thursday
Mar262015

Seven Tax Tips about Reporting Foreign Income

Are you a U.S. citizen or resident who worked abroad last year? Did you receive income from a foreign source in 2014? If you answered yes’ to either of those questions here are seven tax tips you should know about foreign income: 1. Report Worldwide Income. By law, U.S. citizens and residents must report their worldwide income. This includes income from foreign trusts, and foreign bank and securities accounts. 2. File Required Tax Forms. You may need to file Schedule B, Interest and Ordinary Dividends, with your U.S. tax return. You may also need to file Form 8938, Statement of Specified Foreign Financial Assets. In some cases, you may need to file FinCEN Form 114, Report of Foreign Bank and Financial Accounts. See IRS.gov for more information.

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