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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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.
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.
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.
By Scott A. Hodge, The Tax Foundation
One of the most obvious questions from Tuesday’s election results is: what does this mean for tax reform?
I think it certainly enhances the prospects of Congress and the president reaching a grand bargain on overhauling the tax code, however the likelihood that it will be this Congress and this president making such a deal seem pretty remote.
Even before the election, the conventional wisdom in the tax community was that fundamental tax reform would not be enacted until 2017, after the next presidential election. But, the success or failure of that effort was highly dependent upon three factors: