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. 

Thursday
Apr142016

IRS issues guidance on inversions and earnings stripping

RSM TAX ALERT | April 06, 2016 — from IMA member RSM

The Treasury and IRS recently issued temporary and proposed regulations to address the continued erosion of the U.S. corporate tax base through inversions, specifically targeting earnings stripping transactions. While the regulations will likely slow the pace of U.S. corporations seeking inversions, Treasury Secretary Jacob J. Lew urged Congress to enact anti-inversion legislation in order to fully stop inversions. The regulations are already having a huge impact on previously announced inversions such as the Pfizer-Allergan transaction, which was scuttled following the issuance of these regulations. Broadly speaking, the regulations address two areas, as described below.

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Thursday
Apr072016

The Small Business Health Care Tax Credit: Seven Tax Tips for Employers

Do you own a small business or run a tax-exempt organization with fewer than 25 full-time equivalent employees? If you do, the Small Business Health Care Tax Credit can help you provide insurance to your employees. You may be able to save on your taxes if you paid for at least half of their health insurance premiums. Here are seven tax tips about this credit: 1. Maximum Credit. The maximum credit is 50 percent of premiums paid by small business employers. The maximum credit is 35 percent of premiums paid by small tax-exempt employers, such as charities. 2. Number of Employees. You must have fewer than 25 full-time employees, or a combination of full-time and part-time employees. For example, two half-time employees equal one full-time employee for purposes of the credit.

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Thursday
Apr072016

How High Are Cigarette Taxes in Your State?

By Scott Drenkard of The Tax Foundation …

For this week’s tax map, we take a look at cigarette tax rates across the country, which vary widely from state to state and are levied on top of a federal rate of $1.0066 per 20-pack of cigarettes.

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Wednesday
Mar302016

Reporting Foreign Income: Eight Tax Tips from the IRS

Did you receive income from a foreign source in 2015? Are you a U.S. citizen or resident who worked abroad last year? If you answered ‘yes’ to either of those questions, here are eight tips to keep in mind 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.

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Wednesday
Mar302016

Understanding the Terms Affordable Coverage and Minimum Value

In general, under the employer shared responsibility provisions of the Affordable Care Act, an applicable large employer may either offer affordable minimum essential coverage that provides minimum value to its full-time employees and their dependents or potentially owe an employer shared responsibility payment to the IRS.

Here are definitions to help you understand affordable coverage and minimum value.

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