“Everyone I know goes away in the end." Former Trump campaign manager Paul Manafort was convicted by a federal jury of five counts of filing false tax returns, as well as bank fraud. At the same time, Trump’s former private lawyer Michael Cohen pleaded guilty to tax and bank fraud.
“It’s too late baby, now it’s too late?” Commerce Secretary Wilbur Ross said in July that his assessment of national security threats from auto imports would be completed this month. But Ross now tells The Wall Street Journal that its release date is no longer clear. That’s because the Trump Administration is still negotiating trade deals with the European Commission, Mexico, and Canada.
“It’s their refund, they'll apply it how they want to.” The US Chamber of Commerce wants corporations that have overpaid taxes on offshore profits to be able to choose how the additional tax will be applied to their overall tax bill. But the IRS has said it won’t rebate excess payments or credit them toward tax bills not tied to repatriation.
“And the BEAT goes on…” Some large insurance companies need clarification from the IRS about the Base Erosion and Anti-Abuse Tax (BEAT). The new provision in the Tax Cuts and Jobs Act aims to prevent companies from avoiding taxes by shifting their profits to affiliates overseas in lower tax jurisdictions. But there are 40 or so words in the provision aimed at the insurance industry that could affect its bottom line.
“Tell ‘em, tell ‘em, tell ‘em, tell ‘em right now:” New IRS guidance. The agency has issued Tax Cuts and Jobs Act guidance on unrelated business taxable income (UBTI) for separate trades or businesses. Among issues addressed, the guidance outlines the general principles surrounding income from partnerships. It also provides interim and transition rules for aggregating income and for debt-financed income from partnerships. For calculating UBTI, the guidance provides that an inclusion of global intangible low-taxed income (GILTI) is treated as a dividend.
“A funny thing happened on the way to the [tax] forum.” Tax professionals may register for the Nationwide Tax Forum by August 28 for a reduced fee. The forum takes places in Orlando, Florida from September 11 through 13, and will be the last of these events this year. Visit the IRS Nationwide Tax Forum website to register.
“Oh the times, they are a-changin.’” David W. Wilcox, director of Research and Statistics at the Federal Reserve Board, will retire at the end of this year after 30 years of service, including seven years as the director of the division. In addition to overseeing 350 employees, Wilcox has been responsible for briefing the Federal Open Market Committee on the US economic outlook. The Wall Street Journal notes that his departure marks the most significant change in senior staff since Chairman Jerome Powell took office in February.
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