Politics & Taxes

The following was published on SanctionsAlert.com on 3/14/2016

The thawing of relations between the United States and Cuba is also having consequences on the taxes and tax credits of United States taxpayers. Earlier this month, the US Internal Revenue Service ruled that United States taxpayers are no longer prohibited from taking a “foreign tax credit” for income taxes paid or accrued to the Republic of Cuba.

IRS Revenue Ruling 2016-8, issued on March 1, 2016, is consistent with the loosening of U.S. restrictions on travel to Cuba and its efforts to build deeper diplomatic and other relations with the island nation. The IRS Revenue Ruling will come as welcome news to United States companies and investors who are looking to gain or expand a foothold in Cuba. Read the rest of this entry »

Will Trump’s 15% Corporate Tax Rate Kick-Start the Economy? He Says, “Yes.” History Says, “No.”

Trump’s tax plan calls for cutting the corporate tax rate to 15%. Between the corporate tax rate cut and the cuts to individual taxes, his overall plan would reduce tax revenue by $9.5 trillion over 10 years.[1] But what’s $9.5 trillion when, by “cutting the corporate tax rate to 15%,” America will be able to “compete with the world and win“? [2] Read the rest of this entry »

Last month, news outlets were in an uproar over the $4.1 million the IRS spent on a 2010 employee-training conference held in Anaheim, California. Much of the controversy surrounded the approximately $50,000+ spent on obnoxious training videos with little redeeming or educational value. Other amounts spent ($133,000 to hire outside speakers at the event) also raised ire. These controversial expenses, as well as the controversy surrounding the IRS’ disproportionate scrutiny of conservative organizations’ tax-exempt status applications, have kept reporters busy. Read the rest of this entry »

News Flash!

Today Darrell Issa, Chairman of the U.S. House of Representatives Committee on Government Oversight and Reform released a 157-page Staff Report finding that Braulio Castillo, President and CEO of Strong Castle, Inc., an information technology company, thanks to a “cozy relationship” with IRS Deputy Director for IT Acquisition, Greg Roseman, obtained government contracts potentially worth over $500 million. The Report cited that “Castillo and Roseman had a long-term friendship that extended well beyond a professional relationship . . .” which was evidenced, in part, by numerous text messages, many of which contained vulgar material.

This may be today’s news, but it’s the same old story. Read the rest of this entry »