San Jose State University

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21st Century Taxation

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Emily MacLoud
Annette Nellen

Latest from San Jose State University

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How about making April 30th Celebrating Taxpayers Day?  A few things lead me to suggest this. The reasons mostly tie to my recent research and writing on improving transparency of our tax systems.*  I like all principles of good tax policy (I hope we all do). I think that two on the AICPA set of principles of good tax policy need more attention because doing so will help tax systems to better meet the other…
Posted in Tax
The Tax Cuts and Jobs Act brought several improvements for small businesses, most notably, favorable accounting methods such as use of the cash method and not having to deal with the Unicap rules. The AICPA Tax Section recently posted a position paper noting 13 more changes that would further help modernize the Code to reflect how small businesses operate. Some of these would more completely simplify what Congress started with the TCJA. For example, the…
Posted in Tax
Well, I missed this one until today in working on more tax update materials for presentations.  On December 31, 2018, P.L. 115,407, Veterans Benefits and Transition Act of 2018, was signed into law. The summary on the congressional website for this bill notes it deals with headstones, markers, and cemeteries. But, it deals with a lot more. Relevant for state tax purposes is Section 302 of the Act. It provides:“For any taxable year of…
Posted in Tax
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Since 2011, I’ve created and maintained websites that list the federal tax regulations issued to date for the year. Perhaps that sounds a bit tax nerdy, but I find it helps me get ready access to current regs and the preamble. It also helps with the tax update presentations I do throughout the year, providing that as a resource to attendees.  The webpage for the 2019 regs has links for all years back to 2011.…
Posted in Tax
President Trump released his FY2020 budget proposal on March 12. [A Budget for a Better America – Promises Kept. Taxpayers First, page 82] It slightly increases IRS funding to “expand and strengthen tax enforcement.” Such efforts “are estimated to generate approximately $47 billion in additional revenue at a cost of $15 billion, yielding a net savings of $33 billion over 10 years.  The Budget also includes several proposals to ensure that taxpayers comply…
Posted in Tax
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The IRS National Taxpayer Advocate’s Annual Report to Congress released in February ( IR-2019-11(2/12/19) + Report) includes the 2nd edition of the “Purple Book” with 59 legislative recommendations to improve taxpayer rights and tax administration. Two of the recommendations aim to strengthen taxpayer rights. They also improve the transparency of the tax system, which is a principle of good tax policy. The two recommendations: 1. Codify as Section 1 of the Internal…
Posted in Tax
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Otherwise known as the Tax Cuts and Jobs Act (P.L. 115-97; 12/22/17) Following is an excerpt from my February Note from the AICPA Tax Executive Committee Chair. For complete note (for AICPA Tax Section members) – click here. Given the number of TCJA changes, incomplete guidance and many other issues, I offer the following suggestions to share with your clients to help them avoid surprises later. The TCJA is comprised of over…
Posted in Tax
“Since cryptocurrencies are decentralized and unregulated for the most part, they enable cannabis businesses to accept secure, cashless, and fast payments that can be converted into greenbacks or sent anywhere around the world at competitive speeds.”* I like to research and write about emerging technologies and trends in how we live and work. A long time ago, that is how I gov involved in tax policy and technical matters related to the Internet and e-commerce. …
Posted in Tax
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Some situations can lead to odd tax results and often additional efforts a taxpayer had to go through to get the right result (or close to it). A case from November 2018 fits this category. Here is a brief summary and some observations. Czerw v. Lafayette Storage & Moving Corp., et al, #16-CV-6701-FPG (WD NY, 11/9/18) – C started working for L as a mover in 1993. L started having financial problems in 2014 causing…
Posted in Tax
The federal government and probably all states have numerous tax incentives. These are usually credits that reduce the regular tax liability if the taxpayer takes the required action such as creating a certain number of jobs, investing in a designated zone, installing energy efficient property etc. These incentives reduce tax revenues. They are usually created in the tax system as a simpler way to administer them as opposed to creating a government function to evaluate…
Posted in Tax