Trade with China is good, but what about Mexico?

Despite the drug violence in Mexico that killed more than 15,000 people last year, and the negative attention that has all but destroyed border tourism, trade between that country and the U.S. has recovered and surpassed prerecession levels. Last year, trade was at an all-time high.

See http://www.foreignaffairs.com/articles/140334/shannon-k-oneil/six-markets-to-watch-mexico

Taxpayer Received $862,000 From IRS

After Tripping Over a Phone Cord During Tax Audit

 A taxpayer undergoing an audit at an Internal Revenue Service office on Long Island successfully sued the IRS for $862,000 after he was injured by tripping over a phone cord.

See http://www.accountingtoday.com/news/Taxpayer-Scores-IRS-Tripping-Phone-Cord-69345-1.html?utm_campaign=daily-jan%2022%202014&utm_medium=email&utm_source=newsletter

 

Is severance pay due to a lay off subject to FICA taxes?

In November of 2012 the U.S. Court of Appeals ruled against the IRS by affirming a lower court's decision that severance pay do to a lay off are not subject to FICA taxes. This month we will see if the US Supreme Court will upholds the Appeals court’s ruling. If the Court rules against the IRS, the agency will need to process retroactive refund claims submitted by employers and employees. These claims could reach a total in the billions, and cause the IRS to lose a major source of future revenue.

See http://www.law.cornell.edu/supct/cert/12-1408

Taxpayer Advocate Calls for Taxpayer Bill of Rights

The head of the Taxpayer Advocate Service (TAS), also known as National Taxpayer Advocate, urged the IRS to adopt a comprehensive Taxpayer Bill of Rights in her annual report to Congress. TAS is an independent office within the IRS and reports to congress.  In the report she said “because of sequestration, the IRS’s funding was substantially cut, which translated into a reduction in taxpayer service”.  Also “public trust in its fairness and impartiality was called into question” because of reports the IRS’ apparent political treatment of certain applicants for tax-exempt status.

See http://www.irs.gov/uac/Newsroom/National-Taxpayer-Advocate-Delivers-Annual-Report-to-Congress;-Focuses-on-Taxpayer-Bill-of-Rights-and-IRS-Funding

Beanie Baby Billionaire Seeks to Avoid Jail for Tax Evasion

H. Ty Warner, the billionaire creator of Beanie Baby plush toys, asked a judge to give him probation, not prison, for evading taxes on secret Swiss accounts that held as much as $107 million

See http://www.bloomberg.com/news/2014-01-02/beanie-baby-billionaire-seeks-to-avoid-prison-for-tax-evasion.html

Tips for Fraud Prevention in 2014

With fraud costing as much as 5 percent of revenues worldwide, the Association of Certified Fraud Examiners is recommending a set of steps for businesses to take to protect themselves.

See http://www.cpapracticeadvisor.com/news/11287386/tips-for-fraud-prevention-in-2014