Monthly Archives: April 2016

On April 12, 2016 the European Commission presented a proposal that would require all large Multinational Enterprises with operations in the European Union to Publicly Disclose certain tax-related information for all their entities in the EU and in designated tax havens on a country-by-country (CbC) basis.
 
The European Commission has indicated that it will establish a common EU list of tax haven jurisdictions as soon as possible. These Multinational Enterprises would also be required publish an aggregate figure for total taxes paid outside of the EU.

Reasons For and Objectives of the Proposal  A healthy Single Market needs a fair, efficient and growth-friendly corporate tax system, based on the principle that companies should pay taxes in the country where profits are generated. Aggressive tax planning undermines this principle. The majority of companies do not engage in aggressive tax planning and suffer a competitive disadvantage to those that do. Small and medium-sized companies are particularly affected by this phenomenon.  

Fighting against tax avoidance and aggressive tax planning, both at EU and global level, is a political priority for the European Commission. As part of a broader strategy for a Fair and Efficient Corporate Tax System in the EU, public scrutiny can help to ensure that profits are effectively taxed where they are generated.
 
Public scrutiny can reinforce public trust and strengthen companies' corporate social responsibility by contributing to the welfare through paying taxes in the country where they are active. In addition, it can also promote a better informed debate on potential shortcomings in tax laws. 
 
Responding to the calls from the G20 and elsewhere, greater transparency on the side of companies is needed to enable public scrutiny of whether tax is paid where profits are produced. This proposal requires that MNEs disclose publicly in a specific report the income tax they pay together with other relevant tax-related information. MNEs, whether headquartered in the EU or outside, with turnover of more than EUR 750m ($855mm) will need to comply with these additional transparency requirements.
 

• This proposal focusses on corporate groups with a worldwide consolidated net turnover of more than EUR 750 million, in line with the scope of global OECD initiatives on tax transparency.
• The proposal does not impose any obligations on small and medium-sized companies.
• It is proportionate both in terms of scope and information to be disclosed so as to limit compliance and other costs for affected companies, as well as to avoid jeopardizing their competitiveness or expose them unduly to double taxation risks.
• It fits into the multilateral approach supported by the G20 and the OECD.

Afraid To File Your Return Because You Owe IRS? Here's How IRS Collects Delinquencies - Forbes

 Have a Tax Problem?

 

 

Contact the Tax Lawyers at

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or Toll Free at 888-8TaxAid (888 882-9243).
 

Taxpayers who owe taxes can now choose among several quick and easy electronic payment options, including the following:

• Electronic funds withdrawal allows taxpayers to E-file and pay from their bank account when using tax preparation software or a tax professional.  EFW is only available when e-filing.
• Direct Pay. Available at IRS.gov/directpay, this free online tool allows individuals to securely pay their income tax directly from checking or savings accounts without any fees or pre-registration. Payments can be made 24 hours a day and scheduled up to 30 days in advance. Any taxpayer who uses the tool receives instant confirmation that their payment was submitted. Direct Pay has successfully processed more than 10 million payments totaling over $30 billion since its debut in 2014.
• Credit or debit card. Taxpayers can pay online, by phone or using their mobile device through any of the authorized debit and credit card processors. A convenience fee is charged by the processor. The IRS doesn’t receive or charge any fees for payments made with a debit or credit card. Go to www.IRS.gov/Payments for authorized card processors and their phone numbers.
• IRS2Go. TheIRS2Go mobile app is free and offers taxpayers the option to make a payment with Direct Pay, or by debit or credit card through an approved payment processor for a fee.
• Electronic Federal Tax Payment System. This free service gives taxpayers a safe and convenient way to pay individual and business taxes by phone or online. To enroll or for more information, call 800-316-6541 or visit www.eftps.gov.
• Cash. Taxpayers without bank accounts or if cash is their only option can pay using the new PayNearMe option. Payments are limited to $1,000 per day, and a $3.99 fee applies to each payment. Because PayNearMe involves a three-step process, the IRS urges taxpayers choosing this option to start the process well ahead of the tax deadline to avoid interest and penalty charges. The IRS offers this option in cooperation with OfficialPayments.com/fed and participating 7-Eleven stores in 34 states. Details, including answers to frequently-asked questions, are at IRS.gov/paywithcash.    

An automatic extension of time to file will be automatically processed for those taxpayers who choose to pay all or part of their taxes electronically by the April due date. An extension of time to file is not an extension to pay. Taxes are still due by the original due date. Taxpayers can get an automatic extension when making a payment with Direct Pay, Electronic Federal Tax Payment System or by debit or credit card and select Form 4868 as the payment type.

Taxpayers who choose to pay by check or money order should make the payment out to the “United States Treasury.” Also, print on the front of the check or money order: “2015 Form 1040”; name; address; daytime phone number; and Social Security number.

To help ensure that the payment is credited promptly, also enclose a Form 1040-V payment voucher.

The IRS advises taxpayers to file either a regular income tax return or a request for a tax-filing extension by this year’s April 18 deadline (April 19 for residents of Maine and Massachusetts) to avoid late-filing penalties. This penalty can be ten times as costly as the penalty for paying late.

Taxpayers who owe, but can’t pay the balance in full, do have options. Often, they qualify for one of several relief programs, including the following:

• Most people can set up a payment agreement with the IRS online in a matter of minutes. Those who owe $50,000 or less in combined tax, penalties and interest can use the Online Payment Agreement to set up a monthly payment agreement for up to 72 months. Taxpayers can choose this option even if they have not yet received a bill or notice from the IRS. With the Online Payment Agreement, no paperwork is required, there is no need to call, write or visit the IRS and qualified taxpayers can avoid the filing of a Notice of Federal Tax Lien if one was not previously filed. Alternatively, taxpayers can request a payment agreement by filing Form 9465. This form can be downloaded from IRS.gov and mailed along with a tax return, bill or notice.
• Some struggling taxpayers may qualify for an offer-in-compromise. This is an agreement between a taxpayer and the IRS that settles the taxpayer’s tax liabilities for less than the full amount owed. The IRS looks at the taxpayer’s income and assets to make a determination regarding the taxpayer’s ability to pay. To help determine eligibility, use the Offer in Compromise Pre-Qualifier, a free online tool available on IRS.gov. Details on all filing and payment options are on IRS.gov.

Owe Tax - Need Help?

Contact the Tax Lawyers at 
Marini & Associates, P.A.

 

for a FREE Tax Consultation

at www.TaxAid.us or www.TaxLaw.ms

or Toll Free at 888-8TaxAid (888 882-9243)