Skip to main content

The Latest in Tax News: January 2020 Edition

Tax, tax news, tax stories, current events tax, tax world news, tax events, tax stories, trending tax topics, latest tax rules, tax news today
Textbook Tax presents its monthly tax news update. A quick read discussing various tax news, tax stories, and tax events trending in the world of tax during the month. The following tax topics cover the month of January 2020. The tax topics presented represent my favorites in tax news and tax-related events. Please comment any tax news stories you found interesting for the month of January. Additionally, please email me or connect with me on social media for the monthly tax news update sent straight to you!

Related Posts -- Prior Weeks' Tax News
December 2019

Tax News for January 2020

Tax Topic: Google changes its intellectual property tax-planning strategy

Tax Summary:

  • In 2020, Google will change its corporate structure to license intellectual property in the U.S.
  • Previously, Google licensed its IP from Bermuda.
  • This change is the result of pressure from international regulatory bodies like the OECD and EU to combat aggressive tax planning structures.
  • Google previously utilized the "double Irish" tax planning strategy to take advantage of hybrid structures and shifting profits to low-tax jurisdictions.
  • Hopefully, more companies transfer IP to the United States as a result.

Tax Topic: U.S. digital tax 'opt-out' provision not popular within OECD

  • The Organization of Economic Corporation and Development (OECD) is working on its global tax rules, which includes the rules governing digital taxation.
  • The OECD hopes to gain support and agreement from 140 countries by the end of 2020.
  • Because the proposal targets large tech companies, U.S. executives and politicians are upset.
  • The U.S. proposed an optionality proposal, which allowed companies to opt out of first phase of the plan.
  • The OECD and country leaders are against the optionality proposal, claiming it creates political and technical issues.

Tax Topic: Cryptocurrency continues to face minimal tax compliance standards

  • Cryptocurrency lacks third party information reporting.
  • For example, Brokers must issue a Form 1099-B to the IRS and the taxpayer. Doing so, enhances taxpayer compliance as a matching mechanism.
  • Because most cryptocurrency exchanges are not registered as brokers, they do not issues the Form 1099-B. Instead, the exchanges face the rules for third-party payment settlement organizations, which only issue 1099-Ks when users exceed the $20,000 transaction amount.
  • Because of this, the reconciliation burden falls on the taxpayer, which results inaccurate crypto reporting.
  • The IRS will expand its rules governing cryptocurrency to improve compliance in the near future.
  • Tax guidance on virtual currency transactions

Comments

Popular posts from this blog

Gambling Winnings & Losses: How to report gambling income and losses

People love to gamble.  During the past NFL Super Bowl (2019),  gamblers wagered approximately $146 million in Nevada’s sports books, which fell short of the record set the year before of $159 million. The gambling industry continues to grow as U.S. legislation becomes less restrictive relating to the gambling industry.  Because of the size of the gambling market, the IRS set forth guidance to control the tax treatment of gambling winnings and losses. I will discuss income and losses, record keeping, reporting forms, and special rules. If you participate in gambling activities, it is important to know the unique personal tax rules. The term 'gambling' applies to a wide range of activities, including: sports betting, casino games, lotteries, etc. You will need to follow the established gambling tax rules when reporting winnings and losses from gambling activities. Related Posts IRA Income: Must know tax rules relating to your IRA Are your income items taxable? Gamblin

File your taxes online for free: The IRS Free File Program Explained

It is officially tax filing season. While many people dread filing their tax return, I have some good news that may cheer you up and save you some money during this tax filing season. For those that meet the requirements, you may file your tax return for free via the IRS Free File Program! What is the IRS Free File Program? The IRS Free File program is a partnership between the IRS and leading tax-preparation companies. The partnership states that these tax-prep software companies must provide free online tax preparation and electronic filing for those who qualify for Free File. What are the requirements to qualify for the IRS Free File Program? You may file your taxes for free using the Free File software if your income is $72,000 or less (for tax year 2020). By qualifying for Free File, you may choose from several brand-name tax software companies. The software will guide you through the tax preparation process, ultimately preparing and printing your tax return. If your inc

20 Tips & Tricks for Studying for the CPA Exam

For those on the way to becoming a certified public accountant, you now know it is a long and difficult journey. For those just beginning, good luck! The most difficult and time-consuming task is passing the CPA Exam. CPA candidates must spend hundreds of hours preparing for all four sections of the CPA. Each CPA section represents an entirely different topic, creating a daunting task for anyone looking to start studying for the CPA exam. I passed all four sections of the CPA with an average score of 91. Luckily, I did not have to retake any of the exams, which is a common occurrence as the average passing rate is around 40-50% per exam. Having personal experience dealing with the CPA exam process, I want to share valuable tips for conquering the CPA exam. I want you to feel confident and comfortable during the CPA exam process, and so, I believe the following tips will help you during the CPA exam process. Lets begin! Related Posts -  Preparing for the CPA Exam: How to Study