Tax Laws

The rationale that ‘the more you make, the more you spend’ is very true, but it applies to the progressive tax system in the U.S. The impact of higher taxes on the rich, especially businesses, on employment must be considered. Businesses believe that higher taxes affect their job creation, as it is only when a…

In a recovering economy, the IRS is doing its part to help taxpayers resolve their back taxes. The IRS is providing back taxes help by simplifying the resolution process of many tax debt payment plans including Innocent Spouse and Offer in Compromise. The qualifying factors and the resolution of back taxes after qualifying have been…

To increase revenue, the government adopted the twin strategy of increasing taxes and reducing government spending. In regards to building revenue, increasing taxes does not only result in advantages. There has been much criticism of high corporate taxes in the U.S., which is known to result in widespread tax evasion, legally and illegally. Many individual…

It is not always strict tax laws that improves compliance or increases revenue. There are unexpected and often unpredictable results of stricter tax laws. When the IRS increases its efforts to improve tax compliance among Americans living outside the country, it led to many wealthy citizens renouncing their U.S. citizenship. Many wealthy people consider taxes…

The IRS has many tax debt resolution programs to assist with the various financial circumstances of taxpayers. Some of the most commonly used back taxes resolution programs are the Installment Agreement, Offer in Compromise, Currently Not Collectible and Innocent Spouse. These programs allow taxpayers to resolve their back taxes with or without the full or…

Energy tax provisions are supposed to reduce greenhouse gas (GHG) emissions but have not effective in limiting GHG emissions, a study reveals. To counter this problem, the introduction of a carbon tax is seen as an effective alternative solution. Energy-sector tax expenditures reach roughly $48 billion, but have little to no impact on reducing GHG…

Energy-tax provisions control greenhouse gas emissions in order to protect the environment, but current energy taxes are doing very little to reduce greenhouse gas emissions, meaning tax expenditures and subsidies are not effective in keeping down greenhouse gases while costing the government revenue. The impact of the current provisions is unclear because of the complexity…

Taxpayers who evade taxes in the U.S. through secret offshore bank accounts may find the details of their financial transactions being handed over to U.S. authorities. That is because under the Foreign Account Tax Compliance Act (FATCA), U.S. authorities are making agreements with governments of various countries to bring more transparency into the financial transaction…

Tax evasion by the wealthy and large corporations amounts to billions in lost revenue for the Treasury each year. The U.S. government, looking to increase revenue, is now going after taxpayers who do not fulfil their tax obligations by hiding assets overseas. Apple Inc. is currently in the news for evading billions in taxes by…

Most taxpayers believe that if they cannot pay their IRS debt, they cannot resolve it. It is a myth that leads to many taxpayers facing tax liens and tax levies. Therefore, it is essential for taxpayers to know that the IRS provides them with various options to satisfy their tax debt. The IRS has payment…