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Treasury Secretary Yellen Promotes Corporate Minimum Tax

A corporate minimum tax is needed to provide tax relief to the working and middle class, Department of Treasury Secretary Janet Yellen said.

“Over the past several decades, the burden of taxation – in the United States and globally – has shifted away from corporations and on the middle class,” Secretary Yellen said January 21 during the World Economic Forum’s Virtual Davos Agenda conference. “A significant reason for this shift is tax competition among nations. This competition has created a race to the bottom in corporate tax rates on footloose capital.”

She said this race-to-the-bottom has incentivized large multinational corporations to ” stash profits in their low-taxed subsidiaries around the world,” which “depletes governments of the resources they need for the complex challenges they face.”

A 2021 deal on the corporate minimum tax was struck by 137 countries representing almost 95 percent of the world’s gross domestic product. The United States had included language in the Build Back Better Act to set the corporate minimum tax rate at 15 percent, consistent with the international agreement, but the legislation stalled in the Senate after passing the House of Representatives. Its fate remains unknown. There has been no further action on the social spending bill since Sen. Joe Manchin (D-W.Va.) announced in December 2021 that he would not support the bill. He voiced his dissent on a corporate minimum tax among other concerns with the bill.

Despite this, Yellen continued to promote the concept, suggesting it is not dead yet.

A new system for a global minimum tax on corporate earnings “will improve productivity by incentivizing businesses to allocate capital to its most productive use, rather than to the use that produces the best tax result,” Yellen said.

FL - Solid mineral tax rates for 2024 announced

Florida has released the severance tax rates on the production of heavy minerals and other solid minerals for 2024. From […]

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FL - Solid mineral tax rates for 2024 announced

IRS Provides Waiver for Taxpayers Failing to Meet Foreign Earned Income Requirements, Rev. Proc. 2024-17

The IRS has provided a waiver for any individual who failed to meet the foreign earned income or deduction eligibility requirements of Code Sec. 911(d)(1) because adverse conditions in a foreign country […]

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IRS Provides Waiver for Taxpayers Failing to Meet Foreign Earned Income Requirements, Rev. Proc. 2024-17

ERC Compliance Efforts Top $1 Billion in Six Months, IR-2024-78

The IRS announced that compliance efforts around erroneous Employee Retention Credit (ERC) claims have topped more than $1 billion within six months. “We are encouraged by the results so far of […]

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ERC Compliance Efforts Top $1 Billion in Six Months, IR-2024-78

IRS Provides Guidance on Replacement of Certain Lead Service Lines, Announcement 2024-10

The IRS has announced the federal income tax treatment of certain lead service line replacement programs for residential property owners. It is required by the federal and many […]

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IRS Provides Guidance on Replacement of Certain Lead Service Lines, Announcement 2024-10

IRS Releases Guidance on Form 1099-K, FS-2024-7; IR-2024-5

The IRS has released guidance to help taxpayers understand what to do with Form 1099-K. Responding to feedback from taxpayers, tax professionals and payment processors, […]

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IRS Releases Guidance on Form 1099-K, FS-2024-7; IR-2024-5

Treasury Department's AI-Powered Fraud Detection Yields $375 Million Recovery

The Treasury Department‘s Office of Payment Integrity (OPI) deployed Artificial Intelligence(AI)-based fraud detection at the onset of Fiscal Year 2023, resulting in the recovery of over $375 million. […]

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Treasury Department's AI-Powered Fraud Detection Yields $375 Million Recovery

FL - Senate approves IRC conformity changes

The Florida Senate approved a tax bill that changes the corporate income tax IRC conformity tie-in date. H.B. 7073, as […]

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FL - Senate approves IRC conformity changes

FL - House passes bill that modifies IRC conformity date

Florida House of Representatives passed a bill with a provision that modifies the IRC conformity tie-in date for determining corporate […]

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FL - House passes bill that modifies IRC conformity date

FinCEN Issues Guidance on Inflation Adjustments to Civil Monetary Penalties

The Financial Crimes Enforcement Network (FinCEN) issued guidance on inflation adjustments to its civil monetary penalties as mandated by the Federal Civil Penalties Inflation Adjustment Act of 1990 (the Act), as amended. This rule […]

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FinCEN Issues Guidance on Inflation Adjustments to Civil Monetary Penalties

FL - IRC conformity update, disability employment credit proposed

Legislation introduced in the Florida House of Representatives proposes to: update the IRC conformity tie-in date for determining corporate income […]

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FL - IRC conformity update, disability employment credit proposed