California Income Tax Refund Opportunity for Multistate Businesses

Summary: California has overcharged multistate businesses on income tax bills for years, the California Court of Appeal, Fourth District, held on July 24, 2012. Multistate businesses that have paid California income taxes between tax years 2007 and today should contact Royse Law Firm, PC, to determine refund eligibility. Explanation: Multistate entities must apportion their taxable…

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FATCA and the 2012 Tax Amnesty Programs

July 5, 2012 The Foreign Account Tax Compliance Act (FATCA), enacted as part of 2010 Hiring Incentives to Restore Employment (HIRE) Act, is a reporting regime designed to ensure US citizens and residents pay appropriate US taxes on specified foreign financial assets. FATCA focuses on foreign financial institutions, which include banks, investment management companies, and…

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Temporary Regulations Offer Bright-Line Test for Corporate Inversions

Internal Revenue Code (I.R.C.) Section 7874 regulates corporate and partnership inversions. An “inversion” occurs when an entity elevates a subsidiary in a low-tax jurisdiction (e.g., Bermuda) to a parent position, inverting the previous affiliation and becoming a subsidiary of the foreign-headquartered entity. By relocating one’s headquarters to a foreign jurisdiction, an entity shields its foreign-source…

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Deadline and Other Foreign Bank / Foreign Asset Reminders

All United States persons, including citizens, green card holders, and individuals considered US residents based on the duration of their stay in the United States, are required to annually report their ownership of, or signature authority over, foreign bank accounts. The form for such reporting is the FBAR (or TD F 90-22.1), which form must…

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