Tax Day is just around the corner, and the Forbes Tax Breaks newsletter is here to provide helpful resources, including a free tax guide. For those who haven’t filed yet, filing for an automatic extension is an option that allows for a superseding return instead of an amended return. Recent data shows a decrease in taxable shareholders over time, leading to a decreasing tax base, with foreign investors and tax-exempt entities dominating U.S. stock ownership.
Another trend on the rise is individuals contemplating renouncing their U.S. citizenship, including “accidental Americans” who may not live in the U.S. but are still subject to U.S. tax laws. College students and families may also benefit from tax breaks, such as credits for education expenses. Making tax compliance easier for taxpayers, especially those facing language barriers, can help boost compliance rates.
The Panama Papers, a collection of leaked documents detailing financial arrangements of the super wealthy, brought to light the global perception of the U.S. as a tax haven. The release of the Panama Papers led to increased scrutiny and eventually the introduction of the Corporate Transparency Act. In a related development, defendants tied to Mossack Fonseca have gone on trial for money laundering charges related to the Papers.
The Tax Court recently addressed a conservation easement case, highlighting the complexities of valuing such property. Discovery disputes in court cases, such as Everest Granite, LLC, can lead to delays and sanctions. Important upcoming dates include the opening of Taxpayer Assistance Centers on April 13, and the deadline for individual federal income tax returns on April 15 (or April 17 for Maine and Massachusetts).
In career and industry news, former IRS-CI Chief Jim Lee has joined Chainalysis, while psychologist Daniel Kahneman passed away last month. Registration is open for the NAEA Capitol Hill Fly-In Day. Trivia questions, staff responses to hypothetical scenarios, and key figures regarding the number of individual tax returns expected to be filed by April 15, 2024, round out the newsletter’s content.
