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Because the Internal Revenue Service (IRS) doesn’t automatically send out periodic account statements, it’s easy to wonder about the status of your account. True, you’ll get letters from the IRS if you have overdue amounts from a past year, or if the IRS believes you have made a mistake on your return. But that doesn’t
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Many businesses around the world operate in more than one country, making them subject to multiple tax jurisdictions. To prevent businesses from minimizing their tax liability by taking advantage of cross-country differences in taxation, countries have implemented various anti-tax avoidance measures, one being the so-called Controlled Foreign Corporation (CFC) rules. CFC rules apply to certain
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Italy is no stranger to low economic growth and high unemployment. To address these issues, Deputy Prime Minister Matteo Salvini is pushing for a 15 percent flat income tax initially only for middle- to low-income earners. However, this proposal would cost between €12 billion and €30 billion per year in tax revenue, pushing Italy’s budget
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If you receive a letter this year from the IRS, don’t be alarmed. After every tax season, the agency sends out a variety of notices to taxpayers. Not every letter means there’s an impending audit coming your way.  Many of the notices are routine and can easily be resolved. Here’s what to do if one
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Many countries’ individual income tax systems tax investment income in addition to wage income. They do this by levying taxes on income from capital gains and dividends. Today’s map focuses on taxes on dividends, showing how dividend tax rates vary across European countries. A dividend is a payment made to an individual from after-tax corporate profits.
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The Organisation for Economic Co-Operation and Development (OECD) has just released a 44-page “programme of work” document outlining the process by which the more than 130 member countries in the OECD’s Inclusive Framework will come to an agreement on how to tax multinational businesses in the digital age.[1] While tax professionals pore over the document’s
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A recent report compares the extent to which labor is taxed in OECD countries. This so-called tax burden on labor reflects the difference between an employer’s total cost of an employee and the employee’s net disposable income. In 2018, the average tax wedge of the 27 countries covered in this Europe map was 40.2 percent for a
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Key Findings Average wage earners in the United States face two major taxes: the individual income tax and the payroll tax (levied on both the employee and the employer). Although slightly more than half of a U.S. worker’s payroll tax burden is paid by his employer, the worker ultimately pays this tax through lower take-home
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For the majority of tax filers, tax season is over. April 15 marked the last day to submit your return – unless you filed an extension. So, how’d the season go? Below is an industry-wide recap plus a little tax filing myth-busting insight. The IRS reported the total number of 2018 returns filed so far
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It’s never been more important to save for college, as tuition continues to rise – and rise. One way people have saved for their children’s tuition has been through 529 savings plans. If you have a 529 savings plan or have thought about starting one, here’s what you need to know. What is a 529
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If you ask people whether they think the Tax Cuts and Jobs Act of 2017 helped them or cost them more money, you may hear different answers. If they recently filed their taxes, the foremost thing in their minds may be whether they got a tax refund or not and whether that refund is more
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German Version Key Findings Last week, the Austrian Finance Ministry released its tax reform package, amounting to an annual tax cut of €8.3 billion by 2022. The tax reform plan includes lower personal income tax rates and lower social security contributions, reducing Austria’s high tax burden on labor. For businesses, the package includes a cut
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Cigarette excise taxes have been a source of state revenue for decades, but in recent years, reliance on these taxes has increased. Using data from Orzechowski and Walker’s annual compendium The Tax Burden on Tobacco, this web tool shows how cigarette tax revenues have changed between 1955 and 2018. For illustration, the tool defaults by looking at New York. The
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The Republican Study Committee (RSC) released its Fiscal Year 2020 Budget this week, and it includes a number of tax policy changes. Among the most important are proposals to make the Tax Cuts and Jobs Act’s (TCJA) individual and expensing provisions permanent, shorten depreciation schedules, create universal savings accounts (USAs), and eliminate tax extenders. Make
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