Many restaurants include automatic gratuities on guests’ checks with large parties to ensure servers get fair tips. This method allows the restaurant to calculate an automatic gratuity or tip into the total bill, but it takes away the customer’s discretion in choosing whether and/or how much to tip the server. As a result of this removal of a customer’s voluntary act, the IRS has decided that it will separately tax automatic gratuities.
Today the IRS issued the long awaited final Tangible Property Regulations (also known as the “repair regulations”). The 222-page regulation package addresses capitalization rules for amounts paid to acquire, produce, or improve tangible property.
As part of the January 2013 tax legislation, Congress expanded the definition of property qualifying for favorable Section 179 expensing to include qualified real property placed in service in any taxable year beginning in 2010, 2011, 2012, or 2013.
Johnny Manziel’s battle with the NCAA has, for now, ceased. After being suspended for the first half of his first game, Manziel faces no further repercussions for allegations he received a five-figure sum for signing autographs for brokers. But while Manziel gets ready for a big game this weekend against Alabama, he may have more to worry about than Nick Saban’s defense. If Manziel did indeed take money from autograph brokers, and doesn’t acknowledge it, he may find himself being chased down by the IRS.
Italy enacted a new law that significantly amends its rules requiring Italian resident individual taxpayers to report their foreign financial investment and accounts and other assets capable of generating foreign source taxable income.
Colorado Accounting Department Head Sentenced to Federal Prison for Failing to Pay Over Employment Taxes
Bloomberg BNA reports that a Colorado woman who managed the accounting department of a garage door company she co-owns was sentenced to 28 months for failing to pay $4.67 million in employment taxes (United States v. Pettyjohn, D. Colo., No. 1:13-cr-00020, sentencing 9/11/13).
Bloomberg is reporting that Rahn & Bodmer Co., the Swiss private bank established by silk traders in 1750, announced that it is cooperating with a U.S. Department of Justice probe into cross-border accounts of American clients.
Syria has of late dominated the attention of headline writers and the chattering class. No doubt many people are delighted at this development.
Today’s opinion from the Texas Third Court of Appeals at Austin in Richmont Aviation, Inc. v. Combs, et al., No. 03-11-00486-CV (September 12, 2013), could radically change the way that taxpayers can bring Texas tax disputes in the state’s courts.
In going through my draft posts, I came upon a completed one from 2012 that I unintentionally failed to post. More than a bit late, but here goes.