New excise tax imposed by Puerto Rico and foreign tax credit under IRC S. 903

In October 2009, Puerto Rico enacted a new PR excise tax on certain personal property produced in PR and services performed in PR. The tax is effective for transactions occurring after December 31, 2010. IRC Code Section 901 allows a credit against US federal income tax for any income tax paid or accrued during the [...]

Read Full Post »

Deduction for Appraised Value of Art Denied Where Taxpayer Found Only Have Had an Option to Buy Art

In the case of Williams v. Commissioner, TC Memo 2011-89, the taxpayer claimed that he should be able to claim a charitable contribution for the donation of artwork. The taxpayer entered into an agreement with a third party that he would “purchase” art work by putting down 5% of the price he would eventually pay. Just [...]

Read Full Post »

No Passport issuance for citizens who have delinquent tax obligations?

This may happen soon as suggested by Government Accountability office (GAO). GAO noted that federal law currently prohibits the IRS from divulging taxpayer information, including unpaid federal taxes, to the State Department, unless the taxpayer consents. In contrast, federal law permits certain restrictions on the issuance of passports to individuals, such as individuals owing child support [...]

Read Full Post »

Be Like Ben—Make Life Better by Volunteering

One of our founding fathers, Benjamin Franklin, had a strong sense of duty which drove him to organize volunteer fire-fighting clubs and a public hospital in his adopted hometown of Philadelphia. The 1st United States Volunteer Cavalry, or the “Rough Riders” as they were commonly known, was a band of 1,250 volunteers formed to assist [...]

Read Full Post »