Certain U.S. citizens or resident aliens, specifically contractors or employees of contractors supporting the U.S. Armed Forces in designated combat zones, may now qualify for the foreign earned income exclusion.
Manafort Trial FBAR Conviction Alert ! In the U.S. v. Paul Manafort trial, the jury reached a partial verdict finding Paul Manafort guilty on five counts of tax fraud and one count of failing to file foreign bank account reports (“FBARs”).
The Internal Revenue Service issued guidance on new tax law changes that allow small business taxpayers with average annual gross receipts of $25 million or less in the prior three-year period to use the cash method of accounting.
The Tax Cuts and Jobs Act permanently lowered the federal corporate income tax rates, which decreased from 35 percent to 21 percent. According to the Tax Foundation research and an article by Erica York, on which they analyze the effects of such changes, they conclude that it is beneficial to the US economy.
The Trump administration has imposed and threatened several rounds of tariffs in 2018, and other countries have responded to these measures in kind. According to the Tax Foundation Taxes and Growth Model and an article by Erica York and Kyle Pomerleau, on which they analyze the effects of enacted, threatened, and retaliatory tariffs, it will have a big impact on the United States economy. Tariffs damage economic well-being, and lead to a net loss in production and jobs, and lower levels of income.
The Tax Cuts and Jobs Act of 2017 made multiple changes to the individual income tax, including changes to itemized deductions and the alternative minimum tax, an increased standard deduction and child tax credit, and lower marginal tax rates across brackets.