IRS Closes Offshore Loophole

The IRS closed a loophole Tuesday that has been used by some taxpayers with offshore accounts. Under existing law, if a taxpayer challenges in a foreign court the disclosure of tax information by that government, the taxpayer is required to notify the U.S. Justice Department of the appeal. The IRS said that if the taxpayer fails to comply with this law and does not notify the U.S. Justice Department of the foreign appeal, the taxpayer will no longer be eligible for the Offshore Voluntary Disclosure Program (OVDP). The IRS also put taxpayers on notice that their eligibility for the OVDP could be terminated once the U.S. government has taken action in connection with their specific financial institution.

The voluntary disclosure programs are part of a wider effort by the IRS to stop offshore tax evasion, help bring people back into the tax system and ensure tax compliance. This includes beefed up enforcement, criminal prosecution and implementation of third-party reporting through the Foreign Account Tax Compliance Act, also known as FATCA.

The IRS reopened the 2012 OVDP following continued strong interest from taxpayers and tax practitioners after the closure of the 2011 and 2009 programs. This program will remain open for an indefinite period until otherwise announced. 

Source: Pettir.com on article “IRS Closes Offshore Loophole & Announces New Details on OVDP


Mobile Payment Processing in Your Pocket

Accepting credit cards payments is notoriously complicated and expensive. It’s no longer the case when it comes to accepting a credit card payment directly on your mobile devices; you have more options these days.

The options are Square, Intuit GoPayment, PayAnywhere, and PayPal Here. They will send you a small credit card reader or scanner when you sign up for a new account. You simply plug the card reader, which can fit in your pocket or bag, into your smartphone or tablet and launch the accompanying free app, and you’re ready to accept credit card payments for your goods or services.

Each service offers free apps for iOS (iPhone, iPod Touch, and iPad) as well as for Android. Intuit’s GoPayment also supports some BlackBerry phones. Since the scanner plug into the headphone port, they are compatible with almost any phone that can run the app.

These mobile payment processing services offer pay-as-you-go plans, in which you pay only a fixed percentage fee per transaction with no separate transaction fee or monthly fee.

Read full article “Mobile Credit Card Processing in Your Pocket” at accounting.pettir.com