Category Taxation in USA

American Crypto Investors Hiding from IRS

February 14, 2018 Taxation in USA

Cryptocurrency incomeWASHINGTON D.C. – Americans who have already submitted their tax returns either have not invested in cryptocurrencies or are lying about the incomes the cryptocurrency have helped them realize.

The tax preparation business Credit Karma has released new information which indicates that taxpayers in America may be hiding their taxable incomes from cryptocurrency investments.

The business revealed that of the 250 000 individual taxpayers who have already filed their annual obligations, only 100 made any specific mention of gains from cryptocurrency.

It is estimated that approximately 7 percent of Americans hold investments in Bitcoin.

Also, a previous survey by Credit Karma indicated that as many as 57 percent of respondents have realised gains from cryptocurrency.

Based on the available inf...

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Cigarette Taxes Fluctuate Widely Across USA

January 26, 2018 Taxation in USA

cigarette taxWASHINGTON D.C. – The taxes on cigarettes range widely across the USA, and the differences may be leading to smuggling.

The Tax Foundation has released the results of their new research showing the range of taxes applied across different states in the USA on the sale of cigarettes.

All cigarettes sold in the USA are subject to a state tax and a federal tax.

The federal tax for a 20-pack of cigarettes is USD 1.0066, regardless of where it is sold.

However, the taxes levied by each individual state authority varies widely.

New York state and Connecticut levy the highest rate of tax, at USD 4.35 per pack, followed by Rhode Island, Massachusetts, and Hawaii, at USD 4.25, USD 3.51, and USD 3.20 respectively.

Conversely, North Dakota, Georgia, and Virginia have the lowest tax rates at USD 0...

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Trump Enacts New Solar Tax

January 24, 2018 Taxation in USA

Solar tariffWASHINGTON D.C. – President Trump has made a move which will see a hike in price for solar panels and other solar equipment.

Earlier this week the Trump administration of the USA announced that a new duty will be enacted on the import of solar panels into the country.

Solar panels and other solar equipment coming into the USA will be faced with a tariff of up to 30 percent.

Officially, the tariff is intended to encourage the growth and expansion of the domestic solar manufacturing industry.

However, while government analysis predicts that the solar tariff will help the US economy, independent analysts do not hold the same view.

Some experts believe that the measure will not lead to the creation of extra jobs, and while it may lead to a slowdown in solar adoption, it will not help review...

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Slashing Taxes Improves States’ Business Environments

October 19, 2017 Taxation in USA

US state taxesWASHINGTON D.C. – Dropping taxes or keeping rates low is the key to having the best business environment in the USA, say researchers.

On October 17th the US think tank, the Tax Foundation, released its annual State Business Tax Climate Index.

The Index is designed to show how each state compares in terms of the taxes applied to businesses, their incomes, to property ownership, or employee salaries.

The top 10 states were Wyoming, South Dakota, Alaska, Florida, Nevada, Montana, New Hampshire, Utah, Indiana, and Oregon.

The lowest 10 states were Rhode Island, Louisiana, Maryland, Connecticut, Ohio, Minnesota, Vermont, California, New York, and New Jersey.

Researchers at the Tax Foundation noted that a common element among the top-ranked states was the absence of a major tax, such as corpor...

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IRS Already Tracking Bitcoin

August 25, 2017 Taxation in USA

bitcoin taxWASHINGTON D.C. – The IRS has spent years keeping track of Bitcoin movements to build a chain of evidence to catch money launderers.

New information released by the Inland Revenue Service through a Freedom of Information Act request has revealed that the tax authority has been tracking the seemingly anonymous use of Bitcoins since as early as 2017.

The information released shows that nearly 2 years ago the IRS paid for software which is able to analyse and track the movement of Bitcoins from one “wallet” to another.

The tracking allows the IRS to build a detailed history of transfers between various Bitcoin holders.

The information itself cannot be used to identify a Bitcoin holder directly.

However, when the Bitcoins are accepted by an entity which is bound by AML and KYC regulations...

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