Author: News Desk

The IRS has issued a firm deadline for designated officials managing Business Tax Accounts (BTAs): accounts must be revalidated by Tuesday, July 30, 2025 to maintain uninterrupted access. According to an IRS fact sheet released on July 24, designated individuals must log in to their BTA portals and complete the revalidation process. Failure to do so will require affected users to reapply for access, which could delay their ability to manage tax matters online. Important: IRS systems will be offline for scheduled maintenance from Sunday, July 28, 12:00 a.m. to 11:00 a.m. ET, which may limit the window for account…

The debate over capital gains tax reform has gained renewed urgency as economic analysts highlight a significant but often overlooked distortion: inflation can cause investors to face effective capital gains tax rates far exceeding the statutory maximum — in some cases, even surpassing 100 percent. Understanding Capital Gains Taxation and Inflation Capital gains tax is levied on the nominal profit realized when an investor sells an asset, such as stocks, for more than its purchase price. In the United States, short-term capital gains (assets held less than a year) are taxed as ordinary income up to 37%, while long-term capital…

Federal Investment Tax Credit Raised from 25% to 35% for U.S. Semiconductor Manufacturing Projects Micron Technology is poised to receive an additional $5 billion in federal tax credits for the first phase of its $100 billion chip manufacturing complex in Clay, New York, following the enactment of a new bill signed into law by President Donald Trump. The legislation increases the Advanced Manufacturing Investment Tax Credit from 25% to 35% for semiconductor companies that invest in new domestic manufacturing facilities. The credit, which is fully refundable, applies to both construction and equipment costs. Micron had previously estimated it would receive…

New profiles from 12 jurisdictions provide fresh clarity on transfer pricing treatment for intangibles and baseline distribution activities. The Organisation for Economic Co-operation and Development (OECD) has published the second batch of updated Transfer Pricing Country Profiles, offering enhanced transparency into domestic transfer pricing rules in 12 additional jurisdictions. These include Austria, Belgium, Canada, Ireland, Latvia, Lithuania, Mexico, the Netherlands, New Zealand, Singapore, South Africa, and Spain. These updated profiles integrate new insights on the treatment of hard-to-value intangibles (HTVIs) and the simplified approach for baseline marketing and distribution activities, aligning with the OECD’s ongoing Two-Pillar Solution to address tax…

Merging irrevocable trusts remains a viable strategy—when implemented in compliance with GST tax rules. In a significant development for estate planners, the Internal Revenue Service (IRS) has confirmed in Private Letter Ruling (PLR) 202528006 (issued July 11, 2025) that the merger of two GST-exempt irrevocable trusts—each created by a different settlor but with identical terms and beneficiaries—does not jeopardize their generation-skipping transfer (GST) tax exemption. This ruling affirms that consolidating properly structured irrevocable trusts can be done without adverse GST consequences, provided the trusts share the same inclusion ratio of zero and maintain consistent beneficiary interests. Background: Trust Structure and…

In a landmark decision impacting local taxation across Missouri’s cannabis industry, the Missouri Supreme Court ruled 6-1 on Tuesday that local governments cannot stack multiple sales taxes on marijuana purchases. The decision interprets the 2022 constitutional amendment legalizing adult-use marijuana as permitting only one 3% local sales tax per jurisdiction—either a city, town, or village in incorporated areas or a county in unincorporated areas, but not both. Key Ruling Takeaway: Only one local entity—either a municipality or a county—may impose a 3% cannabis sales tax at any one dispensary, not both simultaneously. Dual Taxation Struck Down The case centered around…

If you’re an overseas business selling digital products or services to Australian consumers, you may be required to register and report Goods and Services Tax (GST) to the Australian Taxation Office (ATO). Australia’s tax system requires foreign digital service providers to charge GST—currently 10%—on B2C sales, making compliance essential for continued market access. This guide outlines two key compliance steps: Whether you choose the Simplified GST system or the Standard GST registration, understanding your obligations is critical. Step 1: Registering for GST in Australia Foreign businesses can register through one of two available schemes: Simplified GST Registration (Recommended for Most…

Donald Trump revealed this week that he is weighing a new tax break aimed at exempting homeowners from capital gains taxes on the sale of their properties — a move that could reshape the U.S. housing market and have significant implications for federal revenue. “We are thinking about no tax on capital gains on houses,” Trump said during a July 22 Oval Office meeting with the president of the Philippines. Although Trump did not elaborate on the policy’s structure, such a measure would likely require Congressional approval and could become a focal point in the upcoming election cycle as part…

Acting Texas Comptroller Kelly Hancock has confirmed that the state’s Biennial Revenue Estimate (BRE) for fiscal years 2026–2027 remains unchanged, with $3.1 billion available for general-purpose spending through August 31, 2027. The update, constitutionally required at the start of a legislative session, was delivered ahead of the First Called Session of the 89th Texas Legislature, which convened today. Steady Outlook Backed by Record Reserves Despite ongoing macroeconomic uncertainty, the Comptroller’s office projects no deviation from the revenue forecast originally published in January. Key drivers include continued economic growth, conservative budget assumptions, and the stability of state revenues. “Texas’ revenue estimate…

Norwegian taxpayers who have sold equity funds this year to reduce exposure to market fluctuations are being advised to double-check their tax deduction card (“skattekort”) to avoid an unexpected tax bill next year. Data from the Norwegian Fund and Asset Management Association (VFF) indicates that many Norwegians sold off mutual fund holdings earlier this year—most notably in March—with the majority of sales occurring in equity funds. According to the Norwegian Tax Administration, gains realized from selling mutual funds are taxable at a rate of 37.84%. The taxable amount is calculated as the difference between the sale price and the purchase…