President Donald Trump has the right to keep his tax returns private and Democrats’ demands to see them are “harassment”, his lawyer, William Consovoy, has said.
The lawyer’s statement hints at the shape of a possible future legal battle over the issue.
On April 4, a Congressional tax committee demanded to see six years of Donald Trump’s returns, saying it was necessary to ensure accountability.
Unlike previous presidents, Donald Trump has refused to publish his tax details.
On April 5, the president said he believed that the law was “100% on my side”.
President Trump has maintained his business interests during his presidency, prompting questions about possible conflicts of interest. Questions also remain about his net worth, tax profile and past financial dealings.
The Democrats gained control of the House of Representatives in mid-term elections last year, giving them the ability to launch investigations into President Trump’s administration and business affairs.
William Consovoy said the tax committee did not have a valid legislative reason to see President Trump’s tax returns.
“His request is a transparent effort by one political party to harass an official from the other party because they dislike his politics and speech,” the lawyer said of tax committee chairman Bill Neal.
William Consovoy said the request was a “misguided attempt” to politicize tax laws and could also end up interfering with audits. He said the US Treasury should not comply with the demand.
President Trump has in the past said that he is unable to release his tax returns because they were being audited by the IRS.
However, the IRS has said that he could release the returns even if they are under audit.
In February the president’s former lawyer Michael Cohen suggested during testimony to Congress that Donald Trump’s taxes were not under audit during the 2016 presidential campaign – when Donald Trump said they were.
President Trump had not wanted to release the tax returns because the resulting scrutiny could have led to an audit and “he’ll ultimately have taxable consequences, penalties and so on”.
Applying for an EIN number may seem like a task you feel will be overwhelming or with loads of paperwork. However, it is actually quite the easy and fast process with IRS-EIN-Tax-ID.com! We provide an ease of service and have 24/7 customer service available to help you through the process or guide you to the proper application. If you are applying for an EIN (employer identification number) you will need to have a few things prepared and meet some requirements. With our efficient website the server will not time out and you can receive your EIN number Colorado within just a day! You won’t have to wait several weeks for processing and filing. Our service gets you what you need when you need it.
If you or your business meets any of the criteria below you will need an EIN number:
Operates as a partnership or firm
Files excise, alcohol, tobacco, employment, or firearms tax returns
Withhold taxes on revenue, besides pay, paid to a foreign alien
Have a Keogh plan
Are involved with a trust, IRA, estate, non-profit, real estate mortgage investment conduit, farmers’ cooperative, or plan administrator program
To apply for an EIN number you will need a valid tax ID which is one of the following: a social security number (SSN), an individual taxpayer identification numbers (ITIN), or another EIN belonging to an existing legal entity (which you cannot have unless you have an SSN or an ITIN). You will need one of these to apply for an EIN number.
IRS-EIN-Tax-ID.com makes it simple and convenient to get an EIN online anywhere today. With no hassle and no waiting, your EIN number Virginia will be distributed to you typically within one day! All you need to do is fill out and submit the online application.
According to a US government watchdog, 1,580 IRS workers evaded taxes over a decade, including some who were responsible for enforcing the nation’s tax laws.
This means about 160 workers a year out of a workforce of 85,000. So while were saving receipts, researching tax credits, and using every possible tax calculator available, the tax man himself is avoiding the one thing he’s hired to do.
According to a new report by the IRS’ inspector general, most were not fired, even though a 1998 law calls for terminations when the tax agency’s workers willfully don’t pay their taxes. The penalty must be waived by the IRS commissioner.
Among their offenses: improperly claiming dependents, repeated failure to file timely tax returns, and claiming a tax credit for first-time homebuyers when the worker didn’t buy a house.
Some of the employees received promotions, raises and bonuses after they were caught willfully not paying their taxes, the report said.
“Given its critical role in federal tax administration, the IRS must ensure that its employees comply with the tax law in order to maintain the public’s confidence,” said J. Russell George, Treasury inspector general for tax administration.
“Willful violation of the law by IRS employees should not be taken lightly.”
The report looked at workers from 2004 through 2013, before IRS Commissioner John Koskinen started.
The IRS said more than 99% of its employees pay their taxes on time, the highest compliance rate of any major federal agency. Historically, about 8% of the general public owes back taxes.
The agency said those who weren’t fired faced strong disciplinary actions, including suspensions and reprimands.
In 2014, the agency started denying performance bonuses to employees who willfully fail to pay their taxes.
The agency also said it will become more transparent about why the commissioner chooses not to terminate certain employees who willfully don’t pay their taxes.
Twice a year the IRS uses a screening process to identify employees who might owe back taxes. Tax information is confidential by law so the agency’s ability to check compliance makes it unique among federal agencies.
Over the 10-year period, the IRS found 18,300 cases in which IRS employees owed back taxes but the delinquency was not willful, the report said. The IRS found 1,580 cases in which employees willfully did not pay their taxes.
Among the willful violators, the IRS fired 25% and an additional 14% retired or resigned, the report said. Sixty-one percent received a lesser penalty.
Tax can be a minefield. As a small business owner, trying to get your head around the myriad of tax laws can be something of a minefield. Yes, it’s complicated. But, there are two certainties in life: death and taxes. What a sobering thought.
While it’s not our intention to put a dampener on things, getting to grips with taxation laws is imperative. After all, no one wants a visit from the tax man.
There are some basic dos and don’ts when it comes to smaller ventures and taxation laws.
Running an SME and Taxation Matters: The Basics
When you set up as a business, you need to ensure that you are au fait with the many rules of HMRC. While the laws can be complex, you can understand taxation issues better. There is a wealth of support from both HMRC and Lexis Nexis on tax matters. This can help you save time when it comes to dealing with your tax.
One of the most important things that you can do is register, online, for Corporation Tax. You must ensure that you are registered, if your company is deemed as a limited venture. You need to make sure that your Corporation Tax is active. You have a three-month period to do this within.
In the main, corporation tax is paid via the HMRC website. This means that you don’t have to appoint an accountant to deal with your tax. You can do this yourself via the web portal. You must complete a tax return and so forth within the agreed time as stated by HMRC.
Once you have declared your company as active, you need to ensure that you are making the right people aware of this. You need to give HMRC a vast array of information. This means that if you have traded under a Companies House service, you need to declare this to them. But, you should also endeavour to make sure that your company is registered for VAT and PAYE. This should be done at the same time. VAT taxation differs to Corporation Tax. As a general rule of thumb, you can claim some of your VAT back at the end of the tax year. PAYE is ‘pay as you earn’ this means that pay tax at the end of the year. But, you must save the appropriate amount of tax ready to be paid within the end of the term.
Almost all UK businesses are liable for corporation tax. If you run a limited company, which your small venture is sure to be, then you are required to pay corporation tax. However, sole traders are not obliged to pay corporation tax. Only those who are set up as limited companies are. Ensure that you are aware of what legal structure your company operates within. All companies must pay VAT and PAYE taxes.
Paying NI is vital. You need to ensure that this done alongside PAYE, VAT and corporation taxes. This is done according to the thresholds. Your annual turnover will be dependent on what you earn. Completing the self-assessment will help you with this.
Republican presidential candidate Mitt Romney has released his much-anticipated 2011 tax return, which shows he paid a rate of 14.1%.
Mitt Romney paid $1.9 million in taxes in 2011, on $13.7 million of income.
The private equity tycoon has already released his 2010 tax return, for which he paid about $3 million, a 13.9% rate.
The top rate of income tax in the US is 35%, but Mitt Romney lives mainly on income derived from his investments, for which only 15% tax is payable.
Critics, including President Barack Obama, whom Mitt Romney will challenge for the White House in November, have called on him to release more tax returns.
Mitt Romney has released his much-anticipated 2011 tax return
Mitt Romney’s 2011 tax rate of 14.1% compares with a previous estimate of 15.4% for the year by his aides. The Romneys filed their 2011 return with the Internal Revenue Service on Friday after applying for an extension earlier in the year.
The campaign also released a letter from his accountants with a summary of his returns from 1990-2009, which said he paid an effective average of 20.2% over the period, with the lowest return at 13.66%.
The move came amid attempts by the Romney campaign to shift the focus of recent days away from remarks he made at a private donor dinner.
In the video secretly recorded earlier this year, he disparages Barack Obama voters, saying they pay no income tax.
Mitt Romney’s critics say he should follow the example of his father, former Michigan Governor George Romney, who released a dozen years of tax returns during his own unsuccessful run for president in 1968.
But the former Massachusetts governor has said he is following 2008 Republican White House candidate John McCain’s example of releasing two years of taxes.
Barack Obama’s 2011 tax return showed he paid an effective rate of 20.5%, on an income of $789,674.
On average, US middle-income families, those making from $50,000 to $75,000 a year, pay 12.8%, according to congressional research.
As he released his 2010 return in January this year, Mitt Romney said he had paid “all the taxes that are legally required and not a dollar more”.
But according to Brad Malt, the trustee that controls Mitt Romney’s wealth as he runs for president, the Romneys donated $4 million to charity in 2011, claiming $2.25 million of it as a deduction.
“The Romneys thus limited their deduction of charitable contributions to conform to the Governor’s statement in August, based upon the January estimate of income, that he paid at least 13% in income taxes in each of the last 10 years,” Brad Malt said.
The campaign has stressed that the blind trust run by Brad Malt means that the candidate is making no decisions on how his money is invested.
Tax law experts say the release of the 2011 return – and the summary of the past 20 years – will do little to silence questions about Mitt Romney’s past tax liability, including the source of a $100 million retirement account and the tax advantages of his offshore investments.