Last month, the U.S. Court of Appeals for the First Circuit affirmed the award of a $50 million tax refund to Fresenius Medical Care Holdings, Inc. The court agreed with Fresenius that certain payments in settlement of alleged False Claims Act violations were tax-deductible. The case is Fresenius Medical Care Holdings, Inc. v. United States, No. 13-2144 (1st Cir. Aug. 13, 2014).Fresenius operates dialysis centers within the United States and abroad, and in the mid-1990s its predecessor company faced an array of FCA whistleblower suits and related government investigations. Fresenius eventually settled both criminal and civil matters with the Government, agreeing to pay $385,147,334 to resolve the civil matters.Fresenius claimed a tax refund based on the amount it paid to settle civil FCA claims. Civil FCA violations normally result in treble damages and a statutory penalty per false claim. Although the Government agreed that Fresenius could deduct an amount equal to single damages … [Read more...] about First Circuit Affirms $50 Million Tax Refund for FCA Settlement Payments
5 million after taxes
Year-end is a time for many taxpayers to satisfy their philanthropic and tax-related charitable goals; however, it is important to remember that the simple act of giving does not necessarily result in the realization of desired income tax benefits from a charitable donation. The Internal Revenue Service, under Internal Revenue Code (Code) § 170(f)(8)(A) and (B) requires that any taxpayer desiring to claim an income tax deduction for a charitable donation of $250 or more in any tax year is required to substantiate the donation by obtaining a contemporaneous written acknowledgment (CWA). The CWA must be obtained from the charity by the date on which the taxpayer files the return claiming the deduction, including: (1) the name of the charity, (2) the date of the contribution, (3) the amount of any cash contribution, (4) a statement of whether or not goods or services were provided by the charity in exchange for the contribution, (5) a description and estimated value of any … [Read more...] about A $64 Million Tax Question – When is a Written Acknowledgment for a Charitable Donation Needed?
0 Have your say Controversial plans to hit private schools with a £5 million tax hike have taken a step forward after the Scottish Government unveiled a new consultation into the move. Finance Secretary Derek Mackay today insisted the change is part of a package which will "strike the right balance" between a competitive tax system and raising funds for pubic services. The consultation into measures contained in the Barclay Review comes ahead of legislation expected later this year to overhaul of Scotland's business rates system.Read more: Private schools hit with £5m rates hikeIt has already prompted concern among firms over the prospect of new taxes on "out-of-town" retail parks and online businesses as part of a drive to revive ailing High Streets stores. The loss of charity relief - which shaves 80% off rates - means some of the country’s best known schools like Heriot’s, Watson’s, Gordonstoun and Fettes College could face bills running … [Read more...] about Private schools’ £5 million tax bombshell moves closer
Scott G Winterton, Deseret News FILE - Members of the Senate gather at the State Capitol in Salt Lake City for a special session on Wednesday, July 18, 2018. Related Link Lawmakers approve $30 million child tax credit for Utah families in special session SALT LAKE CITY — Utah's "average" taxpayers will still see about a $96 increase in their state income taxes next year, even with the Utah Legislature's new $30 million tax break for families. But that's about half of the $198 increase they could have expected before lawmakers voted in special session Wednesday to create a dependent tax credit intended to help offset the impact of a new federal tax law that eliminated personal exemptions. The numbers, released Thursday by the Utah State Tax Commission, are based on what's called an "Average Joe" taxpayer who is married with three children, earns $70,000 a year and files a joint tax return. What dropped from an 8 percent to a 4 percent increase as a result of … [Read more...] about State income taxes will go up about $96 for ‘Average Joe’ even with $30 million tax break
Tip of the Month: As outlined in this month's post, it is not uncommon for legislatures to focus on certain industries or certain types of credits when considering the viable of tax credits. For example, over the last year and especially in the last month several bills have been introduced in multiple states to end, limit, or bring accountability to film incentives. When you represent or are part of an organization in these industries, it is advisable to have an in-house or third party advisor closely monitoring these legislative actions considering the impact that they may have on future projects. Recent Announcements of Credit/Incentives Applications and PackagesDelaware- DuPont and The Dow Chemical Co. announced February 19 that their new, post-merger agriculture company will be headquartered in Delaware, following an aggressive campaign by the state to keep DuPont from leaving Delaware.The announcement comes less than a month after Governor Markell signed into law the … [Read more...] about February 2016 Tax Credits & Incentives Update