Daily Tax Update - June 18, 2013: White House Announces Action Plan to Help Stop Tax Avoidance

White House Announces Action Plan to Help Stop Tax Avoidance:  Today at the G-8 summit, the White House announced its “National Action Plan on Preventing the Misuse of Companies and Legal Arrangements.”  The plan was released “along with agreement today on a set of G-8 principles to enhance transparency of company ownership and control.”  The plan is designed to “combat the criminal misuse of businesses, shell companies, and front companies” and to “assist law enforcement and tax authorities in understanding who actually owns and controls legal entities (i.e., their beneficial owners) and assist cross-border investigations.”

According to the fact sheet, the U.S. will “draft a national risk assessment” to “identify major money laundering threats and vulnerabilities” and include an “analysis of vulnerabilities posed by corporate entities and how criminal use them to launder funds.”  The U.S. will also “advocate for comprehensive legislation on beneficial ownership” and “clarify and strengthen customer due diligence standards for U.S. financial institutions” that would “require that financial institutions understand who their customers actually are and provide important information and resources for law enforcement and tax authorities.”

The fact sheet said that the U.S. will “continue to advocate for increased mutual legal assistance and other forms of international cooperation designed to enhance the transparency of the international financial system including working with our partners to enhance build a framework for identifying beneficial ownership of companies.”

The fact sheet can be accessed here.

The action plan can be accessed here.

Miscellaneous Guidance Released:
Revenue Ruling 2013-15 provides various prescribed rates for federal income tax purposes including the applicable federal interest rates, the adjusted applicable federal interest rates, the adjusted federal long-term rate, the adjusted federal long-term tax-exempt rate. These rates are determined as prescribed by § 1274. The rates are published monthly for purposes of sections 42, 382, 412, 1288, 1274, 7520, 7872, and various other sections of the Internal Revenue Code.

Tax Bills Introduced June 17:

1. [113rd] H.R.2394 : To allow a State to opt out of K-12 education grant programs and the requirements of those programs, to amend the Internal Revenue Code of 1986 to provide a credit to taxpayers in such a State, and for other purposes.
Sponsor: Rep Garrett, Scott [NJ-5] (introduced 6/17/2013)      Cosponsors (18) 
Committees: House Ways and Means; House Education and the Workforce 
Latest Major Action: 6/17/2013 Referred to House committee. Status: Referred to the Committee on Ways and Means, and in addition to the Committee on Education and the Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.


2. [113rd] H.R.2396 : To amend the Internal Revenue Code of 1986 to establish the Coal Mitigation Trust Fund funded by the imposition of a tax on the extraction of coal, and for other purposes.
Sponsor: Rep McDermott, Jim [WA-7] (introduced 6/17/2013)      Cosponsors (None) 
Committees: House Ways and Means; House Transportation and Infrastructure 
Latest Major Action: 6/17/2013 Referred to House committee. Status: Referred to the Committee on Ways and Means, and in addition to the Committee on Transportation and Infrastructure, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.