Daily Tax Update - October 22, 2014: Swiss Propose to Apply OECD Information Exchange Standards to all Treaties

Swiss Propose to Apply OECD Information Exchange Standards to all Treaties:  Today, the Swiss Federal Council launched a consultation on a proposed law to amend Switzerland’s tax treaties to apply OECD standards on information exchange.  A statement by the Federal Department of Finance noted that treaties with 69 states and territories would be affected if the law entered force today.

TIGTA Finds Flaws in Partnership Audits:  The Treasury Inspector General for Tax Administration (TIGTA) released a report today indicating that the IRS has failed to follow correct procedures for partnerships audits.  TIGTA reviewed a sample of 35 partnership audits from 2012 and identified 22 audits that were not conducted in accordance with proper procedure.  When the sample results are projected to the 2,698 audits closed in 2012, TIGTA estimates that approximately 1,696 audits did not follow proper procedure.

Social Security Taxable Maximum Increases for 2015:  The Social Security Administration (SSA) announced today that the maximum amount of earnings subject to the Social Security tax will increase to $118,500 in 2015 from the current maximum of $117,000.  SSA estimates that of the 168 million workers who will pay Social Security taxes in 2015, about 10 million will pay higher taxes because of the increase in the taxable maximum.