New Internet Tax Scheme Presents Another Method

A group that provides guidance on how to expand the Internet has come up with a proposed solution to the taxing of goods and services over the Internet, and will present the solution on Friday, Oct. 13. This time, the solution is very simple.

A committee of the National Academy of Science's National Research Council is recommending that everyone pay the same tax rate regardless of where they reside or the state in which the vendor is based. Called a 'flat tax,' the tax would be collected by the vendor.

Sounds good in theory, but a flat tax-based system probably won't work, according to Karl Frieden, a partner with Arthur Andersen, author of Cyber Taxation: The Taxation of E-commerce.

Frieden says the flatter a tax is, the more uniform the program, and as a result, the more objection there is to it by states because it speaks against the ability for each state to run its own government as it pleases.

You may like these other stories...

Starting in October, the IRS will send warning letters to tax return preparers who appear not to be complying with Earned Income Tax Credit (EITC) due diligence requirements.Section 6695(g) of the Internal Revenue Code...
BKD LLP adds Illinois accounting firm Wolf & Co.Springfield, Missouri-based CPA and advisory firm BKD LLP and Chicago-based accounting firm Wolf & Co. have agreed to merge, the firms announced on Monday. Wolf will...
A new government report on Monday found that the IRS may not be completing the required research steps in collecting delinquent taxes before considering the cases “not collectible.”The Treasury Inspector General...

Already a member? log in here.

Upcoming CPE Webinars

Oct 9In this jam-packed presentation Excel expert David Ringstrom, CPA will give you a crash-course in creating spreadsheet-based dashboards.
Oct 15This webinar presents the requirements of AU-C 600, Audits of Group Financial Statements (Including the Work of Component Auditors).
Oct 21Kristen Rampe will share how to speak and write more effectively by understanding your own and your audience’s communication style.
Oct 23Amber Setter will show the value of leadership assessments as tools for individual and organizational leadership development initiatives.