BRIEFLY NOTED: Turkey increased a “temporary” corporate surtax from 20% to 25% in December
BRIEFLY NOTED: Turkey increased a “temporary” corporate surtax from 20% to 25% in December . . . . China cut the tax rate from 33% to 15% for projects in the western provinces effective January 1 . . . . The IRS said in a letter to Senator Jon Kyl (R.-Arizona) that taxpayers who qualify for refundable state tax credits may have to report part of the tax credits as income. Kyl asked about a case where a taxpayer qualified for a $5,000 tax credit in 2000 for purchasing an alternative fuel vehicle. The taxpayer will claim the credit on his 2000 tax return filed in April 2001. He can only use $500 of it on the 2000 return. He has the option of getting a check from Arizona for the balance or carrying it backward or forward to use against other taxes he owes the state. The IRS told Kyl the $4,500 must be reported as income in 2001. It does not matter whether the taxpayer has it refunded to him or uses it as a carryback or carryforward.