Tax news May 2006

Technology

Fed Long-Distance Tax Repealed

The Justice Department will no longer continue litigation on the issue of the federal excise tax on long-distance telephone service. The Treasury will no longer collect the 3 percent federal excise tax on long-distance calls.
Tax

Guilty Verdicts for Ex-Enron Execs Spark Little Sympathy

A Texas jury on Thursday declared former Enron executives Kenneth Lay and Jeffrey Skilling guilty of fraud and conspiracy.
Tax

National Guard & Military Pay

For tax purposes, military pay is treated like regular income, while parts of National Guard pay have special treatment. Before the passage of the Tax Reform Act of 1986, National Guard members could deduct 100 percent of their travel expenses.
Practice Management

More Resources Needed to Address Corporate Tax Risks

Corporate tax departments appear to need additional resources to effectively address tax risks in today’s highly regulated environment, according to results from a recent survey by Tax Executives Institute (TEI) and KPMG LLP. “Tax has been a source of material weaknesses as reported under Sarbanes-Oxley 404,” Brad Brown, KPMG’s national Tax leader for Sarbanes-Oxley Section 404, said in a prepared statement announcing the results.
Tax

Survey Shows Fear of SOX Keeps Accounting Functions in U.S.

Companies are looking first to automation before moving their finance functions offshore, even as manufacturing and customer-service jobs are sent overseas.Advertisement
Tax

IRS Encourages Safeguarding Financial & Tax Records

As part of Hurricane Preparedness Week, May 21 – 27, the Internal Revenue Service (IRS) is encouraging taxpayers to protect their financial and tax records in the event of a hurricane or other natural disaster.Advertisement
Tax

Prosecution, Defense Wrap in Enron Trial; Case Goes to the Jury

Enron Task Force prosecutor Kathryn Ruemmler wrapped up the government’s case against Kenneth Lay and Jeffrey Skilling, former chief executives of the bankrupt company, in a four-hour presentation on Monday in Houston, asking the jury to hold both men accountable for the choices they made and the lies they told. Defense attorneys, who presented their arguments on Tuesday, admitted bad business judgment on the part of their clients but emphatically denied criminal intent or conduct that would support the government’s charges of conspiracy and securities fraud against the two men.
Tax

IRS’ Nationwide Tax Forums Offer Financial Planner CPE for the First Time

For the first time, the Internal Revenue Service (IRS) has registered as a continuing professional education sponsor for certified financial planners. The IRS is already a continuing education sponsor for enrolled agents and certified public accountants (CPAs). Thanks to an agreement with the Certified Financial Planner Board of Standards, the IRS will offer continuing education credits for certified financial planners for 24 of the 36 seminars at the IRS Nationwide Tax Forum being held this summer.
A&A

Sales tax compliance costs hit hard on SMBs

In what offers the faint hint of another area where accountants can assist small and midsized (SMB) clients, a government and business study has found that the costs of complying with state sales tax regulations is a financial burden for all retail businesses and hits especially hard on the smallest.
Tax

Tax Bill Includes “AMT Patch”, Changes Roth IRA Rules

The tax bill passed by the House and Senate last week extends the maximum 15 percent tax on dividends and capital gains for two more years, to 2010, but provides only a one-year freeze on incomes that trigger the alternative minimum tax (AMT). The law also contains revenue enhancers including elimination of the income limitation for converting a traditional IRA to a Roth IRA.
Tax

AICPA Offers Credit Monitoring After Loss of Computer Hard Drive

The American Institute of Certified Public Accountants (AICPA) has told members that a computer hard drive containing names, addresses and Social Security numbers has been lost.Advertisement
Tax

Tax Breaks for Families in Canada’s New Budget

Canada’s new minority government presented its first federal budget last week with tax breaks for families that include a universal child care allowance and a reduction in the goods and services tax (GST) from 7 percent to 6 percent.
Tax

Seller-Funded Down Payment Assistance Programs are Not Tax Exempt

The Sacramento, California-based Nehemiah Corp., a nonprofit mortgage assistance program, and 184 similar programs around the country, have been accused by the Internal Revenue Service (IRS) of operating a down payment scam and are no longer eligible for tax exempt status, the Sacramento Bee reports.
Technology

Mark Your Calendar: IRS Practitioner Phone Forum

Need help navigating the Internal Revenue Service (IRS) web site?
Tax

May 15 Deadline Looming for Large Tax-Exempt Organizations

The deadline for large tax-exempt organizations to electronically file federal information returns, including Form 990, with the Internal Revenue Service (IRS) is May 15. Exempt organizations are required to file these returns electronically if they have $100 million in total assets and file at least 250 returns per year – including income, excise, employment tax and information returns, such as forms W-2 and 1099.
Technology

CCH Continues Enhancing <i>Tax Research Consultant</I>

“We’ve added content, made it more accessible than ever and continued to add time-saving tools that speed researchers to their end results – not just theoretical answers, but answers they can immediately use with their clients,” Jane Hoffman, CPA, CCH product manager, said in a prepared statement.Advertisement
Community News

TaxWare's Charles Collins Discusses Internet Sales Tax

Charles Collins manages Taxware’s relationships with taxing authorities and legislative bodies and is a frequent speaker on state and local tax issues. He was employed by the North Carolina Department of Revenue for 32 years before coming to his current post, serving as the Director of the Sales and Use Tax Division for his last ten years there. While there, he also served as the Assistant Director of the Audit and Collection Division. Collins served as Co-Chairman of the Streamlined Sales Tax Project (SSTP) for two-and-a-half years.
Tax

Testimony Ends in Enron Trial

Testimony has ended in the trial of former Enron executives Jeffery Skilling and Ken Lay. Both are facing multiple counts of fraud and conspiracy. Lay faces six counts, while Skilling faces 28 counts, in addition to insider trading and lying to auditors, according to the Associated Press.

Already a member? log in here.