Tax news August 2006

Tax

IRS Seeks Comments on Split-Refund Form

The Internal Revenue Service (IRS) has released a draft of http://www.irs.gov/pub/irs-dft/f8888--dft.pdf Form 8888, Direct Deposit of Refund, the new form for taxpayers who opt to split their refunds among accounts, and it is now available for public comment.Starting in January, taxpayers have more choice and flexibility for direct deposits of their 2006 federal income tax refunds. They can split their refunds among up to three checking or savings accounts and three different financial institutions, using Form 8888.
Tax

IRS Auditing PwC’s Pension Plan, Deductions, Income Transfers

PricewaterhouseCoopers LLP (PwC), the world’s largest accounting firm, is being audited by the Internal Revenue Service (IRS), Bloomberg News reported Friday. Officials at PwC initially refused to comment on the Bloomberg report, which was based on company documents and IRS documents provided to Bloomberg.
Tax

States Levy Wide Range of Taxes on Gasoline

Gasoline prices in the U.S. continue to average around $3.00 a gallon. Of that $3.00, 50 cents is tax paid by the consumer. This total tax includes a flat federal excise tax of 18.4 cents per gallon, state gas taxes and depending on the state, sales taxes, local sales taxes, and a variety of fees.
Tax

Hybrid Sense: The Effects of Rising Fuel Prices & Tax Credits

“Our study revealed that high gas prices and generous tax credits now offset the high sales prices of some hybrids, assuming owners keep their hybrids for a few years,” said Alex Rosten, Manager of Pricing and Market Analysis for Edmunds.com, in a statement introducing the findings of the latest installment of Edmunds.com Fuel Economy Guide.Advertisement
A&A

Seamless Sales Tax Solutions

A new offering from CCH, Sales Tax Load Utilities for Sage Software, integrates CCH supplied sales and use tax rates with Sage’s leading accounting systems, including MAS 90, MAS 200, MAS 500 and Accpac.
Tax

SEC Takes Emergency Action to Stop Ongoing Fraud Against Seniors

The Securities and Exchange Commission (SEC) filed an emergency enforcement action to halt an ongoing fraudulent offering of stock in a company called One Wall Street, Inc., in which five defendants have obtained and misappropriated more than $1.6 million from at least 64 investors, most of them senior citizens.Advertisement
Tax

Mellon Bank & IRS Settle for 2001 Crime

Mellon Bank has agreed to reimburse the federal government $30,000 as a result of an April 2001 incident at the Pittsburgh Internal Revenue Service (IRS) processing unit at the bank’s Client Service Center when the unit’s employees destroyed federal tax returns, according to MarketWatch.
Tax

Capitalization of Tangible Assets Regulations Proposed

Last Friday, the U.S. Treasury Department and the Internal Revenue Service (IRS) issued proposed regulations clarifying the treatment of expenditure incurred in selling, acquiring, producing or improving tangible assets.
Tax

E-Passports Now Being Issued to Americans

The U.S. State Department has begun issuing e-passports. These passports have radio frequency identification (RFID) chips embedded in the rear cover of the document. AFP reports that all previously issued passports will remain valid until they expire.
Technology

Celebrity Gift Bags: "Thanks, But No Thanks"

Celebrities who receive over-the-top thank you gifts may start thinking twice before throwing them into the limo and taking them home.The Internal Revenue Service (IRS) has its eye on the loot. Celebs will be required to pay taxes on the gift bags they receive at award shows.
A&A

New Texas Margin Tax -- Business or Income Tax

Candidates for governor in Texas last week reacted to the Financial Accounting Standards Board’s (FASB) conclusion that the new Texas margin tax was an income tax under Financial Accounting Standards (FAS) 109 “because the tax is based on some measure of income.” FASB declined to set up a project to give advice on the matter.Kathy Walt, spokeswoman for Republican Governor Rick Perry, and former state Comptroller Democrat John Sharp, who headed the commission that recommended the tax, said that FASB was providing instructions for accounting purposes only, according to the Houston Chro
Tax

Vishing & Other Personal Security Threats

We might be familiar with “phishing” or the obtaining of your personal information using an e-mail containing a hyperlink. The verbiage in the e-mail leads you to click the link in order to harvest your personal details via a false web site, according to MSNBC.com.
Tax

Alliance Brings Automated Sales Tax Compliance to the Midmarket

“Sales tax administration and compliance presents an ongoing operational and audit burden to most businesses,” according to Jared Vogt, CEO of Avalara, a provider of innovative and affordable sales tax solutions for small and midsized businesses (SMB).At this week’s Federation of Tax Administration (FTA) 22nd Annual Technology Conference and Exhibition, Avalara and Epicor Software Corporation, a leading provider of enterprise business software solutions to the global mid-market, announced an alliance whereby Epicor will integrate and offer Avalara’s full line of sales tax solutions,
Tax

IRS Updates Temporary Address and Expedited Ruling Request Procedure

The Internal Revenue Service (IRS) is updating its temporary procedure for processing requests for certain expedited letter rulings for reorganizations and section 355 distribution. In addition, there is a new temporary address for the delivery of taxpayer requests for rulings, requests for determination letters, Applications for Change in Accounting Method (form 3115) and similar requests that are permitted to be hand-delivered to the main IRS building.
Tax

LIFO Effect on Oil Company Profits Draws New Scrutiny

Last week’s drop in oil prices resulting from the terrorist plot against airliners bound for the U.S. is likely to prove temporary, as economists predict continued escalation in global demand for fuel. And U.S.
Tax

Accountants Support Prohibition on Taxing Non-Resident Retirement Income

A new law signed by President Bush on August 3, 2006, and supported by the American Institute of Certified Public Accountants (AICPA), as well as others in the accounting profession, prohibits states from taxing the retirement income of partners who are not residents of that state.The law amends Title 4 of the Untied States Code to clarify the treatment of self-employment for purposes of the limitation of State taxation of retirement income. Specifically, the law clarifies that U.S.C.
Technology

Sales Tax Holiday Weekend a Big Hit with Shoppers

Shoppers in ten states and the District of Columbia flocked to stores and malls last weekend to take advantage of “sales tax holidays” timed to benefit back-to-school-shoppers. Two more states, Connecticut and Maryland, have scheduled sales tax holidays during the third week of August. In most states, the tax holiday applies to moderately priced clothes, school supplies and in some states, to computers.
Tax

Prosecutors: Former Media Baron Lying about Finances

Indicted newspaper publisher Conrad Black enjoys a “free flow of millions of dollars," from his wife's private company, say federal prosecutors, who want Barbara Amiel-Black to reveal her finances under oath.Advertisement
Tax

U.S. and Canada Unravel Cross-Border Tax Scheme

Officials of the Canada Revenue Agency (CRA) and the Internal Revenue Service (IRS) have announced that the agencies have made significant progress in unraveling an abusive cross-border tax scheme involving hundreds of taxpayers and tens of millions of dollars in improper deductions and unreported income from retirement withdrawals.

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