Tax news September 2006

Tax

A Conversation About Private Debt Collection & the IRS with CBIZ’s Bill Smith

This month, the Internal Revenue Service (IRS) began implementing the private debt collection program approved through the 2004 American Jobs Creation Act. Intended to reduce the growing amount of uncollected tax liabilities, the program has raised concerns among tax preparation professionals and others, which have not been appeased by the safeguards put in place by the IRS.
Tax

Reminder: October 16 Filing Deadline Approaching for Katrina Victims

The Internal Revenue Service (IRS) reminds taxpayers from the areas of Louisiana, Mississippi and Alabama, most severely damaged by Hurricane Katrina, that the deadline for filing tax year 2004 and 2005 individual tax returns is October 16, 2006. No additional postponements or extensions are available for tax year 2004. An additional six-month filing extension to April 15, 2007, is available to affected taxpayers whose 2005 filing date was postponed from April 15, 2006, to October 16, 2006.
Tax

Indiana Community Weathers Collapse of Local Bank

Earl Ford McNaughton might never have realized the effect of his actions today, had anyone asked about his future several years ago. Back then he was the champion of the small Indiana town in Steuben County that his family had first settled in 1836. That year, KPCNews.net reports, his great-great-great-grandfather, Alexander McNaughton, built a water-powered grinding mill in his little town of Ray.
Tax

Updated: As Ebbers Enters Prison, Some Question the Justice of the Sentence

Bernard J. Ebbers, 65, entered federal prison Tuesday to start his 25-year sentence for his part in the $11 billion accounting fraud at WorldCom Inc. that led to bankruptcy for the company he founded and financial pain for investors.On the same day that Ebbers drove his Mercedes into the Oakdale Correctional Complex in Louisiana, Andrew S. Fastow, the former Enron Corp. finance chief, was sentenced to six years in prison and two years of community service.
Tax

U.S. Airports Ease Carry-on Liquid Ban

Beginning today, airline passengers may carry travel-size toiletries through security. Passengers may also carry-on beverages and other liquid items purchased in the secure boarding area, according to new rules issued Monday by the Transportation Security Administration (TSA). The revised rules apply to all domestic and international flights departing U.S. airports.In order to pass through security, travel-sized toiletries of 3 ounces or less must be fit comfortably in a single clear zip-top bag, no larger than 7.5 inches tall, by 8 inches wide (quart-size).
Tax

Toyota Hybrid Tax Phaseout Begins October 1

Quarterly reports indicate cumulative sales of qualified hybrid vehicles by Toyota Motor Sales U.S.A. reached the 60.000-vehicle limit during the quarter ending June 30, 2006.
Tax

California Church Fights IRS Summons

Although the Internal Revenue Service (IRS) will not comment on the dispute, an Episcopal church in Pasadena, Calif., has been threatened with the loss of its tax-exempt status.
Tax

Enron Ex-Vice Chairman's Estate Must Return $1.3 Million

Judge Arthur Gonzalez of the U.S. Bankruptcy Court in Manhattan ruled late last week that deferred compensation payments made in the months preceding the company’s fall, to John Clifford Baxter, the former vice chairman of Enron Corp., favored Baxter over other creditors. Baxter received $1.3 million of the $1.4 million he had in his deferred-compensation account on September 30, 2001.
Tax

Interest Rates Not Changing for Final Quarter of 2006

The Internal Revenue Service (IRS) recently announced in Rev. Rule 2006-49, there will be no change in the interest rates for the fourth quarter of 2006 which begins October 1, 2006.
Tax

TinyBooks Adds Sales Tax Support

TinyBooks, a single-entry accounting program for Mac computers from Space Time Associates, has added support for U.S. sales taxes, international Goods and Services Tax (GST), Provincial Sales Taxes (PSTs) and Value Added Tax (VAT), as well as international dates and other changes to the 4.0.09 release.This Mac-only accounting package for individuals and small businesses features: income and expense tracking; report generation; invoice creation and printing; and import and export of data.
Community News

Utah CPAs Oppose Dual Track Income Tax Plan

The Utah Association of Certified Public Accountants last week sent a letter to Governor Jon Huntsman, Jr. criticizing the governor’s proposed two-option income tax plan scheduled for a vote in a special session of the state legislature later this month. “There is no question that true tax reform is needed in the state of Utah", the letter said, according to the Salt Lake Tribune.
Tax

Largest Transfer Pricing Dispute Settled

The transfer pricing dispute between the Internal Revenue Service (IRS) and Glaxo SmithKline (Americas) Inc. & Subsidiaries (GSK), representing the largest tax dispute in IRS’ history, has been successfully resolved. In order to conclude the dispute, which is still pending in the U.S.
Tax

Investing in Real Estate After the Boom

Real estate is pricey these days but is still a valuable commodity, says Linda Stern, writing for Reuters, and one alternative to buying a house for investors is purchasing shares in a real estate investment trust that owns commercial or apartment real estate (REIT). Another alternative offered by the Chicago Mercantile Exchange (Merc) is commodity-style trading on housing futures and options in select cities.
A&A

Farmers Get More Time to Sell Livestock Because of Drought

The Internal Revenue Service (IRS) is granting farmers affected by exceptional, extreme or severe drought conditions additional time to purchase replacement property for livestock they were forced to sell.
Tax

Pension Protection Act Affects Most Taxpayers

Last month, President Bush signed the second major Tax Act of the year into law. "There are provisions in this Tax Act that will help many taxpayers reduce the income taxes they will pay down the road," explains Andrew D.
Tax

Congress Clears Up Uncertainty Over 529 Plans

Parents worried about huge college costs have one reason to breathe easier: Withdrawals from Section 529 tuition plans are now permanently free of federal taxes.One line in the massive Pension Protection Act clarified the uncertainty about these college savings plans. A federal law that allowed tax-free withdrawals for qualified education expenses was put in place in 2001, but a sunset date of 2010 was also set.
Tax

User Fees for U.S. Residency Certification Announced

Beginning with submissions received with a postmark on or after October 2, 2006, the Internal Revenue Service (IRS) will charge a user fee for processing Form 8802, Application for United States Residency Certification.
Technology

Standard Telephone Tax Refunds Announced

The Internal Revenue Service (IRS) has announced the amounts that most long-distance customers can use to figure their telephone tax refund.
A&A

Major Changes Ahead for Multiemployer Pension System

Of the 44 million Americans participating in defined benefit pension plans, 25 percent, approximately 9.4 million, are enrolled in multiemployer plans maintained by more than one employer, usually within the same or related industries and a labor union, according to the Pension Benefit Guaranty Corporation (PBGC). Many are employed by small companies in the building and construction industries.
Tax

Cell Phones: Convenience and Compromise

Cell phones have become a part of modern life. Children in elementary school carry them. So do business people. Even seniors, who are often labeled a techno-phobic group, carry them.

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