The Internal Revenue Service performs poorly in the identification of tax-exempt groups that may have links to terrorists says an independent report.

The federal tax credit for companies that invest in R&D was renewed in December for 2006 and 2007. The tax break, known as the Research and Experimentation Tax Credit, also gained a new feature that should help more growing businesses take advantage of it--and save some serious money, says Entrepreneur.The research credit is intended to spur innovation, which has worked for Bryan Wood, owner of 43-year-old Powr-Grip Co. Inc. in Laurel, Montana.

The long-awaited final 403(b) regulations should be released by the Internal Revenue Service (IRS) at the end of June with a general effective date of January 1, 2008, according to Robert Architect of the agency’s Employee Plans Division.

In a unanimous decision, the Supreme Court ruled that only the U.S. Tax Court may review refusals by the Internal Revenue Service to reduce interest payments on people who underpay their taxes.The decision was required in the case of a couple -- John and Pamela Hinck -- assessed additional taxes. The Hincks sued for an $18,000 interest refund in the U.S. Court of Federal Claims, alleging delays in processing their case.Chief Justice John Roberts said federal law specifies that the tax court provides the exclusive jurisdiction for such cases.

The 2007 tax season may be months away, but the Internal Revenue Service is already providing taxpayers with tips on how they should select tax preparers. The IRS offers that most return preparers are professional, honest and provide excellent service to their clients.Taxpayers are encouraged to consider the following points when someone else prepares their return:A Paid Preparer is required by law to sign the return and fill in the preparer areas of the form. The preparer should also include their appropriate identifying number on the return.

The recently completed 2007 tax filing season set a number of electronic records, highlighted by over 76 million electronically-filed individual tax returns and more than 140 million visits to IRS.gov, the Internal Revenue Service said.“E-file and our other electronic services helped us deliver a strong filing season for the nation’s taxpayers,” said IRS Acting Commissioner Kevin M. Brown. “Again this year, millions of additional taxpayers gave up paper tax returns to file electronically.

The Internal Revenue Service has expanded its credit card payment program to include trust fund recovery penalty liabilities (quarters from 1Q97 to 4Q06), current and former Forms 940 and 941, as well as balance due payments on the new Form 944.For more information on the credit card payment program, http://www.irs.gov/efile/article.

One of the advantages of operating your own business is hiring family members. However, the employment tax requirements for family employees may vary from those that apply to other employees. How Spouses Earn Social Security BenefitsA spouse is considered an employee if there is an employer/employee type of relationship, i.e., the first spouse substantially controls the business in terms of management decisions and the second spouse is under the direction and control of the first spouse.

Federal Reserve Chairman Ben Bernanke has announced plans to analyze key facts about the personal finances of thousands of Americans, and he is promising that the information will be held in strict confidence. The Fed sent out letters last week to approximately 10,000 families living in 79 cities and towns around the country asking them to participate in the central bank's latest "Survey of Consumer Finances." The survey, which has been tallied once every three years since 1983, provides detailed information for the central bank and other economic researchers into household finances.