Results of a recent study reveal the hidden scandal of IT staff snooping at the confidential information of other employees.

Lawyers on both sides of the law presented their final arguments in the case of Rhiannon O'Donnabhain against the Commissioner of the IRS, where the issue is the authority to take a tax deduction for medical costs relating to a sex change operation.Presenting her case in the U.S. Tax Court in Boston, O'Donnabhain is suing the Internal Revenue Service in the aftermath of having a $25,000 tax deduction for medical expenses relating to the operation disallowed. O'Donnabhain had surgery to remove male genitals and augment breasts.

As the Sept. 17 deadline approaches for calendar year filers of corporate returns who filed for extensions, the IRS urges certain corporate filers to be aware of their obligation to file electronically."We have seen significant increases in the number of electronically filed corporate returns," said LMSB Commissioner Deborah M. Nolan. "Many large and mid-size corporations are required to e-file, but many more corporations are e-filing voluntarily.

The IRS wants taxpayers to know that telephone customers can still request this year's one-time excise tax refund and has published this statement which can be forwarded to anyone you feel might benefit from the information. Most phone customers, including most cell-phone users, qualify for the refund. The refund covers the three-percent tax paid on long-distance and bundled service. It can add $30 to $60 - or even more - onto a taxpayer's refund.

If you're not from Indiana, you might not have heard of the large property tax increases that were assessed this year in some of the counties. Cary Malchow, a homeowner in Muncie, Indiana is one taxpayer who was affected by the increase, and he decided to make a statement with his tax payment.In an unusual form of protest, Malchow didn't refuse to pay his bill. Instead, he chose to pay the bill in person, in cash. Lots of cash.

The American Institute of Certified Public Accountants (AICPA) has submitted comments on proposed regulations relating to the amount deductible from a decedent’s gross estate for claims against the estate under Internal Revenue Code (IRC) section 2053(a)(3). The proposed regulations will affect estates of decedents against whom there are claims outstanding at the time of their deaths.The AICPA is concerned that the proposed regulations will not accomplish their goal of reducing costs for both the estate and the IRS in administering IRC section 2053.

Federal Work Opportunity Tax Credits (WOTCs) now cover 18 - 39 year-old employees hired by businesses located in Renewal Communities, Empowerment Zones, and rural renewal counties under legislation passed recently in Congress. Prior to passage of the new legislation, part of H.R. 2206: U.S. Troop Readiness, Veterans' Care, Katrina Recovery, and Iraq Accountability Appropriations Act, 2007, the credits applied only to 18 - 24 year olds.

The Treasury Department and the IRS have issued new proposed regulations for employee benefit plans under Section 125 of the Internal Revenue Code. The plans, called "cafeteria plans," allow employees to make a choice between receiving taxable cash compensation or tax-free employee benefits, such as health care, dependent care, and other fringe benefits. The new proposed regulations generally preserve the rules of the existing proposed regulations, while adding clarifications relating to statutory changes and administrative guidance changes since the previous regulations were published.

The Treasury Department and the Internal Revenue Service have released an IRS report addressing the agency's implementation of the 2006 strategy to improve voluntary compliance with federal tax laws.