Tax news March 2008 | AccountingWEB

Tax news March 2008


IRS investigates Obama’s church

The Internal Revenue Service (IRS) has begun an investigation into the tax-exempt status of the United Church of Christ, the church that Senator Barack Obama (D-IL) attends, over a speech Obama delivered at the UCC's 2007 General Synod in Hartford, CT last June. According to a copy of an IRS letter that the church has received, the agency is launching the inquiry "because reasonable belief exists that the United Church of Christ has engaged in political activities that could jeopardize its tax-exempt status," the Washington Post reports.

Bringing down Public Enemy No. 1: IRS makes Al Capone’s records public

It's been 77 years since Al Capone was prosecuted, and now the IRS is releasing documents about the country's most celebrated tax evasion case.

Lights! Camera! Accountants take to the big screen

The stereotypical accountants may seem like they lead an orderly, quiet life, with little excitement or notoriety. And when you think of Hollywood glamour, the image of an accountant might not be the first thing that jumps to mind.

Feds turn to forensic accounting

Discipline is exploding field—and popular not only for uncovering corporate crime, but also tracking terrorist activity.By Darrell D. Dorrell, CPA/ABV, MBA, ASA, CVA, CMA, DABFALast month, the FBI announced it was investigating 14 unnamed investment banks, developers, sub-prime lenders, and other companies involved in the subprime-lending mess that has left Florida with the second-highest home foreclosure rate in the country.

With increased scrutiny on preparers comes more questions for taxpayers

Tax preparers: Beware the client who says he has those receipts "somewhere." It's no longer okay to take his word for it.Preparers should worry this year about deductions that are even slightly questionable. An IRS law is requiring preparers to ask more questions and see the receipts with their own eyes. These tougher standards will mean more scrutiny of taxpayers' assertions, and some preparers are charging more for the extra time.

IRS announces drop in interest rates

The Internal Revenue Service has announced that interest rates for the calendar quarter beginning April 1, 2008, will drop by one percentage point. The new rates will be:Six (6) percent for overpayments [five (5) percent in the case of a corporation];Six (6) percent for underpayments;Eight (8) percent for large corporate underpayments; andThree and one-half (3.5) percent for the portion of a corporate overpayment exceeding $10,000.Under the Internal Revenue Code, the rate of interest is determined on a quarterly basis.


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