Tax news April 2010

A&A

Costly changes to 1099 reporting in health care law

In 2012, under a little discussed mandate of the health care reform legislation, businesses will be required to report all payments in excess of $600 for services or merchandise to the Internal Revenue Service on a Form 1099.
A&A

Fuld fights back in Lehman failure testimony

Former Lehman CEO Richard Fuld, in his appearance before the U.S. House Financial Services Committee last week, blamed rumors, timing, regulators, and a “crisis of confidence" for the fall of the investment firm.
Tax

E&Y, PwC join KPMG in declaring themselves free of business ties to Iran

Ernst & Young and PricewaterhouseCoopers have declared that they no longer maintain business relationships with Iranian firms.
Tax

Tax attorney, businessman receive prison sentences for tax fraud

The U.S. Department of Justice has announced that two men were sentenced to prison last week for their involvement in a complex tax fraud scheme devised to avoid paying federal income taxes.
Tax

Tax preparer shut down for falsely claiming first-time homebuyer credits

A federal court has permanently barred David Santiago and his business, Santiago Investment & Consulting Inc., from preparing federal tax returns for others, the Justice Department announced.
Tax

Holocaust defense won't save convicted tax evader from prison

A former watchmaker was sentenced to 10 months in prison for hiding $10 million in offshore accounts. The defendant is the son of Holocaust survivors, a fact his lawyer used at his sentencing hearing.
Tax

National Association of Enrolled Agents responds to proposed PTIN regulation

The National Association of Enrolled Agents has submitted to IRS leadership comments on the proposed regulations with respect to Preparer Tax Identification Numbers (PTINs).
Tax

Child stars learn that growing up can be taxing

It’s been a bad year for at least three child stars, even if they are still active in the entertainment industry. It seems fame might not be all it’s cracked up to be.
Tax

Salt Lake City federal court bars CPA from preparing tax returns for others

A federal court in Salt Lake City has permanently barred Dick Jenkins, a CPA from Heber City, Utah, from preparing tax returns for others.
Tax

Recession has strong impact on state, local business taxes

The recession has had a huge impact on state and local business tax collections, according to a recent study. This decline has legislators scrambling to fill huge budget gaps by raising taxes and reducing government spending.
Tax

Case of the cavalier Internal Revenue Service agent

Shouldn’t an Internal Revenue Service agent know a business when she sees one – especially if she is the owner and operator?
Tax

Lehman update: SEC, FASB to review repo accounting rules

The Financial Accounting Standards Board will evaluate the need for accounting rule changes relating to repurchase transactions following the Securities and Exchange Commission’s review of how financial institutions other than Lehman Brothers use these transactions.
A&A

Humbling moments: Claims arising from 1031 exchanges

I once had a 14-hour exam on IRC section 1031. The professor awarded one A, and told the student recipient that he did not deserve it. Such was my introduction to this section of the code.
Tax

Super Bowl vs. state of Michigan: A ball of confusion

More than four years after Super Bowl XL, the state of Michigan has filed liens against the Super Bowl Host Committee, charging that it failed to pay payroll taxes.
Tax

Door is closing on first-time homebuyer tax credit

The first-time homebuyer credit is scheduled to expire on April 30. Homebuyers have until June 30 to settle purchases made by April 30 and still qualify for the credit.
Tax

IRS contacting small businesses about health care tax credit

The IRS is mailing postcards to more than 4 million small businesses and tax-exempt organizations to make them aware of the benefits of the new small business health care tax credit.
Tax

What comes first, tax woes or competing on Dancing with the Stars?

Pamela Anderson shares something in common with a few of her fellow celebrity contestants on Dancing with the Stars. At least three others also have made headlines for being in hot water with the tax authorities.
Tax

Operation Brass Tax: Sting nets 26 tax preparers

Some tax preparers will not be celebrating the end of tax season with tropical drinks on sandy beaches. Instead, they might be viewing life from behind bars because of a recent sting operation.
Tax

Vendors take pity on taxpayers by offering free Tax Day goodies

If you act fast, you can take some of the stress out of Tax Day by collecting freebies all over town. Here's a roadmap to treats for taxpayers.
Tax

Federal income tax: Who's paying and who isn't?

About half of the households in the United States pay no federal income tax, thanks in part to tax credits, deductions, and exemptions.

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