Tax news June 2011

Tax

Amazon ends California and Connecticut Associates Programs in response to sales tax legislation

Amazon.com has ended its associate affiliation programs with online retailers in Connecticut and California in response to restrictive sales tax legislation.
Tax

Small nonprofits that lost exempt status may be eligible for reinstatement

In June 2011, the IRS announced that approximately 275,000 nonprofits had automatically lost their exempt status under these new provisions. To help those small organizations that had inadvertently found themselves in this situation, the IRS has issued Notice 2011-43, describing how the exempt status of these nonprofits may be reinstated.
Tax

Tax protest mars U2 Glastonbury gig

Violence broke out at Glastonbury Festival on Friday night after members of direct action group Art Uncut clashed with security staff over U2's tax status.Security guards were quick to stamp out a planned demonstration to release a 20-foot balloon emblazoned with the message "U PAY TAX 2?"Members of the UK Uncut offshoot complained that security guards had used "heavy-handed" tactics to suppress the peaceful protest.
Tax

Report says IRS plagued by financial management system problems

The IRS financial management systems, which do not comply with federal law, are unlikely to be fixed before 2014, according to an audit report.
Tax

Taxpayers must report certain foreign bank and financial accounts to Treasury by June 30

All taxpayers with foreign bank or other financial accounts, or with signature authority over such accounts, may be required to submit an FBAR form by June 30.
Tax

Patent reform passes in House; tax strategy patents banned

A comprehensive patent reform bill, the America Invests Act, which includes a provision prohibiting the award of new tax strategy patents, was approved in the House by a vote of 304 to 117 on June 24.
Tax

TIGTA report: IRS taxpayer data is vulnerable to hackers

According to a report by the Treasursy Inspector General for Tax Administration, the IRS needs to do more to keep data secure.
Tax

IRS announces mid-year increase to standard mileage rate

The Internal Revenue Service has announced an increase in the optional standard mileage rates for the final six months of 2011. Taxpayers may use the optional standard rates to calculate the deductible costs of operating an automobile for business and other purposes.
Tax

TIGTA report finds the IRS struggling with old challenges and new laws

The TIGTA's recent Semiannual Report to Congress summarizing the activities of the IRS for the six months ending March 31, found that the Agency has failed to make significant progress solving long standing problems.
Tax

IRS posts automatic exemption revocation list

The IRS has started publishing a list of organizations that have had their federal tax-exempt status automatically revoked for failing to file an annual information return or notice with the IRS for three consecutive years.
Tax

Majority of banking executives see difficulty addressing tax implications of Dodd-Frank Act and Basel III

Financial executives in the banking industry believe it will be difficult for their institutions to address the various tax implications of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) and Basel III, according to a recent survey from KPMG LLP, the U.S. audit, tax and advisory firm.
Tax

IRS reaches milestone of 1 billion e-filed tax returns

The Internal Revenue Service has announced that its e-file service has reached a major milestone as it passed the one billion mark for individual tax returns processed safely and securely since 1986.
Tax

Tax Strategy: Set up a CRUT for a business sale

If a client is planning to sell a business, the sale could result in a huge capital gain. But there’s a way to reduce the tax bill, provide for a comfortable retirement and help out a favorite charity – all in one shot.
Tax

Jackson Hewitt files for bankruptcy with pre-packaged plan

Jackson Hewitt Tax Service Inc, the second largest U.S. tax preparer, petitioned for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware on May 24.
Tax

AICPA Spring Council includes focus on tax simplification issues

For attendees at the spring meeting of AICPA Council in Washington, D.C, the key issues were all about fairness, simplicity, and innovation in the tax code.
Tax

IRS extends FBAR filing deadline for certain individuals

The Internal Revenue Service and the Financial Crimes Enforcement Network (FinCEN) have announced that a small subset of individuals with only signature authority required to file the Report of Foreign Bank and Financial Accounts (FBARs) will receive a one-year extension beyond the upcoming filing date of June 30, 2011.

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