Tax news July 2011

Tax

IRS asks airlines to refund tax on plane tickets sold before July 23

Due to the expiration of certain aviation-related taxes, the IRS is requesting that airlines refund the federal taxes paid by passengers who purchased airline tickets prior to July 23, 2011.
Tax

Tax return preparer registration for 2012 to start soon

For more than a year now, all paid tax return preparers have been required to obtain a preparer tax identification number (PTIN). Renewals for 2012 are expected to start in October 2011. Practitioners who haven't done so already can apply for a PTIN relatively easily.
Tax

AICPA supports new tax preparer registration program

While over 712,000 tax preparers registered and received PTINs for the 2011 tax filing season, there were still about 100,000 preparers who either used outdated PTINs or used social security numbers on returns they prepared this past filing season.
Technology

CCH announces acquisition of SpeedTax

CCH has announced its acquisition of SpeedTax, a provider of Software-as-a-Service (SaaS) sales and use tax solutions. The addition of SpeedTax bolsters the expansive offering of SaaS tax preparation, document management, portal, practice, and workstream found in the CCH ProSystemfx suite of products.
Tax

IRS needs more control over homebuyer tax credit program, audit finds

The IRS has improved how it processes first-time homebuyer tax credits, but erroneous or questionable claims are still a problem on amended returns, a new report contends.
Tax

Holla, Holla...Ja Rule faces the tax music

A self-proclaimed rap "gangsta" is going to jail for committing a white-collar crime: tax evasion. Multi-platinum selling artist Ja Rule (whose real name is Jeffrey Adkins) has been sentenced to 28 months in federal prison for failing to report more than $3 million in earnings from 2004 through 2006.
Tax

IRS slow to tell taxpayers when their information was disclosed

Just as the Obama administration seeks to protect consumers from breaches of personal privacy, the IRS is being told that it's too slow to tell taxpayers when their personal information wasn't kept private.
Tax

Tax strategy: Secure fast tax relief for disaster losses

If a client has been victimized by the vicious tornadoes or floods throughout the country this year, or has suffered personal casualty losses due to some other natural disaster, he or she may not have to wait to file a 2011 tax return to recoup some tax benefits.
Tax

Trucker use tax: IRS announces new filing date

The Internal Revenue Service has advised truckers and other owners of heavy highway vehicles that their next federal highway use tax return, usually due August 31, will now be due on November 30, 2011.
Tax

State and Local Tax: e-books are not subject to New York State sales and use tax

In an advisory opinion, the New York State Department of Taxation and Finance has concluded that a California seller's sales of e-books are not subject to sales and use tax.
Tax

Tax tip: Summer day camp expenses may qualify for a tax credit

Along with the summer come some extra expenses, including (possibly) day camp for children. It may be a pleasant surprise for some parents that the costs of sending their children to these camps may qualify for the child and dependent care tax credit.
Tax

California tax amnesty program opens August 1

Taxpayers who have underreported their California income tax liabilities through the use of abusive tax avoidance transactions or offshore financial arrangements will be permitted to obtain a waiver of most penalties under an amnesty program beginning in August.
Tax

Jeter baseball fan catches bad tax advice

Christian Lopez, the 23-year-old baseball fan who returned Yankees' Derek Jeter's 3,000th career hit ball to the player, received swag and tickets for his generosity. But what would have happened if Lopez had sought some sage tax advice before being so quick to act?
Tax

Taxpayer Advocate: Cuts to IRS would hinder tax collection efforts

National Taxpayer Advocate Nina Olson is telling lawmakers to leave the IRS alone when it comes to budget cuts.