Tax news August 2011

A&A

Hiring teens to work for a business – don't take shortcuts

If your business clients need extra help, you might suggest they hire their teenage children to pitch in after school or on weekends. This strategy may result in tax savings and other potential benefits if the children are treated as official employees.
Technology

IRS command center can do more to protect IT

The IRS has not gone far enough in implementing best practices at its Service Operations Command Center, which ensures the normal operation of mainframes and servers used to receive and process tax returns.
Tax

IRS faces challenges keeping up with the regulations

Turns out, it's not just taxpayers who find the tax code confusing. The Internal Revenue Service (IRS) itself is having a hard time keeping up with constantly changing tax laws.
Election 2012

Will the payroll tax holiday be extended?

President Obama doesn't want the "payroll tax holiday" for workers to end. The administration is calling for an extension of the 2 percent payroll tax break as a way to reinvigorate the economy.
Tax

Treasury issues new guidelines on health insurance premium tax credits

The Department of the Treasury has released new proposed regulations providing guidance on upcoming health insurance premium tax credits.
Tax

Kelley re-elected to fourth term as NTEU President

On August 9, delegates to the fifty-third NTEU National Convention elected Colleen M. Kelley to a fourth term as president by a decisive 86-to-14-percent margin over her lone challenger. As the nation's largest independent federal union, NTEU represents 150,000 employees in thirty-one agencies and departments, including the Department of the Treasury, the Department of Health and Human Services, and the Department of Homeland Security.
Tax

IRS issues final rules relating to election to deduct business startup expenses

The IRS has issued final regulations relating to elections to deduct start-up expenditures, organizational expenditures of corporations, and organizational expenses of partnerships.
Tax

Congressional Super Panel to debate tax reform behind closed doors

All of the members of the Super Panel have been seated. Now we'll have to wait to see what they work out behind closed doors.
Tax

AICPA letter requests extension for 2010 decedent tax forms

The AICPA has requested that the IRS issue a blanket extension of time to file the 2010 Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, and the 2010 Form 8939, Allocation of Increase in Basis for Property Acquired from a Decedent, for the estates of persons who died in 2010.
Tax

IRS explains dependent care credits for kindergarten costs

As a new school year beckons, parents may be enrolling their young children in kindergarten and various other after-school programs. Can taxpayers claim the dependent care credit for any part of those expenses?
Tax

IRS customer service is good but needs to be better

The Internal Revenue Service (IRS) still needs to improve the quality of its customer service, according to the latest report issued by the Treasury Inspector General for Tax Administration (TIGTA).
Tax

Ohio Congressman Stivers explains effects of debt ceiling legislation

The Senate approved the bipartisan bill last week, voting 74-26. The legislation will raise the debt ceiling $900 billion and cut government spending, which Representative Steve Stivers (R-OH) calls "not perfect, but the package as a whole helps small businesses...."
Tax

New developments for Schedule M-3 reporting

The 2010 Schedule M-3 for Forms 1120, 1120-L, 1120-PC, and 1120-S, each have added two new lines in Part III and the instructions for all Schedule M-3s have been clarified.
Tax

IRS grounds tax refunds for airline passengers

Despite earlier reports, passengers who booked flights before certain excise taxes for airline travel expired won't be entitled to tax refunds after all.
Tax

Audit report: More could be done to protect Low Income Taxpayer Clinic grant funds

The Taxpayer Advocate Service could be doing more to ensure that grant funding it provides to Low Income Taxpayer Clinics are properly used, according to a report released Wednesday
Tax

IRS to require manual entry of Taxpayer Identification Numbers on W-2 forms

The IRS has announced that it is requiring employers to manually enter Taxpayer Identification Numbers (TINs) on Forms W-2 for all taxpayers with Individual Taxpayer Identification Numbers (ITINs) who report wages.
Tax

IRS ends rule that hurt 'innocent spouses'

A rule that disqualifies taxpayers from being considered innocent spouses if they don't file for relief within two years has been eliminated, effective immediately, the IRS has announced.
Tax

Preparer alert: Keep your clients from becoming victims of tax scams

Tax return preparers need to alert their clients to tax scam artists who might mislead them or persuade them to file false claims for tax credits or rebates. According to the IRS, there has been an increase in tax return-related scams.
Technology

New River Innovation announces alliance with Drake Software

New River Innovation has announced a new alliance with Drake Software, a tax preparation solution vendor. The multiyear partnership provides New River Innovation with an established channel for introducing Beyond415 to the tax and accounting market.