Tax news December 2011 | AccountingWEB

Tax news December 2011


NTEU President: IRS Budget Cuts Will Hinder Service to CPAs, Clients

While the threat of a government shutdown has been put to rest, NTEU president is still warning Americans that reduced funding embodied in the signed omnibus spending agreement will place an enormous strain on the ability of government agencies to fulfill their critical missions – particularly the IRS.

Payroll Tax Takes Another Holiday

Our nation's lawmakers finally agreed to a compromise extension of the so-called "payroll tax holiday." The new law signed by the president on December 23 – the Temporary Payroll Tax Cut Continuation Act of 2011 – keeps the payroll tax break alive for another two months.

Repeat Winner Emerges in Deloitte Tax Competition

The College of William & Mary was the winner of the tax case study competition – FanTAXtic – sponsored by the Deloitte Foundation. Nine teams participated. Each student on the winning team received a $2,000 scholarship, while the winning school pocketed an institutional award of $10,000.

IRS Commissioner Talks about International Tax Cheats

On December 15, before an audience at the IRS/George Washington University Twenty-Fourth Annual Institute on Current Issues in International Taxation, IRS Commissioner, Douglas Shulman, talked about tax cheats in the international arena and how the IRS is "turning up the pressure."

Web Sites Designed for Accountants by Thomson Reuters & Emochila Team

On December 9, Thomson Reuters announced it had acquired Emochila, a leading Web site design company that works specifically with accounting and tax firms. Thomson Reuters and Emochila will now work in collaboration to assist accounting professionals in creating and maintaining their Web sites.

Wrangling Continues over the Payroll Tax Cut

This morning (December 19), the Associated Press reported that "Boehner spoke after a chaotic weekend in which Senate leaders first failed to agree on a full-year bill, then coalesced around the two-month extension that passed overwhelmingly, only to spark a revolt among GOP conservatives in the House."

Filing Deadline Extended to March 30 for Some Tax-Exempt Organizations

The IRS announced that tax-exempt organizations with January and February filing due dates have until March 30 to file their returns. The extension is granted because the part of the e-file system that processes electronically filed returns of tax-exempt organizations will be offline January and February.

IRS to MC Hammer: We Can Touch This

It's Hammer time: The Internal Revenue Service (IRS) is going after MC Hammer for $779,585 it claims he owes in back taxes dating back to 1996 and 1997. According to entertainment news outlet TMZ, the federal government has initiated a lawsuit to recover the tax debt from Hammer.

IRS Continues to Check Up on Tax Return Preparers

The IRS recently mailed a letter to more than 21,000 tax return preparers who filed returns in 2011 that had a high percentage of attributes typically associated with inaccuracies and misinterpretations of tax law. Door-to-door meetings with 2,100 of those tax return preparers will be scheduled.
Election 2012

Gingrich Says He'll Reduce Taxes and Reform Government Regulations

When asked by Diane Sawyer during the December 10 GOP debate about his "distinguishing idea" to create jobs and bring jobs back from overseas, Gingrich stuck close to his "pro-growth Jobs and Prosperity Plan," which advocates lowering taxes and reforming government regulations to grow the American economy.

IRS Announces 2012 Standard Mileage Rates

The Internal Revenue Service (IRS) has announced the 2012 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical, or moving purposes.

Lawsuit Features Accounting Practices of a Nicolas Cage Film

Nicolas Cage has faced plenty of tax troubles in the past. According to the 'Business Insider,' he currently owes over $14 million. Now a new lawsuit is targeting the accounting practices of one of his films, 'Bad Lieutenant: Port of Call – New Orleans,' a crime drama released in 2009.

Clock Still Ticking on Payroll Tax Cut Extension Deadline

The impasse between Republicans and Democrats over the proposed payroll tax cut extension grew larger on December 8. Senate Republicans blocked the latest Democratic bill designed to extend the tax cut, and Republicans unveiled their own plan to lengthen the payroll tax holiday.

Is It Time for Your Clients to Refinance?

The going rate for a conventional, thirty-year mortgage has dipped below 4 percent, and the rates for fifteen-year mortgages are even lower. Given this environment, should your clients refinance?

'Auld Lang Syne': Don't Forget Your PTIN

Amidst the hubbub of the upcoming holidays, don't forget to renew your Preparer Tax Identification Number (PTIN) before January 1, 2012.

CBA Elects Michael Savoy Secretary/Treasurer

Michael Savoy, CPA and the managing director of Santa Monica–based Gumbiner Savett Inc., has been elected the California Board of Accountancy's secretary/treasurer for 2012. In this position, he will help drive the organization forward and keep its finances in sound shape. Savoy has been a CPA for thirty-seven years.

Reznick's Interactive Map Finds Locations Eligible for NMTC Financing

Reznick Group, a Top 20 accounting firm, has created a new online tool that makes it easier to determine when investors can qualify for the New Markets Tax Credit (NMTC) Program.

New Jersey State Board Waives Requirement for CPA Exam

The New Jersey State Board of Accountancy is sorting out confusion over the CPA Uniform Exam requirements in the state.

Alabama Tax Preparer Gets Jail Time for Falsifying Tax Returns

Chiquita Q. Broadnax, a resident of Montgomery County, AL, has been sentenced to 18 months in prison for her involvement in a fraudulent tax return perpetration scheme.
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