Tax news July 2012

Tax

IRS Visits to Preparers Not Very Productive

A review of the Return Preparer Visitation Project (RPVP) for FY 2011 by TIGTA found that major changes need to be made to the management of the program to improve its effectiveness.
Tax

IRS: Too Many No-Change Audits of S-Corps, Partnerships

More than half of IRS audits of partnerships and S-corporations for 2011 closed with no change, according to two reports released recently by the TIGTA.
Tax

Study Offers Insight into Nonprofit Governance

A new benchmarking study, "A Snapshot of Key Data Extracted from 2008-2010 Form 990s," assesses the governance practices of nonprofits. It is a follow-up piece to a similar study released in 2010.
Tax

Dems Claim Hollow Victory on Tax Cut Bill

It was closer than initially expected, but the Senate approved a bill on July 25 to extend lower income tax rates for most Americans.
Tax

TIGTA: Adoption Credit Oversight Needs to Improve

Incomplete or missing documentation led the IRS to delay processing 43,295 Adoption Credit claims and approve more than $11 million in erroneous claims, according to a report publicly released by TIGTA.
Tax

Estate Tax Relief Takes a Back Seat

With all the talk about income tax increases and cuts, you'd think there would be more discussion about a pending estate tax bombshell. But the prospect of higher estate taxes in 2013 doesn't appear to be a concern on the Hill.
Tax

Fraudulent AICPA E-mail Targets CPAs

A fraudulent e-mail phishing scam was sent to CPAs, non-CPAs, and the general public on July 19 accusing the recipients of tax refund fraud and threatening license suspension.
Tax

Former CPA, a Pakistan Fugitive, Indicted

Masood Chotani, a former CPA who spent the last three years as a fugitive in Pakistan, was arraigned July 12 on charges that he conspired to defraud the United States and made false claims for income tax refunds.
Tax

Woman in Custody in $2 Million Tax Fraud Case

Police arrested Krystle Marie Reyes on June 6 on accusations that she filed a fake TurboTax electronic tax form claiming she earned more than $3 million in 2011 and was owed a $2.1 million refund.
Tax

Tax Crimes Could Send Virginia Man to Prison

On July 10, a Newport News, Virginia, federal grand jury indicted Jeffrey Charles for conspiring with his daughter and son-in-law to defraud the United States, the Justice Department and the IRS announced.
Tax

Rihanna Pulls No Punches in Lawsuit

Megastar Rihanna is fighting the accountants whom she blames for mishandling her finances and federal tax returns. She and her touring company are seeking tens of millions of dollars in compensatory damages.
Tax

Man Gets 71 Months for Tax Conspiracy

Elmo Antonio George was sentenced to seventy-one months in prison for his role in a conspiracy to defraud the IRS and for filing false tax returns, the Justice Department and IRS announced.
Tax

Man Plead Guilty in Mortgage Fraud

An Escondido man plead guilty July 5 to one count of lying to IRS Criminal Investigation and Immigration and Customs Enforcement special agents who were investigating a mortgage fraud and money laundering scheme.
Tax

Amazon Collecting Sales Taxes in Texas

Amazon.com began collecting taxes on its online sales in Texas on July 1, prompting an "it's about time" reaction from state retailers who believe the online giant has enjoyed an unfair advantage for too long.
Tax

Expatriate Gets Sixty Months in Prison

Ellen Meredith Stubenhaus, previously of Lake Worth, Florida, and later an expatriate living in Costa Rica, was sentenced to sixty months in prison. She previously had plead guilty to conspiracy to defraud the United States.
Tax

Avoid Penalty on ERP Withdrawals

This article from the Oklahoma Society of Certified Public Accountants is one you'll want to share with your clients to help them make wise decisions about early retirement plan withdrawals.
A&A

Health Care Law Decision - Uncertainty for Employers

Now that the U.S. Supreme Court has answered the biggest question related to President Obama's health care law, employers now face the uncertainties of implementing it.
A&A

CPAs Examine Impact of Health Care Decision

The Supreme Court ruled to uphold much of the PPACA, which puts in motion the expansion of the health care system, including the individual mandate requiring all U.S. citizens to maintain minimum health care coverage or pay a penalty.
Tax

False Prophet Found Guilty of Tax Evasion

"Doomsday prophet" Ronald Weinland was found guilty of federal tax evasion on June 13. It appears the jury didn't buy in to Weinland's excuse: he didn't pay his taxes because he believed the world was coming to an end.
Tax

The Tax Education of Lauryn Hill Continues

Apparently, singer Lauryn Hill has changed her tune about her tax troubles. June 29, the Grammy award winner pleaded guilty to failure to pay federal income tax on more than $1.8 million earned by four corporations she owns.