Tax news May 2013

Tax

IRS Fine-Tunes e-File System to Prevent Processing Delays

After performance issues to its electronic filing system caused delays in processing tax returns during the 2012 filing season, the IRS has made several enhancements to the system over the past year that are expected to improve the tax-filing process.
Tax

IRS Offers Four Steps for Hurricane Protection

Now that hurricane season is arriving, the IRS is encouraging both individuals and businesses to take the appropriate steps to safeguard themselves against a potential catastrophe.
Tax

Boy Scouts May Lose Tax Breaks if California Senate Bill Passes

California lawmakers are expected to vote this week on California Senate Bill (SB) 323, which would deny state tax breaks to youth groups that discriminate on the basis of sexual orientation, gender identity, or religious affiliation.
Tax

Mary J. Blige Is Singing the Taxman Blues

She's a nine-time Grammy winner and a phenomenally successful R&B singer. But for reasons that aren't apparent, Mary J. Blige and her husband, Martin Isaacs, are buried in tax and financial troubles.
Tax

Sergio Garcia and Retief Goosen Tax Cases: Double Bogey for IRS

Athletic stars with big personalities and untarnished images can make far more by lending those images to major companies than they can by performing well at their chosen sports. But how is endorsement income taxed?
Tax

Lois Lerner, EO Director, Takes the Fall in IRS Scandal

The "Tea Party scandal" at the IRS has claimed another victim: Lois Lerner, director of the IRS Exempt Organizations (EO) division, has been placed on administrative leave after refusing to resign. Ken Corbin was promptly named the EO acting director.
Tax

Controversy Swirls Around Hearings on IRS Scandal

After the initial round of hearings held by three congressional committees this week, at least we know the IRS wrongfully targeted conservative "tea party" groups applying for tax-exempt status. But precious little else has been revealed.
Tax

Jackpot! Ten Pieces of Financial Advice for New Powerball Winner

There's one person – or maybe a group of people – who has yet to claim the largest Powerball jackpot in history: an estimated $590.5 million. The ticket was purchased on May 18 from a Publix supermarket in Zephyrhills, Florida.
Tax

IRS Official Lois Lerner Pleads the Fifth before House Oversight Committee

Lois Lerner, director of the IRS Exempt Organizations division, chose to invoke her Fifth Amendment right against self-incrimination before the House Oversight and Government Reform Committee on May 22.
Tax

Crime Watch: May 22, 2013

Michael Parker of Baltimore, Maryland, who was the COO of TransCapital Corporation, a tax-advantaged investments company based in Virginia, was sentenced May 20 to fifty-four months in prison in KPMG tax shelter case.
Tax

IRS Extends Tax Deadlines for Oklahoma Tornado Victims

Following Monday's disaster declaration for individual assistance issued by FEMA, the IRS announced May 21, 2013, that affected taxpayers in Cleveland, Lincoln, McClain, Oklahoma, and Pottawatomie counties will receive special tax relief.
Tax

Beyoncé's Father and Former Manager under Heavy Tax Debt

Matthew Knowles, music executive, television producer, father, and former manager of Beyoncé Knowles, is into the IRS for more than $1.2 million. The tax debt relates to income earned in 2010 and 2011, the same years he managed his daughter's career.
Tax

Rapper Ja Rule's Tax Evasion Time Served, Mostly

Rapper Ja Rule spent the last nearly two years in prison at Ray Brook Correctional Facility in upstate New York on charges that included illegal gun possession and tax evasion. Now he'll finish his sentence on home confinement.
Tax

New Orleans Saints Coach Sean Payton Settles Tax Credit Lawsuit

Twenty-seven investors, including Saints coach Sean Payton, wanted to reduce their overall state income tax liabilities by investing in movie production tax credits. But the film studio was defunct, and the tax credits didn't exist.
Tax

IRS Is Sued for Seizing Medical Records

The IRS has come under fire recently for reportedly authorizing intrusions into e-mails and online postings without obtaining a search warrant. Now it appears medical records might not be safe from the prying eyes of the nation's tax collection agency.
Tax

IRS to Refund Tax Preparers for Canceled Certification Tests

The IRS announced on May 16 that it's issuing refunds to tax return preparers who registered for certification tests that were canceled due to a court-ordered injunction in late March. Fees collected from tax preparers who tested on or after January 18, the date the tests were enjoined, are also being refunded.
Tax

Obama Names Daniel Werfel Acting IRS Commissioner

The current controller of the US Office of Management and Budget has been appointed by President Obama as the new acting commissioner of the IRS, effective May 22. Daniel Werfel will take over the position vacated by Steven Miller, who resigned on May 15.
Tax

California Keeps the Kings and Millions in Tax $$

UPDATE: The battle with Seattle is over. For twenty-seven months, a group led by hedge fund manager Chris Hansen and Microsoft CEO Steve Ballmer have pursued the Sacramento Kings, hoping to move them north to become the Seattle SuperSonics. But on May 15, the NBA Board of Governors voted down the sale.
Tax

Crime Watch: May 16, 2013

A man who perpetrated a million-dollar investment fraud from California that defrauded New Jersey victims was sentenced May 14 to forty-six months in prison for crimes related to the scheme, US Attorney Paul J. Fishman announced.
Tax

IRS Acting Commissioner Steven Miller Resigns Over Scandal

Steven Miller, a twenty-five-year veteran of the IRS who has been the agency's acting commissioner since November 2012, resigned from his post on May 15, less than a week after the IRS admitted to and apologized for improperly scrutinizing the federal tax-exempt status of conservative groups.

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