Tax news | AccountingWEB

Tax news

Tax

Tax Law Changes for Individuals

Taxpayers should make sure that they are aware of important changes to the tax law before they complete their 2003 federal income tax forms.
Tax

Tax Law Changes for Businesses

Taxpayers should make sure that they are aware of important changes to the tax law before they complete their 2003 federal income tax forms.
A&A

IRS Highlights Information to Combat Retirement Plan Tax Shelter Schemes

As part of its effort to combat abusive tax shelter schemes and transactions, the IRS launched a new section on IRS.gov containing important information about abusive schemes involving employee retirement plans.
Tax

$2.5 Billion Awaits Those Who Haven't Filed a 2000 Tax Return

Unclaimed refunds totaling more than $2.5 billion are awaiting nearly 2 million people who failed to file a 2000 income tax return, the IRS announced this week. In order to collect the money, however, a return must be filed with an IRS office no later than April 15, 2004.The IRS estimates that half of those who could claim refunds would receive more than $529. In some cases, individuals had taxes withheld from their wages, or made payments against their taxes out of self-employed earnings, but had too little income to require filing a tax return.
Tax

IRS, States Move Forward in Fight Against Abusive Tax Avoidance

Internal Revenue Service officials announced this week that they will begin sharing leads on more than 20,000 taxpayers engaged in abusive tax avoidance with tax agencies in 45 states, the District of Columbia and New York City. The IRS also announced the latest results of another effort to combat abusive tax avoidance, the Offshore Voluntary Compliance Initiative (OVCI).The sharing of leads was the first large transfer of information under the terms of the new IRS-state partnership unveiled in September.
Tax

FTC Hotline to Assist Small Business Recovery from Web Scam

The Federal Trade Commission has launched a consumer hotline to assist alleged victims of a Web cramming scam operated by Miami-based Epixtar Corporation and several of its subsidiaries, including one formerly known as SBA Online, Inc.
Tax

Tax Tip: How to Figure Your Advance Child Tax Credit

Taxpayers who plan to claim the Child Tax Credit on their federal income tax return should not claim the full $1,000 per child if they received an advance Child Tax Credit payment check in 2003. The payments were actually an advance on the credit’s 2003 amount, when the maximum for each child rose from $600 to $1,000.Taxpayers who received an advance payment should subtract the amount of the payment they already received from their $1,000-per-child total and then figure the remaining amount of credit, if any, to claim on their tax return.
Tax

Tax Tip: Roth IRA Contribution Rules

Confused about whether you can contribute to a Roth IRA? Check these simple rules:Income:To contribute to a Roth IRA, you must have compensation (e.g., wages, salary, tips, professional fees, bonuses).
Tax

Tax Refunds: Skip The Check, Go Right to Plastic!

Debit cards are in these days. From tax preparation firms to state governments, organizations that provide access to tax refunds are providing consumers with more options, and debit cards are among the most popular.Tax preparation services such as Jackson Hewitt and H&R Block are targeting over 25 million taxpayers who do not currently have a checking account, using pre-paid debit cards as an alternative way to speed a cash refund to their customers. Similar to pre-paid calling cards, the pre-paid Visa or MasterCards carry a balance and can be used anywhere those brands are accepted.
A&A

Businessmen Specialize in Catching Tax Preparers’ Mistakes

Tax clients often worry that their preparers may have missed something, or that they’re not getting the full refund they deserve.Capitalizing on those worries are two Colorado Springs, Colo. businessmen who are building a booming business by specializing in filing amended tax returns. Entrepreneur Brace Barber and Darren Oliver, a former securities and insurance broker, claim they are recovering up to $700,000 a month for their clients, who are mainly small to mid-sized businesses.
Tax

Tax Protester’s Defense: I’m Delusional

A convicted tax evader is using an unusual defense in a government lawsuit that seeks $2.5 million in unpaid income taxes, penalties and interest — he says he’s delusional.In court papers filed in federal court in Las Vegas, Irwin Schiff says his delusions include the fantasy that only he can properly interpret tax laws, the New York Times reported. Schiff claims no law requires the payment of income taxes, and he writes books and lectures extensively on the subject, instructing taxpayers to report zero income.Schiff cited the opinion of his psychiatrist, Dr.
Tax

Helpful Hints When Choosing a Return Preparer: How to Avoid Fraud

Return Preparer Fraud generally involves the preparation and filing of false income tax returns by preparers who claim inflated personal or business expenses, false deductions, unallowable credits or excessive exemptions on returns prepared for their clients. Preparers may also manipulate income figures to obtain fraudulent tax credits, such as the Earned Income Tax Credit.In some situations, the client (taxpayer) may not have knowledge of the false expenses, deductions, exemptions and/or credits shown on their tax returns.
Tax

Personal Use of Corporate Jets Just Became More Lucrative

The use of corporate jets for personal trips by officers and employees has gotten a whole lot more beneficial to the company at tax time due to an IRS rule issued last fall. Owners and employees of Subchapter S corporations (those that pass profits and losses through to its owners) have had to report the value of their personal trips on the company planes as taxable income, the Washington Post reported recently. Under an IRS ruling that is just now making it on to the radar of tax lawyers and corporate jet salespeople, allowable deductions could be much larger than the reported income.
Tax

Proposed SEC Budget Would Increase Funding by 13 Percent

President Bush’s budget for next year mirrors the headlines of the day in that only Defense, Homeland Security and the Securities and Exchange Commission would see any significant increase in their budgets.The SEC has seen its workload expand significantly over the last year as it has taken civil action in cases related to Enron and WorldCom as well as conflicts of interest in a number of investment companies and trading irregularities/marketing issues in mutual funds, the Associated Press reported.
Tax

Live Webcast: The IRS Casts Eagle Eye on Tax Shelters

Tax Talk Today tells tax professionals about Tax Shelter abuse. Every taxpayer dollar that comes into the Internal Revenue Service is important, and that’s one reason why the agency is consistently vigilant about tax shelter review and regulation. In February’s Tax Talk Today, panelists will update you on a number of tax shelter issues. What: Tax Talk Today® will cover: An IRS report on trends seen in tax shelter activity. Issue identification, legal guidance and analysis of shelters.
Education & Careers

Does Corporate America Need CPOs?

First there was the chief executive officer and the chief financial officer. With scandals and fraud came the advent of the chief accountability officer and the chief ethics, knowledge, regulatory and disclosure officers, to name a few. Technology brought us the chief information officer.
A&A

Consumer Alert: Check Carefully Before Applying for Offers in Compromise

The Internal Revenue Service has issued a consumer alert advising taxpayers to beware of promoters’ claims that tax debts can be settled for "pennies on the dollar" through the Offer in Compromise Program.Some promoters are inappropriately advising indebted taxpayers to file an Offer in Compromise (OIC) application with the IRS. This bad advice costs taxpayers money and time. An Offer In Compromise is an agreement between a taxpayer and the IRS that resolves the taxpayer's tax debt.
Technology

New York Goes After Internet Sales Taxes

Many New York state residents, and their accountants, are unhappy about a new line on state tax forms to record the amount of sales tax owed from online, catalog or out-of-state purchases.The new Line 56, "sales or use tax," was created by the state legislature’s 2003-2004 budget so the state can collect an estimated $25 million in unpaid taxes, Newsday reported. Tax officials stress that the tax is not new — state residents have always been expected to pay sales tax on these purchases.
Tax

The President's Savings Proposals: Tax-Free Savings and Retirement Security

The President’s Savings Proposals:Tax-Free Savings and Retirement SecurityOpportunities for all AmericansThis week the Treasury Department announced that the President’s FY 2005 Budget includes the following savings initiatives: Retirement Savings Accounts, Lifetime Savings Accounts, Employer Retirement Savings Accounts, and Individual Development Accounts.The first proposal would create two consolidated savings accounts: Retirement Savings Accounts (RSAs) and Lifetime Savings Accounts (
Tax

CPAs Predict More Audits of Small Businesses

Accountants say a recent restructuring announced by the IRS could mean more audits of small companies and their owners.The IRS is adding 2,200 new positions to its audit operations in 2005, reversing declines over the last several years. IRS audit personnel decreased by more than 25 percent between 1996 and 2002, the Associated Press reported."The feeling out there is that they have lost money over the years and they're trying to regroup," said Theodore Kravitz, CPA, with New York-based accounting firm ERE LLPP.

Pages


Already a member? log in here.