An announcement expected on Monday will demonstrate the latest example of your tax dollars at work. The IRS will spend more than $10 million on customer relationship management (CRM) software in an effort to improve online support for taxpayers and tax return preparers.

President Bush’s overhaul introduced new income tax brackets for 2001. Under the revamped rules, there are six – 10, 15, 27.5, 30.5, 35.5, and 39.1. Actually, the true top rates in 2001 for millions of upper-middle and high-income individuals often exceed the official rates above 27.5 percent. Their top rate is boosted by cleverly concealed tax increases that were enacted during the senior Bush’s presidency. They are derisively characterized as stealth, or backdoor, increases because their effect is to increase taxes without increasing rates.

A new study performed by the Financial Executives International (FEI) Research Foundation finds that US companies doing business in the international market face tax disadvantages in comparison to their international counterparts.Tax laws that allocate US interest expense to foreign source income and that limit the use of foreign tax credits can frequently result in double taxation for US companies.The study, which is the second edition of a study performed in 19

The IRS has posted the latest list of errors encountered on tax returns prepared by paid tax preparers.

Commerce Clearing House has prepared a list of red flags that are likely to trigger an audit of your tax return. If you want to avoid an audit, avoid these items, according to the article which appeared in, among other places, the Washington Post.

The first wave of income tax rebate checks has been mailed by the Treasury Department and received by taxpayers whose Social Security numbers end in 00-09. Checks to taxpayers with Social Security numbers ending in 10-19 are being mailed this week.

The IRS has awarded Accenture with a contract worth potentially $33.6 million. The challenge facing Accenture is to turn the IRS Web site into a useful and efficient Internet location where users will be able to more easily access the wealth of information stored therein.The IRS site includes over 100,000 pages of text and graphics, but navigation is difficult.

The House of Representatives has approved a bill that would permit not-itemizing taxpayers to deduct on their tax returns up to $25 per year in charitable giving, beginning in 2002. For a taxpayer in the 15 percent bracket, this would represent approximately $3 in tax savings.Under the terms of the House bill, the amount of allowable deduction for charitable contributions would increase to $100 over the next ten years.

Representative John Linder (R-GA) and Representative Collin Peterson (D-MN) have introduced legislation which they feel will "level the playing field for average Americans."The legislation, H.R. 2525, is called the FairTax Act, and was first introduced without success in 1999. The bill currently awaits consideration by the House Ways and Means Committee.The FairTax Act would institute a flat rate consumption tax, replacing the current income tax as well as the payroll tax.