Tax news

Tax

FBI And IRS Trace $45 Million LA Fraud to NY CPA

A New York certified public accountant was charged in Los Angeles for his role in a fraud scheme that cost investors $45 million. The charges stem from a joint probe by the Federal Bureau of Investigation and Internal Revenue Service's Criminal Investigation unit.
Tax

Good News, Bad News Regarding Offshore Finances

Depending on what type of entity you are and what your situation is regarding offshore bank accounts and offshore corporate headquarters, the news this week may be considered good or bad, invasive or a relief.Corporations that have relocated offshore or that have considered doing so can breathe a sigh of relief, or at least temporarily so, as the current Congress gets ready to pack its bags for home without passing any measures to punish U.S. companies with offshore locations.Democrats have pushed for the corporate inversion provisions that penalize U.S.
Tax

IRS Announces 2003 Pension Plan Limitations

The Internal Revenue Service has announced its annual cost-of-living adjustments and dollar limitation adjustments for pension plans for tax year 2003.Many limitation amounts remain unchanged from 2002. Some of the changes that did occur are not reflective of cost-of-living increases but are a result of the scheduled increases set out in the Economic Growth and Tax Relief Reconciliation Act of 2001.The following limitations are effective January 1, 2003:The maximum limitation for the Code Sec.
Tax

Social Security Administration Announces Cost-of-Living Adjustment

The Social Security Administration has announced a cost of living adjustment of 1.4% for social security benefits. The increase will begin in January 2003."Today’s news tells us that inflation continues to be low, which is certainly good news for the elderly and disabled," said Social Security Commissioner Jo Anne B. Barnhart. "Inflation is one of the biggest challenges for people living on a fixed income.
Tax

Treasury Announces New Tax Shelter Regulations

The Treasury Department has released amended regulations for the disclosure of tax shelters. These rules expand the reporting requirements currently expected of corporations to include individuals, trusts, and subchapter S corporations.
Tax

IRS Appoints Acting Commissioner to Replace Rossotti

Internal Revenue Service Commissioner Charles O. Rossotti's five-year term comes to an end on November 6. No replacement has been named, but the IRS announced yesterday it will appoint Bob Wenzel, IRS deputy commissioner, to fill the commissioner's position until a permanent replacement can be found.In Wednesday's announcement, Treasury Secretary Paul O'Neill said Mr. Wenzel will "keep the IRS on course" as it moves forward with plans to modernize computer systems and fight tax evasion.Mr.
Tax

IRS Data Release Provides Historical Perspective

The Internal Revenue Service has issued a data release from the Statistical Data Section of the service, and for those who are interested in a historical perspective of taxation in the United States, this release is a fascinating read.Income taxes as we know them got their start in 1913 with the ratification of the Sixteenth Amendment to the Constitution. The first Form 1040 made its appearance that year, a mere shadow of the form we use today.
Tax

'Gimme Tax Shelters' - Free Tax Talk Today Webcast

In a special free two-hour Webcast co-sponsored by the IRS, Tax Talk Today will explain to tax professionals and financial planners the new ways that the IRS is looking at tax shelters used by corporations. The Webcast, "Gimme Tax Shelters," airs live from 2-4 p.m. ET on Tuesday, October 15, 2002. This program is of particular interest to practitioners whose practice includes tax planning strategies for both large and mid-size corporations, and who represent these clients before the IRS.
Tax

BDO Ordered to Give Tax Shelter Records to IRS

The Internal Revenue Service has been given clearance by a federal judge to obtain tax shelter records and related client lists from accounting firm BDO Seidman. Last July, the Justice Department had filed suit against both KPMG and BDO Seidman in an attempt to gain access to documents and client lists relating to tax shelters sold by the firms.The IRS will presumably use the lists of BDO clients participating in tax shelters as a starting point for choosing audit victims.
Tax

Lawmakers Want Tax Disclosures Tougher Than FASB's

In a letter to President Bush, Senate Finance Committee ranking member Charles E. Grassley urged a sweeping review of disclosure requirements related to corporate income taxes. He wants more details on IRS Schedule M-1, and he wants someone other than the Financial Accounting Standards Board (FASB) to decide what is adequate tax footnote disclosure for financial statements.Sen.
Tax

Taxpayer Advocacy Panel Members Chosen

The Treasury Department and the Internal Revenue Service have announced the selection of 102 members of the national Taxpayer Advocacy Panel (TAP), a group made up of tax professionals, professors, retired military, small business owners, and one state legislature member.
Tax

October 15 Tax Deadline Nears

The last significant deadline for individual taxpayers occurs next week on October 15 when individual tax returns on final extension are due. Taxpayers who requested an additional extension beyond August 15 and received approval from the Internal Revenue Service have until midnight October 15 to file their 2001 tax returns without risk of penalty for late filing. The late filing penalty is 5% per month of any unpaid tax, up to a maximum of 25%.All taxes owing for 2001 should have already been paid by last April 15 when the first extension request was filed.
Tax

Justice Department Clears Path For Tax Consortium

The Department of Justice has given its approval for several private-sector tax preparers and tax software companies to form a consortium that will offer free tax filing services through the IRS Web site. The free services will be offered to at least 60% of the nation's taxpayers as part of the IRS plan to have 80% of U.S. taxpayers filing electronically by 2007.Under the terms of the plan, participating companies will each agree to provide free services to a minimum of 10% of taxpayers.
Tax

IRS Cracks Down on Three Tax Shelters

The Internal Revenue Service has announced that participants in three highly-complex tax shelters have a limited time span in which to settle up with the government and avoid the cost of litigation.The three targeted shelters are tax avoidance devices frequently offered by promoters who gain fees for selling interests in the shelters.
Tax

Isle of Man to Provide Tax Details to US

The Isle of Man has signed a bilateral agreement with the United States to exchange information on tax matters between the two countries.The move follows similar agreements between the US and the Channel Islands in September.
Tax

IRS Ruling May Help Retirees

The Internal Revenue Service has issued Revenue Ruling 2002-62 that may help certain taxpayers whose retirement funds are at risk of being depleted by a drop in stock values.
Tax

KPMG Fights Back at Hearing on Tax Promoter Issues

KPMG fought back today in a hearing in federal district court in Washington DC. The hearing is viewed as a testing ground for the extent to which tax practitioner privilege serves as a defense against summonses issued by the Internal Revenue Service (IRS). Earlier this year, the summonses received wide press coverage when the Department of Justice (DOJ) revealed the names of clients, while trying to enforce summonses issued to KPMG.
Tax

IRS Criticized For Not Informing Taxpayers of Refunds

A bipartisan group of senators has written a letter to Treasury Secretary Paul H. O'Neill complaining of the IRS policy of not informing lower income taxpayers of their eligibility to claim a portion of the Child Tax Credit as a refundable credit. According to the group, in 2001 there were 611,560 U.S. households that were eligible but failed to claim a Child Tax Credit, and nearly 75 percent of those households earned less than $25,000 for the year. The Child Tax Credit amounted to $600 per eligible child in 2001.
Tax

IRS Points Finger at Andersen

The Internal Revenue Service has filed a petition in the Chicago federal court to force accounting firm Arthur Andersen LLP to produce documents relating to tax shelters sold by the firm. The IRS claims it has evidence that the shelters produced "likely improper tax deductions" for participants and that those deductions ranged from $10 million to $1.6 billion.
Tax

Nevada Tax Scammers Deal Themselves Some Prison Time

Four casino workers at the Virgin River hotel-casino in Mesquite, Nevada have been sentenced after pleading guilty to criminal charges stemming from underreporting tip income on their income tax returns.

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