Tax news


IRS Announces New Features For Tax Professionals

The Internal Revenue Service has launched a new and expanded e-subscription service available through for taxpayers, tax professionals, small business owners and the news media.Subscribers to the e-service lists will get timely, specialized information sent via e-mail on topics such as state practitioner meetings, news releases, filing season tax tips and other programs.To subscribe to any of the services, visit "e-News Subscriptions" on the IRS Web site.Among the new features:E-Ne

Need a Copy of Your Tax Return Information? Call The IRS

There may be times when you need a copy of your prior year federal tax return, a transcript of a return or tax account information. If you had your taxes prepared by a tax professional, you should contact them for copies.

Tax Materials And Assistance in Spanish

If you need federal tax information in Spanish, you can find it in the form of recorded tax topics, free tax publications and toll-free telephone assistance from the Internal Revenue Service.TeleTax is a toll-free automated service, in English and Spanish, providing helpful tax topics and refund information. You can find a list of the 151 TeleTax topics in the instructions for Form 1040, 1040A or 1040EZ. TeleTax can also help you if it's been at least four weeks since you filed your return and you want to check on the status of your federal refund.
Practice Management

IRS Provides Inventory Valuation Method For Auto Remanufacturing

The Internal Revenue Service today issued guidance that provides an inventory valuation method for rebuildable motor vehicle cores. In the remanufacturing industry, worn or used parts (cores) are rebuilt when received from customers and other sources.The guidance was released as part of the Industry Issue Resolution (IIR) program. The IIR program, launched by the IRS in 2001, tackles issues submitted by taxpayers, associations and other groups representing businesses.

IRS Guilty of Fraud, Acted Deceptively

The 9th U.S. Circuit Court of Appeals has accused the IRS of committing fraud and acting deceptively with regard to the agency's favored treatment of two pilots who ratted out 1,300 other pilots, all of whom participated in a flaky investment scheme over 20 years ago.The IRS is accused of setting up secret agreements with the two pilots, John Thompson and John Cravens, in exchange for testimony against the other pilots. Mr.

Taxpayer Rights a Priority For IRS

The law requires the IRS to protect taxpayer rights, and in its day-to-day operations, the IRS and its employees make taxpayer rights a top priority. This includes explaining those rights to taxpayers, keeping taxpayer information private and confidential and being professional and courteous.Besides what is expected of IRS employees, taxpayers have many other rights. They have the right to have someone represent them before the IRS and to accompany them to any meeting with IRS employees.

Summary of 2002 Tax Law Changes For Individuals

There are plenty of changes in the tax laws this year. Every taxpayer is affected in some way by the new rules that affect individuals.

Budget-Challenged Municipalities Step up Tax Collection Efforts

When times are good and city coffers are bulging, the effort to get consumers to comply with obscure tax laws often is not strong. But with city and state governments facing budget crises all across the United States, any method of squeezing additional revenue has become an acceptable strategy.The art of mining consumer data for possible tax liability is growing among city revenue officers. Municipalities in California, for example, are reviewing state records and sending out bills to people who often don't even know they owe money.

E-File Helps Refunds, Payments

Are you one of the almost 100 million taxpayers who will receive a refund this year? The IRS says that requesting direct deposit and filing your tax return electronically (e-filing) will put that money in your pocket faster and easier.Every year, more taxpayers find out how safe and easy it is to have their tax refund deposited directly into their checking or savings account. This option is available for both e-filers and paper return filers.When you file electronically, your refund will be issued within three weeks, about half the time it would take if you filed a paper return.
Community News

NY Tax Preparer Jailed For Padding Clients' Expenses

A Bronx tax preparer was sentenced to a year and a day in jail for her role in preparing false income tax returns for clients. Some would say she got off too easy, considering the maximum sentence would have been five years in jail and business ethics are at an all-time low. The tax preparer who got the jail time was part of a father/daughter tax preparation service. The Internal Revenue Service charged her with fudging deductions and inflating personal expenses for items such as charitable contributions, job-related expenses and medical and dental expenses.

Publication 17 - One Stop For Tax Help

Facing a lot of different tax questions this year?

Avoid Headaches - Prepare Taxes Early

Earlier is better when it comes to working on your taxes. The IRS encourages everyone to get a head start on tax preparation. Not only do you avoid the last-minute rush, early filers also get a faster refund.There are several easy ways to get a good jump on your taxes long before the April 15 deadline rolls around:Gather your records in advance. Make sure you have all the records you need, including W-2s and 1099s. Don’t forget to save a copy for your files.Get the right forms.

Ready, Set, E-File!

The IRS on Thursday unveiled its new online tax service called Free File. The service provides information about e-filing and links to 17 companies, all of which have agreed to provide free tax preparation and filing services to certain taxpayers. Each participating company has set its own criteria as to who qualifies for the free services. Altogether the companies have agreed to make their services available at no charge to at least 60% of the U.S.

Concerns Mount Over Proposed Curbs on Tax Services

Concerns are mounting among both accounting firms and consumer groups over the rules proposed by the Securities and Exchange Commission to limit the tax services provided by auditors. SEC's proposed rules represent a cautious compromise, saying auditors can still provide tax services so long as the services are pre-approved by audit committees and don't involve the firm acting as an advocate for the client or auditing its own work. Apparently, this is a compromise that no one likes.

Explanation of The Dividend Exclusion in The Bush Tax Plan

provided by CCHPresident Bush announced an economic stimulus package on January 7 containing more than $670 billion in individual and business tax cuts over the next 10 years. The centerpiece of the package, and the proposal causing the most controversy, is the proposed exclusion from income of dividends paid by a corporation to shareholders.

Get Tax Information 24 Hours a Day

Need a tax form? Have a question about changes to tax law? Want to find the nearest IRS taxpayer assistance center? Now anyone with a personal computer and Internet access can point and click their way to access tax information at should consult your tax preparer for answers to your questions about your personal situation. But for quick reference, check out the IRS Web site.The IRS Web site at offers a wealth of resources for making tax time, well, a little less taxing.


You can avoid headaches at tax time by keeping track of your receipts and other records throughout the year, the IRS advises. Good recordkeeping will help you remember the various transactions you made during the year, which may help you out on your taxes.Records help you document the deductions you’ve claimed on your return. You’ll need this documentation should the IRS select your return for examination.

IRS Offers Amnesty For Taxpayers With Offshore Accounts

The Internal Revenue Service has announced a new program, the Offshore Voluntary Compliance Initiative, designed to round up promoters of and participants in offshore banking and credit card accounts.Taxpayers who approach the IRS by April 15, 2003 and declare ownership of offshore credit card or bank accounts in which they have protected funds from U.S. income taxation may be eligible to participate in the amnesty program.

Should I Itemize?

Whether to itemize deductions on your tax return depends on how much you spent on certain expenses last year. According to the IRS, money paid for medical care, mortgage interest, taxes, contributions, casualty losses, and miscellaneous deductions can reduce your taxes. If the total amount spent on those categories is more than the standard deduction, you can usually benefit by itemizing.The standard deduction amounts are based on your filing status and are subject to inflation adjustments each year.

Mark Everson Chosen to Head IRS

Mark W. Everson, currently the deputy director of the White House Office of Management and Budget (OMB), has been named to the position of commissioner of the Internal Revenue Service. Mr. Everson, if confirmed by the Senate, will replace former commissioner Charles O. Rossotti who completed his five-year term in November, 2002. Bob Wenzel, IRS deputy commissioner, has been serving as acting commissioner since Mr. Rossotti vacated the position.Mr.


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