Tax news

Tax

Congressmen Urge Bush to Drop Proposed Tax Regulation

Early in 2001, the Internal Revenue Service issued a proposed regulation (REG 126100-00), "Guidance on Reporting of Deposit Interest Paid to Nonresident Aliens," that would require U.S. banks to make annual reports of all payments of interest made to non-resident aliens. The purported reasons for the regulation are to discourage U.S.
Tax

Don't Forget Next Week's Tax Filing Deadline

More than five million taxpayers chose to use the automatic extension to extend the due date of their tax return from April 15 to August 15, 2002. These taxpayers have until midnight August 15 to get their tax returns postmarked or filed electronically or face a late filing penalty. The late filing penalty imposed by the Internal Revenue Service is 5% per month of the unpaid tax up to a maximum of 25%.
Community News

IRS Chairman Rossotti Honored by NSA

The National Society of Accountants (NSA) has presented Internal Revenue Service Commissioner Charles O. Rossotti an award for dedicated public service. NSA Federal Taxation Chairman William Stevenson described Mr. Rossotti as "our hero," and said that the IRS Commissioner "tried to do the impossible, that is, to change and reform the IRS."In comments to Mr. Rossotti, NSA President Steven Desdier said that "The U.S.
Tax

Senator Bond Urges IRS to Give More Correct Answers

Senator Christopher "Kit" Bond (R-MO) has been voicing outrage for years over what he feels is inferior service by the Internal Revenue Service's Electronic Tax Law Assistance (ETLA) program. The online program provides small business owners with answers to tax questions.The latest issue about which Senator Bond is vocalizing has to do with a study released by the Treasury Inspector General for Tax Administration (TIGTA) regarding the ability to measure the quality of answers provided by the ETLA.
Tax

$1 Billion Tax Break For Military Families Proposed

Senate Finance Committee Chairman Max Baucus, D-Mont., on July 29 introduced a bill, the Foreign and Armed Services Tax Fairness Bill (Sen 2816), which would afford tax relief for military personnel. The bill would provide nearly $1 billion in tax breaks over 10 years, according to an estimate offered by Sen. Max Cleland, D-Ga., Chairman of the Senate Armed Services Subcommittee on Personnel.Baucus said in a floor statement that the measure was intended to correct inequities in tax treatment of military personnel and to provide incentives for them to continue military careers.
Technology

Free E-File Service Will Benefit 60% of Taxpayers

The federal government has unveiled a plan whereby as many as 60 percent of taxpayers will be able to file their tax returns electronically for free next spring.
Tax

House Approves Deduction For Long-Term Care Insurance

By a vote of 362-61, the House of Representatives has approved a measure to provide an above-the-line tax deduction for long-term health care expenses, such as nursing home costs.
Tax

Tax Evader Traficant Expelled From Congress

On July 24, the House of Representatives voted 420-1 to oust James Traficant (D-OH). Mr. Traficant has been asked repeatedly by other members of Congress to resign in light of his April convictions on federal charges of bribery, racketeering, and tax evasion, but the colorful Congressman held his ground to the bitter end. Last week, the House Committee on Standards of Official Conduct found him guilty of nine charges of ethics violations and recommended the vote for expulsion. Only Representative Gary Condit (D-CA) voted against Mr.
Tax

House to Vote on Tax Simplification Bill

One of Congress's leading advocates of tax reduction and simplification, Rob Portman (R-OH), has introduced into the House of Representatives the Tax Simplification Act of 2002, a new tax act designed to make the tax code simpler for both families and businesses. Featured in the act are several tax changes that have gained popularity over the years:Complete repeal of the Alternative Minimum Tax (AMT) for both individuals and businesses.
Tax

IRS Agent is Focus of New Reality TV Show

Following in the footsteps of other so-called reality television shows by being about as far from reality as possible, ABC as part of the fall television lineup has announced the latest addition to the group. "Push, Nevada," scheduled to premier in the prestigious Thursday night slot in September, will tell the story of a mild-mannered IRS agent searching for money in the fictitious desert town of Push, Nevada. The hook is that each week's program will offer clues.
Tax

IRS Publishes Latest Statistics of Income

The IRS has issued its annual Statistics of Income (SOI) Bulletin in which trends among the nation's taxpayers in income tax return filing, deductions, filing statuses, and more are analyzed. The latest bulletin covers individual income tax returns filed for 1999 as well as corporate, estate, and not-for-profit returns for the same period of time.
Tax

CCH Tax Journals go on The Internet

RIVERWOODS, ILL., July 21, 2002 – CCH INCORPORATED (CCH), a leading provider of tax and business information and software is now making eight tax-related journals available in a convenient electronic format over the Internet. The journals, written by distinguished practitioners in many fields of tax practice, cover a wide range of transactions. (To order, call CCH at 1-800-248-3248 or visit the CCH Online Store at onlinestore.cch.com)A subscription to the Internet version of a CCH journal gives a user access to all of the issues published since 1998.
Tax

New Tax Act Under Review by Congress

The House Ways and Means Committee is analyzing the Tax Simplification Act of 2002, a bill introduced late last week by Congressman Rob Portman, R-OH, and co-sponsored by 10 other Republican congressmen.
Tax

Treasury Admits Mistake in Naming KPMG's Tax Clients

In a letter to the editor of the Wall Street Journal, Treasury Department General Counsel David D. Aufhauser admitted that prudent measures to protect taxpayers' privacy were not in place when the names of KPMG's clients were revealed by the Department of Justice (DOJ) last week.
Tax

Congress Considering Elimination of State Taxes on Interstate Commerce

Last week, a subcommittee of the House Judiciary Committee advanced a bill to the full committee that included a clause that would enable certain corporations engaged in interstate commerce to avoid state and local taxes on income from such activities.The Subcommittee on Commercial and Administrative Law advanced H.R. 2526, the Internet Fairness Act of 2001, which is described as a bill to make permanent the moratorium on Internet access taxes.
Tax

One-Fourth of Citizens Say It's OK to Cheat on Their Taxes

A recent Reuters report indicated that the number of U.S. citizens filing false tax returns or simply not filing tax returns at all is increasing.Larry Levitan, Chairman of the IRS Oversight Board, made the same observation in his recent testimony before the House Committee on Government Reform.
Tax

IRS to Tackle New List of Industry Issues

The Internal Revenue Service's Industry Issue Resolution Program (IIR) will concentrate on seven significant issues in the immediate future, gathering and analyzing information relating to each issue and developing specific, uniform guidance on the issues.The seven issues were selected from a field of 38 issues that were submitted to the IRS from businesses, tax practitioners, and associations:Cable television depreciation.
Tax

IRS Names Names of Tax Shelter Participants

Last week the Internal Revenue Service filed suit against accounting firms KPMG and BDO Seidman claiming the firms withheld documents, including the names of participants, relating to tax shelters that the IRS is investigating.Referring to the documents already submitted by KPMG, the IRS proceeded to make public a list of prominent investors who are or were participants in some of the tax shelters that are under examination.
Tax

IRS Proposes to Tax Split-Dollar Life Insurance Plans

The Internal Revenue Service and the U.S. Treasury Department released proposed regulations this week that clarify the tax rules relating to split-dollar life insurance arrangements.A split-dollar life insurance plan is one in which premiums and/or benefits of the plan are split between two parties. The new proposed regulations seek to provide guidance for tax assessments relating to these types of plans.The application of the proposed rules depends on the ownership of the policy.
Tax

KPMG, BDO Seidman Under Fire From IRS

The Internal Revenue Service, with the help of the U.S. Department of Justice, filed suit against accounting firms KPMG and BDO Seidman on Tuesday, July 10, accusing both firms of withholding documents relating to tax shelters promoted and sold by the firms.

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