Tax news

Tax

Up to 78 Million Taxpayers Will Be Able to File For Free

The Treasury Department has signed an agreement with Free File Alliance, LLC, an organization representing a consortium of tax software companies, to enable as many as 78 million taxpayers to file taxes online at no cost.Beginning in January 2003, tax software companies who decide to join the consortium will each offer free tax filing services for up to 10% of US taxpayers. Each software company is entitled to set its own rules for determining which taxpayers qualify for the free services.
Tax

Procedures Clarified For Accounting Period Changes

provided by CCHThe IRS has issued Notice 2002-72 which clarifies certain procedures for obtaining approval of an adoption, change or retention of an annual accounting period.
Tax

IRS's Rossotti Says Agency is Still Short on Resources

In what may be one of his last public appearances before his term ends on November 6, IRS Commissioner Charles O. Rossotti spoke to a conference sponsored by the American Institute of Certified Public Accountants and emphasized the growing gap between the demands placed on the IRS and the resources available to meet those demands."These divergent trends simply cannot continue indefinitely.
Tax

O'Neill: Tax Code is 'Absolute Gibberish' - Overhaul Pending

Treasury Secretary Paul O'Neill is overseeing a team of over 100 tax policy experts at the Treasury Department who are putting together a package of tax reform options to present to the White House right after the first of the year.
Education & Careers

Deloitte & Touche Sponsors Tax Challenge

The Deloitte Foundation, a non-profit arm of Big Four firm Deloitte & Touche, is sponsoring its first annual Tax Challenge for undergraduate and graduate tax students.On Saturday, October 19, eight regional groups of 10-15 teams of up to four students were given five hours to complete a case study that incorporated information analyses, data issues, and alternative tax treatments for a fictitious client. The teams submitted a written solution to a panel of D&T judges.
Tax

Study Shows Women Less Likely to Cheat on Taxes

Results of a study released by several professors show women are less likely to cheat on their taxes than men and they are less tolerant of others who admit to cheating on their taxes. The study helps to answer the question seemingly on everyone's mind these days: "Are women more ethical then men?"The question was debated last week at Deutsche Bank's "Women on Wall Street" conference where panelists wondered why so many of the recent whistle-blowers have been women.
Tax

Taxpayers Should Check, Revise Withholding Before Year-End

The odds of your withholding exactly matching the amount of tax computed on your tax return are extremely slim. Unless your taxable income can be determined in advance, to the dollar, and your withholding calculated to coincide with the amount of tax due, or unless you are a citizen whose income is low enough that you pay no taxes, chances are you will either owe tax or be entitled to a refund when the annual income tax returns are filed in April. For most taxpayers, tax time brings a refund. Last year, more than 90 million taxpayers received refunds.
Tax

Treasury Releases Rules to Prevent Duplication of Losses

The U.S. Treasury Department has issued proposed regulations to prevent the duplication of losses reported by groups of related corporations. The proposed regulations, issued under section 1502 of the Internal Revenue Code, apply to corporations that file consolidated tax returns.In particular, the regulations focus on corporate losses reported on the disposal of stock of subsidiary corporations.
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.

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