Tax news

Tax

SEC Forum To Probe Problems of Small Businesses

The Securities and Exchange Commission (SEC) has announced that its annual Government-Business Forum on Small Business Capital Formation will be held on September 26 and 27, 2002 in Arlington, Virginia. The Forum is a way for small business owners and their representatives to communicate their views and needs to senior government officials. Items slated for discussion include issues in the areas of taxation and securities regulation.
Tax

NY Indictment Shines Spotlight on Sales Tax Avoidance

New York prosecutors have been investigating the sales tax treatment on fine art sold to the former chief executive officer (CEO) of Tyco International Ltd. The former CEO pled not guilty to a 12-count indictment on June 5, 2002, and this has helped shine a spotlight on the techniques often used to avoid sales tax on pricey but easily portable products.
Tax

IRS Unveils New TEAMs to Turbocharge Its Aging TAMs

The Internal Revenue Service (IRS) has been looking for ways to speed up its aging system for issuing Taxpayer Advice Memoranda (TAMs). Chief Counsel B. John Williams, Jr. thinks the Service has found the right answer in TEAMs (Technical Expedited Advice Memoranda).The purpose of the TAM program is to publish binding guidance for specific taxpayer situations. But the Service hasn't been issuing many TAMs in recent years, mostly because practitioners complain it takes too long. A typical TAM can take 90 to 120 days or more to issue.
Tax

Mickey Mouse Meets the Tax Man

Walt Disney Co. is undergoing an audit by the Internal Revenue Service (IRS). While IRS audits of large companies are not unusual, this one stands out because Disney has chosen to highlight the audit in its recent quarterly filing with the Securities and Exchange Commission. Disney has indicated that a resolution of the dispute may involve Disney making additional payments to the IRS, however the company has vowed to defend itself and insists that it handled taxes legitimately in the years affected by the audit.
Technology

IRS Launches Test of Online Taxpayer Service

The Internal Revenue Service (IRS) has launched an online taxpayer service that will ultimately save taxpayers and IRS agents the time and frustration that accompanies long waits in telephone queues.Taxpayers can check the status of their refunds online and receive information about when a refund was mailed or what type of problem is causing a delay.
Tax

Department of Justice Attempts to Thwart Tax Evasion

The U.S. Department has filed documents in Federal District court in Tampa in an attempt to gain an injunction against tax fraud monger Douglas P. Rosile Sr. of Venice, FL, who has been accused of peddling tax scams. Tax scams take many shapes, and since Congress passed the I.R.S.
Tax

IRS Extends Tax Breaks From Net Operating Losses

The Internal Revenue Service (IRS) is extending the time period for claiming tax breaks made available in March 2002 to individuals and businesses with net operating losses in tax years ending in 2001 or 2002. Because of the timing of the Job Creation and Worker Assistance Act of 2002, many taxpayers filed their tax returns before this new law was passed and have not yet filed for refunds. Some may have been unaware that they could carry their losses back for five years, instead of the two year maximum allowed under prior law.
Tax

Guide to Using The IRS' New Taxpayer Advocate Service

The IRS' new Taxpayer Advocate Service (TAS), which replaced the former IRS-run program known as Program Resolution, has caused some confusion and misunderstanding among practitioners since it was launched two years ago. TaxTalkToday.tv, a live monthly Webcast sponsored in part by the IRS, ran a seminar this week intended top help educate practitioners on how and when to use the Taxpayer Advocate Service. Practitioners may view an archived copy of the seminar for free.Panelist Henry O.
Tax

IRS Readies Tax Break for Hybrid Car Buyers

Original purchasers of one of the new hybrid gas-electric automobiles now entering the market will qualify for a tax break. The amount of the break is being determined now by the Internal Revenue Service under a process spelled out in recently-issued Revenue Procedure 2002-42.One manufacturer, Toyota, claims 90% of the world market for hybrid vehicles. It says it sold 1,834 Prius models in the U.S. during April 2002. But another manufacturer, Honda, was first to market.
Tax

House Votes 'Yea' on Marriage Penalty Acceleration

The House of Representatives has voted overwhelmingly to support an acceleration of the elimination of the marriage penalty from the standard deduction.With a vote of 409-1 - only Representative Alan Mollohan (D-WV) voted against the measure - the House voted to begin eliminating the marriage penalty in 2003 instead of 2005 as originally scheduled.
Tax

Federal Income Tax Tips for the Class of 2002

Students graduating this year will find the tax laws ease some of their post-graduation expenses. Here is a run-down published by CNNMoney of laws likely to affect the class of 2002:Student loans. You can get a higher starting salary and still qualify to write off up to $2,500 in interest paid on college loans this year.
Tax

Treasury Takes Aim at 'Unpatriotic' Tax-Dodgers

On May 17, 2002, the Treasury Department released a preliminary report on the growing number of U.S. companies that have announced plans to reincorporate outside the country, e.g., in Bermuda, through a paper parent company.
Tax

IRS Wants to Collect Payroll Tax on Stock Options

The IRS is about to make history if it is successful with its plan to make incentive stock options (ISOs) and employee stock purchase plans (ESPPs) vulnerable to Social Security, Medicare, and other payroll taxes.
Tax

IRS Report Card: Grades Are Improving

Three years ago, the watchdog Federal Performance Project gave the Internal Revenue Service a passing - but not stellar - grade of a "C" average. On May 15, 2002, the Project announced that the IRS' grade has improved to a "B minus."The Federal Performance Project, which provides an independent management assessment of federal agencies, is a collaboration between Government Executive magazine and George Washington University’s public administration department.
Tax

New Deadline for IRS Form 1042-S Approaches

Earlier this spring The Internal Revenue Service announced that for this year only it is extending the due date of Form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding, from March 15 to May 15. All forms 1042-S formerly due on March 15, 2002 are due May 15, 2002.
Tax

Accounting Firms Face Penalties Under Tax-Shelter Bill

Senators Max Baucus and Charles Grassley, senior members of the Senate Finance Committee, have introduced tough new tax legislation known as the "Tax Shelter Transparency Act" that would impose penalties on promoters of tax shelters, mainly law and accounting firms.Types of Tax SheltersThe legislation separates transactions into three types: reportable listed transactions, reportable avoidance transactions and a catch-all category for other transactions.Reportable listed transacti
Tax

Missouri Stops Sending Refund Checks to Taxpayers

Facing an unexpected budget crunch, Missouri officials have stopped mailing refund checks to taxpayers who are owed refunds from their 2001 income tax returns. Nearly two-thirds of refunds checks had already been mailed when the state realized how large its budget deficit is. With a fiscal year-end approaching on June 30, the state is $200 to $250 million in the hole. Approximately $167 million in refunds are being held back to help patch that hole.The state will be required to begin paying interest at 6% on refunds not processed by August 15.
Tax

IRS Offers Financial Grants to Professionals For Low Income Tax Assistance

Organizations providing low-cost or no-cost representation to people involved in tax disputes can apply for grants worth up to $100,000 for the 2003 grant cycle, according to the Internal Revenue Service. Grants are also available for programs that inform taxpayers for whom English is a second language of their tax rights and responsibilities."Our matching grant program encourages the creation and growth of low-income taxpayer clinics across the nation," said IRS Commissioner Charles O. Rossotti.
Tax

IRS Provides Options for Additional 1st Year Depreciation

If you are looking for the Dynamic Intuition: A Strategy for Business Success in the 21st Century story, click here. Sorry for the mistake.Rev. Proc. 2002-33 released by the Internal Revenue Service (IRS) this week provides more options for taxpayers.
Tax

IRS Seeks Volunteers for Taxpayer Advocacy Panel

The Treasury Department announced on April 29, 2002 that the Taxpayer Advocacy Panel (TAP) is being expanded from 10 to all 50 states, and the Internal Revenue Service (IRS) is inviting civic-minded individuals to apply for positions on the volunteer panel. The TAP program works directly with the National Taxpayer Advocate's Office.

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