Tax news

Tax

Senate Pushing for Social Security Holiday

Senate Republicans are hopeful that they can tie a one-month Social Security holiday for all workers and employers to the economic stimulus package that is currently before Congress.
Tax

Cayman Islands No Longer a Tax Haven

Cayman Islands Governor, Peter J. Smith, is to sign an agreement today with Treasury Secretary, Paul O'Neill, and British Ambassador to the U.S., Christopher Meyer, which will open the vaults of secrecy on Cayman Islands bank accounts.Henceforth, the Cayman Islands will share information with the U.S. government, including the IRS, in an effort to track down tax evaders.
Technology

It's Time to Prepare for Internet Sales Tax

The Gartner research group has issued a warning that the current freeze on Internet sales taxes is temporary at best and that businesses involved in e-commerce should begin now to prepare themselves for the inevitable.Predicting that sales taxes on Internet sales will become a reality by 2003, the group suggests that it's not a matter of whether items will be taxed, it's a matter of when and how much.Gartner recommends that businesses begin planning to accommodate sales taxes by improving their online
Tax

IRS: Exempt Status of Charities Not at Risk

The following article is provided courtesy of CCH, Inc.The IRS has provided guidance to charities regarding payments made by reason of the death, injury or wounding of an individual as a result of the September 11, 2001, terrorist attacks against the United States.
Tax

Senate Approves Tax Relief Bill

The following article is provided courtesy of CCH, Inc.The Senate on November 16 approved, by voice vote, legislation that would provide tax relief to survivors and victims of the September 11 terrorist attacks. The measure, Victims of Terrorism Relief Bill of 2001 (HR 2884), would grant victims' families an exemption from estate and income taxes.Senate Finance Committee ranking member Charles E.
Tax

IRS Launches Fast Track Dispute Resolution Program

The Internal Revenue Service has launched a pilot program aimed at cutting the time it takes to resolve disputes between the tax agency and corporate taxpayers.The Large and Mid-Size Business Division Fast Track Dispute Resolution Pilot Program creates a new opportunity for corporate taxpayers to resolve outstanding issues early in the course of disagreements during the examination process.
Tax

President Approves IRS Funding, Expects Better Service

It looks like our tax collectors will be with us for another year. President Bush signed the legislation that provides funding for the Treasury Department and the IRS for fiscal year 2002.
Tax

IRS Issues Incentive Stock Options Guidelines

The following article is provided courtesy of CCH, Inc.The IRS has issued proposed regulations relating to incentive stock options (ISOs) described in Code Sec. 422(b) and options granted under an employee stock purchase plan (ESPP options) described in Code Sec. 423(b).
Technology

IRS Adding New Features to Web Site

IRS Commissioner Charles Rossotti has announced plans for changes that taxpayers can expect on the IRS Web site, www.irs.gov.Several electronic services are expected to be added to the IRS Web site by the 2002 tax filing season, including:A feature that enables taxpayers to confirm that their tax return has been received by the IRSA feature that allows taxpayers to check the status of their tax refundsA personal identification number that taxpayers can select themselvesThe ability to make electronic paym
Tax

Employers Should Inform Staff of Tax Break

The IRS has released Announcement 2001-106, Tax Saver's Credit for Contributions by Individuals to Employer Retirement Plans and IRAs, in which the new Tax Saver's credit is explained. The IRS is encouraging all employers to inform employees now of this new tax saving procedure which becomes effective January 1, 2002.
Tax

IRS Closes Tax Loophole for Homeowners

For a brief period of time, the capital gains tax rule that went into effect last January favored high-end homeowners in an unexpected way. The new rule, which permits special lower capital gains rates for property acquired after January 1, 2001 and held for at least five years, offers an opportunity for people who owned property on January 1, 2001 to treat the property as if was sold on that date and restart the capital gains clock.
Tax

IRS Extends New Low Tax Rates to Dependents

During the tax rebate program this past summer, dependents did not qualify for the rebate. However, the new tax forms that have been recently released by the IRS tell a slightly different story.The statutory language of the tax law indicated that dependents would not be eligible to share in the new low 10% tax rate on the first $6,000 of taxable income ($12,000 of taxable income for married couples) until 2002.
Tax

IRS Announces New Mileage Rates for 2002

The standard rate of mileage for business use of a vehicle is set to increase again, effective January 1, 2002. The current rate is 34.5 cents per mile. For 2002, the new rate for business mileage will increase two cents to 36.5 cents per mile.The mileage rate for medical and moving expenses is also set to increase.
Tax

U.S. Tax Court Mail Service Disrupted

Mail service to the U.S. Tax Court has been disrupted since October 19 due to the temporary closure of the U.S. Postal Service facility that serves the Tax Court. No mail delivery to the Tax Court has occurred since October 19, and no date has been announced for resumption of mail delivery.Parcels delivered to the Court by courier have not been affected by the postal service closure.U.S. Tax Court Chief Judge Thomas B. Wells announced yesterday that legible U.S. postmarks on mail items will suffice as evidence of timely filing, even if the items are received after a deadline date.
Tax

IRS Approves E-Mail Delivery for W-2 Forms

The IRS has authorized the e-mail as an appropriate delivery method for 2001 W-2 forms. Proposed and temporary regulations (REG-107186-00; T.D. 8942) on the delivery of W-2 forms do not specifically allow the use of e-mail, however George Blaine, IRS representative from the chief counsel's office, in a recent speech to the Information Reporting Program Advisory Committee, indicated that the regulations were intentionally vague on the subject, thus allowing for a variety of secure electronic delivery mechanisms including e-mail.Mr.
Tax

IRS Offers Additional Relief After Terrorist Attacks

In the wake of the September 11 terrorist attacks, the IRS has authorized additional relief measures for taxpayers who are adversely affected by the attacks. Affected taxpayers include taxpayers whose records, computers, or other essential supporting services were lost or damaged, or whose essential personnel were injured or killed in the September 11 attacks.New relief measures for affected taxpayers include: 
Tax

Maryland Tax Amnesty Program Fizzles

The State of Maryland has completed its two-month income tax amnesty period during which taxpayers with delinquent taxes could bring their tax accounts up to date without the additional cost of interest and penalties. The amnesty period ran from September 1 through October 31.Legislators hoped to collect $70 million in the amnesty program, which was to help offset an anticipated budget shortfall of $1.7 billion by the end of the next fiscal year. So far, the program only garnered $11.3 million.
Tax

Find Out if the IRS Owes You (or Your Clients) Money

The National Taxpayers Union (NTU) has compiled a database of all of the taxpayers who are due rebates and refunds from the IRS. This is the first time a free searchable database has been available within hours of the IRS's release of the information.Undeliverable income tax refund checks and rebate checks have added up to nearly 400,000 payments, waiting to be collected.
Tax

Tax Rebate Checks Languishing at IRS

The tax rebate program that produced checks for most of the nation's taxpayers earlier this summer also resulted in a stockpile of unclaimed rebate checks which are waiting to be claimed.Nearly 300,000 rebate checks were returned to the IRS, undeliverable due to changes of address or taxpayer name changes, many of which could have resulted from marriages or divorces. The rebate checks were issued in amounts up to $300 for single individuals, $500 for heads of households, and $600 for married couples.Taxpayers have until December 5 to claim the checks.
Tax

New Rebate Checks May Delay Spring Tax Refunds

Part of the $100 billion tax stimulus package passed last week by the House includes a plan to offer a second wave of income tax rebate checks, this time to lower income people who may not have qualified for the rebate checks that were dispatched earlier this year.The Senate is currently deliberating on a similar tax stimulus bill that also includes a tax rebate program.

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