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Tax

Missed Deadline? IRS Issues Reprieve

Recognizing the continuing disruption to the national financial markets, transportation system, telecommunication and computer networks, as well as continuing security concerns that face our nation in this time of tragedy, the IRS and the Treasury Department have issued an extension of time for all taxpayers with filing deadlines between September 10 and September 24.
Tax

Department of Labor Extends Due Date for 5500s

Due to the tragic events currently facing our nation, the U.S. Department of Labor has announced an extension of the deadline for filing Form 5500 and Form 5500-EZ.
Tax

September 17 Tax Deadline: New Rates, New Rules

For most of America's taxpayers who make quarterly estimated payments, today is the deadline for making third quarter tax payments. The biggest change that will be noticed this quarter is a slight reduction in the tax rates. Taxpayers who revise their tax calculations on a quarterly basis will want to refer to the revised tax rate schedules that reflect the changes brought about by the Economic Growth and Tax Relief Reconciliation Act of 2001.
Tax

Breaking News: IRS Issues Additional Relief Measures

For immediate release:The Treasury Department and the Internal Revenue Service today announced initial administrative tax relief for individual and business taxpayers who are unable to meet their federal tax obligations because they were affected by Tuesday's terrorist attacks.
Tax

Emergency Tax Relief Bill Passed By House

Focusing on the immediate needs of the nation's distraught citizens, the House of Representatives overwhelmingly passed a bill that would reduce taxes on estates of Tuesday's victims and relieve their families of federal income tax for the year.In addition, any amounts received by the families of victims from the airlines and from the Federal Emergency Management Agency would be exempt from federal income tax.The Victims of Terrorism Relief Act, House bill 2884, passed with a 418-0 vote and it is assumed that the bill will sail through the Senate as well.House Ways and Means Committee
Tax

IRS Waives Penalties Following National Crisis

The Internal Revenue Service has announced that penalties will be waived for airlines that did not meet a Wednesday deadline for depositing taxes.This is the first of several announcements expected from the IRS over the course of the next few days.
Tax

Federal Employees Encouraged to Pay Back Taxes

The IRS is about to make some U.S. government employees pretty unhappy. The tax agency plans to implement a phase of its Federal Payment Levy Program whereby federal employees who owe back taxes will be subject to tax levies.Affected federal employees will be subject to a 15 percent levy on their federal salaries until debts have been paid. It is estimated that nearly 9,000 federal employees owe tax debts.Federal employees who wish to attempt to circumvent the levy program by making other payment arrangements should contact the IRS at 800-829-7250.
Tax

IRS Investigator Charged With Taking Bribe

William Koskos, an investigator with the IRS for 31 years, was charged Monday with accepting a bribe from a Detroit area builder from whom he was supposed to be collecting back taxes.The builder, Hudson Construction, owed the IRS more than $500,000. Mr.
Tax

Tax Deduction Available for Items Donated to Charity

One of the more creative things you can do with tax return preparation is donate household items to charity. Donating your used belongings is a total feel-good procedure.First, you feel good about emptying your closets and drawers of items you no longer use - the house is cleaner and less cluttered. Also, you feel good about providing useful items to needy people.
Tax

IRS Beefs Up Security After Mellon Bank Fiasco

Internal Revenue Service Commissioner Charles Rossotti outlined plans last week to improve security measures at sites such as Mellon Bank where tax returns are received and initially processed.Plans call for improved background checks for all employees who handle tax returns, including FBI fingerprint checks, as well as a requirement that the banks pass a security certification check.Last week information surfaced surrounding the intentional action on the part of Pittsburgh's Mellon Bank employees to hide and in some cases destroy app
Tax

Fear of Filing: IRS Deterrents to Filing Late Returns

By Julian Block, attorney and former IRS investigatorThe law empowers and encourages the Internal Revenue Service to make life decidedly disagreeable for persons who intentionally fail to file their returns at tax time. The key federal statute is the Internal Revenue Code, which authorizes the imposition of severe sanctions, both criminal and civil, on those who fail to comply with our "voluntary" system.First, consider the provisions for criminal offenses.
Technology

IRS Launches New Online Tax Payment Service

The IRS will unveil a new Web site today where individuals and companies can make payments of all federal taxes. The program is part of the Electronic Federal Tax Payment System (EFTPS), and has been used by businesses for the past year. Now individuals may also take advantage of this opportunity to pay taxes online.Any type of federal tax can be paid online at the IRS site, and there is no fee for using the service.
Tax

Mellon Bank Employees Hid, Shredded Tax Returns

It has been discovered that Mellon Bank employees hid and in some cases destroyed by shredding at least 40,000 federal tax returns and accompanying payments that were received at the IRS's Pittsburgh, PA lockbox this past spring.The Pittsburgh center handled tax returns for much of the northeast United States, including Connecticut, Massachusetts, Maine, Rhode Island, New Hampshire, Vermont, and parts of New York.Approximately 1,800 tax returns were
Tax

Senator Daschle Denounces Cut in Capital Gain Tax

Rivals in Washington are lining up on both sides of an issue that has been smoldering for years.
Tax

IRS Moves Ahead with Plans for Upgrade

Not wasting any time finding ways to spend the $432 million Congress allocated to the IRS for purposes of getting in step with the times, the Internal Revenue Service announced plans to spend approximately $100 million on upgrading its Internet presence.Software manufacturer Vignette Corp.
Tax

Tax Accountant Robs Banks, Shoots Policeman

Claiming he turned to bank robbery as a result of problems with the IRS, a Chicago tax accountant with a history of violence took a police detective hostage and both men ended up in the hospital suffering from gunshot wounds.The accountant, 41-year-old Daniel Salley, was suspected of robbing two banks. An undercover policeman, Joseph Airhart, cornered Mr. Salley in a Chicago apartment building, and a related exchange of gunfire left both men severely woundedDetective Airhart was held as a hostage for two hours before Mr. Salley eventually surrendered.
Tax

IRS Loses Checks and Tax Returns; GAO Not Surprised

The IRS has determined that the tax returns and related payments of at least 40,000 taxpayers may be missing. Affected taxpayers are primarily located in the Northeast United States and would have sent their returns to an IRS lockbox address in Pittsburgh, Pennsylvania. An earlier report indicated that approximately 1,800 taxpayers were affected.The General Accounting Office (GAO), the U.S.
Technology

H&R Block Inks Mega-Deal with AOL

H&R Block, tax preparer to the nation, has signed a three-year agreement with AOL Time Warner to be the exclusive promoter of tax services to subscribers of America Online, CompuServe, Netscape.com, and MONEY.com.
A&A

Small Business Resource Guide Available for Free

The IRS and the U.S. Small Business Administration have pooled their resources and created a CD full of information that will help small businesses understand their federal tax requirements as well as providing other essential business information.The CD contains start-up information for new small businesses and valuable information from a variety of government agencies, non-profit organizations, and educational institutions, including the U.S. Department of Labor, the U.S. Social Security Administration, the U.S.
Technology

PeopleSoft Teams with Kinder, Gentler IRS

An announcement expected on Monday will demonstrate the latest example of your tax dollars at work. The IRS will spend more than $10 million on customer relationship management (CRM) software in an effort to improve online support for taxpayers and tax return preparers.

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