Tax news

Tax

IRS Modernization Projects at Risk

Auditors at the General Accounting Office (GAO) have determined that the IRS plans for modernization, as reported at AccountingWEB last week, are at risk for cost overruns, delays, and performance shortfalls. Examples of potential problem areas include the new telephone system which is expected to answer calls more quickly and accurately. This system is reportedly three months behind schedule.
Tax

Don't Spent Your Extra Income All in One Place

The new 2001 withholding tax tables are in effect now, which means that tax withholding rates are lower and take home pay is increased. Taxpayers across the country will be trying to find new ways to spend their tax savings windfall . . . not!Many taxpayers won't notice any change in their take-home pay. Others will notice only a small increase. The tax table change affects taxpayers with income that is taxed in the 28 percent and higher brackets.
Tax

The New IRS - How Will it Affect You?

The IRS is unveiling a new, customer-focused plan that will result in many changes for the organization. Among the new innovations we can expect are improvements to telephone service, online services, overall performance, audits, and Web design. Here are some sample changes we can expect in the near future:Phone service will be improved so that it will be easier for taxpayers to call the agency and get accurate information quickly. This service should be in place by the end of July.Taxpayer data will be transferred from 1960's era tape storage to a more modern system.
Tax

IRS Targets Consultants

The IRS has recently published a new audit techniques guide designed to help auditors in their examinations of individuals who work as consultants and businesses that hire consultants.
Tax

IRS Loses Taxpayers' Checks

The Boston Globe reports that approximately 1,800 checks that were sent to the Internal Revenue Service this spring are missing.
Tax

IRS Sets Priorities

The IRS has released its annual Guidance Priority List, making public the agency's itinerary for the 18 months to come. The Guidance Priority List is a list of items on which the IRS plans to issue formal rules and guidance.
Tax

IRS Orders States: No Tax on Rebates

There are eight states that allow federal income taxes paid as a deduction on the state tax returns: Iowa, Oklahoma, Louisiana, Missouri, Montana, North Dakota, Oregon, and Utah.
Tax

Sales Tax Simplification - An Update

This article is provided by David Hardesty, of E-CommerceTax.comThe day when all online sellers have to collect sales tax is not here, yet. However, many in state government, and many Main Street retailers would at least like to see all large online sellers collect tax. There is considerable momentum behind the Streamlined Sales Tax Project, where simplification of sales tax systems would be accompanied by voluntary collection of tax.
Technology

House Leader Plans to Block Online Sales Tax

House Majority Leader Dick Armey has announced he will work to block sales taxes on Internet sales. The ban he foresees would be of a short-term nature. Representative Armey plans to rally support for a three-to-five year ban on Internet sales taxes in conjunction with legislation currently before Congress to make the current ban on Internet access taxes permanent.
Tax

Employers - New Withholding Tables Available For 2001

Under the recently enacted Economic Growth and Tax Relief Reconciliation Act of 2001, personal income tax rates will be reduced effective July 1. The IRS has issued Publication 15-T, New Withholding Tables for 2001 (for wages paid after June 30, 2001), and reminds employers that they are to begin using the new tables for withholding on wages paid after June 30, 2001. The new withholding tables are a supplement to Publications 15, 15-A, and 51, and should be used instead of the tables in those publications.
Tax

Clinton's Tax Status is Cause for Confusion

Former President Bill Clinton, currently in the United Kingdom on business, has given the taxing authorities there a bit of a problem over his tax status, reports our sister site, accountingweb.co.uk.The Inland Revenue's foreign entertainers unit is understood to have taken a month to decide whether the ex-President should be classified as an entertainer or a politician
Tax

Tax Legislation Client Seminar Tools

Key Provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001AccountingWEB is pleased to present a special offer on a turn-key client seminar on the new tax legislation, developed by Garverick - McCoy Seminars, a leader in tax seminar materials since 1993. Everything you'll need to put on a successful client seminar will be included in this package.
Tax

Are You an Employee or an Independent Contractor?

Working for yourself, either full- or part-time, means that you are not working as someone else's employee. You are considered to be either a sole proprietor or an independent contractor. But how do you know if you are self-employed or if the check you receive should have taxes withheld?If you are an independent contractor, you may perform services for someone who pays you for those services, but that person does not employ you.
Tax

IRS to Drop Interest Rates

The IRS has announced plans to drop the rate of interest on late tax payments to seven percent, effective July 1, 2001. The seven percent rate will apply to interest due on overpayments as well. The prior rate of eight percent will remain in effect through the end of June.The rate for overpayments for corporations will drop to six percent on July 1.
Tax

16 (and More) Smart Things to Do With Your Tax Rebate

Sometime this summer you're going to receive a check in the mail from your favorite Uncle Sam. Have you decided what to do with the money yet?
Tax

Social Security Number of Deceased Child Causes Grief

A Salem, Oregon couple suffered the loss of their baby to a rare pediatric disease early in 2000. Now the couple faces additional unexpected grief at the hands of the IRS.An unidentified taxpayer claimed the child as a dependent on a 2000 tax return, using the child's name and Social Security number, information that was apparently found on the Internet.The parents of the deceased child also claimed the child as a dependent on their 2000 tax return, a claim that was legal.
Tax

Attorneys Beware: The IRS is Looking For You!

The IRS has just published new Specialized Guidelines for Attorney Examinations. These guidelines will enhance the attorney audit guidelines already available in the IRS Market Segment Specialization Program, a program which is designed to train IRS examiners as specialists in particular industries.The purpose of the new guidelines is to help IRS examiners identify non-filing and non-compliant attorneys.
Tax

Highlights of the New Tax Legislation

We have prepared a 2001 Tax summary for you to offer to your clients as well as a complete set of links for you and your clients that we think would be helpful.
Tax

Official Word From the IRS on Tax Rebates

The IRS has issued its position on the new tax legislation, and details some additional information about timing of upcoming rebates.
Tax

Some States Will Take the Fun Out of Tax Rebates

Tax laws in eight states may require taxpayers to return a portion of the rebates they will receive from the federal government later this year.Some states allow residents to deduct federal tax payments from their state taxable income, so as the federal tax goes down, the state tax will increase, thus creating a tax on the rebate.According to the Federation of Tax Administrators, the states where the potential tax on federal tax rebates may occur include:IowaOklahomaLouisianaMissouriMontanaNorth DakotaOregon

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