Tax news

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.
Tax

IRS Reports Record-Breaking Tax Season

A downturn in the economy coupled with new tax breaks resulted in some interesting records set by the IRS this spring. More refunds were processed during this tax filing season than ever before, and the refunds were larger than they were in the past. As of April 19, the IRS had processed approximately 77 million refunds. The average refund was $1,937, up 13 percent from last year.
Tax

Supreme Court to Settle Tip Taxation Controversy

The U.S. Supreme Court heard arguments Monday in a case that could change the way the Internal Revenue Service assesses Social Security taxes on tip income. This far-reaching case could affect restaurants, casinos, barber and beauty shops, hotels, and any other businesses where employees regularly receive tips from customers.The case, United States v.
Tax

Alert: Beware of Phony IRS Forms and Bank Letters

The Office of the Comptroller of the Currency (OCC) has issued an alert to banks, asking them to warn their customers about a new fraud scheme that uses fictitious IRS forms and bank correspondence.Under the scheme, bank customers receive a letter outlining the procedures that need to be followed to protect the recipient from unnecessary withholding taxes on their bank accounts and other financial dealings.
Tax

House Passes Permanent Tax Cut Bill

The House on April 18 approved a measure that would make permanent the tax-cut provisions contained in the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) (P.L. 107-16) by a vote of 229 to 198. The bill's fate in the Senate is uncertain, since Senate Majority Leader Thomas A. Daschle, D-S.D. refuses to bring it up for a vote.The legislation, which will cost $372 billion during the next 10 years, was substituted as an amendment to the Fairness for Foster Care Families Bill of 2001 (HR 586) to speed its passage.
Tax

Congress Probes Taxes and Accounting for Stock Options

On April 18, 2002, the Senate Finance Committee heard testimony on the tax and accounting treatment of executive stock option compensation. Chairman Max Baucus said the objective of the hearing was to fully explore the issues that surfaced in the wake of Enron, even though some may fall under the jurisdiction of other committees.A key issue is whether the treatment of stock options is best handled as an accounting question or through the tax code. Senator Carl Levin argued that Congress has the responsibility for adopting a tax code.
Tax

Slavery Tax Credit Scam Generates Actual Tax Refunds

In 1993, Essence magazine published an article in which it described the Civil War plan under which freed slaves were entitled to receive 40 acres and a mule from the government. Congress passed a bill that authorized the grant, and some former slaves actually received the 40 acres and a mule before the bill was ultimately vetoed.
A&A

Small Corporations Say Good-bye to Schedules L and M

The IRS announced last week that beginning with tax year 2002, companies with less than $250,000 in gross receipts and less than $250,000 in assets can bypass filling out the Schedules L, M-1, and M-2 on their corporate income tax returns. Corporations who file Form 1120-A and who are under the $250,000 threshold no longer have to prepare Parts III and IV of their 1120-A.The immediate result of this ruling will be a significant reduction in record-keeping and paperwork for small businesses. Many small businesses will no longer need to struggle to learn accounting rules.
Tax

Treasury Kicks Off New Tax Simplification Program

On April 15, 2002, Treasury Secretary Paul O'Neill announced the issuance by the Treasury Department of the first in a series of proposals to simplify the U.S. tax code. "Our tax code is so complicated," he said, "we've made it nearly impossible for even the Internal Revenue Service to understand."PrioritiesTopics of highest priority involve the tax treatment of families and children. Subsequent proposals will focus on the simplification of tax laws related to businesses.
Tax

DOJ Gives Tax Preparers a Turn in the Hot Seat

A rash of press releases from the Department of Justice (DOJ) during the past week shows the Department is teaming up with the Internal Revenue Service (IRS) and going after the tax practices of accounting firms. Reasons range from fraudulent tax returns to bogus tax advice.
Tax

IRS, States Begin Crackdown on Partners' Tax Returns

The New York Times reported last week that the Internal Revenue Service (IRS) is sharing information to help state tax authorities crack down on underreporting of income by partners and other participants in pass-through tax entities.
Tax

Appeal Rights

Are you in the middle of a disagreement with the IRS? One of the guaranteed rights for all taxpayers is the right to appeal, according to the IRS. If you disagree with the IRS about the amount of your tax liability or about proposed collection actions, you have the right to ask the IRS Appeals Office to review your case.IRS Publication 1, “Your Rights as a Taxpayer,” explains some of your most important taxpayer rights.
Tax

Tax Tips For Last Minute Filers

With the tax filing deadline close at hand, the IRS offers some tips for those still working on their tax forms:Put your Social Security number on the return (it’s not on the label)Double-check your figuresSign your formAttach all required schedulesSend your return or request a filing extension by April 15The numbers to check most carefully on the tax return are the identification numbers — usually Social Security numbers — for each person listed.
Tax

Consider Extension Options as April 15 Approaches

As the clock continues to tick closer to April 15, many tax return preparers will have to consider the option of extending the due date of their tax returns.
Tax

Refunds - How Long Should They Take?

Are you expecting a tax refund from the IRS this year? The IRS says that if you file a complete and accurate paper tax return, your refund should be issued in about six to eight weeks from the date IRS receives your return. If you file your return electronically, your refund should be issued in less than three weeks, and even faster when you choose direct deposit.You can have a refund check mailed to you, or you may be able to have your refund deposited directly into your bank account. Direct deposit into a bank account is more secure because there is no check to get lost.
Tax

New Report: Filing Mistakes Cost Taxpayers $1 Billion a Year

To individuals who are not tax professionals, navigating the world of itemized deductions is a confusing, cloudy process of rules, loopholes, opportunities and landmines.
Tax

Andersen Mulls Ground-Breaking LBO of Tax Practice

As an alternative to the offer from Deloitte & Touche (D&T), Andersen is considering a management-led leveraged buy-out (LBO) of its entire tax practice. The proposed transaction would help stem layoffs, and it presents clear benefits for Andersen.
Technology

Criminal Investigation: The IRS Agent You Never Want to Meet

Recently, in a widely-viewed Webcast entitled "Criminal Investigation: The IRS Agent You Never Want to Meet," Tax Talk Today explored the largely obscure, yet intriguing process known as Criminal Investigation, at the IRS. Although the Criminal Investigation (CI) branch may be comprised of the agents "you never want to meet," the session confirmed the importance of taking a closer look at the CI process, to grasp exactly how this branch succeeds in furthering confidence in our tax system while promoting compliance.

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