Tax news

Tax

Americans Prefer Filing Tax Returns to Flying

The latest report of the American Customer Satisfaction Index shows that individuals rank the IRS over airlines in terms of satisfaction with federal government agencies and other consumer services.The IRS garnered a satisfaction rating of 62% in the survey, representing an 11% increase over 2000 rating of 56%.
Tax

IRS OKs Tax Payments by Debit Card

The following article is provided courtesy of CCH, Inc.The IRS has adopted final regulations authorizing the Commissioner to accept payment of internal revenue taxes by credit card or debit card and to limit the use and disclosure of information relating to the payment of taxes by credit card and debit card.
Tax

Federal Lawmakers Fail in Push for Stimulus Bill

The clock kept ticking, and members of various congressional committees kept arguing, and in the end, the vast economic stimulus package was left on the cutting room floor.The hope was for agreement on various features that would boost spending and put more money into the economy.
Tax

Research Credit Regs Would Eliminate Controversial Test

The following article is provided courtesy of CCH, Inc.Newly proposed regulations relating to the computation of the research credit under IRS Code Sec. 41(c) and the definition of qualified research under IRS Code Sec. 41(d) are designed to lay to rest many of the disputes regarding whether research and experimentation (R&E) expenses qualify for the credit. The proposals would eliminate the "discovery test," which was included in T.D. 8930.
Technology

Survey Shows E-Filers are Happy Campers

According to the American Customer Satisfaction Index, taxpayers who filed their taxes online last spring are happy with the results. Nearly 40 million of the 130 million individual tax returns filed in 2000 were filed online, representing a 13% increase over the prior year.IRS Commissioner Charles O. Rossotti, who is aiming to achieve 80% penetration in e-filing by 2007, was gleeful about the results. "The satisfaction with IRS e-file won't surprise any taxpayer who has used it," said Mr. Rossotti." When they try it, they like it.
Practice Management

Estate Planning Services on The Rise

The September 11 terrorist attacks, which cut down thousands of people in their prime, have caused many Americans to examine what would happen to their families if they were to die unexpectedly.
Tax

Deloitte Publishes Free Tax Guide

Big Five firm Deloitte & Touche has published a tax guide, Personal Tax Planning 2001, which is available for a free download on the company's Web site.The guide provides planning and tax saving strategies, outlines the processes for determining an individual's current tax position, and describes methods for choosing tax-saving strategies that are best suited for a variety of tax situations.The 73-page booklet includes the following topics:The Current SceneYear-End
Tax

The Easiest Tax Cutter

By Julian Block, attorney and former IRS investigatorThe easiest way for many individuals to lower their taxes for 2001 is to shift payments for itemized deductions from 2002 to this year. Here are some strategies that can help.CHARITABLE CONTRIBUTIONS. They still provide the greatest flexibility for most people.
Tax

New IRS Filing Addresses for Individuals

Mailing addresses for federal individual income tax returns have changed again. The new addresses for the 2002 filing season reflect changes to the following states:ArizonaCaliforniaConnecticutDelawareMaineNebraskaNevadaNew HampshireNorth CarolinaOklahomaOregonUtahVermontVirginiaMailing addresses for federal estimated income tax payments that will be made in 2002 have not changed.Tax returns that are addressed using the previous year's address will be processed without penalty if timely mailed.
Tax

Mailing Addresses for U.S. Tax Returns and Estimated Payments

Mailing Addresses for 2001 Federal Individual Tax ReturnsCHECK ADDRESSES CAREFULLY! MAILING ADDRESSES HAVE CHANGED FOR YEAR 2001 TAX RETURNS!NOTE: Use 0002 for the zip code extension if you are filing a tax return that doesn't include a payment.
Tax

Dollar Limitations, COLAs for Pension Plans Released

The following article is provided courtesy of CCH, Inc.The IRS has announced the dollar limitations applicable to pension plans that become effective January 1, 2002, and cost-of-living adjustments (COLAs) applicable to pension plans and to other provisions affecting such plans for tax year 2002.The maximum limitation for the Code Sec. 415(b)(1)(A) annual benefit for defined benefit plans increases to $160,000, while the Code Sec.
Tax

IRS Announces Rapid TIN Service

The following article is provided courtesy of CCH, Inc.Taxpayers can now obtain a taxpayer identification number (TIN) almost instantaneously using the toll-free telephone number, (866) 816-2065, said IRS Modernization Team Executive Debbie Gascard. The telephone service will operate Monday through Friday from 7:30 a.m. to 5:30 p.m. local time. Faxed requests currently take 48 hours to fill, said Ms.
Tax

IRS Unveils New E-File QuickAlerts Messaging Service

The IRS and its Electronic Tax Administration have announced a new service called QuickAlerts that is available for free to e-file software developers and transmitters.
Tax

Bush Backs Off on AMT Repeal

While Congress debates possible scenarios for an economic stimulus package that will accelerate tax cuts and provide additional relief, President Bush is adding some incentives of his own to move the legislation along.On Tuesday, the White House announced it would back off on its pressure to include a repeal of the corporate alternative minimum tax in the economic stimulus package.
Tax

IRS Increases Standard Deduction, Exemptions, Thresholds

The IRS has released Revenue Procedure 2001-59 which includes the new 2002 tax tables as well as numerous inflation-related changes to tax deductions, credits, and exemptions.The 2002 standard deduction is increased to the following amounts:$7,850 for married filing jointly and surviving spouses$6.900 for heads of households$4,700 for single $3,925 for married f
A&A

IRS Announces Change that Favors Small Businesses

Nearly two years ago, the IRS released guidelines requiring many businesses with revenue over $1 million to use the accrual method of accounting instead of the cash method.
Tax

IRS Issues Guidance on Qualified Tuition Programs

The following article is provided courtesy of CCH, Inc.The IRS has provided guidance with respect to recordkeeping and reporting requirements applicable to qualified tuition programs (QTPs) described in Code Sec. 529, in light of the amendments made to that statute by the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) (P.L. 107-16).
Tax

Mellon Bank Tax Return Problem Gets Worse

Earlier this year it was disclosed that, in the spring of 2001, employees at Pittsburgh's Mellon Bank tax processing center, responsible for processing tax returns for the states in the northeast, hid and in some cases destroyed by shredding at least 40,000 federal income tax returns and accompanying payments.The amount of the destroyed tax return checks was estimated to be at least $810 million.Now it appears that the number of mishandled tax returns excee
Tax

End-of-Year Tax Strategies for Investors

By Julian Block, attorney and former IRS investigatorTime is running out on your opportunities to save taxes for 2001. Here are some tips to guide you in your search for steps to take by Dec. 31.CAPITAL GAINS. There is a break for long-term capital gains from sales of stocks and other investments owned more than 12 months. The top rate is 20 percent, versus a top rate of 39.1 percent for "ordinary income," which is IRS jargon for income from sources such as salaries, business profits, dividends, and interest.CAPITAL LOSSES.
Tax

IRS: Lower Interest Rate on Tax Over/Underpayments

The IRS has announced the following new quarterly interest rates for overpayments and underpayments of taxes, all of which represent a drop of one percentage point: 6% for overpayments 5% for corporate overpayments 3.5% for the portion of a corporate overpayment exceeding $10,000 6% for underpayments The new interest rates will be effective for the quarter beginning January 1, 2002.

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