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Technology

Michigan Legislators Vote to Tax Internet Sales

The Michigan House of Representatives voted yesterday to allow Michigan to join other states in creating a uniform, nationwide system of collecting and enforcing sales tax on online sales. The bill passed 57-50, and now heads for the Senate.Conservative Republicans voted against the bill and spoke out after the vote. "The people don't want this policy. Government wants this policy," explained Rep.
Tax

National Business Group Urges Tax Cuts Now

The National Association of Manufacturers (NAM), the nation's oldest and largest broad-based industrial trade association, is urging Congress to consider accelerating the tax cuts that were made into law last year.NAM President, Jerry Jasinowski, explained that the nation was on the brink of recession before the recent terrorist attacks, and cautioned that those attacks likely pushed the economy into a recession.
Tax

IRS Offers New Disaster Relief Program

The Internal Revenue Service has announced the establishment of a special toll-free telephone number for taxpayers whose ability to meet their federal tax obligations has been affected by the September 11 terrorist attacks. People with tax issues related to the attacks can call 1-866-562-5277."This special number will help people cut through the red tape and get their tax questions answered quickly," IRS Commissioner Charles O. Rossotti said. "We don't want lingering tax questions to burden anyone during this challenging time."
Tax

Phase One of Tax Rebate Program Comes to an End

The last of the tax rebate checks that were included in the first phase of the tax rebate program have been mailed. Phase One of the rebate program included sending rebate checks of, at most, $600 for married filing jointly taxpayers, $500 for head of household taxpayers, and $300 for single taxpayers, to taxpayers who had filed their 2000 tax return on a timely basis.
Tax

New Charities To Get Speedy Treatment From IRS

In light of recent terrorist attacks and the quantity of new organizations wishing to provide relief to victims, the Internal Revenue Service has announced plans to streamline the process by which organizations can achieve tax-exempt status.
Tax

IRS Provides E-Mail Address to Attack Victims

Recognizing that some confusion may have arisen due to the many rule changes that have been announced recently by the Internal Revenue Service, the IRS has created an e-mail address specifically designed to provide access to quick answers for business taxpayers who were affected by the recent terrorist attacks.Businesses in need of assistance with answers to tax questions relating to the terrorist attacks may address those questions to corp.disaster.relief@irs.gov.
Tax

IRS Announces New Quarterly Interest Rates

The following quarterly interest rates for overpayments and underpayments of taxes will be effective for the calendar quarter beginning October 1, 2001:Interest will remain at 7 percent for overpayments Interest will remain at 6 percent for corporate overpaymentsThe overpayment rate for the portion of a corporate overpayment exceeding $10,000 will be 4.5 percentInterest will remain at 7% for underpayments Interest will remain at 9% for large corporate underpaymentsThe interest rates were announced in
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

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