Tax news


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.

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.
Community News

Ernst & Young Named Top Tax Advisor

In an annual survey conducted by the International Tax Review, Ernst & Young LLP has been named Canada's top tax advisor for the fifth consecutive year.The International Tax Review gave the Big Five firm the top position in both tax planning and tax transactions, citing the firms leadership in the areas of commodity tax and transfer pricing.

Stealth Tax Increases End Eventually

President Bush’s overhaul introduced new income tax brackets for 2001. Under the revamped rules, there are six – 10, 15, 27.5, 30.5, 35.5, and 39.1. Actually, the true top rates in 2001 for millions of upper-middle and high-income individuals often exceed the official rates above 27.5 percent. Their top rate is boosted by cleverly concealed tax increases that were enacted during the senior Bush’s presidency. They are derisively characterized as stealth, or backdoor, increases because their effect is to increase taxes without increasing rates.

US Governors Push For Internet Taxation

The Washington Post is reporting that a majority of US Governors will urge lawmakers this week to reject the extension of the moratorium on Internet access taxes unless it is tied to the opportunity for states to create a streamlined system to collect online sales tax.The moratorium, which has been in place since the fledgling days of the Internet to help foster e-commerce growth, is set to expire October 21, 2001."If you care about a level playing field for main street retail businesses, and local c

FEI Study: US Companies Face International Disadvantage

A new study performed by the Financial Executives International (FEI) Research Foundation finds that US companies doing business in the international market face tax disadvantages in comparison to their international counterparts.Tax laws that allocate US interest expense to foreign source income and that limit the use of foreign tax credits can frequently result in double taxation for US companies.The study, which is the second edition of a study performed in 19

New Income Tax Brackets

by Julian Block, attorney and former IRS investigatorPresident Bush achieved a big opening victory with his Reaganesque ten-year, $1.35 trillion tax cut. The package provides the biggest reduction since 1981 and cuts individual income-tax rates for everyone for the first time since 1986. To garner the support of a closely divided Congress, the latest overhaul of the Internal Revenue Code includes diluted or deferred versions of Mr.

Top Ten Tax Preparer Errors

The IRS has posted the latest list of errors encountered on tax returns prepared by paid tax preparers.

Rules for Keeping Tax Records

How long are you supposed to keep the receipts and other documents that support the numbers you put on your tax return? The Internal Revenue Services expects taxpayers to maintain certain financial records and sets guidelines for how long you are supposed to save this information. The records you are required to keep go hand in hand with the preparation of your tax return.

16 Sure-Fire Ways to Get Your Tax Return Audited

Commerce Clearing House has prepared a list of red flags that are likely to trigger an audit of your tax return. If you want to avoid an audit, avoid these items, according to the article which appeared in, among other places, the Washington Post.

Tax Rebate Con-Men May Become Cons

Two men have been arrested in connection with the recent tax rebate scam wherein taxpayers in several states were mailed official-looking documents that offered to compute the amount of the federal tax rebate for a fee.The men, Russell Wayne Levine, 42, and Borden Barrows, 39, live in Boca Raton, FL, and are accused of perpetrating mail fraud through their operation of a company called the Revenue Resource Center.If the men are found g

Wal-Mart Customers Spending Rebate Checks

The first wave of income tax rebate checks has been mailed by the Treasury Department and received by taxpayers whose Social Security numbers end in 00-09. Checks to taxpayers with Social Security numbers ending in 10-19 are being mailed this week.

Uncovering Your Spouse's Hidden Assets

by Julian Block, attorney and former IRS investigatorDivorces can be expensive, from fees for attorneys or expert witnesses to appraisals of homes, businesses or other assets. And the costs soar when couples take to the courts.Consider what happens when wives need private investigators to track down assets concealed by future ex-husbands.

Accenture to Redesign IRS Web Site

The IRS has awarded Accenture with a contract worth potentially $33.6 million. The challenge facing Accenture is to turn the IRS Web site into a useful and efficient Internet location where users will be able to more easily access the wealth of information stored therein.The IRS site includes over 100,000 pages of text and graphics, but navigation is difficult.

States Will Change Tax Laws

As a result of the recent controversy over the taxation of federal income tax rebates at the state level, three of the nine states that allow a deduction for federal taxes paid will change their laws to prevent taxation of this year's tax rebate.

House Approves Non-Itemizer Charitable Deduction

The House of Representatives has approved a bill that would permit not-itemizing taxpayers to deduct on their tax returns up to $25 per year in charitable giving, beginning in 2002. For a taxpayer in the 15 percent bracket, this would represent approximately $3 in tax savings.Under the terms of the House bill, the amount of allowable deduction for charitable contributions would increase to $100 over the next ten years.

CCH Announces Enhancements to

CCH INCORPORATED announces new enhancements to its popular destination Web site for tax professionals including free use of its Internal Revenue Code and Treasury Regulations from the convenience of the home page.

Flat Tax Resurfaces

Representative John Linder (R-GA) and Representative Collin Peterson (D-MN) have introduced legislation which they feel will "level the playing field for average Americans."The legislation, H.R. 2525, is called the FairTax Act, and was first introduced without success in 1999. The bill currently awaits consideration by the House Ways and Means Committee.The FairTax Act would institute a flat rate consumption tax, replacing the current income tax as well as the payroll tax.

Tax Rebate Scam Comes Up Short

A company offering to provide a calculation of the federal income tax rebate for a nominal fee is the subject of a complaint filed by the U.S.

Poll Finds Opportunity for CPAs and Financial Planners

Results of a recent poll conducted by the financial services firm of Morgan Stanley show that more than half of American taxpayers plan to seek financial advice regarding the ways in which the new tax laws affect their personal finances.