Tax news

Tax

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.
Tax

IRS Going After Stock Purchase Plans

The Internal Revenue Service has announced its intention to consider applying Social Security tax to stock purchase plans.A stock purchase plan permits employees to buy shares in their company stock at a discount - typically 15 percent below market price.The IRS has decided that it might want to impose the Social Security tax (7.65 percent to the employee and a matching 7.65 percent to the employer) on the difference between the stock's market price and the discounted purchase price.The IRS cla
Tax

IRS's Tax Rebate Boondoggle

Everyone has had the experience of rushing too fast to get something done, only to find your quick actions resulted in a colossal mistake. The IRS knows just how this feels.This past Monday the IRS mailed over 100 million letters to taxpayers explaining the tax rebate program and describing the exact amount each taxpayer should expect to receive in the rebate check.
Tax

IRS Subject of Treasury Department Sting Operation

The kinder, gentler IRS may be striving for excellence, but undercover Treasury agents have found something less than quality service at IRS walk-up centers around the nation.A sampling of 49 IRS taxpayer assistance centers across the country between January 29 and February 9 this year disclosed the following:Of 90 questions involving issu
Tax

Wal-Mart Says: Bring Us Your Tax Rebates!

Not wanting to miss an opportunity to lure would-be shoppers to its aisles or to endear itself to consumers everywhere, Wal-Mart has announced a plan whereby taxpayers can cash their tax rebate checks at no charge, with no strings attached.The income tax rebates, which will be mailed to nearly every taxpayer in the nation, will start appearing in mailboxes later this month.People who choose to come to Wal-Mart to cash their checks will have three choices:Take cash for t
Tax

Pending Legislation Will Increase Meal Deduction

The Senate is considering legislation that would accelerate the rise in the meals expense deduction for truck drivers to 80 percent. Under current law, truck drivers are entitled to deduct 60 percent of their allowable meal expenses. That percentage is scheduled to increase to 80 percent in 2008.The Small Business Works Act, proposed by Senator Christopher Bond (R-MO), would implement the increased meal deduction to 80 percent in 2002. The House passed legislation in March favoring this increase.
Tax

L.A. Property Tax is Out of This World

Los Angeles County property tax assessors are attempting to go where no taxing authority has gone before - into outer space. The taxing agency wants to apply property tax rules to satellites owned by California-based Hughes Electronics. The satellites are located in a fixed position 22,300 miles over the equator.
Tax

IRS Publicizes Tax Scams

The IRS's Criminal Investigation unit (CI) has launched a new area of the IRS web site dedicated to providing information about tax scams and fraud schemes.The Criminal Investigation unit is the law enforcement arm of the IRS. CI cites its mission as serving the American public by investigating potential criminal violations of the Internal Revenue Code and related financial crimes in a manner that fosters confidence in the tax system and compliance with the law.
Tax

Don’t Fall for IRS Rebate Scam

Some people will do anything for a buck - they might even try to take advantage of confused taxpayers.
Tax

Tax Relief for Married Couples

by Julian Block, attorney and former IRS investigatorPresident Bush’s tax package helps millions of two-income couples. It’ll eventually provide partial relief for those burdened by what has come to be known as the marriage penalty, the long-standing law quirk resulting from the imbalance in the standard deduction amounts (they favor singles over marrieds) and the way the tax brackets are structured.
Tax

IRS Offers New Withholding Calculator

The IRS has added a new withholding calculator to its Web site. The calculator has been updated to reflect the new 2001 income tax rates that became effective July 1.Using the withholding calculator, you can determine the appropriate federal income tax withholding for your income and deductions.
Tax

Recalculating Quarterly Tax Estimates

The change in the tax rates due to recent tax legislation provides a planning opportunity for tax advisers. Taxpayers need to be aware of the impact of the new, slightly lower tax rates, which may have an effect on planning for third and fourth quarterly estimated payments. New tax tables published July 1 reflect the change in tax rates. Some taxpayers may benefit from a slight reduction in quarterly payments.
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.

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