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Tax

IRS Tax Forms Delayed

Tax return preparers who are waiting for the 2001 versions of IRS tax forms, will have to wait a bit longer, the IRS has announced.Volume 2 of Package X, Reference Copies of Federal Tax Forms and Instructions, and Volume 2 of Publication 1132, Reproducible Tax Forms and Instructions, were scheduled to start shipping on December 31 and complete shipping by January 11.
Tax

What is Your Filing Status?

Your filing status on your federal ax return is a category that identifies you based on your marital and family situation, according to the IRS. It is an important factor in determining whether you must file a return, the amount of your standard deduction and your correct amount of tax. If more than one filing status applies to you, you may choose the one that gives you the lowest tax obligation.There are five possible filing statuses: Single, Married Filing Jointly, Married Filing Separately, Head of Household and Qualifying Widow(er) with Dependent Child.
Tax

IRS 2002: New Features, New Services, New Credits

As the 2002 filing season begins, the IRS has announced the availability of new and expanded services, features, and credits. It pointed out that, during the first week of 2002, more than 40 million tax packages and 23 million computer-filing brochures will start to reach taxpayers. The Service expects to receive approximately 132 million individual returns this year.In light of a new study that shows high customer satisfaction with respect to the IRS's e-filing program, taxpayers and tax practitioners are once again being urged to e-file tax returns.
Tax

Who Must File a Tax Return

There are some instances when you may not be required to file a federal income tax return. But keep this in mind - more than 70 percent of those who file are due a refund, so it may be to your advantage to file even if you are not required to. The law does require you to file a tax return if your income is above a certain level. Check the instructions for Form 1040, 1040A or 1040EZ (under "filing requirements") for specific details that may affect your need to file a tax return with IRS this year.Here are some general guidelines for anyone under age 65.
Tax

IRS Announces New Applicable Federal Rates

The IRS has announced new applicable federal rates (AFRs) for federal income tax purposes for January 2002. These rates are revised monthly and published in IRS Revenue Rulings. Links below go to all related Revenue Rulings for the past year.
Tax

GAO Report Says IRS Phone Service Still Lacking

In response to a request from the House Ways & Means Committee, the Government Accounting Office (GAO) performed an assessment of the performance and management of the IRS telephone answering service with regard to providing help with tax laws and taxpayer account information.Objectives of the assessment were to compare the IRS performance during the 2001 tax filing season with similar performance during the 2000 tax filing season, and to assess the IRS's efforts to identify factors which determine such performance and the agency's response in evaluating and improving such factors.The IR
Tax

Maximizing Tax Season 2002

This article was written by Roman Kepczyk, founder of InfoTech Partners North America.The 2002 tax season is around the corner, so it is important that you focus on fine-tuning processes and procedures to ensure that this is the smoothest tax season ever. Below are some opportunities for creating a more efficient busy season.1-Digital document storage: Put procedures in place to immediately begin storing a PDF copy of every final tax return in your client directory whenever you print out the final copy of the return for the client and the IRS.
Tax

Avoid Headaches: Prepare Taxes Early

Earlier is better when it comes to working on your taxes. The IRS encourages everyone to get a head start on tax preparation. Not only do you avoid the last-minute rush, early filers also get a faster refund.There are seven easy ways to get a good jump on your taxes long before the April 15 deadline rolls around: Gather your records in advance. Make sure you have all the records you need, including W-2s and 1099s. Don't forget to save a copy for your files.Get the right forms.
Tax

IRS Plans E-File Advertising Program

The Internal Revenue Service is looking for a communications and marketing agency that will team with the tax agency to help encourage the public to file tax returns electronically.The IRS is asking that proposals from interested companies be filed by February 8, 2002. The advertising contract is a five-year project and is estimated to be worth $80 to $100 million.
Community News

Andersen Leads Pack as Global Tax Consultant

Glob@l Finance magazine has announced that Big Five firm Andersen has been selected as the best global tax consultant for the year 2001. The ranking represents the first annual consultants' ranking by the magazine. The ranking will appear in the magazine's January 2001 issue.Criteria used for the decision included revenues, market share, and growth.
Tax

IRS Pays Bounty to Tax Informants

The IRS encourages citizens to blow the whistle on tax scofflaws by offering a reward somewhere in the range of 1% to 15% of the total amount collected. The total reward cannot exceed $2 million.Although the tax agency wants to hear about citizens who are avoiding taxation, the quantity of rewards actually paid is rather low. In the fiscal year ended September 30, 2000 the IRS paid 382 rewards to informants for a total of approximately $10.8 million.Potential informants should remember that the leads they provide the IRS must be concrete and must lead to actual tax collection.
Tax

IRS Announces Amnesty Plan on Tax Shelters

The Internal Revenue Service has announced an initiative that is aimed at encouraging taxpayers to disclose tax shelters and other questionable items reported on their tax returns.The disclosure initiative is another in a series of steps the IRS and Treasury have been taking to identify and shut down tax shelter activity.
Tax

James Eads Appointed Director of IRS Division

The Internal Revenue Service has announced the appointment of James R. Eads, Jr., as the Director, Electronic Commerce, in its Large and Mid-Size Business (LMSB), International Division.As Director of Electronic Commerce, Mr. Eads will lead the IRS's strategic efforts to plan, develop, and implement programs and initiatives relating to tax administration and compliance issues associated with the conduct of business electronically, other than e-filing.
Tax

Tax Webcast Describes Changes for 2002 Filing Season

Earlier this week, "Tax Talk Today" panelists brought good news to the millions of U.S. tax professionals as they discussed the major changes that await practitioners in the 2002 filing season. In a live Webcast, experts from the IRS, the National Association of Enrolled Agents, and the Tennessee Society of Enrolled Agents, advised viewers that filing in 2002 will be simpler, faster, and safer for their clients as a result of the new reforms.
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.

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