Tax news

Tax

IRS Gearing Up for Busy E-Filing Season

From a new paperless e-filing option to expanded customer service features, taxpayers will find more and easier ways to get help from the Internal Revenue Service during this year's tax filing season, and preparers have something to celebrate as well. The new 2000 tax forms include an easy checkbox for taxpayers to indicate their agreement to let the IRS speak to paid tax preparers about the tax return.This week marks the beginning of 2001 filing season.
Tax

Tax Tip: Where To Find Out About Taxpayer Rights

The Internal Revenue Service has created a special Web section for taxpayers seeking information about their rights when dealing with the nation's tax agency. The "Taxpayer Rights Corner" can be found at www.irs.gov under the "Tax Info for You" section.The section brings a variety of issues involving taxpayer rights issues into one convenient place. The Taxpayer Rights Corner includes topics ranging from basic taxpayer information to detailed steps on how to get help from the IRS.
Tax

Tax Tip: Avoid Headaches, Prepare Taxes Early

Earlier is better when it comes to working on your taxes. The IRS encourages people to get a head start on tax preparation. Not only do you avoid the last-minute rush, early filers also get a faster refund.Here are seven easy ways to get a good jump on your taxes long before the April 16 deadline rolls around: Gather your records in advance. Make sure you have all the records you need, including W-2s and 1099s.
Tax

IRS Raises Income Exclusion for Parking Benefits

The Internal Revenue Service recently announced that employers may exclude parking benefits from employee wages up to a maximum of $180 per month for 2001, a $5 increase from the 2000 ceiling.The announcement came in IRS Revenue Procedure 2001-13.No increase is forecast for the existing exclusion amount of $65 per month for combined transit pass and vanpooling expenses.The Employee Benefits Institute of America, a publishing group that provides guidance on various benefits plans, commented that the $65 ceiling on excludable transit pass and vanpooling expense is scheduled to increase
Tax

Index of Tax Tips

Welcome to AccountingWEB's Tax Tips area. Each day between now and April 15 we will be adding a tax preparer tip, courtesy of the IRS.
Tax

Final Regulations for Research Credit

The following article is provided courtesy of CCH, Inc.Newly finalized Treasury regulations relate to the computation of the Code Sec. 41 credit for increasing research activities and to the definition of "qualified research" for purposes of the credit.
Tax

Record Capital Gains Payouts! Experts Predict!

If the Nasdaq's 40 percent drop didn't hurt enough, wait until you see your tax bill. Experts say that investors could be hit twice as hard this year due to a bad stock market and a larger tax bite. They are predicting that mutual funds will pay out a record amount of capital gains this year. Investors are learning this week what their distributions are, and indications are that the distributions could top last year's record of more than $200 billion. With federal capital gains taxes running 20 percent or more, bigger gains mean a windfall for the federal treasury.
Tax

Tax Garnishment Cause of Shooting Spree

In apparent response to the discovery that the IRS had ordered his company to garnish his wages for back taxes, a Massachusetts software tester came to work bearing a semiautomatic assault rifle, a 12-gauge shotgun, and a pistol, and killed seven members of the company accounting department.Michael McDermott, 42, had recently learned of the garnishment, which would have extracted "a couple thousand dollars" from his wages for back taxes and related penalties and interest. His employer at Edgewater Technology, Inc.
Tax

Tax Tip: It's Not Too Late for a Roth IRA Conversion

There is a common misperception about converting regular IRA funds to the Roth IRA, that being that this was a decision that needed to be made and acted upon in 1998. The Roth IRA, a personal retirement account that can be created by any low or middle income taxpayer with earned income, provides tax-free income security for retirement. Annual contributions, which are currently limited to $2,000, are not tax deductible, but all money withdrawn from the Roth after age 59½, including all money earned in the account, is tax-free.
Tax

Bush/Greenspan Meet for First Time

Although the dust has barely settled on the finality of the election for the nation's future president, George W. Bush is wasting no time in meeting with key players, including Alan Greenspan.Bush met with Greenspan--along with Dick Cheney and other advisors--early Monday morning, and although the agenda was not publicly disclosed, analysts believe they discussed Greenspan's support of the proposed Bush tax cuts.Another possible topic was a discussion about Greenspan's belief that U.S. debt ought to be paid off by the government's current surplus.
Tax

Congress Passes Tax Measures, Adjourns for 2000

The following article is provided courtesy of CCH, Inc. The 106th Congress has passed all of its remaining spending and tax measures and has adjourned for the year. The Consolidated Appropriations Act, 2001 (HR 4577), approved on Dec. 15, contains the Community Renewal Tax Relief Bill of 2000 (HR 5662), a $25-billion, 10-year measure that encourages renewal of economically distressed communities.
Tax

House, Senate Plan Final Action on Tax, Spending Bills

The following article is provided courtesy of CCH, Inc.The House plans to consider a few tax measures before its target adjournment on Dec. 15.
Tax

Final Rules for Reporting Tips Electronically

The following article is provided courtesy of CCH, Inc.The IRS has adopted final regulations that allow employers to establish electronic systems for use by their tipped employees in reporting their tips to the employers. The new rules also address substantiation requirements for employees using electronic systems. The final rules are effective as of Dec.
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Small Businesses Are Overpaying AMT

The Taxpayer Relief Act of 1997 included a provision whereby businesses with average gross receipts of no greater than $5 million for three consecutive taxable years are no longer liable for Alternative Minimum Tax.
Tax

Possible Loophole in New Capital Gain Rules

The new, lower 8%/18% capital gain tax rates go into effect January 1 for assets owned more than five years. Taxpayers in the 15% tax bracket for ordinary income will receive a special 8% capital gain tax rate for gains on capital assets owned more than five years.
Tax

Pay Taxes Online

The IRS has authorized online payments of amounts due with federal 1040 tax returns, 1040ES Estimated Payments, and Form 4868 extensions of time to file tax returns, effective January 12, 2001.
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Intuit Offers Gateway to Online Charities

The spirit of the holiday season is alive and well at Intuit.The company has aligned itself and its TurboTax product with CharityGift.com, an online donations clearinghouse.Users of TurboTax can click on a link included within the software program and be taken directly to the CharityGift online site.
Tax

Inheritance Tax is a Mystery to Many Americans

How often do you find that clients are not aware of the ins and outs of the tax liabilities associated with an inheritance?According to a new study by The Prudential Insurance Company of America, nearly half of respondents in a survey said they knew very little about inheritance tax - in fact, they used the world "unaware" in describing the situation.While they have strong opinions (75 percent of respondents) that an inheritance should not be taxed at the federal and state levels, general confusion exists about the entire tax scheme associated with
Tax

PwC's VAT Online Helpful to Tax Professionals

A new service from PricewaterhouseCoopers offers detailed information on the VAT, or Value Added Tax, along with news feeds on the latest developments in the VAT arena.This site is helpful to finance directors and tax preparers/professionals who are seeking more information on how the VAT is affected on a day-to-day basis across the world. Known as GlobalVatOnline has information on VAT rules and rates in more than 70 countries."GlobalVatOnLine is an on-line repository of information and news about VAT and how to manage it.
Tax

Mortgages - Financing Mortgage Insurance

For years, lenders have advised consumers that a down payment of less than twenty percent would require private mortgage insurance. In addition, consumers were advised that the mortgage insurance portion of the mortgage payment, although required, was not a tax-deductible item recognized by the Internal Revenue Service. Today consumers, with the education provided by their accountants, financial advisors and mortgage lenders, have options to both maximize the tax deductibility of their mortgage payment, as well as insure the lenders equity in case of default.

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