Tax news

Tax

Prepare Yourself for an IRS Audit

Talk on the street is that the IRS is easing off on the number of audits performed. Does this mean you can go ahead and stretch the truth on your tax return and not worry about calling attention to yourself? Probably not. Call it fate, consider the possibility that maybe it's simply your turn, or keep in mind the fact that one reason the IRS can streamline its workforce is that computers are getting better at doing the job of picking out irregularities.Whatever the reason, the possibility exists that your tax return may be selected for an audit.
Tax

National Association of Tax Practitioners Gets New Name

The National Association of Tax Practitioners (NATP) has changed its name, but not its acronym, to the National Association of Tax Professionals. It is felt that "Professional" rather than "Practitioner" better reflects the membership of the organization.NATP has made many changes within the last few months. The organization has redesigned the logo, the tax and business publications, and enhanced its Web sites and educational materials. The changes reflect NATP's expanding role as a leading authority of tax and related financial knowledge.
Tax

New Service Makes US Tax Court Cases Easy to Research

Beginning in June, the U.S. Tax Court's Web site will include docket sheets for almost all cases since May 1986.Information provided on the docket sheets will include names and addresses of petitioners and counsel, index of filings for each case and court actions."This service is something that I believe the bar has long awaited and should prove to be a useful tool to those who appear before us," said Chief Judge Thomas B. Wells.
Tax

What's the Monthly Interest on $2.9 Million?

According to a report in The Wall Street Journal, 231,000 U.S. taxpayers took advantage of the new credit card payment program for paying income taxes this spring.
Tax

IRS Employees Go Back to School

Critics of the Internal Revenue Service have complained that the IRS employees provide incorrect answers on how to comply with the tax code.
Tax

IRS Looking For a Few (Thousand) Good Employees

The IRS has received federal funding which will enable the agency to expand the national workforce with nearly 3,900 new employees, and the job search is on.The IRS hopes to lure prospective employees into areas of tax return audit, tax collection, and tax law explanation. Starting salaries are somewhat lower than those being offered entry-level accountants.
Tax

New DOL Guide Helps Those Filing Form 5500

The Department of Labor has prepared a new guide, "The Troubleshooter's Guide to Filing the ERISA Annual Report (5500)", which should provide answers to most questions about preparing and filing the annual ERISA forms.The publication focuses on the changes in reporting under the ERISA Filing Acceptance System (EFAST) and how to avoid reporting errors most frequently made by filers.The Labor Department's Pension and Welfare Benefits Administration (PWBA), has made a toll-free telephone number available t
Technology

New Filing Alternatives for Form 941

The Internal Revenue Service has set a deadline of January 2003 to end both the magnetic tape and the electronic data interchange (EDI) methods of filing for Form 941, Employer's Quarterly Federal Tax Return. In addition, the magnetic tape filing program for Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return will end at the same time.Instead, the IRS plans to institute an e-file process for both of these forms. Currently, U.S.
Tax

Tax Freedom Day Means Your Money is Your Own

Each year the Tax Foundation, a nonprofit organization based in Washington, D.C., publishes its calculation of what it calls Tax Freedom Day. Tax Freedom Day is the day on which, if you were to give every dollar you had earned since January 1 to the government, you would finally have paid all of your income taxes and the rest of the money you earn would be yours to do with as you see fit.The official Tax Freedom Day this year, based on the average taxpayer paying federal and state income taxes, was May 3, 2001.
Tax

Intuit Boasts Increase in TurboTax Sales

Despite an increase in prices this year, Intuit Inc. announced an eight percent increase in unit sales of its TurboTax tax software program for the 2000 tax season.
Tax

Tax Authorities Raid Business for Non-Withholding

About a dozen agents of the California Franchise Tax Board, armed with guns and accompanied by local police, raided the office and personal home of Nick and Trina Vu Jesson, the owners of No Time Delay Electronics, a Huntington Beach, California company. The company reportedly has chosen not to withhold taxes from workers' paychecks.The company, also known as N.T.D. Electronics, was one of several businesses identified last November by The New York Times as participating in a tax protest movement.
Tax

Bush and Congress Agree to $1.35 TrillionTax Cut

"The largest tax reduction in 20 years," is the way analysts are describing the tax cut plan agreed to by Congress and the White House late Tuesday. Under the new plan, taxes will be cut by $1.35 trillion and this cut will be phased in over the next eleven years.
Tax

IRS Announces New Industry Focus Areas

As part of its Industry Issue Resolution Pilot Program, the IRS has announced it will focus on the following seven areas:Golf course construction costsClarification of the conformity election by banks for bad debtsDemonstrator vehicles provided for employee useReporting of payments to employees who own heavy equipment used by their employersTreatment of restaurant smallwares packagesDetermination of recoverable reserves of oil and gas for cost depletion purposesLocal impact fees associated with low income housing tax credit property
Tax

Congress Debates Internet Sales Tax

One of the current assignments of Congress is to consider extending the five-year Internet sales tax moratorium, which is set to expire this October. The Senate Commerce Committee is to meet later this week to consider legislation in this area. This moratorium affects Internet access fees and isolated taxes.
Tax

Congress Considers Tax Simplification

Congress's Joint Committee on Taxation has presented the legislative bodies with a report, produced over the past 18 months, highlighting 150 recommendations for simplification of the Tax Code.Among the recommendations noted were:Repeal of the alternative minimum taxstandardization of the definition of "dependent child" for various benefitselimination of the phase-outs of personal exemptions and itemized deductions streamlining the taxation of Social Security benefitseliminating income ceilings for deductible and Roth IRAsreturning to the
Tax

E-Filing Up to 30 Percent

While the numbers show that most professional tax return preparers use computers to prepare tax returns but still give their clients a paper tax return to mail to the IRS, the tide is shifting, and this year 39.4 million tax returns - approximately 30% of all returns expected to be filed - were filed electronically.
Tax

Retirement and Pension Bill Ready for House Floor

The House Committee on Education and Workforce has approved a retirement security bill, the tax aspects of which met with approval from the Ways and Means Committee earlier this week.The Comprehensive Retirement Security and Pension Reform Act of 2001, H.R. 10, will go before the entire House the week of April 30.
Technology

Senate Bill Provides Tax Credit to Businesses for IT Training

A bipartisan group of senators has introduced a bill that will provide business owners with tax credits to offset the cost of information technology training costs for employees.The bill would provide a dollar-for-dollar tax credit for the first $1,500 spent, per employee, on IT training.
Tax

When Can You Expect Your Tax Refund?

For those of you who are waiting impatiently for your tax return, or for those of you who have clients pestering you about when they can expect their refund, here is the official word from the IRS. Taxpayers who e-filed their tax returns can expect their refunds to be processed according to this schedule: Refunds for tax returns that were submitted between March 29 and April 5 should have been direct deposited on April 13.
Tax

Representative Saxton Goes to Bat for Small Investors

The following article is provided courtesy of CCH, Inc.The current method of taxing mutual funds investors is discriminatory, unfair and economically counterproductive, according to a new study released on April 23 by the Joint Economic Committee (JEC).

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