Tax news

Tax

Pavarotti Could Be Jailed for Tax Evasion

Six months after appearing to settle a tax dispute, opera star Luciana Pavarotti has been ordered to stand trial for alleged tax evasion, according to London's Sunday Times.In July, the opera singer agreed to pay £8m in back taxes after a meeting with Italy's finance minister, Ottaviano del Turco.
Tax

IRS Audits Decline as Agency Deals with Cutbacks

IRS Commissioner Charles O. Rossotti announced Thursday that the number of tax returns selected for audit during 2000 decreased by nearly 50% over the prior year. The chances of a tax return being audited during 2000 was 1 in 200, compared to 1 in 112 in 1999. Mr.
Tax

Democrats Respond to Proposed Bush Tax Cut

Congressional Democrats came forward Thursday with their own set of principles that they believe should be applied to any tax cut measures that proceed through Congress.Senate Minority Leader Tom Daschle (D-SD), announced the Democratic plan which contains three basic ideals:The American people deserve a major tax cut.
Tax

Baptist Temple Seized for Tax Evasion

Federal marshals took possession of the Indianapolis Baptist Temple early Tuesday morning in a peaceful exchange. Six supporters of the church, including the church's former pastor, were carried off the property by the 85 deputy marshals who were acting on the authority of the U.S. Supreme Court.The church had been in the news for the past year as a result of a dispute over $6 million in taxes owed to the IRS.
Tax

Tax Tip: Taxpayer Rights a Priority for IRS

The law that required the IRS to reorganize also required the tax agency to include the protection of taxpayer rights as one of its most important values. In its day-to-day operations, the IRS and its employees make taxpayer rights a top priority. This includes explaining those rights to taxpayers, keeping taxpayer information private and confidential and being professional and courteous. Besides what is expected of IRS employees, taxpayers have many other rights. They have the right to have someone represent them before the IRS and to accompany them to any meeting with IRS employees.
Tax

Tax Tip: How To Prepare Your Tax Return For Mailing

Your tax return is complete and ready to be mailed. Before sealing that envelope, take a few minutes to make certain that all information is complete and accurate. Avoid mistakes that may delay your refund or result in correspondence with the IRS.Here are just a few items to complete prior to mailing your tax return: Sign your return. Your federal tax return is not considered a valid return unless it is signed. If you are filing a joint return, your spouse must also sign. Provide a daytime phone number.
Tax

Nonprofits Beware: The IRS is Watching You On-Line

The IRS has announced its intention to consider revoking the tax exempt status of nonprofit organizations that link to political campaigns or lobbyist groups on their Web sites. There are currently no guidelines as to how tax exempt organizations should conduct themselves on the Internet. The IRS is trying to determine if new rules are necessary, or if existing rules can be applied to organizations with an Internet presence.Some nonprofit organizations will probably benefit from a little guidance in this area.
Tax

Tax Tip: Gift Giving

If you give any one person gifts valued at more than $10,000 in a year, it is necessary to report the total gift to the Internal Revenue Service. You may even have to pay tax on the gift. The person who receives your gift does not have to report the gift to the IRS or pay gift or income tax on its value.You make a gift when you give property, including money, or the use or income from property, without expecting to receive something of equal value in return.
Tax

Tax Tip: Tax Assistance for Individuals with Disabilities

If you are unable to complete your income tax return because of a physical disability or hearing impairment, you may get help from the IRS through its Volunteer Income Tax Assistance/Tax Counseling for the Elderly (VITA/TCE) programs, or through a special TDD phone number that is available in both English and Spanish.The Volunteer Income Tax Assistance (VITA) program has IRS-trained volunteers who provide free tax assistance at neighborhood locations such as churches, schools, libraries and community centers. VITA is aimed at those who may find it difficult to pay for tax assistance.
Tax

Planning Opportunities Abound with New IRA Rules

On January 11, 2001, the Treasury issued sweeping changes to the IRA required minimum distribution rules. Typically, when Treasury or the IRS promulgate new rules, taxpayers and professional advisors react apprehensively, fearing the worst, but hoping for the best.
Tax

New Executive Director of NATP

David Martin has been named Executive Director of The National Association of Tax Practitioners (NATP). Mr. Martin has more than fifteen years of experience with association management and has demonstrated success in marketing, education, and technological innovations.Prior to joining NATP, David was president of Real Estate Rover.com, and COO and Managing Director of the Real Estate Buyer's Agent Council.
Tax

Tax Tip: Foreign Income

With more and more U.S. citizens earning money from foreign sources, the IRS reminds people that they must report all such income on their tax return, unless it is exempt under federal law.This applies whether a person lives inside or outside the United States.
Tax

IRS to Step Up Pressure on Non-Withholders

The IRS plans to announce soon its intention to investigate several businesses that have been publicly proclaiming they do not withhold payroll taxes on wages paid to their employees but instead pay their employees 100% of the wages earned.Several companies participating in this tax boycott have declared their anti-tax position on the Internet, listing their names on various Web site
Tax

Tax Tip: Should You Itemize?

Whether to itemize deductions on your tax return depends on how much you spent on certain expenses last year. Money paid for medical care, mortgage interest, taxes, contributions, casualty losses, and miscellaneous deductions can reduce your taxes. If the total amount spent on those categories is more than the standard deduction, you can usually benefit by itemizing, according to the IRS.The standard deduction amounts are based on your filing status and are subject to inflation adjustments each year.
Tax

Stealth Tax Act Seeks to Curb IRS

Senate bill 286, "Stealth Tax Prevention Act," has been introduced by Senator Richard Shelby (R-AL) with the intent of keeping tabs on any attempts of the IRS to increase federal revenues with tax increases.Under the provisions of the act, any IRS regulation that seeks to increase federal revenues over current prices or revenues would be subject to congressional review and disapproval within 60 days after the regulation is issued.Sen.
Tax

IRS Modernization Takes Another Giant Leap Forward

The Internal Revenue Service announced Thursday the completion of a cornerstone in its systems modernization effort by successfully consolidating and upgrading its major computer systems. The IRS consolidated 67 mainframe computers spread across 12 locations to 20 mainframe computers in just 3 locations.
Tax

St. Louis Volunteers Rack Up Record Refunds

St. Louis, MO – February 6, 2001 – Over 300 volunteers worked long hours Saturday, January 27 and Saturday, February 3, 2001, helping 392 families prepare their federal and state tax returns to receive refunds of $495,000. Every dollar of these refunds goes directly to the families.The St. Louis Tax Assistance Program (TAP) helps working families or elderly residents with total incomes below $26,000 per year. January 27, 2001, TAP launched its fourth season of free tax return preparation at three locations in the St.
Tax

Tax Tip: Gratuities and Taxes

Do you work at a hair salon, barber shop, casino, golf course, hotel, restaurant or drive a taxi cab? The tip income you receive as an employee from those services is taxable income, according to the IRS.As taxable income, these tips are subject to federal income tax, Social Security and Medicare taxes, and may be subject to state income tax as well.You must keep a running daily log of all your tip income.
Tax

IRS Moves Forward With Internet Presence

The Internal Revenue Service is looking forward to expanding and improving its presence on the Internet.During the next few months, the IRS will be changing the homepage from the Digital Daily to a more contemporary styled portal page.
Tax

AccountingWEB Editor Authors New TurboTax Book

The Quicken Press, part of Osborne/McGraw-Hill, has recently published TurboTax Deluxe: The Official Guide, a resource for preparation of 2000 tax returns.

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