Tax news

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.
Tax

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.
Tax

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.
Tax

Thinking About Tax Evasion? Think Again!

Many have tried, many have failed. Those who feel it is their right not to pay income taxes often wind up in court, some pay hefty fines. But it does make for some interesting reading... Welcome to the Quatloos Cyber-Museum of Scams and Frauds! If you're thinking about a little tax evasion, take a few moments to read about what gimmicks have already been tried - no sense wasting your time with something that's already made its way through the court system.
Tax

Taxpayers Giving More to Charity

The following article is provided courtesy of CCH, Inc.Year-end is a popular time for charitable giving, and the amounts that people give continue to rise. A new Council of Economic Advisers (CEA) report on philanthropy states that charitable giving in the US reached a record high of over $190 billion in 1999.
A&A

A Sordid Story at Sunbeam: SEC Probes Accounting Mishaps

The SEC has finished its investigation into the accounting practices that occurred during the reign of Sunbeam's ousted CEO and CFO, and found enough evidence to recommend action.
Tax

IRS Announces New Employment Tax Deposit Rules

Under previous law, businesses with employment taxes of less than $1,000 per quarter could make their tax payments quarterly, while other businesses make more frequent tax deposits. Now, starting January 1, 2001, businesses with employment taxes of less than $2,500 per quarter will be able to make quarterly payments, instead of the monthly payments they were making previously."The new standard will reduce the paperwork and red tape that small businesses face," according to IRS Commissioner Charles O. Rossotti.
Tax

Seven Group Members Indicted in Tax Evasion Scheme

On Monday, seven members of the Oregon-based Christian Patriot Association (CPA?!) were indicted for committing acts of conspiracy against the Internal Revenue Service.The group had set up an illegal banking scheme in which almost 1,000 people hid assets of $200 million from the IRS.
Tax

New Capital Gains Tax Rates Effective 1/1/01

The capital gain tax rates are due to be decreased effective January 1, 2001, but only taxpayers with stock that has been held for more than five years will be affected by the change. Capital gains are profits on the sale of items held for investment, such as stocks, bonds, household furnishings, vehicles used for personal purposes, and real estate (although if the real estate you sell is your personal residence, the gain may not be subject to tax). Special rules apply to gains on the sale of certain items that are considered to be collectibles.
Technology

How Much is Your Car Worth?

The end of the year signals a hurried rush to either buy a car, trade in your old one or settle with what you have.
Tax

IRS Announces 2001 Pension Plan Limitations

The IRS has announced its annual cost-of-living adjustments with regard to dollar limitations for pension plans for the year 2001.
Tax

IRS Announces New Mileage Rates

The Internal Revenue Service announced Thursday the optional standard mileage rates to use for 2001 in computing the deductible costs of operating an automobile for business, charitable, medical or moving expense purposes.The amounts for the various deductible costs for use of a car will be effective January 1, 2001 and are as follows:The standard mileage rate for the cost of operating a car is 34.5 cents a mile for all business miles driven.
Tax

GAO Recommends IRS Financial Overhaul

The following article is provided courtesy of CCH, Inc.In a lengthy report, "Internal Revenue Service: Recommendations to Improve Financial and Operational Management" (GAO-01-42) dated Nov. 17, the General Accounting Office (GAO) offered 80 recommendations--43 previously suggested and 37 new.
Technology

Wisconsin Prepares for Pilot 'Net Tax Collection

Anyone who has bought goods or services over the Internet, or is participating in e-Commerce themselves, knows how loud the tax man is knocking on the door of cyberspace to begin collecting tax. However, coming up with a viable method that can be collected, both intrastate and interstate, has been difficult at best.Wisconsin is one of four states that have agreed to participate in a pilot project to electronically charge tax.

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