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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.
Tax

Quick Tips for Year-End Tax Savings

It's not too late to make significant changes to your 2000 tax situation, changes that can affect the amount of tax you owe, or the amount of refund you receive, in April, 2001. Here are several pointers that can help you take control of your taxes before the year ends.Reschedule deductions.
Tax

IRS Releases New Mileage Rates for 2001

The IRS has raised the standard mileage rates, effective January 1, 2001.The new rates are 34.5 cents per mile (increased from 32.5 cents per mile) for business mileage, and 12 cents per mile (increased from 10 cents per mile) for medical and moving mileage.The rate for mileage driven for charitable purposes will remain at 14 cents per mile.The reason for the large increase is due to the rise in gasoline prices. The information was published in IRS Revenue Procedure 2000-48.
Tax

Internet Companies May be Circumventing Tax Rules

The IRS has been charged with the responsibility of determining the effect that an Internet presence has on the administration and compliance rules relating to the collection of income tax.As part of that effort, the upstate New York IRS district office conducted a research project that confirmed the concerns of the Treasury Department, that companies operating on the Internet may not be paying their full share of income tax.The study covered six distinct market segments, all identified through 18,000 Web sites delivering goods or services.
Tax

$67 Million in IRS Refunds In Search of Taxpayers

IRS Commissioner Charles Rossotti is looking to become Santa Claus, as the IRS initiates its search for over 90,000 taxpayers who are due over $67 million in refunds this year.The search is an annual exercise by the IRS, prompted primarily by people changing addresses without informing the proper authorities."This is one case where we're more than happy to pass the buck," says IRS Commissioner Rossotti. Over 15,000 undelivered refunds are due to residents of California, followed by 8,000+ each for New York, Florida and Texas.
Tax

Clairvoyance! Convince Your Clients You Can Read Minds!

Join Eva Rosenberg, affectionately known as the Tax Mama, in a back-by-popular-demand appearance in the AccountingWEB workshop room, Tuesday, November 7, from 4:00 to 5:00 Eastern time.Ms. Rosenberg will discuss tips for figuring out what your clients are thinking - or at least convincing them that's what you've done!
Tax

Read Their Lips: No Tax Law Changes - Yet!

The Senate and House chambers are empty this week, as members of Congress head for home for a brief visit with their constituencies before Tuesday's election. Both groups left unfinished business behind in Washington, and will return next week to try to wrap up the FSC (Foreign Sales Corporation) bill, and some miscellaneous spending and tax bills.
Tax

Tax Advantages of Buying an SUV

Most tax preparers know that companies depreciate the cost of their 6,000+-pound trucks and/or delivery vehicles over a five-year period. However, with more and more business owners investing in Sport Utility Vehicles (SUVs) as their primary car, the tax rules regarding weight limits of vehicles are providing a break for many professionals.Higher depreciation provides an incentive to buy the SUV.
Tax

Election 2000: How are Singles Affected by Tax Issues?

With the presidential election less than two weeks away, it seems that both candidates may have overlooked a significant section of the population - single adults, 25 to 64 years old.The realization that Governor George W. Bush and Vice President Al Gore are concentrating their tax-break strategies on working families and the elderly became evident during last week's debate in which a young woman asked a question during the town hall meeting pertaining to tax breaks for her demographic set.Neither candidates respond very well.
Tax

Senate Finalizes Tax Package

The moment we've been waiting for - tax legislation has finally made its way through the Senate, but there is concern the chamber may have gone too far.
Tax

Frequent-Flier Miles . . . and Taxes!

Frequent-flier miles are so widespread today that they can almost seem like another form of money. Frequent-flier mile awards have even become an issue in some divorce and estate cases. The federal government has considered taxing frequent-flier miles.After careful thought and research, the IRS studied the matter and decided the expense of monitoring and enforcing a tax on frequent-flier miles would be too much of an expense for the government.
Tax

Rossotti Remains at IRS Through 2002

According to a story published in the Electronic Accountant, Internal Revenue Service Commissioner Charles Rossotti will remain in office after the presidential election and through November 2002.Speculation surrounding Rossotti's departure have circulated for months. Many were certain he would leave in favor of the private sector.
Tax

Tax Timeline a Must-Read for Preparers

Fortune magazine has put together an insightful look at 75 years of Taxation with a new timeline.Beginning with the Revenue Act of 1926 and ending with Treasury Secretary Lawrence Summers' crackdown on corporate tax shelters in 2000, the timeline puts all taxation highlights in order and with brief descriptions.A chart of tax revenue collected also is included; in 1930, the figure was $3 million, compared to almost $2 billion in 2000!
A&A

Refresher on Tax Deductions for Small Business

Most tax professionals advise their clients who own small businesses that they are much more likely to be audited by the Internal Revenue Service than anyone who is employed by another company.
Technology

TurboTax Announces Completely Automated Tax Return

The new Automated Tax Return from Intuit, maker of TurboTax, will electronically import information from the most common tax forms: W-2 (Wage and Tax Statement), 1099-INT (Interest Income), 1099-DIV (Dividend Income), and 1099B (Broker transactions). This information will be placed directly on the tax return without the preparer having to enter any information on the forms.Tax information will be provided by participating payroll and ebusiness services including Ceridian, Fidelity Investments, PeopleSoft, ProBusiness, Salomon Smith Barney, TD Waterhouse, T.
Tax

Six Chicago Tax Preparers Charged With Fraud

Six tax preparers who live in and around Chicago were charged on Monday with tax fraud by the state of Illinois.Those charged include Renata Zaczek of Bridgeview; John De Helean, Danuta Dossou, Lope T. Hilado, Jaime Mireles and Ashim K. Roychowdhury of Chicago. Each was charged with one count of forgery. This felony is punishable by two to five years in prison and a $25,000 fine.The Illinois State Attorney General and State Revenue Director announced the charges, and said all six knowingly falsified tax returns with wrong figures as to total income.
Tax

GAO Advises Against Cash Balance Conversions

The U.S. General Accounting Office (GAO) has recommended that the Internal Revenue Service continue an unofficial moratorium on cash balance approvals.
Tax

Bush or Gore? Will the real Front Runner Step Up?

An independent national survey commissioned by inc.com suggests that Governor George Bush may be the present front-runner among small-business owners. The results show that the major worries of small-business owners are taxes, health insurance, and government regulations.The survey suggests that nearly 50 percent of respondents lean toward Governor Bush in the November election, whereas approximately 30 percent are partial to Vice President Al Gore.

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