Tax news

Tax

Tax Accountants Missing the e-Mark

A survey conducted by KPMG of leading Fortune 1000 companies showed that 51% of the companies agree that e-commerce will lead to increased competition over the next three years.
Tax

Marriage Tax Cut On to Next Step

A joint House/Senate conference committee will proceed with ironing out the differences between the two versions of the marriage tax cut bill that passed in the House and Senate.
Tax

Let’s Give Employees the Whole Truth

The House has paved the way for better employee understanding of just what goes on “behind the scenes” regarding employer contributions to Social Security and Medicare by passing a bill that will require this information to be disclosed on annual W-2 forms.The Right-to-Know Payroll Act, as it is presently called, would require an amendment to the IRS Tax Code calling for new areas on the W-2 form to display employer contributions that are made on behalf of employees. The bill was introduced by Rep.
Tax

IRS Issues new Preparer Rules

In 1998 the IRS issued proposed regulations regarding the retention of preparer-signed tax documents. Those proposed regulations have been withdrawn, effective July 18, 2000, and replaced with final regulations.
Tax

Senate Passes Elimination of Marriage Tax Penalty

Republicans and Democrats joined forces in the Senate today, passing a bill that would eliminate the marriage penalty portion of our beloved tax code over a period of 10 years. The bill passed by a 61-38 margin. Now the House, which has passed a similar bill, will combine the two and present a final version to President Clinton, perhaps as early as this week.Clinton has already promised to veto the bill when it arrives on his desk on the eve of the Republican National Convention. So why bother having the vote?
Tax

Marriage Tax Penalty One Step Closer to its Grave?

With a vote of 269-159, the House gave its blessing to a marriage tax relief bill that is now on its way to the Senate. The Senate hopes to send a final version of the marriage bill, along with a bill for demolishing the estate tax, to President Clinton on the eve of the Republican National Convention, the timing of which is not coincidental.The marriage penalty tax, as it is justifiably called, is a nuance of the tax code that requires married couples to pay tax at a higher rate than they would if they remained single.
Tax

IRS Announces New Rules for Calculating IRA Income

If you make a contribution to your IRA, change your mind, and request that the contribution be returned to you on or before the due date of your tax return, the old rules stated that you must report a certain amount of taxable income based on the earnings in the IRA account for the entire year of the contribution.
Technology

Retailers Advocate Revamping Sales Tax Laws

Although the House of Representatives has voted to extend the Internet tax moratorium until 2006, brick & mortar retailers are joining forces in an effort to encourage Congress to completely rewrite what they consider to be archaeic sales tax laws.The retailers' goal is to ensure that online retailers charge the same tax as anyone operating outside cyberspace.
Tax

Thousands of Taxpayers Forego Refunds

An audit performed by the office of the Treasury Inspector General for Tax Administration examined $360 million in unclaimed refund money that the IRS is holding in an Excess Collections Account.
Tax

Charities and Political Candidates do not mix!

The Internal Revenue Service issues a statement on Wednesday that made clear its position on charities, churches and tax-exempt groups who support or oppose political candidates.Wrong, wrong, wrong.According to the documentation, the IRS said these organizations cannot 'endorse any candidates, make donations to their campaigns, engage in fund raising, distribute statements or become involved in any other activities that may be beneficial or detrimental to any candidate.'The Service issued a similar statement in 1992 and 1996.
Tax

Is Your City Animal Sculpture Friendly?

Manhattan has cows, Saginaw has hares, New Orleans has fish, Norfolk has mermaids, and Bloomington, IL has giant ears of corn. These are just a few of the many structures gracing, or grazing, the streets and parks of cities nationwide. While cities embrace this latest craze, businesses can gain promotional exposure and a tax deduction by sponsoring the streetside artwork.
Tax

PACs Must Disclose Campaign Contributors

President Clinton signed the 527 Disclosure Bill on July 1, a bill that requires groups organized under Internal Revenue Code 527 (relating to political organizations) to notify the IRS of their existence and to disclose details of all contributions that exceed $200 per year and all expenditures that exceed $500 per year.The IRS will be required to report this information and make it publicly available on the Internet and at the IRS offices. Organizations that are organized under Section 527 are now required to file quarterly reports with the IRS.
Technology

Support Dying for Internet Tax Moratorium

Pro-tax bills have surfaced in both the House and Senate, supported by legislators who recognize the loss in tax revenue that states will continue to suffer as sales on the Internet proliferate. The current Internet sales tax moratorium expires in October, 2001, and it is unlikely any further legislation to either extend this moratorium or institute a sales tax policy will occur this year. All but five states have a sales tax, but currently no state enforces the taxation of sales if the seller has no in-state store or warehouse.
Tax

IRS May Become Competitor in Online Tax Filing Arena

The Clinton administration’s fiscal 2001 funding request includes a requirement that the IRS provide tax preparation and filing services at no charge on its web site.
Tax

Marriage Tax Relief Bill Goes to Senate Floor

The latest attempt at passing marriage tax penalty relief bill was approved by the Senate Finance Committee Wednesday, under the leadership of Senator William Roth. The bill offers a complete restructuring of the standard deduction and the tax brackets so that married taxpayers pay taxes as if they are two single taxpayers. The bill is expected to land on the Senate floor in July. President Clinton has indicated a willingness to sign such a measure, but only if a Medicare prescription drug bill is incorporated into the plan.
Tax

Tax Scofflaws Exposed

A list of 50 individuals and businesses owing delinquent taxes to the State of Maryland appeared on the Maryland Comptroller's web site yesterday. The list reflects approximately $10 million in unpaid taxes.Maryland is not the first state to attempt this type of public humiliation. Others participating in such a program include California, Connecticut, Illinois, Montana, New Jersey, New York City, and Washington D.C.
Tax

Are American Taxpayers Celebrating Today?

According to the Americans for Tax Reform, a non-profit lobbying, research, and educational organization which is working to fight tax increases of any kind, today, June 16, 2000, is National Cost of Government Day.
Tax

End of Estate Tax = Boon for Financial Planners

The vote by the House of Representatives to repeal the estate tax made the headlines when nay-sayers spoke publicly that this was only good for the rich. It also is good for the financial planner who serves the very rich.Because it looks as if the estate tax will be banned over a 10-year period, those in high incomes or with large inheritances will have to make some very heady decisions as to what to do to lower their tax liability.
Tax

New IRS Division Supports Retail, Food & Pharmacy Biz

One of the effects of the modernized IRS is the necessity to service businesses faster and resolve issues before they become too difficult to handle.A new section of the Large and Mid-Size Business Division (LMSB) will focus on just that for the food, retail and pharmaceutical industries.
Tax

Where Do Your Tax Dollars Go?

The IRS has added a new page to its web site.

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