15 New Tax Bulletins On Latest Tax Code-Accountants Zero-In On Affected Returns
For the millions of American corporate and individual taxpayers, the Job Creation and Worker Assistance Act of 2002 brings additional relief. However, for their accountants, tax legislation passed in the midst of tax season can wreak havoc on their already hectic schedules, according to CCH INCORPORATED (CCH), a leading provider of tax law information and software.
To help tax professionals identify clients impacted by the tax code changes, CCH has introduced five new Tax Bulletins to CCH® ClientRelate™ during the last week and will be launching a minimum of 10 more during the next few weeks. CCH ClientRelate supports a professional’s practice at several levels by integrating the authority of the CCH InternetSM Tax Research NetWork™ with the power of ProSystem fx Tax.
Using the Tax Bulletins within the CCH Internet Tax Research NetWork, CCH ClientRelate customers can now search their clients’ ProSystem fx Tax returns to identify tax savings and consequences the Job Creation Act has on specific clients.
Tax Bulletins, specially prepared by in-house CCH tax attorneys and CPAs, summarize particular new developments and time-sensitive issues. The five Tax Bulletins specific to the Job Creation Act released during the past week enable subscribers to identify clients who may be effected by the following legislative changes:
- Temporary 30-percent depreciation bonus
- Five-year carryback for net operating losses
- Extension of unemployment benefits
- Reversal of the Supreme Court’s S corporation decision in Gitlitz v Commr
- Rate relief for underfunded defined benefit plans
Many of these issues are retroactive, impacting the last quarter of 2001 and, therefore, are time-sensitive to 2001 income tax returns.
Other Tax Bulletins to be released regularly through mid-April include those dealing with tax legislation impacting tax returns for 2002 and beyond. These include:
- Changes to deemed sale rules
- Deduction for classroom materials
- Increase in benefit and contribution limits for defined benefit plans
- Clarification of application of catch-up contribution rules
- Tax-free SEP deduction limits
- Equitable treatment for tax sheltered annuity plans
- Extension of work opportunity tax credit
- Welfare-to-work credit extensions
- Medical Savings Accounts extensions
- Qualified clean fuel vehicle deduction extensions
As CCH continues its analysis and review of the legislation, additional Tax Bulletins on the Job Creation Act may also be issued as appropriate.
Automated Process – Targeted, Quick, Secure
The Tax Bulletins are delivered via e-mail to CCH ClientRelate subscribers. A simple click on any Tax Bulletin will start a search of the professional’s ProSystem fx Tax files. CCH’s search parameters are crafted to identify and select those types of clients most likely to be affected by the new development.
For example, a CCH ClientRelate subscriber receiving the Tax Bulletin on the special 30-percent depreciation bonus simply clicks on an icon within the Tax Bulletin to launch a search of tax returns the firm has completed that report qualified property placed in service during 2001. CCH ClientRelate then scans the firm’s ProSystems fx Tax return data and specifically identifies the clients that could be impacted by this change. Because many of the clients that will be affected by this particular tax code change are corporations, which were required to file their returns by March 15, 2002, amended returns will have to be prepared and filed to take advantage of the rule change.
CCH ClientRelate searches take place entirely on the tax professional’s PC or network, where ProSystem fx Tax return data resides. As a result, no data resides on or is sent to outside servers, and security within the firm is determined by the firm’s ProSystem fx Tax security settings.
In addition to identifying potential clients affected by the particular tax code changes, CCH ClientRelate provides tax professionals with links to in-depth research sources on the CCH Internet Tax Research NetWork. CCH ClientRelate also provides links to sample client letters, helping a firm automate and speed the communications process with its clients.
"During the last year, we’ve seen substantial change in the tax law, which certainly can mean increased opportunities for tax and accounting professionals," said Charlie Ter Bush, CCH Federal and State Tax director of marketing. "However, given the scope of the changes, it could take firms a significant amount of time to sift through their client information to figure out who is affected by which changes. CCH streamlines this process, allowing professionals more time to focus on what matters to their practice, understanding the tax law changes and working with their clients to plan their tax strategies under the new laws," he said.
CCH ClientRelate is designed for use with CCH ProSystem fx Tax and CCH Internet Tax Research NetWork. For a Flash demonstration or to order, visit tax.cchgroup.com or contact your CCH sales representative at 1 888 CCH REPS.
About CCH INCORPORATED
CCH INCORPORATED, headquartered in Riverwoods, Ill., was founded in 1913 and has served four generations of business professionals and their clients. The company produces more than 700 electronic and print products for the tax, legal, securities, insurance, human resources, health care and small business markets. CCH is a wholly owned subsidiary of Wolters Kluwer North America. The CCH web site can be accessed at cch.com. The CCH tax and accounting destination site can be accessed at tax.cchgroup.com.