Income tax | AccountingWEB

Income tax


Audit report: More could be done to protect Low Income Taxpayer Clinic grant funds

The Taxpayer Advocate Service could be doing more to ensure that grant funding it provides to Low Income Taxpayer Clinics are properly used, according to a report released Wednesday

IRS ends rule that hurt 'innocent spouses'

A rule that disqualifies taxpayers from being considered innocent spouses if they don't file for relief within two years has been eliminated, effective immediately, the IRS has announced.

Preparer alert: Keep your clients from becoming victims of tax scams

Tax return preparers need to alert their clients to tax scam artists who might mislead them or persuade them to file false claims for tax credits or rebates. According to the IRS, there has been an increase in tax return-related scams.

New River Innovation announces alliance with Drake Software

New River Innovation has announced a new alliance with Drake Software, a tax preparation solution vendor. The multiyear partnership provides New River Innovation with an established channel for introducing Beyond415 to the tax and accounting market.

IRS asks airlines to refund tax on plane tickets sold before July 23

Due to the expiration of certain aviation-related taxes, the IRS is requesting that airlines refund the federal taxes paid by passengers who purchased airline tickets prior to July 23, 2011.

Tax return preparer registration for 2012 to start soon

For more than a year now, all paid tax return preparers have been required to obtain a preparer tax identification number (PTIN). Renewals for 2012 are expected to start in October 2011. Practitioners who haven't done so already can apply for a PTIN relatively easily.

AICPA supports new tax preparer registration program

While over 712,000 tax preparers registered and received PTINs for the 2011 tax filing season, there were still about 100,000 preparers who either used outdated PTINs or used social security numbers on returns they prepared this past filing season.

IRS needs more control over homebuyer tax credit program, audit finds

The IRS has improved how it processes first-time homebuyer tax credits, but erroneous or questionable claims are still a problem on amended returns, a new report contends.

Holla, Holla...Ja Rule faces the tax music

A self-proclaimed rap "gangsta" is going to jail for committing a white-collar crime: tax evasion. Multi-platinum selling artist Ja Rule (whose real name is Jeffrey Adkins) has been sentenced to 28 months in federal prison for failing to report more than $3 million in earnings from 2004 through 2006.

IRS slow to tell taxpayers when their information was disclosed

Just as the Obama administration seeks to protect consumers from breaches of personal privacy, the IRS is being told that it's too slow to tell taxpayers when their personal information wasn't kept private.

Tax strategy: Secure fast tax relief for disaster losses

If a client has been victimized by the vicious tornadoes or floods throughout the country this year, or has suffered personal casualty losses due to some other natural disaster, he or she may not have to wait to file a 2011 tax return to recoup some tax benefits.

Tax tip: Summer day camp expenses may qualify for a tax credit

Along with the summer come some extra expenses, including (possibly) day camp for children. It may be a pleasant surprise for some parents that the costs of sending their children to these camps may qualify for the child and dependent care tax credit.

California tax amnesty program opens August 1

Taxpayers who have underreported their California income tax liabilities through the use of abusive tax avoidance transactions or offshore financial arrangements will be permitted to obtain a waiver of most penalties under an amnesty program beginning in August.

Jeter baseball fan catches bad tax advice

Christian Lopez, the 23-year-old baseball fan who returned Yankees' Derek Jeter's 3,000th career hit ball to the player, received swag and tickets for his generosity. But what would have happened if Lopez had sought some sage tax advice before being so quick to act?

Taxpayer Advocate: Cuts to IRS would hinder tax collection efforts

National Taxpayer Advocate Nina Olson is telling lawmakers to leave the IRS alone when it comes to budget cuts.

Taxpayers must report certain foreign bank and financial accounts to Treasury by June 30

All taxpayers with foreign bank or other financial accounts, or with signature authority over such accounts, may be required to submit an FBAR form by June 30.

Patent reform passes in House; tax strategy patents banned

A comprehensive patent reform bill, the America Invests Act, which includes a provision prohibiting the award of new tax strategy patents, was approved in the House by a vote of 304 to 117 on June 24.

TIGTA report: IRS taxpayer data is vulnerable to hackers

According to a report by the Treasursy Inspector General for Tax Administration, the IRS needs to do more to keep data secure.

IRS announces mid-year increase to standard mileage rate

The Internal Revenue Service has announced an increase in the optional standard mileage rates for the final six months of 2011. Taxpayers may use the optional standard rates to calculate the deductible costs of operating an automobile for business and other purposes.

IRS reaches milestone of 1 billion e-filed tax returns

The Internal Revenue Service has announced that its e-file service has reached a major milestone as it passed the one billion mark for individual tax returns processed safely and securely since 1986.


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