Income tax

Tax

Undisclosed Marriage Causes Problems For Couple

Carolyn Branan and Ralph Lovejoy were married, but they didn’t tell their clients. After their separate companies were found guilty of selling abusive tax shelters, along with KPMG, by the Internal Revenue Service (IRS), this former power couple is finding life difficult, being named in about a dozen lawsuits initiated by former clients, according to the Charlotte Observer. Although not indicted by the IRS directly, the couple became key players in the tax shelter market in their own respective firms.
Tax

Governor Arnold Accused of Pandering to Accountants

California Governor Arnold Schwarzenegger is under attack from the press and a public interest group for allegedly pandering to the accounting profession.The Los Angeles Times claims that recent actions by the California State Board of Accountancy “underscore the political clout of the accounting profession,” which the newspaper says has contributed about $500,000 to campaign funds that support Schwarzenegger’s political agenda.
Tax

Former Ernst & Young Clients Sue Over Tax Shelters

A Florida couple has sued their former accountants for selling them tax shelters that were rejected by the Internal Revenue Service (IRS).The suit contends that Ernst & Young defrauded Rocco and Mary Abessinio and other wealthy taxpayers, out of $5.9 million in fees for the bogus tax shelters, Reuters reported.
Tax

KPMG Case Takes Surprise Turn With Guilty Plea

One former KPMG LLP employee pleaded guilty to conspiracy and tax evasion charges in the government's criminal case involving sales of improper tax shelters.Advertisement
Tax

Beware of These 10 Common Tax Filing Mistakes

The American Institute of Certified Public Accountants (AICPA) has identified 10 common and avoidable errors taxpayers make on their federal tax returns that can affect their tax bill, delay processing of their return and even draw the attention of the Internal Revenue Service (IRS).Advertisement
Tax

Tax Time Stress: Accountants Are Not the Only Ones Frustrated

A new study shows that 37 percent of adults in the U.S. feel frustration when filing taxes comes to mind, no matter if they are filing taxes annually or quarterly. Harris Interactive conducted the survey that was commissioned by Network Solutions. The least favorite parts of doing taxes for U.S.
Tax

Many Low Income Workers Don’t Claim Earned Income Tax Credit

The Internal Revenue Service (IRS) estimates that four out of five taxpayers who meet eligibility requirements don’t claim the Earned Income Tax Credit (EITC), the government’s largest program for helping low-income working families, the Washington Post reports. Last year 21.1 million taxpayers claimed a total of nearly $40 billion through the EITC credit, enacted by Congress in 1975 as a way to help low-income workers.
Tax

Tax Woes Don’t Stop for Hurricane Victims

Getting answers to the many tax questions that the Gulf hurricanes have wrought is frustrating. Questions about evacuation expenses, property losses deductions, and gains resulting from insurance settlements, are still needing answers for many taxpayers in the disaster areas.
A&A

Family Limited Partnerships Being Probed by the IRS

Family limited partnerships (FLPs) are the target of increased scrutiny by the Internal Revenue Service (IRS). These vehicles are apparently a popular technique for reducing estate and gift taxes. The IRS is increasing the number of audits it performs, focusing on those taxpayers with incomes of $100,000 or greater, according to the Wall Street Journal.The IRS is concerned FLPs are being set up for other than legitimate business purposes. Audit interviews are focusing on how these partnerships are set up and run, according to the Wall Street Journal.
Tax

Be on the Lookout For: IRS Names “Dirty Dozen” for 2006

Two new schemes have joined the Internal Revenue Service’s (IRS’) list of most noxious tax scams this filing season. Several usual suspects also remain on the list, which was released earlier this week.
Tax

Tax Tip: Gift Taxes

Taxpayers who have given gifts exceeding $11,000 in value to a single individual must report the total gift amount to the Internal Revenue Service (IRS). The giver may owe taxes on the gifts.
Tax

Deadline Nears for Abusive Transaction Settlement

The Internal Revenue Service (IRS) announced last week that taxpayers have until January 23, 2006 to file an election form to take part in the global settlement program for 21 specified transactions, and there will be no deadline extension.
Community News

New Charges Issued in KPMG Probe

The Justice Department has issued an expanded indictment in the continuing probe of KPMG. This indictment amends the first indictment issued in August by adding 43 counts of tax evasion and two counts of obstruction of the Internal Revenue Service (IRS). Each of the 19 defendants has not been charged with the same offenses according to the indictment.
Community News

More Good News Than Bad for KPMG

KPMG has had their fair share of bad news since becoming the focus of federal prosecutors but there is unofficial word that an agreement will be announced later this week. Better yet, their Big Four competitors have each told their partners should refrain from "poaching" KPMG's clients.The settlement calls for the smallest of the Big Four accounting firms to pay a fine totaling between $300 and $500 million and accept independent oversight of its operations in order to avoid prosecution. In the deferred prosecution, there will also be a yet unstated probationary period.
Community News

KPMG Countersues Ex-Clients

KPMG is getting tough with former clients and even using some federal evidence against them as evidence for their defense. The Big Four accounting firm is still speaking with federal prosecutors concerning their possible indictment for selling overly aggressive tax shelters. Two of those ex-clients are R. Cary McNair and his brother, D. Calhoun. They are the wealthy sons of Robert C. McNair, oilman and owner of the NFL Houston Texans. In December 2000, both brothers sued KPMG in state court on grounds that the accounting firm knowingly sold them sham tax shelters.
Tax

Banker Pleads Guilty in Tax Shelter Case

Federal prosecutors investigating abusive tax shelters struck a plea agreement with a banker on Thursday in the first criminal charges brought in the case, according to the Washington Post. Domenick DeGiorgio, the former managing director of HVB Group, pleaded guilty to four counts of conspiracy, wire fraud and tax evasion relating to his participation in selling a tax shelter known as BLIPS or Bond Lined Issue Premium Structure, created and marketed by KPMG. DeGiorgio said he knew the tax structure lacked economic justification.
Tax

Cases Referred in KPMG Case

The investigation and possible prosecution of KPMG has been the focus of a larger investigation by the Department of Justice (DOJ) into abusive tax shelters sold to corporate taxpayers and wealthy individuals by accounting firms, banks, and law firms. There are now signs that DOJ is working toward a decision.DOJ found that KPMG sold four types of overly aggressive tax shelters to over 350 people between 1997 and 2001 that brought in $214 million in fees according to the Senate Subcommittee on Investigations. These shelters cost the Government around $1.4 billion in unpaid taxes.
Tax

KPMG's Admission May Hurt Civil Tax Shelter Case

KPMG's acknowledgement of “unlawful conduct” in selling questionable tax shelters may help the firm it in its negotiations with criminal prosecutors, but it may make big civil fines more likely.Big Four accounting firm KPMG, in a statement last week, said it “deeply regrets” tax shelter abuses and “takes full responsibility.” Its admission may hurt the other defendants who also worked on selling the tax shelters and were sued by investors along with KPMG, the Wall Street Journal reported.The other firms include: Sidley Austin Brown & Wood, which provided advice to investors;

Pages


Already a member? log in here.