Legislation

Tax

Senate Bows to Pressure, Extends Child Care Credit to Low Income Families

The ink from President Bush's pen was hardly dry after signing the Jobs and Growth Tax Relief Reconciliation Act of 2003 when an uproar started over a large group of low income families who were excluded from the additional $400 child tax credit. A very vocal group in Congress argued that it was unfair to exclude those in the lowest tax bracket, who are not making enough money to pay any taxes, from the benefits of the child tax credit. Yesterday, the U.S. Senate agreed, and moved to expand the credit to 12 million families with incomes between $10,500 and $26,625.

Jun 6 2003

109

Tax

Politicians Take Sides in Ongoing Child Tax Credit Battle

President Bush has signed his $350 billion tax cut bill, but the arguments over what should and should not have been included in the bill rage on.

May 30 2003

85

Tax

Key Components of The New Tax Legislation

The Jobs and Growth Tax Relief Reconciliation Act of 2003 contains some splashy big tax cuts that will keep payroll accountants busy this summer, as well as a new rebate plan and tax incentives for small businesses. Key components of the new law include:Acceleration of reductions in the marginal tax rates as originally provided by the Economic Growth and Tax Relief Reconciliation Act of 2001.

May 26 2003

125

Tax

House and Senate Ready to Vote on Tax Plan

House and Senate Republican leaders reached agreement on a tax plan Wednesday afternoon. Now the plan heads to the floors of both legislative chambers for a full vote.The bill, which is expected to cut taxes by $350 billion over a 10-year period, faces a close vote in the Senate where Vice President Dick Cheney is expected to be called upon to break a 50-50 tie.

May 22 2003

80

Tax

Jackson Hewitt Goes to Battle Over Refund Anticipation Loans

Cendant Corporation, parent company of national tax preparation service Jackson Hewitt, has hired a high-powered law firm to help fight a bill that is making its way through the Minnesota legislature.

May 21 2003

81

Tax

Senate Votes 'Yea' on $350 Billion Tax Cut Bill

Late Thursday night the U.S.

May 15 2003

108

Technology

PCAOB Launches New Web Site

The new Public Company Accounting Oversight Board (PCAOB) has launched a new Internet site for those who want to keep up to date on the latest news and information regarding the Sarbanes-Oxley Act and the activities of the Board.The new site, www.pcaobus.org, includes the latest news and events, career opportunities, and documents describing in detail the mission and practices of the board.

May 13 2003

174

Tax

House Passes Its Version of Tax Cut Bill

On Friday, the House of Representatives passed a 10-year $550 billion tax cut plan that is guaranteed to generate controversy once the tax planners from the House and Senate face off and attempt to create a bill that both chambers can endorse.The House bill passed with a 222-203 vote falling almost entirely along party lines. Only four Democrats crossed over to support the legislation and three Republicans voted against it.

May 11 2003

88

Tax

IRS May Turn Over Collections to Private Agencies

If the U.S. Senate has its way, the Internal Revenue Service may be able to use private collection agencies to help recover the approximately $13 billion in unpaid taxes that is lingering in the hands of the nation's taxpayers.The tax cut bill that is due to be voted on in the Senate next week contains a provision enabling the IRS to seek outside help with collections.

May 9 2003

67

Tax

Senate Republicans Reach Agreement on Dividend Tax Controversy

President Bush's tax bill has met more than a few snags as it makes its way through Congress, not the least controversial of which is the attempt to do away with the income tax on dividend income. Now it appears that a possible stalemate over this issue has been circumvented.In his State of the Union address this year President Bush stressed the importance of ending the income tax on dividends. "It is fair to tax a company's profits.

May 8 2003

109

Tax

White House May Compromise on Repeal of Dividend Tax

In what plays like a move to jumpstart a stalled tax cut bill, Treasury Secretary John Snow has praised the House Ways & Means Committee's proposal to cut federal income tax on dividends to a flat 15% along with a similar cut on taxes on capital gain income. The proposed plan "is a big step in the right direction," said Secretary Snow. "It's a lot better than current law."House Ways & Means Committee Chairman Bill Thomas introduced the proposal last week to nods of approval from House Speaker Dennis Hastert, and even White House Press Secretary Ari Fleischer. Mr.

May 4 2003

130

Tax

Senate Panel Investigating Tax Shelter Abuses

The U.S. Senate Permanent Subcommittee on Investigations has launched an investigation into the potentially abusive tax shelter schemes marketed and sold by Big Four firms Ernst & Young and KPMG. The agency has requested documents from the firms relating to the shelters.The investigation follows on the tails of a similar investigation into the validity of tax shelters being conducted by the Internal Revenue Service.

Apr 25 2003

359

Fifteen-Year-Old Taxpayer Tries to Change Law in Florida

Miranda Rosenberg is 15 years old and has recently filed her 2002 income tax return. She worked part-time last year while maintaining a 4.0 grade point average at Suncoast High School in Riviera Beach, Florida. Paying income taxes is more than just an annual obligation to Ms. Rosenberg; she sees this event as an opportunity to change the law.Ms.

Apr 23 2003

292

Tax

Congress to Debate Changing Tax Filing Date

Maryland Congressman Roscoe Bartlett (R-6-MD) has introduced legislation that would change the annual filing date for income tax returns from the current April 15 to the first Monday in November, the day before Election Day."I think it's just common sense that the price we pay for our government - which is taxes - should be a top priority when Americans go to the polls to select their members of Congress," said

Apr 21 2003

74

Proposed House Legislation Promises Work Flextime

Last week, by a vote of 8-6, the House Education and Workforce Subcommittee approved legislation meant to provide more workplace flexibility. H.R. 1119, the Family Time Flexibility Act, would amend the Fair Labor Standards Act (FLSA) and allow employees to receive compensatory time off in place of overtime pay. House supporters say the bill gives workers more flexibility in their work schedule. Organizations around the country are weighing in on the legislation’s merits. On March 12, Houston Williams spoke to the House subcommittee on behalf of the U.S.

Apr 14 2003

89

Community News

HIPAA Privacy Rule Takes Effect April 14, 2003 - Reminder

The HIPAA "Privacy Rule" goes into effect April 14 for group health plans with annual premium or claims of $5 million or more. HIPAA requires employers to separate protected health information from employment-relation functions. If you are a company who sponsors an employee health care plan, be prepared for the Privacy Rules of The Health Insurance Portability and Accountability Act (HIPAA).

Apr 7 2003

323

A&A

Tell The Truth, Unless it Hurts - Stock Option Accounting

The following is a guest editorial by, Raymond L. Dever, CPA (Retired)Tell the Truth, Unless it Hurts - Stock Option Accounting. Or, unless it is politically dangerous. "We can't stand by and let accountants wearing green eyeshades decide who is going to get the American dream," says Senator Barbara Boxer (D-California) before a Silicon Valley lobbying organization.

Apr 4 2003

276

DOL Releases Long Awaited Plan to Update The FLSA

by Stuart R. Buttrick, Baker & DanielsGenerally, the Fair Labor Standards Act ("FLSA") establishes minimum wage and overtime standards for employees that are not exempt from its provisions. Among the most common exemptions under the FLSA are for "executive," "administrative," and "professional" workers -- also known as the FLSA's "white collar" exemptions.

Apr 3 2003

585

Senate Approves FY '04 Budget Resolution

Provided by CCHThe Senate on March 26 approved a fiscal year (FY) 2004 budget resolution (SConRes 23) that contains $852 billion for tax cuts, with $350 billion of that amount under reconciliation protection. The measure was approved by a vote of 56 to 44.Republicans had threatened to offer amendments to reinstate all or part of the tax-cut reductions, but were apparently unable to muster the necessary votes and offered no controversial add-ons.

Mar 28 2003

59

Tax

Bicyclists Riding Toward Tax Break

Gas costs are high, pollution fills our air, and tax breaks are available for those who drive to work. Bicyclist enthusiasts, including some Congressmen in Washington, think the time is right to extend those tax breaks to bicycling commuters. Representatives Earl Blumenauer (D-OR) and Mark Foley (R-FL) have reintroduced the Bike Commuter Act, H.R.

Mar 26 2003

152

AccountingWEB