Practice Management

While the word is that defined-benefit plans are no longer in favor, they can still provide a tax savings for the right client.“A lot of the press would lead you to believe that defined-benefit plans are on the way out,” said Karen Shapiro, chief executive of Dedicated DB, a San Mateo, Calif.-based provider of such plans. “But for some small-business owners, it’s a terrific tax strategy.”

In a special area on its Web site (in a Q&A on home foreclosure and debt cancellation), the Internal Revenue Service advised, “Insolvency can be fairly complex to determine and the assistance of a tax professional is recommended.”Also, in recognition of the important role that the “insolvency exception” plays in excluding a beleaguered homeowner’s forgiveness-of-indebtedness income, the site further advised, “Consider the tax consequences before foreclosure.” This article explores what planning can be done to maximize the use of the insolvency exception to reduce or eliminate forgiveness-of-indebtedness income for the individual caught in the current mortgage financing or similar credit squeeze.

CPA firm Braver said it is merging with Edward Giardina P.C., as Giardina joins Braver as a partner at the firm.

Immigration attorney Grisel Ybarra got back a canceled check from the Internal Revenue Service for the two cents the IRS had billed her as a late fee.

Two firms in New York State have merged, with EFP Group's Eldredge, Fox & Porretti combining with Carnevale Niles Whitney & Davis.

President Bush plans to nominate Douglas Shulman as Internal Revenue Service commissioner.

Two CPA firms in Indiana are joining forces, with the Evansville office of Kemper CPA Group merging in Wright Consulting on Dec. 1.

Tax software vendors Intuit and H&R Block were hit with a potential multi-billion-dollar class-action lawsuit alleging that they charge excessive fees for electronic filing.

Leaders of the Senate Finance Committee have introduced a bill to prohibit the Patent and Trademark Office from granting any further patents for tax strategies and tax-planning inventions.

The Internal Revenue Service wants to track down 115,478 taxpayers who are owed approximately $110 million after their refund checks were returned as undeliverable.