Practice Management

This coming January officially marks the three-year countdown before the axe falls on the lower individual capital gains rates now in place.Since May 6, 2003, thanks to the Jobs and Growth Tax Relief Reconciliation Act of 2003, gain from the sale of most long-term capital assets is subject to a maximum tax rate of 15 percent (5 percent for individuals in the 10 percent or 15 percent tax bracket). Starting in 2011, however, these rates are scheduled to revert to their former pre-May 6, 2003, levels of 20 percent and 10 percent, respectively. Nevertheless, before the party ends, a 0 percent rate will replace the 5 percent rate for tax years beginning after Dec. 31, 2007.

Accounting networks Nexia International and SC International have agreed to merge, forming the ninth largest association of accounting firms worldwide.

The Internal Revenue Service received a double barrel of criticism from Treasury Department watchdogs for not validating the amount of savings it claimed it would generate from various taxpayer service projects, and for laxness in security.

Potential Republican presidential candidate Fred Thompson has written a letter indicating that he would be willing to support an overhaul of the Tax Code called the FairTax, which could replace the income tax system and all payroll taxes with a non-regressive national retail tax.

The Treasury Department and the Internal Revenue Service have issued notices warning about two kinds of transactions that could arouse their interest: "toggling" grantor trusts and contributions of a successor member interest in a limited liability company.

At least 61 percent of sole proprietor companies are underreporting their net business income, but a small proportion of them account for the bulk of understated taxes, according to a report by the Government Accountability Office.

Accounting firm Friedman, Cohen, Taubman & Co. LLC has hooked up with Engineered Tax Services to provide cost segregation services to clients who own or invest in commercial and residential rental properties.

Just recently, I was reading an online article in the East Bay Business Times, a California business-to-business newspaper, and I noticed a very effective ad for the San Ramon Valley Conference Center. It linked me to www.sanramonvalleyconferencecenter.com, the Web site for the conference site, where I was able to take a virtual tour of the facilities.

Detroit-area accounting firm Maddox Ungar Silberstein PLLC is expanding from its Bingham Farms office and opening an office in Ann Arbor.

Accounting firm Goldstein, Karlewicz & Goldstein has joined AGN International, an association of independent CPA, accounting and consulting firms.