Practice Management

TIGTA SAYS TAX GAP COULD EXCEED PROJECTIONS: According to a report from the Treasury Inspector General for Tax Administration, the nation's tax gap - the annual difference between federal taxes owed and those paid - could in fact exceed the current $345 billion estimate from the Internal Revenue Service. The agency said that the IRS projection of the tax gap probably underestimated things like non- or underreporting filers. The IRS arrived at its figures following a study of 46,000 audits for the 2001 tax year.In its report, the TIGTA said, "We concluded the IRS still does not have sufficient information to completely and accurately assess the overall tax gap and voluntary compliance."

In an effort to encourage savings and more banking, the Internal Revenue Service is creating a program to allow taxpayers who use direct deposit to divide their refunds among as many as three financial accounts.

The Treasury Department and Internal Revenue Service issued final regulations for Section 199 of the tax code, which relates to domestic manufacturing deductions.

The Internal Revenue Service announced a major milestone in its corporate e-file program -- the successful e-filing of the nation's largest tax return from General Electric Corp. on May 18.

Senior corporate executives predict that merger and acquisition activity in 2006 will surpass last year's performance and remain strong across several industry sectors, according to a new survey from KPMG LLP.

UHY Advisors will acquire Boston-based accounting firm Brown & Brown LLP. Financial terms of the deal were not disclosed.

The Internal Revenue Service announced regulatory revisions that the agency hopes will remove impediments to e-file for corporations and shareholders.

Financial services provider Wilmington Trust Corp. announced that it has acquired the Cayman Islands unit of PricewaterhouseCoopers Corporate Services Ltd. The unit provides company administration and bookkeeping services on the islands.

Taxpayers will be able to apply for a refund of the federal excise tax on long-distance telephone service for the past three years.

Along with an acquisition in Colorado announced in early May, BKD LLP said that moves taking effect in May and June will translate into approximately 60 new employees and an additional $10 million in revenues.