Practice Management

Aspen developer George Gradow, who made his money in mobile homes, was sentenced to 15 months after pleading guilty to tax fraud and obstructing an Internal Revenue Service audit.

Crowe Chizek and Co. LLC announced that it has completed the combination of practices with Fort Lauderdale, Fla.-based Madsen Sapp Mena Rodriguez & Co. CPAs & Advisors, which was first announced in mid-March.

In a previous article, I wrote about the four types of intellectual capital within a firm. They are:1. Know-what - having knowledge about something;

DECISION TO CLOSE TACS BASED ON BAD INFO: The Treasury Inspector General for Tax Administration, J. Russell George, said that bad data is to blame for the Internal Revenue Service's never-realized plan to close 68 Taxpayer Assistance Centers across the country.Late last year, Congress stopped the IRS from reducing any taxpayer service functions or programs until TIGTA completed a study detailing the effect of the planned reductions on taxpayer compliance and assistance.

In an attempt to head off politicians' talk about taxing the recent high earnings of oil companies, President Bush said last week that the industry should be allowed to reinvest its profits into energy research.

When criticism of the Internal Revenue Service's revision of its more-than-30-year-old preparer disclosure rules first surfaced, it came as an attack from consumer groups outraged that rules were being eased to permit the marketing of taxpayer information.However, contrary to press reports, the IRS said that the proposed rules actually tighten existing requirements regarding the customer consent that a return preparer must obtain to disclose the customer's tax return information to third parties. In fact, explained IRS Commissioner Mark Everson, "For over 30 years, under the law, return preparers have been able to disclose tax return information with the consent of taxpayers."

Code Section 7216 governs the disclosure and use of tax return information by tax return preparers. Late last year, in Notice 2005-93, the Internal Revenue Service issued a proposed revenue procedure purportedly to update the disclosure rules to account for changes in return filing, particularly to account for the growing use of electronic filing and electronic signatures and the foreign outsourcing of tax preparation work.The proposals have set off some apparently unexpected protests from several consumer protection groups, basically concerned that the proposals make it too easy for taxpayers to unknowingly grant permission for disclosure of their tax information.

As their colleagues float talks of $100 gas-rebate checks for taxpayers, the heads of the Senate Finance Committee have asked the Internal Revenue Service to provide tax and financial information on the nation's largest oil and gas companies.

The Internal Revenue Service announced agreements with 33 states and Puerto Rico to begin sharing information to ensure that money services businesses are complying with laws to report unusual cash transactions and other suspicious activities.

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 $345 billion estimate from Internal Revenue Service.