Practice Management

H&R Block Inc. said that a miscalculation of its own state taxes will cost the company about $32 million in back taxes.

CERTAIN TAX RETURNS WILL HEAD TO DIFFERENT CENTERS: As taxpayers begin to prepare their tax returns, the Internal Revenue Service noted that some may be sending their returns to a different service center than last year. Those who received a tax instruction booklet from the IRS in the mail and use the labels included with the booklet can be assured that their tax returns will go to the correct address. Taxpayers who e-file are not affected by these changes.For tax year 2005, the mailing changes affect returns, with or without payments, from the District of Columbia and 11 states - Colorado, Delaware, Kansas, Maryland, Mississippi, Nebraska, New Mexico, Ohio, South Dakota, Virginia and West Virginia.

Investors are increasingly seeking creative transaction structures to cash in on the heated real estate market.A strategy that uses preconstruction contracts in Section 1031 like-kind exchanges is one way that is gaining acceptance among investors, especially in areas with heavy condominium development.

Every year, Congress and the Internal Revenue Service help us justify a tax preparer's worth to clients by throwing a few new curves into the tax return preparation process. The 2005 tax return filing season is no exception.This year Congress even threw a few curves at the IRS and commercial tax software creators by passing year-end tax legislation with an impact on 2005 returns after the IRS had already done much of the work on its tax forms for the filing season. Here are some items to watch out for as you work through the 2005 return filing season.

Unclaimed refunds totaling more than $2 billion are awaiting about 1.7 million people who failed to file a federal income tax return for 2002, the Internal Revenue Service said.

Expanding the tax types eligible for electronic payment, the Internal Revenue Service is now accepting card payments for certain balance-due business taxes through Official Payments Corp.

President Bush said that he wouldn't allow the elimination of the mortgage interest deduction as part of suggested changes to the tax code.

Six-person accounting firm Abo & Co. LLC of New Jersey has merged with the office of Morrisville, Pa.-based CPA Earl Sigmund. Both firms will operate under the Abo & Co. name.

The Internal Revenue Service has simplified the process for business taxpayers to file for an extension.

The Management Summit conference, the oldest independently-owned symposium for accounting firm executives, was sold by Atlanta-based Hudson Sawyer to the Growth Partnership, of St. Louis.