Practice Management

Taxpayers will be able to request an automatic, six-month filing extension for most common individual and business returns, according to new regulations released by the Treasury Department and the Internal Revenue Service.

Senate Finance Committee Chairman Charles Grassley, R-Iowa, announced a plan to cut taxes by nearly $70 billion by 2010.

Accounting firms tend to embrace one of three types of governance systems - the benign dictator, the republic or the democracy. Many of my clients often ask me these questions:* Which one is the best?

* REFORM PANEL RULES OUT NATIONAL SALES TAX: The President's Advisory Panel on Federal Tax Reform ruled out a proposed national retail sales tax, and said that it would instead suggest changes to the current Internal Revenue Code framework, such as slashing benefits for mortgages and health care. The nine-member panel said that curbing benefits would help achieve the panel's original goal of simplifying the current tax code, while at the same time funding the cost of repealing the controversial alternative minimum tax.While agreeing that a national retail tax would boost revenue, the panel said that a hybrid tax would raise issues of "simplicity and fairness."

States have taken two different paths in response to falling revenue from corporate tax collections.On the one hand, some states have focused on lowering corporate taxes or at least changing them to make themselves more attractive for investment. At least five states have debated bills to reduce corporate tax rates in 2005, while dozens of others have introduced bills that shift corporate taxes away from the property and employees of corporations, and onto the customers of corporations.

Several provisions of the American Jobs Creation Act of 2004 have required tax advisors to be very proactive with their clients to consult with them about the impact of the statutory changes, as well as subsequent regulatory developments.Among the more significant areas requiring immediate attention have been the new domestic manufacturing deduction, the brief window for repatriation of dividends, the tax shelter reporting and disclosure rules, and the new requirements with respect to nonqualified deferred compensation.

Accounting firm Weaver and Tidwell LLP has signed a merger deal with Dallas firm Brown & Nelson PC to add forensic accounting and litigation support expertise to the firm.Financial terms weren't disclosed, and the firm will be absorbed under the Weaver and Tidwell name. It's the second acquisition of the year for Weaver, which merged in Dallas' Brehm & Co., a firm specializing in construction accounting, in June.

Robert Redwitz & Co. acquired Coradino, Hickey and Hanson, a San Diego-based accounting firm, in a merger effective Oct. 1.The newly merged firm has relocated its offices, but will continue to operate in La Jolla under the name Robert Redwitz & Co. Terms of the deal were not disclosed.

The President's Advisory Panel on Federal Tax Reform submitted two proposals to the Treasury Department after months of work -- the first pushing for major simplification of the current income tax system and a second recommending changes for businesses that lead to an indirect tax on consumption.

The Global Alliance and Moore Stephens North America Inc. will merge to create one of the largest CPA firm associations. To be known as Moore Stephens North America, the association is represented by 35 firms with gross revenues of over $600 million.