Practice Management

HOUSE, SENATE PASS TAX-RELATED MEASURES: Late last month, congressional lawmakers passed separate measures to make permanent the child tax credit and to require the annual registration of federal income tax return preparers with the Internal Revenue Service.

The family limited partnership has had its proponents and opponents over the past several years. A new taxpayer victory out of the Fifth Circuit will only fuel the debate over whether one camp or the other is right.

by Roger Russell

MUTUAL FUND CAPITAL GAINS TO BE TAXED AT LOWER RATES: The Internal Revenue Service and the Treasury Department have clarified that capital gain dividends received from a mutual fund in 2004 will be taxed at the new, lower capital gain rates enacted last year.

New York — A federal judge has granted an Internal Revenue Service petition to enforce nine summonses against Big Four firm KPMG LLP, ordering it to disclose the identity of participants in tax shelters promoted by the firm. The ruling by the District Court for the District of Columbia also ordered KPMG to turn over documents related to the shelters.

by George G. Jones and Mark A. Luscombe

by Roger Russell

PWC TAPS STAMM TO LEAD U.S. TAX PRACTICE: PricewaterhouseCoopers has named J. Richard (Rick) Stamm to lead the firm’s U.S. tax practice, succeeding Rick Berry, who will retire in June. Stamm will assume the post on July 1. He will work closely with Berry through a transition period between now and the end of June.

The ranking minority member of the Senate Finance Committee projected that, at that level, the IRS would raise a minimum of $100 billion in additional revenues on an annual basis. Currently, the voluntary compliance rate is roughly 85 percent.

Health saving accounts have been slow to catch on. Despite glowing praise from administration officials, and even the president on several occasions, HSAs have been under-subscribed.