Practice and client management

It has come to my attention that the advisor-client relationship may be sinking and that you need to do something about it.My friends at SEI, a leading global provider of outsourced asset management, investment processing, and investment operations solutions, has done us all a big favor with its latest survey of some 100 clients of the SEI Advisor Network because it reveals that 28 percent of advisors attribute client relationship failures to a lack of understanding. The result is that advisors need to communicate more clearly to avoid straining or losing clients.

Business-information provider D&B Corp. has acquired First Research for $22.5 million in cash.

The Treasury Inspector General for Tax Administration said that although the process to separate joint tax accounts in innocent spouse cases has been improved, additional action needs to be taken.The Internal Revenue Service separates joint tax accounts to help protect innocent spouses from enforcement action that may be taken against the spouse who actually owes the feds.

A local accounting firm has alerted its 4,000 clients that their private financial records -- including Social Security numbers, addresses, credit card information and signature documents -- have been stolen.Santa Rosa, Calif.-based Tax Service Plus told authorities that thieves stole the business’s back-up computer on March 7, which contained data on thousands of tax returns filed over the past three years.

Retailers and other businesses that sell prepaid phone cards for long-distance service can usually qualify for the telephone tax refund, according to the Internal Revenue Service.

In an effort to assist taxpayers who pay their taxes owed with a credit card, H&R Block Inc. has teamed with payment processing company Link2Gov to lower the convenience fee to 1.99 percent, from 2.49 percent.

Everyone has a story of the email they accidentally sent to the wrong recipient, or the computer that crashed and lost an entire day’s worth of work.The disaster recovery industry has proven to be a lucrative one in the age of information, and recent snafus at the Alaska Department of Revenue and the Canada Revenue Agency only serve to underscore that problems can happen -- and illustrate the different ways in which an organization can be prepared for the worst-case scenario.

Although I have been in professional publishing and writing for tax practitioners for over 30 years, a good Internal Revenue Service letter ruling or a Tax Court decision still excites me. This is especially true when they are taxpayer victories that tax practitioners can use to benefit clients that are similarly situated.

Citing pressures created by the nation's current and projected budget deficit, a growing long-term fiscal imbalance and a heavier workload that may impair its ability to serve its mission to Congress, the Government Accountability Office has requested a 2008 budget of $530 million – an 8.5 percent rise over the previous year’s funding levels.

Backed by a 20-year resume in claims experience, Redwood City, Calif.-based Camico Mutual Insurance Co. has identified the areas and sources of frequent tax claims lodged against CPAs.With tax season in full swing, here are some of the fruits of the company's experience with practitioner claims - and things to watch for as you wade through all those 1040s.

IRS HELPS CITIZENS ABROADWASHINGTON - The Internal Revenue Service and the U.S. Treasury have released guidance on the estimated tax penalty for citizens or residents of the United States living and working abroad.

While an administration and Congress may differ on the tax proposals that they want to see passed, especially when each is controlled by a different political party, there often are some areas of agreement. In addition, certain provisions may become acceptable as tradeoffs. Still others make it into law due to issues that may spark widespread public attention.President Bush's tax proposals within his fiscal year 2008 budget - contained in the Treasury's general explanation of the administration's FY 2008 revenue proposals (a.k.a. the "Blue Book") - have something to fit each category.

The Internal Revenue Service needs to do a better job of reviewing the non-cash charitable contributions deductions taxpayers are claiming.

The Internal Revenue Service has posted the 2006 Data Book on its Web site.

With many of its players accruing lengthy rap sheets, charged with felonies ranging from illegal firearms possession to sexual assault, it would be safe to say the National Football League has been battling something of an image problem of late.

The measures to close the tax gap offered by President Bush in his 2008 budget are somewhat modest, according to observers.The president's $2.9 trillion budget contains a number of legislative proposals to close the gap in four areas: by expanding information reporting, improving compliance by businesses, strengthening tax administration and expanding penalties.

Tax prep giant H&R Block Inc. announced that it has opened up shop in the online virtual universe known as Second Life.Second Life is entirely built and owned by its residents, who have created a 3-D world that includes homes, vehicles, nightclubs, stores, landscapes, clothing and games. Last month, the site passed the 4-million-account threshold, though many accounts are not active and some residents have multiple accounts.

The Internal Revenue Service announced that through March 13, more than 2.6 million taxpayers have electronically filed their returns using the agency’s Free File program. TThough that’s about 4 percent drop from the number of returns filed during the same time last year.

Treasury Secretary Henry Paulson said that U.S. rulemakers should consider adopting "principles-based" regulations and accounting standards in a speech at the Capital Markets Competitiveness Conference.Paulson said that in particular, there should be a focus on three issues in the United States -- the country’s regulatory structure, its accounting industry and its legal and corporate governance environment.

A Goldman Sachs investment banker, who earned $115,000 in 2002, will not be able to take all of the $55,000 charitable contribution deduction she took for that tax year -- $49,000 of which she took for donations of used clothing to a thrift store.