Practice management

The Internal Revenue Service has issued proposed regulations implementing amendments to the tax return preparer penalties.

One of the consequences of the credit crisis that began in the summer of 2007 was the deterioration in the U.S. housing market, rendering the valuations of securitized or structured mortgage-backed assets volatile.The contracting demand for these assets — which had been dramatically overvalued by brokers who earned substantial commissions by pushing over 600 varieties of these assets to hedge fund managers through repos that were leveraged without regulatory bounds — precipitated the tightening of unsecured term funding. That led to credit downgrades, massive write-downs of MBS assets by financial institutions according to mark-to-market accounting rules, and illiquidity.

IRS PLANS TAX SHELTER CRACKDOWNWashington, D.C. — Internal Revenue Service Commissioner Douglas Shulman promised to continue enforcement efforts against tax shelters.

Let’s face it: The next 15 years are going to be hard for small firms to compete and survive. The external environment and demographic facts speak clearly:* 8,000 Baby Boomers are retiring each day.

International work assignments — both inbound and outbound, short-term and long-term — have become more common as the world gets “smaller” and “flatter.”While on foreign soil, most employees feel that they deserve additional compensation and that they should be at least somewhat released from the growing number of domestic tax rules that restrict compensation packages. Some of the more irksome rules restricting compensation arrangements lately are contained in the final regs under Code Sec. 409A on nonqualified deferred compensation.

The Internal Revenue Service is falling short on inspecting the international tax transactions of small businesses for compliance problems, according to a new report.

Reeling from an unfavorable court decision on its tax strategy, banking giant KeyCorp said it would take an after-tax accounting charge of between $1.1 billion and $1.2 billion in the second quarter, cut its dividend in half and raise another $1.5 billion by issuing shares.

The Internal Revenue Service said its e-Services online tools will be out of service the last weekend in June.

BKD said it is combining forces with the Hanke Group, allowing the Springfield, Mo.-based accounting firm to expand to Hanke's San Antonio and south Texas markets.

Senate Finance Committee Chairman Max Baucus, D-Mont., introduced the Energy Independence and Tax Relief Act of 2008 as Democrats and Republicans haggle over how to pay for extending expiring tax provisions.

Presidential hopefuls Sen. Barack Obama, D-Ill., and Sen. John McCain, R-Ariz., clashed over their tax plans, trading accusations of hikes in capital gains and Social Security taxes.

The Small Business Administration has created an online tax savings resource center to help small businesses understand the benefits of the economic stimulus package.

Senate Republicans have defeated a proposal to charge oil companies a windfall profits tax.

The Internal Revenue Service is pursuing billionaire Philip Anschutz over $143.6 million in back taxes in an effort to discourage arrangements that allow people to defer paying capital gains taxes.

The Association of Accounting Marketing presented awards to 45 accounting firms and marketers at its annual conference.

The AICPA Private Companies Practice Section (PCPS) did a remarkable job with its 2007 Top MAP Issues survey, and it was done without even changing the question that is asked each year or who was asked. It was done simply by taking a knife and cutting up the answers. The annual survey asks various practitioners in public practice: What are your top five MAP concerns?

The Internal Revenue Service has added new features to its Online Payment Agreement Application, making it easier for taxpayers and practitioners to modify existing installment agreements for paying tax debts to the government.

Sage Software has launched a program to put its Peachtree accounting program in more family-owned businesses by giving away free copies and support.

The Senate Finance Committee held hearings on small business tax issues as part of a series of hearings on tax reform.

The U.S. Tax Court has proposed amending its rules and procedures for whistleblower award actions.