Tax planning

RSM McGladrey announced that its $220 million acquisition of American Express Tax and Business Services is a done deal after receiving approval from the Department of Justice.

Taxpayers affected by Hurricanes Katrina and Rita now have until Feb. 28, 2006 to file tax returns and pay any taxes due, according to the Internal Revenue Service. Taxpayers affected by the hurricanes may be eligible for tax relief regardless of where they live.

Louisiana Gov. Kathleen Blanco asked lawmakers for help in rebuilding the state devastated by Hurricanes Katrina and Rita.

In a ruling that may affect the future of state job creation strategies across the nation, the Supreme Court will rule on how states can use tax incentives to entice large concerns such as car companies to make capital investments.

Wolters Kluwer Corporate & Financial Services will provide the Internal Revenue Service with online access to capital gain and loss information on publicly traded securities.

The Internal Revenue Service announced relief for taxpayers affected by Hurricane Rita, including many of the deadline reprieves and fee waivers enacted in the immediate aftermath of Hurricane Katrina.

After years of procedural delays, the trial between investment company Berkshire Hathway Inc. and the Internal Revenue Service has begun over the legality of tax deductions taken by the company in the late 1980s.

The Nelson A. Rockefeller Institute of Government issued a report detailing a 13.3 percent average increase in state tax revenues across the country.

It was a deal years in the making, though industry observers say that it didn't have to be.In striking an agreement to escape a potentially fatal criminal indictment for its sale of legally questionable tax shelters from 1996 to 2002, KPMG will pay a $456 million fine to the federal government and essentially spend the next 16 months on probation. The firm has also agreed to close its tax business for high-net-worth individuals within six months.

TREASURY, IRS ANNOUNCE PROPOSED COST-SHARING REGS: The U.S. Treasury Department and the Internal Revenue Service announced proposed regulations that provide further guidance to Section 482, which determines taxable income in connection with cost-sharing arrangements affecting intellectual property.The changes could mean a big difference to the bottom lines of companies in the pharmaceutical and software industries, whose main asset is their intellectual property.

A new set of proposed regulations from the Internal Revenue Service aims to change the way companies use accounting methods to switch profits from countries with high corporate tax to countries where corporate taxes are low.The regs - all 85 pages of them - create an ambitious regime with a number of nebulous new concepts, including an "investor model," to insure that businesses value intangibles, such as marketing, research and development, and patents, in a way that will maximize exposure to U.S. tax.

Despite concerns over the rising deficit, both houses of Congress sent a $6.1 billion Katrina tax-relief bill to President Bush for his signature without a dissenting vote being cast.

RIA, a part of the Thomson Corp. providing information and software to tax professionals, has computed the changes to next year's tax brackets, standard deductions, personal exemptions and other important tax breaks.

Richard Hatch, who won $1 million on the first season of the CBS reality show "Survivor," pleaded not guilty to charges that he failed to pay taxes on his winnings and other income. He was released on a $50,000 bond.

In response to the housing crisis as a result of Hurricane Katrina, House Financial Services chairman Michael G. Oxley, R-Ohio, and Rep. Richard Baker, R-La., said they would adjust an affordable housing fund, currently in pending legislation, in order to meet housing needs of Katrina survivors.

Both the House and Senate passed nearly $5 billion in tax cut bills, aimed at helping victims of Hurricane Katrina and the people who provide them shelter.

The Government Accountability Office released a comprehensive overview of the tax reform debate.

Moving on from its recent legal troubles, KPMG named vice chairs for its tax services and tax services operations.

Although Congress has authorized tens of billions of dollars in tax breaks to help American families cope with rising college costs, millions of taxpayers are failing to cash in on this government assistance.

The Internal Revenue Service said victims of Hurricane Katrina will have until Jan. 3, 2006 to file any returns, pay any taxes, or make any deposits due -- extending an earlier announced reprieve.