Tax planning

On a professional level, tax time for me means a series of futile attempts to contact CPAs and whole firms that have basically gone into hibernation until the tulips and crocus begin to bloom. Even the simplest request, such as confirming an address or partner count, is often met with a sweeping anathema from an otherwise sunny receptionist, who sounds more like an enraged stevedore who got his hand caught in a gaffing hook.

* IRS SUSPENDS PLAN TO CLOSE ASSISTANCE CENTERS: The Internal Revenue Service will scrap its plans to close 68 Taxpayer Assistance Centers after Congress insisted the agency further study the potential impact of the closures.

The AMT Credit Fairness Act has been introduced in the House with significant bipartisan sponsorship. The bill provides relief for incentive stock option alternative minimum tax victims by accelerating the refund of stranded ISO AMT overpayment credits that, under current law, would not be returned within the taxpayer's lifetime.

The Public Company Accounting Oversight Board adopted new ethics and independence rules for auditors that place clear limits on the ability of accounting firms to offer tax services to their audit clients.

A former accountant at bank HVB Group pleaded guilty in the first prosecution arising from a Senate investigation of tax shelters.

Negotiations are continuing between federal prosecutors and KPMG, and an indictment of the firm for its role in selling tax shelters appears to have been ruled out, according to published reports.

The Internal Revenue Service was recognized for its community-based partnerships linking low-income taxpayers with organizations that prepare tax returns for free, ensure they properly receive tax credits and assist them with ways to build financial savings.

The unexpected jump in tax receipts projected for the fiscal year ending in September provides additional momentum for real tax reform, according to observers.

During a recent meeting in Chicago, representatives of the 18 states in the Streamlined Sales Tax Project reached agreement on how items are to be classified across the board for purposes of assessing sales tax.

National Taxpayer Advocate Nina E. Olson urged the Internal Revenue Service to focus more broadly on steps to increase voluntary compliance.

The administrators of a Utah college savings plan have settled with the Securities and Exchange Commission for issuing false and misleading information, though the fund's former director will be charged with misappropriating funds.

Federal prosecutors have notified as many as 20 former partners at Big Four firm KPMG LLP that they may face criminal charges for selling illegal tax shelters.

Tax information providers CCH and RIA both released comprehensive explanations and practical analyses of the tax provisions contained in the Energy Policy Act of 2005 and the Safe, Accountable, Flexible and Efficient Transportation Equity Act of 2005.

The Electronic Tax Administration Advisory Committee, the consortium that is charged with advising the Internal Revenue Service on its e-filing strategy, is exhorting the service to accelerate its previously announced plans to update its e-filing process.

Tax preparation giant H&R Block Inc. has said in a filing with the Securities and Exchange Commission that it overstated net income for 2003 and 2004 by $91.1 million, due mostly to accounting errors.

The Internal Revenue Service will scrap its plans to close 68 Taxpayer Assistance Centers after Congress insisted the agency further study the potential impact of the closures.

Tax preparation giant H&R Block Inc. will acquire the Tax & Business Services division of American Express, creating a combined firm with more than 5,000 employees and generating more than $1 billion in annual revenue.

A judge has ordered the Internal Revenue Service to pay more than $250,000 after determining an IRS agent disclosed confidential information during a criminal investigation.

Although the White House said it reviewed tax returns for Supreme Court nominee John G. Roberts Jr., it has stopped short of allowing investigators from the Senate Judiciary Committee to review the returns as part of the confirmation process.

Lawmakers reached an agreement, putting together $14.5 billion in energy tax breaks as part of a major energy bill years in the making. Both the House and Senate are expected to approve the bill this week.