Tax practice

NATIONAL SALES TAXES HIT RECORD LEVELS IN 2003: The sales tax rates levied by states, counties, cities and districts reached all-time highs in 2003, resulting in the largest overall increase in more than a decade, according to a report by tax technology company Vertex Inc.

Washington — The Treasury Department and the Internal Revenue Service say that they will propose regulations regarding the treatment of amounts that facilitate certain tax-free and taxable transactions and other restructurings, and that are required to be capitalized under Code Section 263.

New York — AccountMate, a developer of modifiable accounting and business management software for mid-market companies, is now offering a human resources solution through a new partnership with Ascentis and its AHROffice product.

by George G. Jones and Mark A. Luscombe

by Roger Russell

SOFTWARE GLITCH THAT CAUSED E-FILE REJECTS FIXED: A computer glitch that caused thousands of e-filed tax returns to be rejected in the first days of the filing season has been fixed, the Internal Revenue Service said.

by George G. Jones and Mark A. Luscombe

by Roger Russell

IRS Consolidates EITC in Single Office, Reminds Taxpayers to Check Eligibility: The Internal Revenue Service said that it consolidated its earned income tax credit management activities within a single EITC office as part of efforts to improve the accuracy of tax returns and to improve the agency’s internal processing procedures.

by George G. Jones and Mark A. Luscombe

by Roger Russell

TREASURY, IRS MOVE TO CURB OPINION LETTERS, IMPROVE DISCLOSURE: The Treasury Department and the Internal Revenue Service announced measures that are expected to have a chilling effect on the use of opinion letters that are drafted by accountants and attorneys, amid other measures aimed at increasing the transparency and disclosure of information to the IRS.

by George G. Jones and Mark A. Luscombe

by Roger Russell

GRASSLEY, BAUCUS INTRODUCE FUEL FRAUD PREVENTION ACT: Sen. Chuck Grassley, R-Iowa, chairman of the Committee on Finance, and ranking member Sen. Max Baucus, D-Mont., have introduced the Fuel Fraud Prevention Act.

St. Louis -- Citing better cost controls in its tax business, tax-prep giant H&R Block Inc. posted second-quarter profits of $10.4 million for the period ended Oct. 31, 2003, compared with a loss of $37.3 million for the same period a year earlier.

by George G. Jones and Mark A. Luscombe

by Roger Russell

GAO SAYS IRS 2003 FINANCIALS ARE GOOD AND BAD: The General Accounting Office said that fiscal 2003 financials from the Internal Revenue Service were “fairly presented in all material aspects.” However, the GAO said that the service “had to rely on resource-intensive compensating processes” to prepare its financial statements due to serious deficiencies in financial systems and internal control weaknesses.

In 1945, the delightful musical “Carousel” debuted at the Majestic Theatre in New York. In 1956, it became a movie. Written by Rodgers and Hammerstein, the play contains a number of memorable tunes, including “June Is Busting Out All Over.” This melody serves as a delightful backdrop to all of the earnings reports that have been issued recently.