Tax
Tax News & IRS Insights for Accounting Professionals
Accounting Today delivers news and analysis for accounting and tax professionals on federal and state tax developments, IRS guidance,information reporting, and operational implications for practices and clients. Our coverage focuses on legislative and procedural shifts that tax practitioners must monitor in planning, compliance, and advisory contexts.
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The Internal Revenue Service needs to do a better job of reviewing the non-cash charitable contributions deductions taxpayers are claiming.
March 18 -
The Internal Revenue Service has posted the 2006 Data Book on its Web site.
March 18 -
The Internal Revenue Service issued guidance identifying dozens of frivolous positions that taxpayers should avoid when filing their tax returns.The guidance lists 40 positions which have no basis for validity in existing law or which have been deemed frivolous by the U.S. Tax Court, or another federal court. If these or other frivolous positions are contained in a tax return, taxpayers could face a $5,000 penalty -- 10 times the previous maximum.
March 18 -
At least one in five workers eligible for the Earned Income Tax Credit will leave that money on the table this tax season, and Congress is looking to accountants and other tax professionals to help address the problem.During hearings before the House Ways and Means Oversight Subcommittee, congressional leaders said that while 22 million low-income families and individuals claimed EITC wage subsidies last year, millions more who are eligible for the tax credits don't receive them.
March 18 -
The Internal Revenue Service has rolled out its annual list of the 12 most blatant tax return scams. Topping the "Dirty Dozen" are fraudulent claims for the one-time Telephone Excise Tax refund. Also new to the list this year are abuses pertaining to:* Roth IRAs. Taxpayers should be wary of advisors who encourage them to shift under-valued property to these IRAs. In one variation, a promoter has the taxpayer move under-valued common stock into a Roth IRA, circumventing the annual maximum contribution limit and allowing otherwise taxable income to go untaxed.
March 18 -
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.
March 18 -
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.
March 15