Tax

Congress can't seem to agree on what to do about an economic stimulus package, which could mire the effort to produce an effective package in time to do some good.

A man who was rumored to be Babe Ruth's nephew and namesake, George Herman Ruth, and a fellow jail inmate, were convicted of defrauding the Internal Revenue Service of approximately $360,000 after filing false tax returns while in jail.

The defense in the Wesley Snipes tax evasion trial has rested without calling any witnesses.

A prominent Senate Democrat said that he would add rebates for senior citizens who depend on Social Security to the economic stimulus package, along with an extension of unemployment benefits.

The House voted by a 385 to 35 margin to pass the economic stimulus package agreed to by President Bush and House leaders.

Three defendants, including two CPAs, whose trial was scheduled to begin in U.S. District Court in Salt Lake City, have pleaded guilty to conspiring to defraud the United States, said the Justice Department.

Accounting firm Gilman Ciocia said it is launching an advertising campaign in South Florida and the New York metropolitan area to attract taxpayers this season.

The California Society of CPAs and the California CPA Education Foundation launched a Financial Leadership Forum to provide education, training and other resources for CPAs and business and finance executives.

Despite a number of last-minute tax law changes — highlighted by the Alternative Minimum Tax “patch” that will inevitably delay the processing of some returns — most observers expect a smooth filing season ahead.“The late passing of the Alternative Minimum Tax legislation had a tremendous impact on the start of tax season,” said Jo Ann Cummings, product manager of CCH’s ProSystem fx. “It caused the IRS to delay the filing of returns with certain forms until February 11.”

For those who live and breathe cost segregation work, there’s an element of surprise surrounding how little most people — CPAs included — know about the tax-savings strategy.“On a recent proposal opportunity, a tax principal and I met with a potential client who owns 15 properties,” said Lawrence Knutson, CPA/ABV and consulting senior manager at Ehrhardt Keefe Steiner & Hottman PC in Denver. “The potential client had developed the properties over the last 20 years. He had a sole proprietor doing his tax return who is retiring. We came in and the first thing we mentioned was cost segregation. He had never heard of it. We see that more and more. I don’t think we’ve fully realized the size of the cost segregation market.”