Tax

My fifth grade teacher was, in, simplistic terms, an angry dolt who never should have been allowed in front of a classroom of impressionable young minds.

Despite an environment that’s putting increased scrutiny on corporate finances, the tax and finance functions of many companies still aren’t on the same page, according to a new research study.According to “Building a More Effective Tax Function,” a report prepared by CFO Research Services and Hudson Financial Solutions, large gaps exist between tax professionals’ and finance professionals’ perceptions of how the tax function performed and what the group’s priorities are.

Personal exemptions and standard deductions will rise, tax brackets will widen and income limits for individual retirement accounts will increase in 2007, due to inflation adjustments announced by the Internal Revenue Service.

The Tax Court reaffirmed that proceeds from the sale of a right to future annual lottery payments constitutes ordinary income, not capital gain, after reviewing two test cases involving winners of the Florida State Lottery.

Merck & Co. disclosed four separate tax disputes that have combined potential liabilities for the drug maker of more than $5.5 billion.

Florida lawyer Milton Baxley II, was sentenced to 18 months in prison and a $10,000 fine for committing contempt of court by violating an injunction barring him from promoting a tax scheme.

Following a drastic fall last week, Canadian stock exchange shares have risen as buyers came back into the market a day after a government proposal to change the tax treatment of income trusts.About 10 percent of the country’s benchmark stock index are among the securities classification targeted by the proposal. Under the proposal, the Canadian government would impose a distribution tax on payouts by income trusts, taking effect next year for newly formed trusts, while existing trusts receive a four-year transition period.

H&R Block announced a number of refund lending enhancements in a recent news release. A side-by-side comparison chart will outline all filing options, fees, and the time that it takes to receive a refund.H&R Block will also provide a report that states, among other things, that selecting a refund anticipation loan product means that taxpayers get less of their refunds. This announcement follows H&R Block's September announcement that it is reducing the cost of refund.

The Internal Revenue Service announced the selection of five new members for the Electronic Tax Administration Advisory Committee.

New research covering 86 countries has confirmed that while low corporate tax rates can help give a country a significant competitive advantage over economic rivals, the advantage tends to be short term.