Tax

The President's Advisory Panel on Federal Tax Reform submitted two proposals to the Treasury Department after months of work -- the first pushing for major simplification of the current income tax system and a second recommending changes for businesses that lead to an indirect tax on consumption.

I've been rattling off a canned two-line description of the restrictions put on the work of the President's Advisory Panel on Tax Reform for so many months now, that I've stopped recognizing the restrictions for what they are.

The Internal Revenue Service announced a limited opportunity for taxpayers to come forward and settle an array of transactions that the IRS considers abusive.

A federal judge ordered the Internal Revenue Service to pay Warren Buffett's investment company, Berkshire Hathaway Inc., more than $23 million in taxes and interest for disallowing certain deductions dating back to 1989.

Ameriprise Financial Inc. will pay $1.25 million to settle an enforcement action brought by regulators over its sales of Section 529 college savings plans, the company said. Ameriprise neither admitted nor denied wrongdoing.

With the President's Advisory Panel on Federal Tax Reform due to report Nov. 1, we asked industry leaders, many who made Accounting Today's recently released 2005 Top 100 Most Influential People list, to tell us what sort of tax system they would create.

The Internal Revenue Service and the Free File Alliance have extended their partnership, a pact that provides free tax services and electronic filing to an eligible pool of 93 million taxpayers, and providing important new consumer protections.

The Treasury Department has made three new appointments to the Office of Tax Policy.Michael J. Desmond was named tax legislative counsel, Harry J. "Hal" Hicks III was named international tax counsel and Robert H. Dilworth was named senior advisor.

The Internal Revenue Service is seeking 84,290 taxpayers whose income tax refund checks could not be delivered in 2005. Checks totaling approximately $73 million can be reissued as soon as taxpayers correct or update their addresses with the IRS.In some cases, a taxpayer has more than one check waiting. The average amount owed to each taxpayer is $871.

$6.1B KATRINA RELIEF BILL HEADS TO PRESIDENT: Despite concerns over the rising deficit, both houses of Congress sent a $6.1 billion Katrina tax-relief bill to President Bush for his signature without a dissenting vote being cast.The House gave its approval on a 422-0 vote, and the Senate moved the legislation through without a roll call. At press time, the president was expected to sign it.