Tax Strategies

The odds are looking better for Senate approval of legislation to increase the minimum wage. But reconciling that bill with a House version -- containing no tax breaks for businesses -- figures to take some negotiating.Senate debate on the bill ended Tuesday with an 87-10 vote, and final Senate passage of the bill is expected this week.

To each his own. And all’s fair in love, war and “Behind Closed Doors Wednesdays.”Robert Flach, a Jersey City, N.J., accountant who holds a masters in taxation, has been in the business for 36 years since inheriting the tax prep business of his mentor. He already had a couple of returns completed when I talked to him earlier in the week, and expects to complete around 400 by the time the season is over.

The Internal Revenue Service has updated both its Form 940, “Employer's Annual Federal Unemployment Tax Return,” as well as online tools to help taxpayers determine whether they should deduct their state and local general sales taxes, or whether they might owe the alternative minimum tax.The IRS has redesigned Form 940 to be more user-friendly for the more than 1 million payroll professionals and business owners who file the form.

A new Web site from Link2Gov allows taxpayers to make federal balance-due tax payments via debit card, paying a fixed convenience fee of $2.95.

Successful filing of electronic tax returns, as well as meeting the accounting requirements of FIN 48, are the biggest challenges facing corporate tax professionals in 2007, according to an informal survey by Thomson Tax & Accounting.

For a government agency with such a bad rap in popular culture, the Internal Revenue Service performed well in a recent survey asking taxpayers to comment on customer service levels.In October 2005, the IRS Oversight Board hired Roper Public Affairs to conduct a study of U.S. taxpayers to gain a better understanding of customer service needs and expectations; taxpayers' views of major customer service programs offered by the IRS and preferences for the various IRS service channels; and how the agency could better tailor its services to meet taxpayers' needs.

Cost segregation and 1031 like-kind exchanges are two of the most valuable tax planning strategies available to commercial real estate investors. Through proper planning, both tax-deferral techniques can be used on the same properties in order to obtain the maximum benefit.However, the combination of the two can present challenges. In order to use cost segregation and 1031 exchanges together successfully, the property owner's tax advisor must be well versed in both techniques, and understand how they apply to the individual investment strategy of the client.

The Internal Revenue Service said that early filings show some individual taxpayers have requested large and apparently improper amounts for the special telephone tax refund.“We are seeing some clear abuse involving overstated refund requests,” said IRS Commissioner Mark W. Everson, in a statement. “People requesting an inflated amount will likely see their refund frozen, may have their entire tax return audited and even face criminal prosecution where warranted.”

The Internal Revenue Service Oversight Board said that the agency still has a ways to go before fully reaching the vision outlined in the IRS Restructuring and Reform Act of 1998.

As someone who’s held a driver license since Richard Nixon was in the White House, it’s hard for me to drum up any sympathy for the big oil companies.