Tax Strategies

The Internal Revenue Service announced that both its e-file and Free File programs are now accepting taxpayer returns.The agency is continuing its push to have taxpayers elect to file their returns electronically, boasting that users who e-file and choose direct deposit can receive their refund in half the normal time. All return information in protected through encryption and taxpayers will receive acknowledgement within 48 hours that the IRS has accepted the return.

The U.S. Tax Court will now require the Internal Revenue Service to file an answer in all small tax cases.The amendments to the court’s rules will apply to all petitions filed after March 13. Small tax cases are currently defined as cases where the amount of deficiency does not exceed $50,000.

Last week, it was again time for National Taxpayer Advocate Nina Olson to roll out yet another congressionally-mandated report detailing 20 of the biggest problems facing taxpayers.What’s impressive is that, for yet another year, her beefs were so fresh.

At times, taxing authorities give out surprising beneficial rulings. The only problem is, you must ask for the ruling. For example, there was my October 24, 2006, WebCPA column about an advisory opinion issued by the New York State Department of Taxation and Finance.It answered the following question: Are you taxed as a New York resident if you move into a New York nursing home for care because you are incompetent and in need of constant medical supervision? According to the opinion, the individual, lacking intent to move, remained a resident of Florida despite the move to a New York nursing home for care.

Two accountants have entered guilty pleas in connection with the sale of legally-questionable tax shelters.

Wolters Kluwer business CCH announced that Mike Sabbatis has been named to the newly-created position of president for CCH Tax and Accounting U.S.

Business taxpayers in Illinois will be the first in the country able to pay state withholding and federal taxes at the same time, through a single system.

The Internal Revenue Service announced that it has reached an agreement with the Hollywood Foreign Press Association to settle the pesky problem that is the taxing of exborbitant celebrity gift baskets.

What kind of company processes payroll and credit card and check payments, and offers banking services and account aggregation? Increasingly, the answer is an accounting software company.

The Treasury Department and the Internal Revenue Service issued a notice providing extensive guidance on several Pension Protection Act rules relating to distributions from tax-qualified retirement plans. The guidance addresses many questions on the law’s provisions, including: