Tax Strategies

The Streamlined Sales Tax Project, in labor since 2000, officially gave birth on Oct. 1, 2005, when the threshold of 10 states representing at least 20 percent of the population was crossed."There are now 13 full-member states and five more associate states," said SSTP co-chair Scott Peterson, of the South Dakota Department of Revenue and Regulations. The associate-member states are those that have passed the requisite implementing legislation, but where the legislation had not yet gone into effect by October 1.

Repealing the federal estate tax could end up choking off billions of dollars in contributions to charities whose resources have been stretched thin by the Hurricane Katrina relief effort, a top tax policy researcher warned Congress.Testifying on behalf of the Brookings Institution's Tax Policy Center, economist William Gale cited a variety of studies suggesting that "estate tax repeal would reduce charitable bequests by between 22 and 37 percent" - a drop that would drain between $3.6 billion and $6 billion each year from the nation's charities.

Calling the proposal for a "return-free" filing system "flawed" and "dangerous to taxpayers," 14 groups have written the President's Advisory Panel on Tax Reform to urge that it be taken off the table in any final report.While the timetable for a final report has been delayed by Hurricane Katrina relief efforts, with the final two scheduled meetings postponed, the return-free concept is one of the proposals under consideration by the panel.

A new study estimates that almost 30 percent of children potentially eligible for the child tax credit live in households with incomes too low to qualify for the entire $1,000 credit.

City council member and former Washington mayor Marion Barry is being investigated by the Internal Revenue Service and the U.S. Attorney's Office in Washington for failing to pay taxes, according to published reports.

The United States will appeal a World Trade Organization ruling that found a corporate tax break violates global trade rules, federal officials said.

Complying with the current federal tax code costs American taxpayers at least $100 billion annually, and lost economic efficiency associated with the tax system may top half a trillion dollars, auditors for the Government Accountability Office told Congress.

MCI Inc., formerly WorldCom Inc., will pay $331 million to 15 states and the District of Columbia to settle back tax claims and charges that it engaged in accounting fraud.

After a delay brought on by Hurricane Katrina, the President's Advisory Panel on Federal Tax Reform announced two October meetings and a deadline of Nov. 1 to issue its comprehensive report.

RSM McGladrey announced that its $220 million acquisition of American Express Tax and Business Services is a done deal after receiving approval from the Department of Justice.