Tax Strategies

Federal prosecutors have notified as many as 20 former partners at Big Four firm KPMG LLP that they may face criminal charges for selling illegal tax shelters.

Tax information providers CCH and RIA both released comprehensive explanations and practical analyses of the tax provisions contained in the Energy Policy Act of 2005 and the Safe, Accountable, Flexible and Efficient Transportation Equity Act of 2005.

The Electronic Tax Administration Advisory Committee, the consortium that is charged with advising the Internal Revenue Service on its e-filing strategy, is exhorting the service to accelerate its previously announced plans to update its e-filing process.

Tax preparation giant H&R Block Inc. has said in a filing with the Securities and Exchange Commission that it overstated net income for 2003 and 2004 by $91.1 million, due mostly to accounting errors.

The Internal Revenue Service will scrap its plans to close 68 Taxpayer Assistance Centers after Congress insisted the agency further study the potential impact of the closures.

Tax preparation giant H&R Block Inc. will acquire the Tax & Business Services division of American Express, creating a combined firm with more than 5,000 employees and generating more than $1 billion in annual revenue.

A judge has ordered the Internal Revenue Service to pay more than $250,000 after determining an IRS agent disclosed confidential information during a criminal investigation.

Although the White House said it reviewed tax returns for Supreme Court nominee John G. Roberts Jr., it has stopped short of allowing investigators from the Senate Judiciary Committee to review the returns as part of the confirmation process.

Lawmakers reached an agreement, putting together $14.5 billion in energy tax breaks as part of a major energy bill years in the making. Both the House and Senate are expected to approve the bill this week.

The Internal Revenue Service has begun a study to assess the reporting compliance of S corporations. The study, carried out under the National Research Program, will examine 5,000 randomly selected S corporation returns from tax years 2003 and 2004. Created in 2000, the NRP is a comprehensive effort by the IRS to measure payment, filing and reporting compliance for different types of taxes and various sets of taxpayers.