WebCPA - Tools and Resources for the Electronic Accountant

Jobs Bill Entails More Foreign Bank Income Reporting

The jobs bill signed by President Obama on Thursday includes various revenue-raising provisions that would put foreign financial institutions with U.S. taxpayers under a new reporting and tax regime.

House Committee Passes Small Business Tax Cut Bill

The House Ways and Means Committee has approved legislation to provide tax relief to small businesses and extend financing measures for creating jobs.

House Drafts Small Business Jobs Tax Bill

House Ways and Means Committee Chairman Sander Levin, D-Mich., has unveiled a draft of a new bill that would provide tax incentives to small businesses to spur job creation.

Tax Day Renamed Cyber Tax Day (Unofficially)

April 15 is normally referred to as Tax Day, but one man wants to change that.

Congressman Introduces Bill to Expand R&D Tax Credit

Rep. Rush Holt, D-N.J., has introduced legislation to encourage small business investment and job creation by expanding the research and development tax credit.

TAX NEWS

Obama proposes small-biz tax cut; GAO cites problems with S corp tax compliance

Budget aims to boost jobs, economy

Despite its significant tax increases, President Obama's 2011 $3.8 trillion budget plan contains a number of revenue provisions calculated to encourage business expansion and move the economy upward.

Amazon Dumps Colorado Sites in Response to Tax

Amazon.com has cut off its affiliates in Colorado in response to a new law that requires Web retailers to send a statement to their customers every year of how much tax they should be paying on their purchases.

AMT Fix, Tax Extenders Could Add $3 Trillion to Debt

The Congressional Budget Office has released an estimate of the budgetary effects of President Obama’s proposed budget for fiscal year 2011 and found that some of the tax cuts could add another $3 trillion to the national debt over the next 10 years.

Tax Consequences of FBAR Filings

To gather information for law enforcement, particularly drugs and organized crime, Congress has long required U.S. persons owning or having signatory authority over foreign financial accounts to file a report with the Department of the Treasury disclosing information about the accounts.

Senate Introduces Unemployment and Tax Extenders Bill

Senate Democrats have introduced legislation to extend unemployment benefits, a 65 percent subsidy for COBRA health insurance for the unemployed, and a large set of tax breaks that expired at the end of last year.

Jobs Bill May Not Pack a Big Enough Punch

The Senate’s latest stimulus effort, a “jobs bill” named the Hiring Incentives to Restore Employment Act, passed this week with a 70 to 28 margin.

Liberty Tax Sees Gains This Tax Season

Liberty Tax Service has reported a 10.2 percent increase in the total number of tax returns filed as of Feb. 15, 2010, and a 28.1 percent increase in revenue generated, a marked contrast with rival H&R Block.

Senate Mulls Taxes and Small Business Job Creation

The Senate Finance Committee held a hearing to discuss trade and tax issues relating to small business job creation.

Senators Introduce Bipartisan Tax Simplification Bill

Sen. Ron Wyden, D-Ore., and Judd Gregg, R-N.H., have introduced legislation to eliminate many of the exemptions, deductions, credits and other tax breaks in the Tax Code.

States Contemplate Drastic Tax Hikes

Lacking Congress’ ability to address problems with deficit spending, financially squeezed state legislatures across the country are considering desperate tax increases that would have been politically unthinkable just a few years ago.

Senate Passes Job Creation Bill

The Senate approved a job creation bill Wednesday after 13 Republicans agreed to vote for the measure, which includes tax breaks for businesses that hire or retain employees.

Obama Presents Unified Health Care Legislation

The White House has published the health care reform package that President Obama plans to present to Republican and Democratic congressional leaders at the summit on Thursday.

Treasury Hopes to Expand New Markets Tax Credit

The Treasury Department announced plans to extend and expand the New Markets Tax Credit with a proposal in the fiscal year 2011 budget to provide $5 billion in credits to speed recovery in hard-hit communities.

Execs Concerned about U.S. International Tax Policy

U.S. taxation of international operations was named as the top business tax concern in 2010, according to a poll of senior tax executives at multinational companies and trade associations.

One year later

A scorecard on the Obama presidency

New reporting rules for passive activities force group decisions

As part of the IRS's continuing efforts to require greater disclosure of tax positions and strategies on returns, it recently released new, mandatory disclosure rules for grouping passive activities.

Tax credits for college credits

Tax strategies lighten college tuition burden - to a point

Discovering tax, and themselves

The fourth year of Ernst & Young's Discover Tax Leadership Conference drew 102 minority college students from all over the country to New York (braving the cold) to learn about tax - and themselves.

Senator Proposes Alternative Bill to Tax Bonuses

Sen. Sherrod Brown, D-Ohio, has introduced a bill that would tax more Wall Street bonuses than similar legislation introduced a week ago.

Reid Scales Back Senate Jobs Bill

Senate Majority Leader Harry Reid, D-Nev., has unveiled a stripped-down version of the draft jobs legislation that was proposed only hours earlier by the bipartisan leaders of the Senate Finance Committee.

Senate Releases Draft of Jobs Bill

Senate Finance Committee leaders publicly released a draft Thursday of the widely anticipated jobs bill they plan to introduce, including payroll tax provisions and the extension of a number of tax breaks that expired last year.

Senate Passes Bill to Fix Small Biz Tax Penalties

The Senate has unanimously approved a bill that would prevent small businesses from incurring large tax penalties aimed at large corporations and wealthy individuals who invest in tax shelters.

Senate Democrats’ Jobs Bill Includes Tax Breaks

Senate Democrats have begun circulating a draft version of the jobs bill they plan to introduce, with a series of tax breaks and tax extenders designed to lure Republican support.

“Robin Hood Tax” Targets Bank Transactions

A coalition of charities, aid groups, unions, and movie actors and directors has launched a campaign calling for a global 0.05 percent tax on banks’ speculative financial transactions, with the proceeds going to combat poverty and climate change.

Senators Propose Tax on Wall Street Bonuses

Sen. Barbara Boxer, D-Calif., and Jim Webb, D-Va., have introduced legislation that would impose a tax on large bonuses paid by Wall Street banks and other firms that received more than $5 billion from the Troubled Asset Relief Program in 2009.

Obama’s Budget Plan Is More Like a Wish List

Despite its massive tax increases, the President’s 2011 Budget Plan contains a number of revenue provisions calculated to encourage business expansion and move the economy upward.

U.S. Inks Tax Treaty with Chile

Treasury Secretary Tim Geithner and Chilean Finance Minister Andrés Velasco signed a new income tax treaty between the United States and Chile to provide certainty and stability of tax treatment for U.S. and Chilean cross-border investors.

U.S. Signs Income Tax Treaty with Hungary

The United States and Hungary have signed a new income tax treaty that brings an existing agreement signed by the two countries in 1979 into closer conformity with current U.S. international tax policy.

Google’s Irrationally Exuberant Tax Strategy

Google has contrived a convoluted way to determine its income tax responsibilities to the U.S. and other taxing jurisdictions, in part by shifting income to its operations in Ireland.

The Tax Implications of the State of the Union: Podcast

AICPA vice president of taxation Tom Ochsenschlager discusses the likely tax law implications of President Obama's State of the Union speech with Accounting Today editor Roger Russell.

Governments to Share More Transfer Pricing Data

A new report from BNA Tax & Accounting on transfer pricing predicts that tax authorities in different countries will continue to closely scrutinize intercompany transactions across national borders and will begin simultaneous audits of several large companies’ intercompany prices this year.

CPA Guide to Sales and Use Tax Released

A free guide for CPAs to sales and use tax has been released by sales tax technology provider SpeedTax.

Obama Calls for Expanding Middle-Class Tax Benefits

President Barack Obama and Vice President Joe Biden previewed some of the major themes in the president’s upcoming State of the Union address, including a proposal to increase some tax credits for middle-class families.

Swiss Court Nixes UBS Tax Deals

Switzerland’s Federal Administrative Court has ruled that the agreement for UBS to disclose the identities of 4,450 U.S.-based taxpayers to the IRS violates the country’s banking secrecy laws.

CPA Firm Develops Charitable Donation iPhone App

BMG CPAs LLP has created iDonatedIt, an iPhone and iPod Touch application that calculates, tracks, and reports non-cash charitable donations.

Liberty Picks Non-Celebrity Pitchman for Online Tax Service

Liberty Tax Service has taken a cue from the Subway sandwich shop chain and hired a “Jared-like” customer as the official spokesman for its eSmartTax.com online tax prep service.

Watch Out for More State and Local Taxes

The effects of the economic downturn have been particularly hard on states, which will make life interesting in the year ahead for firms that sell services in the state and local tax area.

Grant Thornton Expects Further State Budget Pain

Grant Thornton anticipates state budgets will remain under pressure this year even if the economy improves.

Haiti Donations Could Be Deductible This Tax Season

The devastating earthquake in Haiti last week is spurring relief efforts from countries around the world, but the U.S. is playing a key role in providing both help and security, along with much-needed funds.

CF&W Seals Pact to Boost Global Tax Services

Calvetti, Ferguson & Wagner, P.C., a CPA and business advisory firm specializing in tax, audit and advisory solutions, sealed a partnership with global transactional concern Verse Consulting that will bolster its international tax offerings to mid-market companies.

Lawmakers Propose Bill to Speed Haiti Tax Deductions

A bipartisan group of lawmakers in Congress plan to introduce legislation that would allow individuals who make charitable contributions to help victims of the earthquake in Haiti to claim an itemized charitable deduction on their tax return this year instead of waiting until next year.

Lawmakers Call for Wall Street Bonus Tax

As Wall Street firms prepare to hand out record levels of bonuses, a group of lawmakers on Capitol Hill have co-sponsored a bill that would slap a 50 percent tax on many of the bonuses.

Democrats Reach Deal with Labor on Health Taxes

The White House has reportedly cemented a deal with labor union leaders scaling back the tax on so-called “Cadillac” health insurance plans.

Tax Preparer Testing May Discourage Registration

Although most observers are on board with the new proposals to register, test and license tax return preparers, some questions about the goals and the process remain.

Jackson Hewitt RAL Program Remains Underfunded

Jackson Hewitt Tax Service warned in a regulatory filing that it only has enough funding to cover 50 percent of the refund anticipation loans it anticipates making this tax season.

H&R Block Opens Times Square Flagship

Tax prep chain H&R Block opened a new flagship office in Times Square on Thursday, complete with a giant “smart wall” where clients can be guided through an interactive “tax experience.”

Tax Strategy: The expanded and extended homebuyer credit

Changes could make more taxpayers eligible

New York exempts all CPAs from tax preparer registration

Bill signed into law gives CPAs a pass

From tax preparers to tax prognosticators

The economic crisis and the downfall of the real estate market spurred a slew of tax law changes that will impact the upcoming filing season.

Compliance tops list of IRS concerns for 2010

Tax return preparers who claim inflated personal or business expenses, false deductions, unallowable credits or excessive exemptions on returns prepared for their clients are a major concern for the Internal Revenue Service during the upcoming filing season, according to a spokesman for the service.

No crystal ball needed

While the shape of tax policy remains uncertain in some areas - at press time, Congress was considering a wide range of tax bills, including changes to the estate tax regime, and the extension of a number of tax credits and deductions, among other things - there are a few areas of certainty.

TAX NEWS

House approves 45% estate tax extension; thousands disclose foreign accounts; millions may owe under Making Work Pay.

Taxing times call for more than tax prep

Financial planning is natural outgrowth in client service

Obama Awards $2.3B in Tax Credits to Spur Jobs

The Obama administration is handing out $2.3 billion in Recovery Act Advanced Energy Manufacturing Tax Credits for clean energy projects to provide jobs across the U.S. after announcing a disappointing employment report for December.

OO Decade or Eww Decade?

Call it what you like, but the first decade of the millennium has passed with many a whimper.

Kansas May Need 16 Weeks to Refund Paper Tax Filings

The Kansas Department of Revenue warned that it may take up to 16 weeks to process state tax returns filed on paper as the state copes with budget cuts.

Jackson Hewitt Strikes RAL Deal with Republic

Jackson Hewitt has signed an amended agreement with Republic Bank & Trust to act as a partner for refund anticipation loans after the tax prep chain’s previous partner, Santa Barbara Bank & Trust, was forced to stop providing RALs.

U.S. Amends Income Tax Treaty with France

The Treasury Department said a new protocol amending the income tax treaty with France has entered into force.

Jackson Hewitt in RAL Trouble from Bank Partner

The bank that Jackson Hewitt Tax Service uses to process and administer its refund anticipation loans will not be in a position to originate RALs for the 2010 tax season, according to the company.

Eisner Offers Tax Guide for Amazon Kindle

Accounting firm Eisner LLP has introduced its 2010 Personal Tax Guide, which is available on the firm’s Web site and as a download to the Amazon Kindle e-reader.

Senate Plans Action on Tax Extenders

Leaders of the Senate Finance Committee said they intend to work on passing legislation to extend expiring tax breaks early next year.

Spray on the Tanning Tax

The Senate’s brand-new 10 percent tax on indoor tanning services is bound to lead to some further creative thinking about how to generate extra revenue to cover the costs of health care reform.

Estate Tax Dilemma Looms in 2010

For at least the first few days of 2010, and probably longer, executors of the estates of people dying after Dec. 31, 2009, will be operating in a difficult environment after the Senate’s failure to extend the estate tax at its current rates, according to a new report.

Health Care Bill Taxes Tanning Salons

The Senate overcame a key procedural hurdle early Monday morning on the arduous journey to approving health care reform legislation with a 1:00 am vote approving an amendment by Senate Majority Leader Harry Reid, D-Nev., that made changes to secure the 60 votes needed to end a filibuster.

Paychex Offers Year-End Payroll Tax Resources

Payroll services provider Paychex has published four online tax resources for CPAs and small businesses free of charge on its Web site.

CCH Releases CompleteTax Online Tax Software

CCH has released the latest version of its online consumer tax preparation software, CompleteTax.

House Approves Jobs Bill

The House narrowly passed a jobs bill aimed at reducing unemployment, but the legislation’s prospects are uncertain in the Senate.

Get Clients Ready for 2010

Economic uncertainty, coupled with the possibility of higher tax rates, has driven taxpayers to seek more face time with their accountants.

At Long Last, U.S.-Italy Tax Treaty Is Here

An income tax treaty between the United States and Italy has taken effect after a decade-long delay.

The IRS War Against Real Estate Investors

The IRS is conducting a sweep of real estate investors that challenges deductions investors have been taking as a routine part of business for years.

The Paperless Audit—It's Not Just About Saving Paper

Everyone knows that reducing paper can save your business money. What you may not know is how the paperless model can increase your firm's efficiency and improve your data management processes.

During this timely web seminar, industry experts Mike Ritchie and Patrick Manosca of CCH will share:

• How the paperless revolution is changing the industry
• The benefits and risks of going paperless
• What a paperless audit looks like




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