Roger Russell

Sales and use taxes are key issues for many states that have been hit with dwindling revenue due to the economic downturn. And there’s a case now on appeal in a New York court that is being closely watched by other states suffering a loss of tax revenue from Internet sales.

The comment period set by the Internal Revenue Service onthe proposed preparer registration regulations closed earlier this week, with anumber of professional groups offering their opinions.

A change in the structure of the taxation of carried interest, passed by the House last December and included in the Obama administration budget for 2011, is becoming more likely as the Senate searches for revenue offsets.

Although my prowess in using social media has largely been learned from my offspring, there’s no question that its use has erupted across all forms and sizes of business.

Both the American Institute of CPAs and the American Bar Association Section of Taxation have urged Congress to correct the current state of federal estate, gift and generation-skipping transfer taxes.

I haven’t yet read the 2,400-plus pages of the Health Care Reform Bill (the Patient Protection and Affordable Care Act) that President Obama signed into law on Tuesday. Not even the hundred-plus pages of tax provisions in the bill. But from talking to those who have, it looks like there is enough in it to keep tax professionals occupied for awhile.

An increasing percentage of tax advisors’ client base is now eligible for a Roth IRA, according to a survey of 500 tax advisors.

The recession has affected many companies harder than they anticipated. Most organizations experienced some kind of impact from the financial upheaval, according to a survey by Burlingame, Calif.-based Accountants International of 3,500 accounting, finance and human resource executives nationwide.

A number of economic surveys and indicators have surfaced in the past week, most of them mixed or uninspiring with regard to an economic recovery. But there are some positive signs.

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.

What’s not to like about a Roth IRA? As with traditional IRAs, earnings accumulate tax free. But unlike the traditional IRA, withdrawals are tax-free and minimum distributions after age 70 ½ are not mandatory. Add to this the 2010 special incentives to convert a traditional IRA to a Roth IRA, and it’s a wonder taxpayers aren’t lining up to do the conversion.

At last count, at least 11 parties have submitted amicus (friend of the court) briefs to the U.S. Supreme Court as it considers whether to hear an appeal from the First Circuit decision in Textron regarding a corporation’s tax accrual workpapers.

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.

While there were no real surprises in the State of the Union speech, it did flesh out some tax proposals that will be acted on in the days ahead, according to observers.

The Internal Revenue Service is considering requiring some business taxpayers to report uncertain tax positions on their tax returns, according to Commissioner of Internal Revenue Douglas Shulman.

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.

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.

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.

The ongoing economic downturn offers accountants the opportunity to extend their reach and help their clients at a time when they are most needed.

The Internal Revenue Service proposals for registration, testing and continuing education of tax preparers has won praise from most stakeholders.