Practice management

The Internal Revenue Service issued a last-chance warning that only a few days remain until the Oct. 15 deadline for retirees and disabled veterans to file an income tax return that will allow them to receive an economic stimulus payment this year.

A new audit by the Treasury Inspector General for Tax Administration has found security weaknesses on each of the three computer systems it reviewed in the Office of Research, Analysis and Statistics.

Sen. Hillary Rodham Clinton, D-N.Y., has proposed a $150 billion Emergency Stabilization Fund to help small businesses, universities, students and municipalities cope with the credit crisis, with the money coming from the $700 billion financial bailout package.

The Internal Revenue Service issued a notice late last week that allows U.S. corporations to get more tax-free loans from their foreign subsidiaries.

Representatives of the McCain and Obama camps sparred politely at a Presidential Tax Forum sponsored by the New York State Society of CPAs.

The financial rescue plan approved by Congress last week included many extensions of expiring tax credits and deductions that helped it win passage in the House, but it also left out some tax issues that will surely be bones of contention for the next Congress.

The passage of the financial rescue plan by Congress last week depended in part on the insertion of a provision on reevaluating the fair value accounting standards, which could come back to bite the same lobbyists who urged its inclusion.

In "The Graduate," A family friend utters one word, "Plastics," to Dustin Hoffman at his graduation party. Let’s fast forward some thirty–plus years later and understand that Benjamin Braddock, Dustin’s character, is now a Baby Boomer, and let’s make a healthy substitute for the word “plastic” and update that conversation to: “I just want to say one word to you ... just one word." says Mr. McGuire "Yes, sir."--Ben "Are you listening?"--Mr.McGuire "Yes, sir. I am."--Ben "Sugar-free."--Mr. McGuire Let me explain the reasoning for the change. In the exhibit area at the last annual conference of the Association for Accounting Marketing in San Diego, I stopped by a booth to talk to a representative of a business development company that has and continues to impress me. I had met the individual before, so we struck up an easy-going conversation of how the conference was going for each of us. As I left, he reached to give me a tin of mints with the company’s name printed on it. I refused it I told him the tin, unlike an offer of a piece of candy, was a great idea, as every time you take the tin out of your pocket for a mint, you are reminded about the company. He beamed as I spoke and explained that he came up with the idea of imprinted tins, and then convinced his CEO to approve the expenditure even though it cost considerably more than simply having out a bowl of sour balls. I suggested that his company’s next order should include tins of sugar-free mints, explaining that his company’s target was primarily the managing partners of firms (those that would approve using his company), and like me are probably Baby-Boomers, many of whom aren’t supposed to eat sugar as they are diabetic or pre-diabetic. If you want to see my theory in action, come to Atlantic City with me the next time I go. The busiest casinos are those that have a substantial sugar-free dessert section at their buffets and offer many sugar-free dessert choices at their restaurants, thereby appealing to and drawing those with the most disposable income and wealth, the same Baby Boomers. Column dedication: To GH.

With the credit markets tightening, a majority of the 688 CFOs and senior comptrollers surveyed by Grant Thornton see the cost of credit increasing for their companies, and the availability of credit decreasing.

The Internal Revenue Service said that certain lean-burn technology vehicles now qualify for the alternative motor vehicle tax credit.

New data from the Internal Revenue Service suggests that American corporations controlled by foreigners are now responsible for a larger share of total U.S. corporate assets and earnings than ever before - despite a U.S. corporate tax rate that is among the highest in the world.The most recently released IRS Statistics of Income bulletin revealed that the total receipts of foreign-controlled domestic corporations in 2005 reached $3.5 trillion, which is $450 billion more than in 2004, twice the 1996 level and almost 90 times the level reported in 1971.

JUDGE DECLINES TO DISMISS JACKSON HEWITT SUITNew York - A federal judge has turned down Jackson Hewitt's request to have a class-action lawsuit dismissed against the company and some of its franchises.

The Internal Revenue Service has been working for a couple of years on revisions to Form 990 (Return of Organization Exempt From Tax), which has not had a major update in 30 years. With the recent release of revised draft instructions, the IRS is close to finalizing the process. The new Form 990 will generally be required for 2008 returns.Although issued as draft instructions, the IRS has indicated that the Form 990 instructions should be thought of as final instructions. They were hurried out to try to get the information in the hands of tax professionals and tax-exempt organizations as soon as possible to prepare for the new requirements. The final instructions are only expected to differ from these draft instructions if there has been a significant error or omission.

In Part 1 of this article (Sept. 22-Oct. 5, 2008, page 27), I mentioned that I would discuss the changes that accounting firms need to embrace today. Here they are:1. Customize services - one size does not fit all. To meet the challenge of running smarter, firms must learn - as product companies have - that one size does not fit all. Firms today are offering customized services to their diverse client base. Even all clients in the same niche will not require the same level and type of service.

A Las Vegas man who worked as a real estate broker in Nevada since the late 1970s has pleaded guilty to felony tax evasion and impersonating an IRS agent.

The lead defendant in a nationwide $60 million tax fraud conspiracy was sentenced to more than 18 years in prison.

McGladrey & Pullen's Jacksonville, Fla., office has been chosen to provide audit services for the Jacksonville Transportation Authority.

Fees and partner income grew at CPA firms last year, but the declining economy is likely to take a toll this year, according to a new survey.

Nearly a third of the income tax returns prepared by volunteer preparers for an IRS program were incorrect, according to a report by the Treasury Department's inspector general.

The Treasury's financial rescue plan includes a tax change that would allow banks to treat Fannie Mae and Freddie Mac preferred stock as ordinary losses.