Practice management

The Internal Revenue Service said that it would mail out approximately 350,000 additional economic stimulus payments starting in early July, after discovering that some tax returns did not capture the information needed to generate the $300-per-child payments.

CPAs spend many hours studying accounting and tax rules and become very knowledgeable, with CPE insuring that they are fully conversant with any changes. In the very large firms, the training and education offered has a very interesting mix, as a good deal of it doesn’t deal with technical knowledge but on the softer skills that can actually contribute more to the success of the individual and the firm. This is readily apparent in the structured way mentoring is conducted in these larger firms. Mentors are trained, mentoring processes and procedures are established, the details of the mentoring program are communicated, and staff members participate in a prescribed manner. And why do larger firms spend so much time and money on mentoring? They see the success in the performance of those who complete the program, and are very happy with the ROI. Because of the limited resources of small firms, ROI on spending is extremely important and gets very close scrutiny. The problem is, in new areas like mentoring small firms, because of their lack of familiarity, often overspend and don’t get a good ROI. Small firms therefore need to be creative. I recently came across Mentoring Process for CPA/CAs--Third Edition, by Rex Gatto, that can be helpful in that regard. There is a roadmap to creating structured processes quickly, tools and tips for mentors, and advice for mentees on getting the most from mentoring. The book doesn’t pull any punches, such as when it is pointed out that the mentees’ best role is that of the listener, and warns mentors not to be sidetracked by the mentee who is an analyzer (overanalyzes facts), a whiner (complainer), a rejecter (not me!), a victim (poor me!) or a controller (talks too much). Equally important, the book tells mentees what they should look for when selecting a mentor. “When choosing a mentor, a mentor should be someone:

What’s the first thing to know when considering membership in a professional services firm association?It’s not just about writing a check.

IRS COMMITTEE SEEKS ADVISORSWashington, D.C. — The Internal Revenue Service is looking for new members to apply for its Information Reporting Program Advisory Committee, including tax preparers. The committee offers recommendations on information reporting and administration issues to the IRS.

While the Internal Revenue Service has had an informant program for years, only recently have legislation and administrative developments put significant teeth into it. Most notable are the mandatory monetary awards now required for significant information equal to between 10 percent and 30 percent of the tax, interest and penalties collected.“The new rules have the potential to bring billions of dollars into the Treasury,” predicted Sen. Charles Grassley, R-Iowa, on the passage of the enabling provision within the Tax Relief and Health Care Act of 2006. At least several law firms that specialize in Federal Claims Act litigation are now branching out into whistleblower representation, reporting several billion dollars in suits already pending.

The Supreme Court has issued unanimous rulings in two tax cases, MeadWestvaco Corp. v. Illinois Department of Revenue and U.S. v. Clintwood Elkhorn Mining Co.In the MeadWestvaco case, the Supreme Court vacated and remanded the decision of the Illinois Appellate Court, which had allowed Illinois to tax a capital gain realized by Mead, an Ohio-based subsidiary of MeadWestvaco, when Mead sold its LexisNexis business division. Mead paid the tax and later sued in state court.

"I’m a great leader! Things get done because I delegate effectively.” These words are powerful statements from productive executives. Have you said them recently?Are they true?

The Internal Revenue Service has released a revenue procedure dealing with the tax effects on securitized mortgages that have been modified to avoid foreclosures.

Section 7216, a part of the Internal Revenue Code since 1971, imposes criminal penalties on tax return preparers who knowingly or recklessly make unauthorized disclosures or uses of information furnished in connection with the preparation of an income tax return.A violation of the section is not to be taken lightly — it comes with a penalty of up to a year’s imprisonment or a fine of not more than $1,000, or both.

Rep. Charles Rangel, D-N.Y., chairman of the House Ways and Means Committee, has introduced a bill to extend tax credits and deductions that expired last year or would expire at the end of this year, including tax incentives for renewable energy.

The Senate Finance Committee held hearings on tax reform for individuals, the latest in a series of hearings on tax reform.

The alternative motor vehicle credit is difficult for the Internal Revenue Service to administer because of complex tax laws, according to a new report.

A group promoting pastors’ First Amendment rights has announced an initiative to challenge the ban on endorsements of political candidates by tax-exempt organizations.

Internal Revenue Service Commissioner Douglas Shulman promised to continue enforcement efforts against tax shelters and provide clearer tax guidance.

The House has passed housing legislation to help homeowners threatened by foreclosure, including tax benefits to sweeten the package.

The Treasury Department paid out an additional 22.18 million economic stimulus payments, or tax rebates, to American households last week, for a total of $20.138 billion.

The Nebraska Board of Public Accountancy has launched a service to enable CPAs and CPA firms to renew their licenses via the Web.

Much of the excess tax collected by the Internal Revenue Service from businesses for telephone excise taxes is not being claimed or refunded, according to a new report.

The New York State Senate has agreed to suspend the gasoline tax for the summer, as the topic continues to be the talk of presidential candidates.

The Justice Department has sued a South Holland, Ill., tax preparer and her company to bar them from preparing tax returns, claiming they are responsible for more than $12 million in tax losses for the government.