Tax practice

While a recent survey found that tax preparers across the country intend to universally raise rates for this coming season, why they’re raising them -- and by how much -- varies widely depending on a range of factors.

A federal appeals court has ruled against the founder of Buy.com in a case involving a tax shelter set up for him by KPMG.

The Internal Revenue Service has approved New York State’s contract with PSEG Long Island while allowing the power company to retain its tax-exempt status.

The U.S. Tax Court has ruled against a business student who tried to deduct the cost of tuition for his Masters of Business Administration program, a case that could have major implications for other MBA students who hope to make their tuition more affordable.

Deborah Barrett, a 57-year-old accounting manager in Newport, R.I., is one of an estimated 1.3 million unemployed workers who will lose their unemployment benefits on December 28 because Congress failed to extend the Emergency Unemployment Compensation program.

The Internal Revenue Service is urging individuals and businesses that are making contributions to charity to keep in mind several important tax law provisions that have taken effect in recent years. Accountants can pass along the advice to their clients who are making charitable contributions that they can claim on their taxes next year.

The Internal Revenue Service is warning tax preparers who do not send a Form 8867, “Paid Preparer’s Earned Income Credit” Checklist,” with the tax returns they file for clients who claim the Earned Income Tax Credit that they are subject to a $500 penalty per return.

Starting in the New Year, the Internal Revenue Service plans to increase the processing fees for installment agreements and offers in compromise, in addition to other payment arrangements.

Beginning on January 1, the Internal Revenue Service plans to limit the number of e-file signature authorization documents for filing Form 1041 estate and trust tax returns to a single 1041 return rather than multiple returns.

The Internal Revenue Service plans to transition more of its services for taxpayers to online, automated self-service options next tax season to save money and manpower.

The Internal Revenue Service plans to begin accepting business tax returns on January 13, more than two weeks ahead of the start date for accepting individual tax returns.

A group of female House Democrats is urging Speaker of the House John Boehner, R-Ohio, to allow a vote on extending federal unemployment insurance to help 1.3 million long-term unemployed workers facing the expiration of the Emergency Unemployment Compensation program on December 28.

Consumer tax prep software maker TaxAct has signed an agreement with the health insurance exchange GetInsured to help taxpayers compare and apply for health insurance.

The Internal Revenue Service has issued Revenue Ruling 2014-02, explaining the tax treatment of payments under the National Mortgage Settlement to homeowners whose principal residences were foreclosed by mortgage servicers using techniques such as “robosigning,” where there was little documentation or examination by qualified bank officials.

Switzerland’s 300 banks have enlisted an army of auditors, lawyers and in-house workers as they race to meet a Dec. 31 deadline on whether to seek U.S. amnesty for helping American clients evade taxes.

The Senate has voted to confirm John Koskinen as the next Internal Revenue Service commissioner, succeeding acting commissioner Daniel Werfel, who was brought in to help reform the beleaguered tax agency.

President Obama has nominated Senate Finance Committee chairman Max Baucus, D-Mont., as the next ambassador to China, potentially setting back efforts at comprehensive tax reform.

“It’s never too late for tax planning,” a wise CPA once told me. “You’ve got till the ball drops to take action, and if you do it later than that, then you’ve got an early start for next year.”

CCH has introduced a program to help accounting professionals represent collections clients before the Internal Revenue Service.

The Internal Revenue Service was unable to keep up with demand for telephone and correspondence services last tax season despite efficiency gains from processing more tax returns electronically, adding Web services, and shifting resources away from enforcement, according to a new government report.