Tax practice

The Tax Code has contributed to rising income inequality in recent decades as middle- and lower-income Americans have seen their incomes stagnate while the wealthiest have experienced staggering income growth, according to a new report.

Sen. Chuck Grassley, R-Iowa, a member of the Senate Finance Committee, is questioning the Internal Revenue Service and the Treasury Department about why they are taking so long to process and pay tax whistleblower rewards.

A group representing private equity firms is asking the Internal Revenue Service and the Treasury Department to streamline the process for following the requirements Foreign Account Tax Compliance Act and allow them flexibility in case an investor proves to be recalcitrant in providing information.

The Internal Revenue Service identified 279,500 tax-exempt organizations that did not file a return or notice for three consecutive years, but it potentially did not identify more than 15,000 organizations that failed to file for three consecutive years, according to a new government report.

There are opportunities for the Internal Revenue Service to cut the costs of fingerprinting at lockbox bank locations, according to a new government report.

The Internal Revenue Service and the Treasury Department have decided to delay for a year the proposed effective date for basis reporting by brokers for debt instruments and options.

The upcoming expiration of the Bush-era tax rates at the end of the year is already starting to produce its share of anxiety along with outsize forecasts of financial disruption.

A roundup of recent tax news.

Federal and state tax amnesty programs bring in revenue, but at a price

Columnists Jones and Luscombe on 2012 tax planning

A California man appeared in a federal court Monday morning to answer charges that he promoted a fraudulent tax return filing scheme that also involved fraudulent vehicle registration titles.

The Internal Revenue Service, along with the Labor Department and the Department of Health and Human Services, are looking into the use of stop-loss insurance, particularly by companies that self-insure their health insurance plans.

The Internal Revenue Service said Monday it is accepting applications for the Tax Counseling for the Elderly and Volunteer Income Tax Assistance grant programs, which will allow some organizations to apply for annual funding for up to three years.

BNA Software, a Bloomberg BNA business, has launched BNA Income Tax Planner Web, an online version of the company’s income tax software that provides several new features and lower maintenance costs.

Julie and Brett Redden are in a hurry for the paperwork to go through for the six-year-old girl they are planning to adopt from China.

The House voted Friday to extend the current 3.4 percent interest rate on subsidized student loans for one more year.

A group of 63 Republican members in the House have written a letter to Internal Revenue Service Commissioner Doug Shulman urging him to stop the agency from requesting extensive information from Tea Party groups and other conservative organizations applying for tax-exempt status under Section 501(c)4 of the Tax Code.

The number of indirect tax increases fell from 154 in the first quarter of 2011 to 107 in the first quarter of this year.

The Internal Revenue Service has increased the tax-deductible annual contribution limitation for health savings accounts.

The Internal Revenue Service issued a trio of notices Thursday related to the health care reform law, including how one might determine whether a health insurance plan provides “minimum value.”