Tax practice

The Senate Judiciary Committee unanimously voted Thursday to approve bipartisan patent reform legislation, including provisions banning tax strategy patents.

Approximately $33 million in credits for plug-in electric and alternative-fueled vehicles were erroneously claimed by at least 12,920 taxpayers through July 24, 2010, according to a new government report that also found nearly $50,000 worth of the credits going to prisoners.

The Senate approved an amendment Wednesday to repeal the expanded 1099 information reporting requirements in the health care reform law.

A coalition of 15 national organizations urged the Senate Judiciary Committee to keep a provision in S. 23, The Patent Reform Act of 2011, which would stop tax strategy patents. The bill goes to mark-up on Feb. 3.

The Internal Revenue Service warned small businesses and their tax preparers Wednesday that a group of tax return forms should not be filed until it is ready to start processing them.

The Internal Revenue Service’s efforts to do more oversight of paid tax preparers will not be fully operational until 2014 and needs to happen sooner, according to a new government report.

With many indications showing that the Internal Revenue Service is behind in the number of tax returns filed so far this year compared to last year, Liberty Tax Service reported positive growth Wednesday in revenue, same-store sales and tax returns filed.

Sen. Mike Johanns, R-Neb., and Debbie Stabenow, D-Mich., have introduced similar but competing amendments to repeal the expanded 1099 information reporting requirements in the health care reform bill, intending to attach the amendments to a re-authorization bill for the Federal Aviation Administration.

The Internal Revenue Service has significantly improved its ability to identify and replace aging computers, according to a new government report.

Now that the drama has ended and year-end legislation to extend the Bush-era tax cuts has been enacted, work remains for those "in the trenches" to sort out appropriate reactions. For most businesses, the response will be multifaceted.

IRS ADJUSTS RULES ON HEALTH DEBIT CARDS

Recently issued guidance from the Internal Revenue Service provides answers to a number of questions on tax return preparer registration, and fills in some of the details left unaddressed by recent regulations.

Jackson Hewitt Tax Service filed a lawsuit Monday against H&R Block claiming that Block is disseminating “false, misleading and highly disparaging advertising claims about Jackson Hewitt.”

The former CEO of Quellos Group and the head of its private clients group were sentenced in a federal court on charges connected with the offshore tax shelters set up by the former investment firm.

The Obama administration is expected to propose permanently eliminating capital gains taxes on some types of small business investments held for over five years.

The Internal Revenue Service has recently received an anonymous complaint challenging the tax-exempt status of the National Hot Rod Association.

California CPA Steve Green is accusing the Internal Revenue Service of “gross negligence” in the way it has responded to correspondence with him.

The Internal Revenue Service and its partners nationwide marked the 5th Earned Income Tax Credit Awareness Day on Friday.

The deficit reduction panel called for tax reform, as did the National Taxpayer Advocate and the House Ways and Means Committee. Now, President Obama has added his voice to the mix with his State of the Union address.

The Financial Crisis Inquiry Commission delivered the results of its nearly two-year-long investigation into the causes of the financial and economic crisis on Thursday, but with dissenting views from some of the Republican members of the commission.