Tax practice

The Internal Revenue Service Oversight Board has sent a letter to the leaders of the Senate Finance Committee saying it is "gravely concerned about the serious risks to the 2008 filing season" if legislation to change the alternative minimum tax is delayed much longer.

The Internal Revenue Service has issued the optional standard mileage rates for calculating the deductible costs next year of operating an automobile for various purposes.

Presidential candidate Fred Thompson issued a tax plan that would give taxpayers the option of choosing a simplified flat tax.

IRS EASES LATE S CORP ELECTIONS

While the word is that defined-benefit plans are no longer in favor, they can still provide a tax savings for the right client.“A lot of the press would lead you to believe that defined-benefit plans are on the way out,” said Karen Shapiro, chief executive of Dedicated DB, a San Mateo, Calif.-based provider of such plans. “But for some small-business owners, it’s a terrific tax strategy.”

In a special area on its Web site (in a Q&A on home foreclosure and debt cancellation), the Internal Revenue Service advised, “Insolvency can be fairly complex to determine and the assistance of a tax professional is recommended.”Also, in recognition of the important role that the “insolvency exception” plays in excluding a beleaguered homeowner’s forgiveness-of-indebtedness income, the site further advised, “Consider the tax consequences before foreclosure.” This article explores what planning can be done to maximize the use of the insolvency exception to reduce or eliminate forgiveness-of-indebtedness income for the individual caught in the current mortgage financing or similar credit squeeze.

Immigration attorney Grisel Ybarra got back a canceled check from the Internal Revenue Service for the two cents the IRS had billed her as a late fee.

President Bush plans to nominate Douglas Shulman as Internal Revenue Service commissioner.

Tax software vendors Intuit and H&R Block were hit with a potential multi-billion-dollar class-action lawsuit alleging that they charge excessive fees for electronic filing.

Leaders of the Senate Finance Committee have introduced a bill to prohibit the Patent and Trademark Office from granting any further patents for tax strategies and tax-planning inventions.

The Internal Revenue Service wants to track down 115,478 taxpayers who are owed approximately $110 million after their refund checks were returned as undeliverable.

More than 30,000 Medicaid providers had a total of over $1 billion in unpaid federal taxes last fiscal year, according to a report released by the Government Accountability Office.

The House has voted to approve a $78 billion bill that would provide a temporary fix to prevent the alternative minimum tax from spreading to about 23 million more taxpayers this coming tax season.

The Internal Revenue Service's financial management systems and internal controls came under sharp criticism in a financial audit conducted by the Government Accountability Office.

The Bush administration threatened to veto the Temporary Tax Relief Act of 2007 in its present form, putting the patch for the alternative minimum tax in jeopardy as the deadline nears for fixing the AMT before it spreads to millions more taxpayers.

The Financial Accounting Standards Board has decided to defer the effective date for FASB Interpretation No. 48, "Accounting for Uncertainty in Income Taxes," for nonpublic entities.

Sen. Chuck Grassley, R-Iowa, ranking member of the Senate Finance Committee, has sent letters to six media-based ministries asking for information about their expenses, executive compensation and the amenities lavished on their executives to see if they are violating their tax-exempt status.

The Treasury Department and the Internal Revenue Service have issued proposed regulations that would make it easier for companies to automatically enroll employees in 401(k) plans at a predefined contribution percentage.

The Internal Revenue Service said it received nearly 80 million electronically filed tax returns this year, breaking last year's record of 73.3 million.

The House of Representatives unanimously passed legislation that would give tax relief to the families of military personnel, as well as help volunteer firefighters and emergency medical responders.