Tax practice

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.

During the month of November, a number of accountants will be getting a telephone call or an e-mail from clients all asking the same question. “What is the little-known tax break that makes investing In GPS-tracking technology more affordable than ever?” Be careful what you say if asked because that inquiring client already has the answer.

INDEXING WILL LOWER TAXES NEXT YEAR

The Small Business Tax Act amended Code Sec. 6694 to increase tax return preparer penalties, the types of returns to which the penalties apply, and the support required for the position taken on the return. The provision was to be effective for tax returns prepared after May 25, 2007.However, based on requests from the return preparation community, the Internal Revenue Service has provided transitional relief that generally applies the prior standards to returns and refund claims due before Jan. 1, 2008, estimated tax returns due on or before Jan. 15, 2008, and employment and excise tax returns due on or before Jan. 31, 2008. The transitional relief does not apply to willful or reckless conduct.

The Internal Revenue Service is sending out free copies of its CD-ROM, the Small Business Resource Guide, to help small business owners comply with federal tax laws, and it's ready to ship them in bulk.

A federal judge sentenced a man to a year and a day in jail for flying an airplane without a license and failing to file federal income tax returns four years in a row.

The House Ways and Means Committee has passed a bill by a margin of 22 to 13 that would keep the Alternative Minimum Tax from spreading to more than 23 million families, which the full House is expected to debate this week.

The Internal Revenue Service has softened its opposition to contingent fees charged by Circular 230 practitioners. Originally, the IRS proposed permitting a contingent fee only in connection with an IRS examination or the challenge of an original return, or an amended return filed before a notice of examination was received.Under the final rules, a tax practitioner will be allowed to charge a contingent fee for services rendered in connection with the IRS examination of, or challenge to, an original return, or an amended return or claim for refund or credit where it was filed within 120 days of the taxpayer receiving a written notice of the examination, or a written challenge to the original return.

Leaders of the congressional tax-writing committees told the Internal Revenue Service that they planned to make imminent changes in the alternative minimum tax, and that the IRS should start producing accurate tax forms for the 2007 filing season.

The Internal Revenue Service is looking to fill some vacancies on its Advisory Committee on Tax Exempt and Government Entities.

The House Ways and Means Committee began considering a bill that would give tax breaks to members of the military and their families, as well as volunteer firefighters and emergency workers.