Tax practice

For the next four months, the Internal Revenue Service's Statistics of Income Division will be testing a prototype SOI Table Wizard.

In testimony before the Senate Finance Committee, Comptroller General David Walker said that it is impossible to know th e total amount of corporate tax avoidance for a number of reasons.

I've always believed in the old adage, "Never say never."

Intuit Inc. is among the latest companies receiving an informal inquiry from the Securities and Exchange Commission regarding its stock option granting practices.

The Internal Revenue Service's Office of Taxpayer Burden Reduction is asking the public for recommendations on ways to reduce taxpayer burden.

A Republican-lead effort to repeal the estate tax failed to even reach a vote on the Senate floor.

A former Loveland, Colo., tax preparer charged with filing a false tax return for a couple in 2001 has pleaded guilty in U.S. District Court.

A Los Angeles-based firm who advertised that tax delinquents could settle with the Internal Revenue Service for "pennies on the dollar," is facing two lawsuits.

Having been scrapped from Congress's legislative agenda in the wake of Hurricane Katrina, a vote to permanently repeal the estate tax could be held in the Senate this week.

A laptop containing fingerprints of nearly 300 Internal Revenue Service employees and job applicants is missing, according to published reports.

Some taxpayers make novel arguments in attempts to be taxed at a favorable capital gains rate. Wolman v. Comm. is a Tenth Circuit Court of Appeals order and judgment affirming a Tax Court decision, and it shows how creative taxpayers can be.

Years ago, I remember watching a news vignette about a drawbridge in some frigid state that kept an operator on duty 24 hours a day.

Although the continuing thirst of states for more dollars to fuel spending increases has led to a variety of efforts to augment tax revenue, they differ widely on what they consider sufficient contact with a business to give them the authority to tax it."Nexus" is the minimum amount of contact between a taxpayer and the state that would permit taxation by the state. It arises from the Constitution's due process clause, which requires a minimum connection between a state and an entity that it seeks to tax, and the Commerce Clause, which prohibits states from unduly burdening interstate commerce.

With a Congress and an administration too fond of tax cuts and spending to solve the growing budget deficit, the tax gap has become a more convenient focus for deficit reduction. With the tax gap, the Congress can urge action by the Internal Revenue Service without having to figure out what to do itself.The IRS estimates that the tax gap is $345 billion, which, if collected, could make a significant dent in the projected annual deficit, which is now approaching $500 billion.

TIGTA SAYS TAX GAP COULD EXCEED PROJECTIONS: According to a report from the Treasury Inspector General for Tax Administration, the nation's tax gap - the annual difference between federal taxes owed and those paid - could in fact exceed the current $345 billion estimate from the Internal Revenue Service. The agency said that the IRS projection of the tax gap probably underestimated things like non- or underreporting filers. The IRS arrived at its figures following a study of 46,000 audits for the 2001 tax year.In its report, the TIGTA said, "We concluded the IRS still does not have sufficient information to completely and accurately assess the overall tax gap and voluntary compliance."

In an effort to encourage savings and more banking, the Internal Revenue Service is creating a program to allow taxpayers who use direct deposit to divide their refunds among as many as three financial accounts.

The Treasury Department and Internal Revenue Service issued final regulations for Section 199 of the tax code, which relates to domestic manufacturing deductions.

The Internal Revenue Service announced a major milestone in its corporate e-file program -- the successful e-filing of the nation's largest tax return from General Electric Corp. on May 18.

The Internal Revenue Service announced regulatory revisions that the agency hopes will remove impediments to e-file for corporations and shareholders.

Taxpayers will be able to apply for a refund of the federal excise tax on long-distance telephone service for the past three years.