Tax practice

by Roger Russell

GAO SAYS IRS 2003 FINANCIALS ARE GOOD AND BAD: The General Accounting Office said that fiscal 2003 financials from the Internal Revenue Service were “fairly presented in all material aspects.” However, the GAO said that the service “had to rely on resource-intensive compensating processes” to prepare its financial statements due to serious deficiencies in financial systems and internal control weaknesses.

In 1945, the delightful musical “Carousel” debuted at the Majestic Theatre in New York. In 1956, it became a movie. Written by Rodgers and Hammerstein, the play contains a number of memorable tunes, including “June Is Busting Out All Over.” This melody serves as a delightful backdrop to all of the earnings reports that have been issued recently.

T he Military Family Tax Relief Act of 2003, enacted on Veterans Day, Nov. 11, 2003, is, as its name implies, focused on tax relief for military personnel.

by Roger Russell

Washington -- Internal Revenue Service Commissioner Mark W. Everson is reminding taxpayers that they have until December 5 to claim 115,744 undelivered checks from this summer’s advance child tax credit. After the December cut-off, taxpayers cannot claim the checks until they file their tax returns next year.

Dexter, Mich. -- Six months after disclosing plans to leave Creative Solutions Inc., Greg LaFollette, CPA, has left that developer of software to assume a variety of roles that include executive editorship of CPA Software News.

JOBS TAX ACT APPROVED: The Committee on Ways and Means approved H.R. 2896, the American Jobs Creation Act of 2003, by a vote of 24-15.

by George G. Jones and Mark A. Luscombe

by Roger Russell

Some Tax Professionals to Send Returns to Different IRS Centers Than Last Year: The Internal Revenue Service is urging tax professionals to be aware of changes that will affect where they send tax returns and payments for clients in 10 states starting in 2004. The changes are a result of redistributing the workload among the 10 IRS processing centers to provide better service.

by George G. Jones and Mark A. Luscombe

by Roger Russell

Hurricane Isabel Victims Get Tax Relief: The Internal Revenue Service is providing special tax relief for residents in the Presidential Disaster Areas that were struck by Hurricane Isabel.

by George G. Jones and Mark A. Luscombe

by Roger Russell

Washington -- In late September, the Justice Department widened its probe of tax shelters sold by accounting firms to include second-tier firm Grant Thornton.

Begin Year-End Tax Planning Now: This year’s tax cut gives many taxpayers an opportunity to put tax dollars back into their pockets now, according to John Battaglia, a director in the Private Client Advisors Practice of Deloitte & Touche.

Washington -- The Internal Revenue Service reminds teachers that the Educator Expenses Deduction, put in place by last year’s Job Creation and Worker Assistance Act, was authorized only for 2002 and 2003. The deduction is available to eligible educators in public or private elementary or secondary schools. To be eligible, a person must work at least 900 hours during a school year as a teacher, instructor, counselor, principal or aide.

by George G. Jones and Mark A. Luscombe