Tax research

While the Treasury bailout seems to be heading toward another vote this week, the state of the alternative minimum tax patch and the various tax extenders now seems in doubt.

The Internal Revenue Service has released Notice 2008-82, which protects reservists from losing funds in their health Flexible Spending Arrangement accounts after being called to active duty.

A majority of tax and financial executives favor the research and development tax credit simplification proposed by the Senate, according to a survey by Grant Thornton.

The Internal Revenue Service plans to issue guidance on technical terminations of a publicly traded partnership resulting in multiple short tax years within one calendar year.

The House has passed a bill that includes extensions of various expiring tax credits and deductions, including the R&D tax credit and incentives for renewable energy, along with a provision equalizing the penalty standards for tax preparers and taxpayers, but its fate remains uncertain as it faces the threat of a veto.

A new Web site uses a financial modeling program to calculate a user's taxes under either of the major presidential candidates.

The House has passed a fix for the alternative minimum tax to keep it from spreading to more taxpayers next year, as well as a separate bill to provide tax relief to businesses and families affected by natural disasters.

A group advocating the First Amendment right of pastors to endorse political candidates plans to stage a protest this Sunday encouraging clergymen to defy the rules governing tax-exempt organizations.

Under pressure from Congress and the IRS, H&R Block has decided that 100 percent of its tax products and services, including its TaxCut software, will now include free federal electronic filing.

The Senate passed by unanimous consent a bill that helps more children leave foster care and join permanent families, while clarifying the definition of a child for tax purposes.

A study of both presidential candidates' tax plans finds that they will both reduce millions of taxpayers' liability to zero.

The Senate passed a bill that would extend expiring tax cuts, patch the alternative minimum tax for another year, provide clean energy incentives and equalize the disclosure standards for tax preparers and taxpayers.

Washington, D.C.-With the hoopla of the Democratic and Republican National Conventions still reverberating throughout the country and the election less than two months away, Accounting Today will examine the tax plans offered by both Democratic nominee Barack Obama and GOP candidate John McCain as each vies to become the 44th occupant of the White House.THE OBAMA PLAN

The recent hearings by the Internal Revenue Services on its proposed preparer penalty rules under Code Section 6694 were the proverbial "last shot" for any concerns to be voiced before the rules become final.Five organizations - including the American Institute of CPAs, the American Society of Appraisers, Padgett Business Services, the National Association of Bond Lawyers, and H&R Block - took the opportunity to testify, while everyone acknowledged the efforts put in by the Treasury and the IRS.

In the world of executive compensation, Internal Revenue Code Section 162(m) limits the deduction that a publicly held corporation can claim in any tax year for compensation paid a top executive to $1 million, with several exceptions. Two recent Internal Revenue Service rulings explored these exceptions.In Rev. Rul. 2008-13, the IRS reversed its position regarding the availability of the performance-based exception from the million-dollar cap if payment may be made in the event of involuntary termination, even if the performance standards discussed below are met. Rev. Rul. 2008-32 deals with whether a director can be an outside director for Sec. 162(m) purposes after briefly serving as an interim chief executive.

IRS WARNS ON DONOR-ADVISED FUNDSWashington, D.C. - The Internal Revenue Service has issued a guide sheet for organizations that maintain donor-advised funds to help safeguard against abuses. The guide sheet includes a series of questions to establish whether an organization qualifies as a sponsoring organization.

While the tax law cannot exactly make lemonade out of the lemons produced by a bad economy, it can help many businesses prevent a bad situation from becoming worse. Several Tax Strategy columns back, we outlined some tax planning ideas for individuals in a troubled economy. This column takes up where that advice left off, suggesting several tax strategies that can help businesses better deal with an economic downturn.INTRODUCTION

The Internal Revenue Service’s Office of Appeals has improved its handling of collection due process cases, but there are still instances where taxpayers were not provided with their right to a hearing, according to a new report.

The Internal Revenue Service still has problems with protecting the privacy of taxpayers' personally identifiable information on the printed documents it mails, according to a new report.

The Internal Revenue Service said that Texas taxpayers harmed by Hurricane Ike qualify for tax relief and can postpone their tax-filing and payment deadlines until Jan. 5, 2009.