Tax research

U.S. and foreign tax rules increasingly influence where multinational companies are reporting their income is being earned, according to a new report that may influence tax legislation in Congress.

The Foreclosure Prevention Act of 2008, recently signed without fanfare by President Bush, contains provisions that will, according to insiders, complicate tax returns for years ahead.The tax portion of the bill, the Housing Assistance Tax Act of 2008, contains over $15 billion in tax incentives that are offset by a number of revenue raisers.

Congressional tax reformers are taking aim at one of the most cherished tax breaks available to working Americans — employer-paid health insurance coverage.During the latest round of tax reform hearings before the Senate Finance Committee, experts in both taxation and health care presented their case for eliminating — or at least sharply reducing — the federal tax subsidies given for employer-provided health insurance, which now provide the average U.S. taxpayer with nearly $3,000 a year in benefits.

The Justice Department has accused a former Internal Revenue Service secretary of cheating her tax prep clients and the government out of approximately $850,000.

The Internal Revenue Service has been asked to investigate James Manning, the pastor of Atlah World Missionary Church in Harlem, and the church's tax-exempt status after Manning repeatedly attacked Sen. Barack Obama, D-Ill., from the pulpit.

Charles Grassley, R-Iowa, ranking member of the Senate Finance Committee, said he planned to co-sponsor a bill that will update the deductible cost of operating a vehicle for charitable purposes.

The Internal Revenue Service is providing tax relief to flood-ravaged victims of Hurricane Gustav in the affected areas of Louisiana by postponing some tax-filing deadlines.

With gasoline taxes much in the news lately, CCH has introduced an online Oil and Gas Taxation Library on its CCH Tax Research NetWork.

Teachers and other school employees returning from summer vacations are dealing with the prospect of an IRS rule change on deferred compensation that could see their taxes increase by 20 percent if they aren't careful.

The Republican Party approved its 2008 platform containing several planks related to tax cuts and tax policy.

In response to a letter from several members of Congress, the Internal Revenue Service will stop trying to enforce collection of alternative minimum taxes due on incentive stock options for the rest of the month.

There might be a new, ready supply of seasoned CPAs for the busiest time of year. Staffing is still a problem for many firms, and it is particularly felt during the tax prep season when many accountants have to work extra hours because firms often aren’t able or can’t afford to hire additional full-time staff. The results of a recent Charles Schwab and Age Wave study, entitled ”Rethinking Retirement,” point to a possible solution. Surprisingly, 71 percent of the pre-retirees surveyed want to work in retirement. Even more fascinating is that 40 percent want to cycle back and forth between periods of work and leisure. In the write-up to the study, there is the observation that this is “a new style of work with which most employer policies are unaligned.” These numbers indicates there will be a ready supply of seasoned retired CPAs, which can supplement a firm during its busiest times, say February to April 15th, and maybe a month before tax return extensions are due. Firms benefit, as they only have to pay for these individuals when they are needed, they are employing experts at tax preparation, and those individuals are used to working during the pressured tax season. The retirees are happy because they are working on a limited basis, and, rather than working part-time, they have the desirable cycle of back and forth between periods of work and leisure. And with remote access, firms can tap into retired CPAs all across the country. Initially, firms will be using retirees from their firms, but I would expect that would extend quickly to other retired CPAs, and the AICPA and state CPA societies will help by publicizing best practices with regard to cycling back and forth. And like bike riding, which might have been difficult to learn but natural when mastered, this type of cycling will become another readily available staffing solution for firms.

The Research Credit Group has introduced CrediTrak, a Web-based program that helps companies evaluate and track their research and development tax credits.

A Tax Court judge has decided that a retired Internal Revenue Service auditor's greyhound-breeding business does not qualify for business deductions and criticized the dogs' treatment.

Corporate tax executives need to closely watch other countries' transition to International Financial Reporting Standards as it could affect their global tax planning, warns a report issued by Deloitte.

An appeals court has affirmed the dismissal of indictments against 13 former KPMG partners and employees in a tax fraud case involving tax shelters set up by the firm for clients.

A man threatening to kill himself over his finances instead rammed his car into an Internal Revenue Service building.

A chiropractor was sentenced to 21 months in prison for following the tax defiance advice promoted by actor Wesley Snipes' recent co-defendant.

Jefferson Wells has acquired the Gelber Organization to build its state and local tax services.

The Democratic Party approved its platform at its national convention in Denver, including a number of planks related to taxes.