Tax research

The Internal Revenue Service said it is extending the filing deadlines for victims of the wildfires in Southern California.

The New York State Society of CPAs has offered its own solution for the problem of the expanding alternative minimum tax, as the issue continues to get debated in Washington.

The U.S. Senate has voted to extend a moratorium on state and local taxes for Internet access for seven years.

Nearly everyone can use lessons in financial literacy, and Dan Iannicola Jr., deputy assistant secretary for the U.S. Treasury Department's financial education office, provided suggestions on how women accountants can educate their clients.

Kellogg & Andelson Accountancy Corp. said it was acquiring Wien, Sales & Vizvary, a Beverly Hills-based accounting firm.

Rep. Charles Rangel, D-N.Y., chairman of the House Ways and Means Committee, has introduced a bill aimed at repealing the alternative minimum tax and cutting the top corporate tax rate while raising taxes in other areas, including on the salaries of hedge fund and private equity fund managers.

The Internal Revenue Service intends to improve international tax administration in an effort to reduce the tax gap.

Employers are able to exclude the value of an employee's use of an employer-provided cell phone from the employee's gross income if the employee keeps careful records distinguishing business and personal calls, according to a recently released letter from an Internal Revenue Service official.

After repeated pleas from tax practitioners, lawyers and others, the Treasury Department and the Internal Revenue Service announced that they would extend the final deadline for compliance with new rules on nonqualified deferred-compensation plans for a year, until Dec. 31, 2008.The regulations, which provide guidance under Section 409A regarding the requirements for deferral elections and payment timing in deferred-comp plans, were in response to legislation enacted in 2004. Section 409A has been effective since Jan. 1, 2005, but the IRS did not release the final regulations until April of this year, with an original deadline of Dec. 31, 2007, which many felt was far too early, given the complexity of the plans and the amendments that companies may have to make to them.Over the summer, a number of practitioner groups, including a group of 92 separate law firms, contacted the Treasury and the IRS to press the case for more time.The IRS noted that it plans to follow up Notice 2007-86, which extends the deadline, with guidance regarding a correction program as soon as possible.

Treasury Secretary Henry Paulson said Congress should stop dithering on passing a fix for the Alternative Minimum Tax.

Intuit said it plans to avoid the electronic filing delays that kept many last-minute tax returns from being processed last April.

The Internal Revenue Service reiterated its demand for casinos and other poker tournament sponsors to begin reporting winnings of more than $5,000 after March 4, 2008.

As tax prep suites have evolved to meet the needs of the particular market segment targeted by each product, practitioners now have a variety of products from which to choose - each of which will do the job."The desktop market is becoming extremely competitive, with each producer giving as much new functionality and offering it as cheaply as they can," said John Vora, chief executive of Parsippany, N.J.-based TaxSimple.

The Internal Revenue Service position on Circular 230 monetary penalties has generated concern and comments from the American Institute of CPAs, while the American Bar Association Tax Section intends to submit its own comments on the matter.The penalties were announced in Notice 2007-39 earlier this year to implement Section 822 of the American Jobs Creation Act of 2004, which expanded the sanctions that the IRS can impose for certain prohibited conduct to include monetary penalties.

Former football player O.J. Simpson, singer Dionne Warwick and comedian Sinbad were among the celebrities who showed up on California's Delinquent Taxpayers list.

The Internal Revenue Service said that personal exemptions and standard deductions would rise and tax brackets would widen as it adjusted a variety of tax provisions for 2008 to keep pace with inflation.

The Internal Revenue Service said that Form 1120-A, U.S. Corporation Short-Form Income Tax Return, is now obsolete.

The Social Security Administration said monthly benefits would increase 2.3 percent for more than 54 million Americans in 2008.

Scandal-scarred health care provider HealthSouth scored $440 million in a tax recovery from the Internal Revenue Service despite the company's acknowledgment of financial fraud.

The House of Representatives has approved a bill that would ban private tax collections, but the bill's prospects remain uncertain in the Senate.