Tax strategies

With California unemployment hovering at 13 percent and the national unemployment rate still above 9.5 percent, long-term unemployment is clearly one of the biggest challenges for the U.S. economy.

The Senate Finance Committee held hearings last week to consider the effects of the soon-to-expire “Bush” tax cuts, and those problems could be magnified for tax practitioners and their clients.

Senators Blanche Lincoln, D-Ark., and Jon Kyl, R-Ariz., have introduced a proposal to reform the federal estate tax, which temporarily expired this year but is slated to increase to up to 55 percent next year for estates over $1 million.

The Senate Finance Committee held a hearing Wednesday to discuss the soon-to-expire 2001 and 2003 tax cuts and how to extend any of them without increasing the budget deficit or hurting economic growth.

SurePrep has added 1120, 1120S and 1065 preparation as a part of its outsourcing service, allowing firms to leverage the company’s technology and staff to prepare more types of tax returns.

Before departing on its holiday break, the Senate left a number of important issues unresolved, including the fate of the unemployment extension and tax extenders legislation, not to mention the financial reform bill.

The Federal Tax Authority, a private company that aims to make it easy for online merchants to collect sales tax, has launched TaxCloud, a free sales tax calculation and remittance service.

The Supreme Court’s much-anticipated Bilski decision earlier this week affirmed that business methods can be patented, although it rejected the specific patent at issue.

Senate Finance Committee Chairman Max Baucus, D-Mont., has launched an investigation into the tax practices of Transocean Ltd., the owner of the offshore drilling rig that exploded in the Gulf of Mexico this past April, leading to the disastrous oil spill.

A set of tax provisions that are scheduled to expire at the end of this year will change the tax landscape for many investors who will need advice on how to adjust.

The House voted Tuesday to extend the closing deadline for taxpayers seeking the Homebuyer Tax Credit.

Senate Democrats may be forced to set aside tax extenders and unemployment benefits legislation after they were unable to overcome a Republican-led filibuster for the third time.

Senate Democrats have introduced the latest version of their mammoth tax extenders and unemployment benefits extension legislation, further modifying provisions such as the taxation of carried interest of hedge fund managers and private equity firm partners and reducing the cost to under $110 billion in part by scaling back Medicaid aid to states.

Top companies were able to dramatically reduce their corporate risk profile, and maintain compliance with sales and use taxes and value-added taxes, by leveraging automated tax management tools, ranging from tax calculation engines, filing and remittance systems, to audit control solutions, according to a new report.

Gulf Coast residents contending with the oil washing up on their shores could find that the checks from BP come with a few mucky strings attached.

The U.S. Environmental Protection Agency has sent a letter to Congress in support of reinstating lapsed tax provisions that require polluters to pay for the Superfund for environmental cleanup.

IMGCAP(1)]Currently, about 32 million Americans do not have health insurance.

Senate Finance Committee Chairman Max Baucus, D-Mont., and ranking member Charles Grassley, R-Iowa, have introduced legislation to lower taxes for small and large businesses by allowing them to write off more of the cost of purchases, such as equipment and machinery, more quickly than they would otherwise be able to under current law.

Health care professionals who have received student loan relief under state programs that reward those who work in underserved communities may qualify for refunds on their 2009 federal income tax returns, as well as an annual tax cut going forward, according to the IRS.

The 3.8 percent Medicare tax on investment income that will be imposed on higher-income individuals starting in 2013 has caught the immediate attention of many taxpayers.