Tax strategies

Tax return preparers who claim inflated personal or business expenses, false deductions, unallowable credits or excessive exemptions on returns prepared for their clients are a major concern for the Internal Revenue Service during the upcoming filing season, according to a spokesman for the service.

While the shape of tax policy remains uncertain in some areas - at press time, Congress was considering a wide range of tax bills, including changes to the estate tax regime, and the extension of a number of tax credits and deductions, among other things - there are a few areas of certainty.

HOUSE APPROVES 45% ESTATE TAX EXTENSION

The ongoing economic downturn offers accountants the opportunity to extend their reach and help their clients at a time when they are most needed.

The Obama administration is handing out $2.3 billion in Recovery Act Advanced Energy Manufacturing Tax Credits for clean energy projects to provide jobs across the U.S. after announcing a disappointing employment report for December.

Call it what you like, but the first decade of the millennium has passed with many a whimper.

The Kansas Department of Revenue warned that it may take up to 16 weeks to process state tax returns filed on paper as the state copes with budget cuts.

Jackson Hewitt has signed an amended agreement with Republic Bank & Trust to act as a partner for refund anticipation loans after the tax prep chain’s previous partner, Santa Barbara Bank & Trust, was forced to stop providing RALs.

The Treasury Department said a new protocol amending the income tax treaty with France has entered into force.

The bank that Jackson Hewitt Tax Service uses to process and administer its refund anticipation loans will not be in a position to originate RALs for the 2010 tax season, according to the company.

Accounting firm Eisner LLP has introduced its 2010 Personal Tax Guide, which is available on the firm’s Web site and as a download to the Amazon Kindle e-reader.

Leaders of the Senate Finance Committee said they intend to work on passing legislation to extend expiring tax breaks early next year.

The Senate’s brand-new 10 percent tax on indoor tanning services is bound to lead to some further creative thinking about how to generate extra revenue to cover the costs of health care reform.

For at least the first few days of 2010, and probably longer, executors of the estates of people dying after Dec. 31, 2009, will be operating in a difficult environment after the Senate’s failure to extend the estate tax at its current rates.

Payroll services provider Paychex has published four online tax resources for CPAs and small businesses free of charge on its Web site.

CCH has released the latest version of its online consumer tax preparation software, CompleteTax.

The Senate overcame a key procedural hurdle early Monday morning on the arduous journey to approving health care reform legislation with a 1:00 am vote approving an amendment by Senate Majority Leader Harry Reid, D-Nev., that made changes to secure the 60 votes needed to end a filibuster.

The House narrowly passed a jobs bill aimed at reducing unemployment, but the legislation’s prospects are uncertain in the Senate.

Economic uncertainty, coupled with the possibility of higher tax rates, has driven taxpayers to seek more face time with their accountants.

An income tax treaty between the United States and Italy has taken effect after a decade-long delay.