Tax strategies

A recent decision by the Massachusetts Appellate Tax Board related to inter-company pricing may put state tax auditors on notice not to overreach when assessing the value of services and products provided between companies and their out-of-state affiliates.

Washington, D.C. - Congressional leaders wrestling with President Obama's plan to make the Bush administration's tax cuts permanent for middle-class families earning under $250,000 a year are hearing a sharply divided response from top economic experts.

Both the House and Senate approved President Barack Obama’s $3.4 trillion spending plan on his 100th day in office, but largely along party lines.

It seems almost obligatory to write a story about the 100th day of the Obama administration, but when you’re in the news business, you ignore these kinds of artificial milestones at your own peril.

A large majority of CFOs and senior controllers intend to take advantage of the bonus depreciation provision included in the economic stimulus bill, according to a survey by Grant Thornton.

The Treasury Department’s Inspector General for Tax Administration is urging the IRS to ensure better compliance by tax-exempt organizations that don’t file their tax returns.

IRS REFORMS CONTRACTING

The Bernard Madoff situation is just the most notorious of dozens of Ponzi schemes that have surfaced since the current recession made it more difficult for the operators of those schemes to keep covering payouts and redemptions with money from new investors.

The Internal Revenue Service now has a new interest in sports and entertainment - and not just as a spectator.

The economic downturn, coupled with proposals to make the Research and Development Credit permanent, the potential repeal of LIFO, and higher individual tax rates under the Obama administration, could significantly reshape the landscape of S corps over the next several years."For planning purposes, the proposal to make the R&D Credit permanent has significance because it will affect what types of investments companies will make," explained Rick Klahsen, managing director at RSM McGladrey's national tax department. "However, the proposed repeal of the LIFO inventory method would have a tremendous negative impact on S corporations. Many S corporations are manufacturers, and the loss of the LIFO method will cost them in terms of additional taxable income. It will cause them to take a look at the types of inventory investments they might make."

Washington, D.C.-In the wake of several high-profile Ponzi schemes - most notably, the $65 billion fraud perpetrated by the now-jailed Bernard Madoff - the Internal Revenue Service has issued new guidance for victims of these types of schemes and their tax preparers.

The Internal Revenue Service said that it would make some credit and debit card convenience fees tax-deductible, but only under certain circumstances.

The economic crisis is forcing many states and cities to increase their sales tax rates to the highest average level ever, according to a new report.

This year, the Internal Revenue Service is offering a new way to file an extension request for free.

Sen. Charles Grassley, R-Iowa, has commended the Internal Revenue Service for hiring more than 1,000 veterans last year.

The Internal Revenue Service has made slow progress in implementing federally required security settings on nearly 100,000 desktop and laptop computers, said a newly released report.

A federal grand jury has returned an indictment charging a BDO Seidman partner with tax charges for attempting to help one of his clients evade income taxes.

The Justice Department has filed suit against four CPAs, 27 tax preparers and another individual, accusing them of promoting a tax scam that claimed bogus income tax credits for sham sales of methane from landfills.

With the repeal of the federal estate tax set for 2010 and its reinstatement scheduled just one year later, estate tax planning has become more complicated than ever. Wealthy clients need to incorporate flexibility into their current plans while taking advantage of favorable planning opportunities.

The U.S. Treasury Department said that it plans to begin negotiating a protocol with the government of Switzerland to exchange more tax information, opening a window on formerly secret Swiss bank accounts.