Executive's Tax & Management Report articles from August 2004

Executive's Tax & Management Report archives from August 2004

Lawmakers hashing out tax legislation.
August 1, 2004... Federal lawmakers are hoping to reconcile the Senate and House versions of major tax legislation before the August recess. The US House of Representatives approved the American Jobs Creation Act of 2004 (H.R. 4520) in June in a bipartisan 251...

Option expensing announcement doesn't impact share price.(Brief Article)
August 1, 2004... A company's decision to expense stock options has no effect on its share price, reports Towers Perrin (www.towersperrin.com). In an "event study" of 335 companies that have already begun expensing options, Towers Perrin tracked share prices on...

The death of S corporations has been greatly exaggerated.(Corporations)(limited liability company )
August 1, 2004... With the advent of the limited liability company (LLC), many tax and legal professionals believed that its popularity would soon overtake the S corporation as the preferred entity of choice for small businesses. In the recent past, however,...

Will business boom or economic woes loom?(Managing Your Business)
August 1, 2004... Executives expect their businesses and the US economy to grow in the coming months, according to recent surveys by PricewaterhouseCoopers (www.pwcglobal.com) and the Business Roundtable (www.businessroundtable.org). Sunny Skies Ahead ...

Disabled teacher can't deduct commuting expenses.(Personal Taxes)
August 1, 2004... Although disabled workers might have to make special arrangements for their transportation to and from work, those related expenses are not deductible as medical expenses, according to the Tax Court. NEW CASE * The Internal Revenue Service...

Employers embrace HSA concept.(Compensation & Benefits)(health savings accounts)
August 1, 2004... If your company is hesitant about offering tax-favored health savings accounts (HSAs) to employees, then you might be interested in the results of a recent survey showing that a significant percentage of employers--big and small--are embracing...

Large employers leverage buying power to tackle rising health care costs.(Brief Article)
August 1, 2004... Rising health care costs is a continuing battle for employers of all sizes, but some of the nation's largest employers are fighting back. Led by the HR Policy Association, more than 50 Fortune 500 companies are working together to form two...

Partners allowed to exclude discharge-of-indebtedness income.(Dealing With The IRS)(Internal Revenue Service)(General partners)
August 1, 2004... General partners in a partnership that filed for chapter 11 bankruptcy were entitled to exclude discharge-of-indebtedness income from their gross income, the Tax Court ruled in four recent memoranda opinions [Chester L. Price v. Comm'r; T.C....

Board chairman not responsible for trust fund penalty.(Payroll Taxes)(United States v. David J. Smith of Texas Automatic Sprinklers Inc.)
August 1, 2004... In May 1991, the Internal Revenue Service (IRS) notified David J. Smith that he was responsible for $1,082,496.52 because he was a "responsible person" who "willfully" failed to pay payroll taxes collected by Texas Automatic Sprinklers, Inc....

Penalty refund available to certain businesses.(Electronic Federal Tax Payment System)(Brief Article)
August 1, 2004... If your company previously paid a federal tax deposit (FTD) penalty, it may be one of an estimated one million employers eligible for a refund. The refund is an incentive to encourage enrollment in and use of the Electronic Federal Tax Payment...

Cost isn't only consideration when choosing employee stock option valuation method.(Executive's Briefcase)(Brief Article)
August 1, 2004... Cost Isn't Only Consideration When Choosing Employee Stock Option Valuation Method. With the Financial Accounting Standards Board (FASB) moving closer to requiring mandatory expensing of employee stock options, your company may be researching...

Many companies are susceptible to disasters and information security threats.(Executive's Briefcase)(Brief Article)
August 1, 2004... Many Companies Are Susceptible to Disasters and Information Security Threats. Executives in a recent survey expressed concern about their companies' ability to protect and sustain business operations in the event of a significant disruption....

New procedure announced for US tax certification.(Executive's Briefcase)(Brief Article)
August 1, 2004... New Procedure Announced for US Tax Certification. A new form was recently released for taxpayers who need proof of US residence to qualify for lower tax treaty rates while working or investing overseas. Form 8802, Application for United States...

Private agencies may be tapped to collect unpaid taxes.(Executive's Briefcase)(General Accounting Office )(Brief Article)
August 1, 2004... Private Agencies May Be Tapped to Collect Unpaid Taxes. Uncle Sam might not be the one knocking on doors to collect unpaid federal taxes, under legislation that Congress is considering. Congress is contemplating whether it should authorize the...