Executive's Tax & Management Report articles from August 2007

Executive's Tax & Management Report archives from August 2007

Issues Congress may tackle by year's end.
August 1, 2007... With a minimum wage hike and small business tax incentives already approved, what's next for federal lawmakers in the tax realm? The legislative agenda for the remainder of the year could include discussing a permanent solution to the...

Court again rejects AMT "fairness" challenges.(PERSONAL TAXES)(Abdul Kamara v. Commissioner)(Kevin Clare and Sarah Louise Moore v. Commissioner)(alternative minimum tax)
August 1, 2007... The alternative minimum tax (AMT) has frustrated some taxpayers who don't feel they should be subject to the tax. Originally implemented to ensure that the wealthy pay their fair share of taxes, the AMT now affects other taxpayers as well. ...

Traps for the unwary in deducting activity losses.(PROPERTY AND INVESTMENT LOSSES)
August 1, 2007... A taxpayer's ability to deduct osses attributable to property or other investments is often a complex area of tax law. This is particularly true when a taxpayer has an investment in a flowthrough entity, such as a partnership, limited liability...

Court: couple must pay self-employment taxes.(DEALING WITH THE IRS)(Edward W. and Edith M. Arnold v. Commissioner)
August 1, 2007... A husband and wife each operated an S corporation, but the IRS did not consider either of them to be employees, so it said they owed self-employment tax. NEW CASE ** Edward and Edith Arnold worked as an accountant/ tax preparer and a...

Cash structuring transactions result in $1.2 million liability.(DEALING WITH THE IRS)(Timothy and Barbara Kosinski v. Commissioner)
August 1, 2007... A dentist apparently bit off ore than he could chew when he engaged in an allegedly fraudulent scheme to overstate the cost of goods sold in a construction business that he incorporated. NEW CASE ** The IRS said Timothy and Barbara Kosinski...

Firms formalizing M&A integration practices.(MANAGEMENT STRATEGIES)(merger and acquisition)
August 1, 2007... Merger and acquisition (M&A) activity is expected to increase during the second half of 2007, according to a recent study. Meanwhile, a separate study showed that M&A executives are taking steps to structure and formalize their integration...

Companies develop a drill for military leave.(Executive's Briefcase)(Survey)(Brief article)
August 1, 2007... Twenty-three percent of HR executives in a recent survey said their workplaces have been impacted by employees being called up for active duty in the National Guard or Reserves. However, 38 percent said the call-ups had "little" impact, and 39...

IRS improves form for agent appointments.(Executive's Briefcase)(Internal Revenue Service)(Brief article)
August 1, 2007... Employers or payers who want to authorize an agent to file tax returns and deposit and pay employment or other withholding taxes on their behalf are being advised to use a new, improved version of Form 2678, Employer/Payer Appointment of Agent....

Compliance tools guide tax-exempt organizations.(Executive's Briefcase)
August 1, 2007... Tax-exempt organizations looking for guidance on federal tax rules and requirements should check out four new Web-based information tools, dubbed "Life Cycles," recently launched by the IRS. The new tools, patterned after existing life...

Comments sought on redesigned Form 990.(Executive's Briefcase)
August 1, 2007... Interested parties have until September 14, 2007, to comment on the IRS's draft of the redesigned Form 990, the annual return on which tax-exempt organizations report information about their operations. The IRS is striving to finalize the form...

Online governance resource available.(Executive's Briefcase)(Deloitte & Touche USA LLP)(www.corpgov.deloitte. corn)(Brief article)
August 1, 2007... Executives and board members interested in learning more about corporate governance should visit www.corpgov.deloitte. corn, Deloitte & Touche USA LLP's new online Center for Corporate Governance. The publicly available site offers updated,...

Guidance provided on return preparer penalty.(Executive's Briefcase)(Brief article)
August 1, 2007... In Notice 2007-54, the IRS and the Treasury provide guidance and transitional relief for the return preparer penalty provisions amended by the Small Business and Work Opportunity Act of 2007. The new amendments went into effect for returns...

Is life insurance cash-out taxable?(PERSONAL TAXES)(G. and Jane V. Straus v. Commissioner)
August 1, 2007... After a couple received a distribution of the cash value of a whole life insurance policy issued on the life of their child, the IRS said the amount was taxable income. NEW CASE ** Antim and Jane Straus purchased a whole life insurance...