Executive's Tax & Management Report articles from December 2007

Executive's Tax & Management Report archives from December 2007

Inflation adjustments released for 2008.
December 1, 2007... Federal law requires that the dollar amounts for a variety of tax provisions be revised annually for inflation. The 2008 income brackets and tax-related limitations were recently released by the IRS [Rev. Proc. 2007-66, IRB 2007-45, Nov. 11,...

Slight wage base hike prompts higher taxes for high earners.(Brief article)(Statistical data)
December 1, 2007... Nearly 12 million taxpayers are expected to pay higher taxes in 2008 as a result of an increase in the Social Security taxable wage base, the Social Security Administration (SSA) recently announced. The maximum amount of taxable earnings...

Wildfires spark e-mail scam.(DEALING WITH THE IRS)
December 1, 2007... It didn't take long for scam artists to try to take advantage of taxpayers' empathy for the victims of the Southern California wildfires. Early last month, the IRS warned taxpayers about a new e-mail scam soliciting charitable contributions to...

Filing, payment deadlines extended for wildfire victims.(Brief article)
December 1, 2007... Taxpayers in certain parts of Southern California that were affected by the recent wildfires have until January 31, 2008, to file returns, pay taxes and perform other time-sensitive acts, the IRS announced. Affected taxpayers include those...

Tax ban on internet access extended.(TECHNOLOGY)
December 1, 2007... Internet users will have at least seven more years of tax-free Internet access, thanks to recent legislation signed into law by President Bush. The Internet Tax Freedom Act Amendments Act of 2007 (P.L. 110-108) amends the Internet Tax...

Must erroneous refund be repaid?(TAX PROCEDURES)
December 1, 2007... An individual claimed that the AIRS owed him a refund involving a prior year's taxes. After the IRS sent the individual a larger refund than he was owed, a court had to decide whether the IRS was entitled to recoup a portion of the refund. ...

Variable pay programs gaining popularity.(COMPENSATION & BENEFITS)
December 1, 2007... More than 90 percent of large companies currently offer at least one type of broad-based variable pay plan, compared to 80 percent in 2006 and 51 percent in 1991, according to recent research by Hewitt Associates (www.hewittassociates.com). ...

IRS nixes simple plan deductions.(RETIREMENT PLANNING)
December 1, 2007... Contributions made under a salary reduction arrangement to a simple retirement account, known as a SIMPLE IRA, generally are not includible in an employee's gross income. However, what are the tax implications if an employee makes contributions...

Unscheduled absences impact bottom line.(MANAGING YOUR BUSINESS)(Survey)
December 1, 2007... Most workers who call in sick are not actually ill. In fact, only 34 percent of unscheduled absences are due to personal illness, according to the 17th annual CCH Unscheduled Absence Survey recently released by CCH, publisher of EXECUTIVE'S TAX...

Don't take gamble, report poker winnings.(Executive's Briefcase)(Brief article)
December 1, 2007... Poker tournament winners are legally required to report all their winnings on their federal income tax returns--no matter how much they win or whether the winner receives a Form W-2G or any other reporting form, according to the IRS. ...

Use of E-file continues to increase.(Executive's Briefcase)(Brief article)
December 1, 2007... Nearly 80 million tax returns-more than 57 percent--were filed electronically in 2007 (as of early November), the IRS reports. That marks a nine-percent increase above the 73 million returns filed electronically during the same period last...

Technology can enhance succession planning process.(Executive's Briefcase)(Brief article)
December 1, 2007... Many companies are reconsidering the talent management systems they have in place due to their efforts to implement and improve succession planning, according to Watson Wyatt Worldwide (www.watsonwyatt. com), a global consulting firm. ...

Half of overcollected tax has yet to be refunded.(Executive's Briefcase)(Brief article)
December 1, 2007... Although the IRS made "strong efforts" to educate taxpayers about the one-time refund of federal telephone excise tax, only 48 percent of the $8 billion in overcollected funds had been refunded to taxpayers as of June 9, 2007, and about 71...

Two Honda vehicles certified for tax credit.(Executive's Briefcase)
December 1, 2007... The 2008 Honda Civic Hybrid CVT and the 2008 Honda Civic GX were recently certified as meeting the requirements for federal tax credits. Original owners of the hybrid vehicle may claim a $2,100 credit up to the end of the first calendar...

House OKs bill to stop private debt collection.(Executive's Briefcase)(Brief article)
December 1, 2007... The House of Representatives recently approved the Tax Collection Responsibility Bill of 2007 (H.R. 3056), which would bar the IRS from continuing to contract with private collection agencies. The bill was sent to the Senate and referred to...

IRS, states team up on employment tax information.(Executive's Briefcase)(Brief article)
December 1, 2007... Twenty-nine states have entered into individual information-sharing agreements with the IRS as part of a collaborative Questionable Employment Tax Practices (QETP) initiative. Under the agreements, the IRS and state workforce agencies plan...

Are you an effective communicator?(Executive's Briefcase)(Survey)(Brief article)
December 1, 2007... Only 14 percent of HR professionals in a recent survey gave senior management a grade of "A" for communicating with employees. Thirty-nine percent gave senior managers a "B," while 32 percent said they deserve a "C," according to Novations...

Charitable deductions require substantiation.(CHARITABLE DEDUCTIONS)
December 1, 2007... Taxpayers are allowed to deduct charitable contributions made within a tax year, under certain circumstances. RECENT CASE * The IRS said a couple owed $4,283 in federal income tax for Tax Year 2003, because they were not entitled to claim a...