Executive's Tax & Management Report articles from February 2004

Executive's Tax & Management Report archives from February 2004

Tax-related limits adjusted for inflation.
February 1, 2004... The IRS recently released the 2004 income brackets and tax-related limitations, which have been adjusted for inflation [Rev. Proc. 2003-85]. KEY CHANGES FOR 2004 * Effective with taxable years beginning in 2004, the initial income...

Guidance issued on indirect contributions to Roth IRAs.(individual retirement accounts)(Brief Article)
February 1, 2004... The Treasury and the IRS have issued guidance to shut down abuses involving indirect contributions to Roth IRAs. Notice 2004-8 addresses situations in which value is shifted into an individual's Roth IRA through transactions involving...

Clip-and-save tax facts for 2004.(tax rates)(Illustration)
February 1, 2004... Clip-and-Save Tax Facts for 2004 Tax Rate Schedules Married Filing Jointly and Surviving Spouses If taxable income is... The regular income tax is... Not over $14,300 10% of taxable income Over...

More clarification provided on HSAs.(Compensation & Benefits)(health savings accounts)
February 1, 2004... If you plan to set up a health savings account (HSA), then you might be interested in recent guidance provided by the IRS. The January issue of Executive's Tax & Management Report included an overview of HSAs, which were created by the...

Increased tax refunds expected this spring.(Tax Returns)
February 1, 2004... The Treasury expects taxpayers to receive increased refunds come April 15, thanks to provisions of the Jobs and Growth Tax Relief Reconciliation Act of 2003. Those provisions include... * Benefits for married couples. Married couples...

Cancellation of indebtedness includible in gross income.(Personal Taxes)
February 1, 2004... If you plan to open a credit-card account for a college student, family member, or friend, keep in mind that you may be responsible for any unpaid bills. And, if any unpaid debt is cancelled by the credit-card company, that amount must be...

New disclosure requirements issued.(Dealing With The IRS)
February 1, 2004... The Treasury and the IRS's latest strategy to combat abusive tax avoidance transactions is aimed at tightening standards for tax advisors and increasing transparency and disclosure of information to the IRS. "We are proposing a set of...

IRS slashes couple's investment interest deduction.(Investments)(Internal Revenue Service)
February 1, 2004... If you have investment property, then you may be able to deduct interest relating to capital gain transactions. But losses carried over from a previous year might limit the amount of interest you are allowed to deduct. NEW CASE * That's...

Electronic expense plan passes muster with the IRS.(Travel & Entertainment)(Internal Revenue Service)
February 1, 2004... If you're looking for a way to streamline expense reimbursements for your employees, electronic receipts and expense reports might be your answer. Before you rush out and buy new software, however, make sure you understand the relevant tax...

IRS materials help decipher tax laws governing retirement plans.(Executive's Briefcase)(Internal Revenue Service)
February 1, 2004... If your company is struggling to stay compliant with the tax laws governing employer-sponsored retirement plans, then you might be interested in a new IRS pamphlet and CD-ROM. The materials are aimed at helping companies... * Keep...

Do you manage IT as a business?(Executive's Briefcase)(information technology)(Brief Article)
February 1, 2004... Historically, information technology (IT) has been one of the least understood expenditures and one of the most mismanaged areas of many businesses, according to Mark Lutchen, partner and leader of PricewaterhouseCoopers' IT Business Risk...

Who should itemize their deductions?(Executive's Briefcase)(tax deductions)(Brief Article)
February 1, 2004... Approximately one-third of U.S. taxpayers itemize their deductions. The IRS recommends that you consider using Schedule A if your itemized deductions exceed the amount of the standard deductions. For the 2003 tax year, the standard deduction...

Voluntary tip compliance agreement reduces gaming industry's paperwork.(Executive's Briefcase)(Brief Article)
February 1, 2004... The IRS is expanding its new tip compliance agreement nationwide to the gaming industry. The agency encourages gaming industry employers to participate in the voluntary agreement and urges employees whose income includes tips to learn the...

Employer identification numbers available online.(Executive's Briefcase)(Brief Article)
February 1, 2004... More than 498,000 new employer identification numbers (EINs) have been issued to businesses through the IRS's online application process since the online process was launched in April. By the end of November 2003, the IRS was receiving 37.5...

United States seals tax deals with the Bahamas and the Netherlands.(Executive's Briefcase)(Brief Article)
February 1, 2004... A 2002 tax information exchange agreement between the United States and The Bahamas was entered into force on December 31, 2003. The agreement takes effect on January 1, 2004, regarding requests for information made in connection with...