Executive's Tax & Management Report articles from January 2004

Executive's Tax & Management Report archives from January 2004

Bonus depreciation and like-kind exchanges.
January 1, 2004... As part of the Jobs and Growth Tax Relief Reconciliation Act of 2003, the additional first-year depreciation expense percentage increased from 30% to 50%. This increase provides additional tax relief to businesses that purchase qualified assets...

IRS cracks down on real estate fraud.(Internal Revenue Service)(Brief Article)
January 1, 2004... The number of real-estate fraud investigations initiated by the IRS doubled in just two years--from 107 to 215 investigations. In addition, the IRS has more than 4,000 returns under audit involving individuals and entities associated with real...

More guidance coming on health savings accounts.(Compensation & Benefits)
January 1, 2004... The Medicare Prescription Drug legislation signed into law in December expands the former medical savings accounts into health savings accounts (HSAs), which help individuals save for qualified medical and retiree health expenses on a tax-free...

IRS pressure on tax shelters continues.(Internal Revenue Service)
January 1, 2004... The IRS continues its plight to shut down abusive tax shelters and penalize the taxpayers who participate in them. In the fall, the IRS, 40 states, and the District of Columbia formed a partnership aimed at sharing information on abusive tax...

S Corp can deduct expenses for personal flights.(Travel & Entertainment)
January 1, 2004... If your company owns a corporate jet or helicopter, you probably know that personal use of the aircraft is a taxable fringe benefit in the eyes of the IRS. In a recent legal memorandum (ILM 200344008), the IRS also specifies that an S...

New tax breaks available to military personnel.(Personal Taxes)
January 1, 2004... Whether you or a family member is in the military, you may be interested in new income exclusions for death benefit payments and certain home sales. Both provisions are retroactive, so some qualifying taxpayers will need to file amended returns...

IRS cracks down on auto sales schemes.(Internal Revenue Service)(Brief Article)
January 1, 2004... If you own or manage a car dealership, you might be interested to know that the IRS is paying particular attention to your industry. That's because the IRS has seen an increase in scams and fraud involving the automotive sales industry. In...

Documentation is main hurdle in substantiating claims for R&E credit.(research and experimentation)(Brief Article)
January 1, 2004... Only one-third of U.S. companies that apply for the federal research and experimentation (R&E) credit retain at least 80 percent of their initially claimed credit after the IRS reviews their filings. A survey by KPMG (www.us. kpmg.com) also...

Guidance simplifies reporting requirements for U.S. persons with Canadian retirement plans.(Executive's Briefcase)(Brief Article)
January 1, 2004... U.S. taxpayers holding interests in Canadian Registered Savings Plans (RRSPs) and Canadian Registers Retirement Income Funds (RRIFs) will have substantially less paperwork to complete, thanks to new IRS guidance. Notice 2003-75 simplifies...

Is your tax preparer giving you the most bang for your buck?(Executive's Briefcase)(Brief Article)
January 1, 2004... In Tax Year 2001, more than 55 percent of the nearly 130 million taxpayers used a paid tax preparer, according to a report issued this fall by the General Accounting Office (GAO). However, using a preparer does not assure that taxpayers pay the...

IRS releases first quarterly update of the 2003-2004 priority guidance plan.(Executive's Briefcase)(Brief Article)
January 1, 2004... The Treasury released the 2003-2004 Priority Guidance Plan in July, listing 268 projects for the plan year beginning July 1, 2003. The first quarterly update was recently released, continuing the Treasury's efforts to provide increased and more...

Businesses increasingly go online to apply for employer identification numbers.(Executive's Briefcase)(Brief Article)
January 1, 2004... Since launching its online application process for new employer identification numbers (EINs) in April, the IRS has issued more than 498,000 EINs through its online application. The online application form immediately issues a new EIN,...

Elder care impacts worker productivity.(Executive's Briefcase)(Brief Article)
January 1, 2004... As more people face the challenges of caring for aging relatives, their employers are reporting productivity problems and turnover, according to the SHRM[R] 2003 Elder Care Survey. Survey results indicate that 47 percent of human resource...

IRS releases filing and deposit deadlines for 2004.(Tax Procedures)(Internal Revenue Service)
January 1, 2004... On the next four pages, you'll find the schedule of federal tax filing and deposit deadlines for the first half of 2004. The dates listed reflect adjustments for federal legal holidays. (State legal holidays may affect deadlines if you file...

Federal tax action calendar for January-June 2004.(Calendar)
January 1, 2004... Friday, January 2 Earned income credit. Stop advance payments of the earned income credit for any employee who has not given you a new Form W-5 for 2004. Monday, January 5 FICA and withheld income tax. Semiweekly depositors deposit...

Federal legal holidays in 2004.(Brief Article)
January 1, 2004... Thursday, January 1--New Year's Day Monday, January 19--Martin Luther King, Jr., Day Monday, February 16 Presidents' Day Monday, May 31--Memorial Day Monday, July 5--Independence Day Monday, September 6 Labor Day ...

Revised pension plan limitations announced.(Retirement Planning)
January 1, 2004... The IRS recently announced annual cost-of-living adjustments applicable to dollar limitations on benefits and contributions under qualified retirement plans. Many of the pension plan limitations will change for 2004. For most of the...

Tax question.(Brief Article)
January 1, 2004... Q One of our employees turned in a W-4 claiming more exemptions than our payroll manager thinks the employee should. What should our company do? A Your payroll manager should discuss the matter with the employee. Payroll managers are not...

2004 per diem rates set.(Travel & Entertainment)
January 1, 2004... Some businesses reimburse their employees for business travel expenses by requiring employees to submit receipts upon their return. Other businesses find it more efficient to use the IRS-approved per diem rates. With per diems, employees...