Executive's Tax & Management Report articles from May 2006

Executive's Tax & Management Report archives from May 2006

How the new bankruptcy act impacts businesses.
May 1, 2006... The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (P.L. 109-8) ("the Act") was signed into law by the President and became effective October 17, 2005. This legislative reform was spurred by perceived abuses of the bankruptcy...

Deficiency notice served to bed and breakfast inn.
May 1, 2006... The owners of a bed and breakfast inn in Sutter Creek, California, claimed certain deductions for the portions of their inn that were used exclusively for business purposes, as well as those used for both business and personal purposes. The IRS...

Securitization of intellectual property.
May 1, 2006... As companies are increasingly looking for additional sources of capital, leveraging intellectual property (IP) is burgeoning strategy that converts erratic cash flows into an immediate lump sum payment. Securitizing revenue streams from...

Initiatives proposed for health spending and coverage.
May 1, 2006... During his State of the Union address, President Bush revealed plans for increased tax breaks for personal health spending, an expansion of health savings accounts (HSAs) and increased portability of health coverage to those who change jobs or...

Minimizing income through maximizing basis.
May 1, 2006... With the advent of the LLC or LLP as the entity of choice for many new businesses started in the last few years, the number of transfers between taxpayers of membership or partnership interests in these entities is increasing substantially. ...

E-file, direct deposit used in record numbers.(TAX RETURNS)
May 1, 2006... Nearly 54 million 2005 federal income tax returns had been filed electronically as of March 31, and that figure was expected to climb in the last two weeks leading up to the tax-filing deadline. According to the IRS, 67 percent of all...

State, local taxes impact bottom line.(MANAGING YOUR BUSINESS)
May 1, 2006... Businesses paid nearly half of all state and local taxes in fiscal year 2005, according to an annual study by Ernst & Young LLP's Quantitative Economics and Statistics Practice (QUEST) and the Council On State Taxation (COST). The study...

Priority guidance plan revised.(TAX PROCEDURES)
May 1, 2006... The Treasury and the IRS recently updated their annual list of tax issues slated for formal legal guidance--including regulations, rulings, revenue procedures and notices. The 2005-2006 Priority Guidance Plan, which was released last...

Draft Schedules M-3 updated.(TAX PROCEDURES)
May 1, 2006... Updated drafts of Schedules M-3 for the 2006 tax year are available on www.irs.gov (on the "corporations" page), and the IRS expects to post draft instructions in early May. The draft schedules M-3 are for Forms 1120, 1120-L, 1120-PC, 1120S and...

Get the facts on FACTA.(Fair and Accurate Credit Transactions Act)(Brief article)
May 1, 2006... Despite the significant impact of the Fair and Accurate Credit Transactions Act (FACTA) on small businesses, business owners are unfamiliar with it, according to a recent survey by zTelligence and Fellowes Inc. (www.fellowes.com). In fact, only...

Credit replaces hybrid vehicle deduction.(Executive's Briefcase)(Brief article)
May 1, 2006... In recent years, taxpayers could claim a clean fuel vehicle deduction for purchasing certain new certified hybrid vehicles. For 2005, the deduction was up to $2,000 for taxpayers who purchased a new certified vehicle and first put it into...

IRS finds e-mail scares on the rise.(Internal Revenue Service)(Brief article)
May 1, 2006... The IRS recently established an electronic mailbox for taxpayers to send information about suspicious e-mails they receive that claim to come from the IRS. This new mailbox allows taxpayers to send copies of possibly fraudulent e-mails...

Companies budgeted well for health care costs.(Executive's Briefcase)(Brief article)
May 1, 2006... The increase in the cost of providing health care benefits continued to slow in 2005, as companies stepped up their efforts to control rising costs, according to a survey by Watson Wyatt Worldwide (www.watsonwyatt.com) and the National Business...

Small biz programs take big hit under proposal.(Brief article)
May 1, 2006... Seventy-five of 100 small business programs are targeted for cuts or elimination in the President's 2007 budget request, according to Rep. Nydia M. Velazquez (D-N.Y.), ranking Democrat on the House of Representatives' Small Business Committee....

Factors that influence taxpayer honesty.(Executive's Briefcase)(Brief article)
May 1, 2006... Eighty-eight percent of surveyed Americans said it is "not at all" acceptable to cheat when filing and paying income taxes, according to an annual survey that the IRS Oversight Board commissioned. That's the highest percentage since the survey...

Does internet networking work?(Executive's Briefcase)(Brief article)
May 1, 2006... Half of advertising and marketing executives who participated in a recent survey say they often network online with professionals outside of their companies, according to a survey by The Creative Group (www.creativegroup.com), a staffing...

IRS releases rates for value of personal flights.(Internal Revenue Service)(Brief article)
May 1, 2006... If you use a company jet for nonbusiness travel, you should keep in mind that the IRS considers the value of those flights to be a taxable benefit. Just as the IRS requires you to report personal use of a company car as income, personal...