Executive's Tax & Management Report articles from November 2007

Executive's Tax & Management Report archives from November 2007

Lawmakers want forgiven debt to be tax-free.(Mortgage Forgiveness Debt Relief Act of 2007)(Refinancing and homeowners insurance)
November 1, 2007... If you or a family member has been affected by problems in the sub-prime mortgage market, you might be interested to learn that federal legislators are working on a proposal that would exclude from taxes debt that is forgiven following mortgage...

More business filing returns electronically.(electronic filing of tax returns)(Brief article)
November 1, 2007... Although electronic filing of tax returns is required for certain corporations with assets of more than $10 million, other large corporations and an increasing number of small businesses are voluntarily choosing to e-file, according to the IRS....

IRS offers info on existing tax relief following foreclosure.(United States. Internal Revenue Service)(Brief article)
November 1, 2007... Although there are potential tax consequences for home mortgage "workouts" and foreclosure, certain tax-payers may be eligible for special tax relief provisions, which often reduce or eliminate the tax bite for financially strapped borrowers,...

Updated S corporation rules issued.(DEALING WITH THE IRS)(United States. Internal Revenue Service)
November 1, 2007... The IRS has issued guidance reflecting legislative changes to the rules governing S corporations. Specifically, the proposed regulations incorporate changes made under the American Jobs Creation Act of 2004 (P.L. 108357, 118 Stat. 1418), the...

New process adopted for late S corporation elections.(Brief article)
November 1, 2007... Suggestions from tax professionals and small business owners have prompted the IRS to adopt a simpler process for requesting relief for late elections for S corporation tax treatment. Under Rev. Proc. 2007-62, IRB 2007-21, Oct. 9, 2007,...

GO Zone depreciation revisited.(BUSINESS DEDUCTIONS)( Gulf Opportunity Zone )
November 1, 2007... Following the devastation of Hurricane Katrina in 2005, Congress passed legislation providing special tax benefits to encourage the rebuilding of the infrastructure along the Gulf Coast. One of the primary parts of that legislation was the...

Jumping through hoops to establish a profit motive.(DEALING WITH THE IRS)(Darryl F. Royster's income taxes and accuracy-related penalties)(Case overview)
November 1, 2007... An IRS computer specialist and basketball referee took a shot at deducting losses related to a basketball school he operated, but the IRS benched that idea. NEW CASE The IRS said Darryl F. Royster owed more than $17,100 in income taxes for...

TIGTA suggests clarifying hobby loss rules.(DEALING WITH THE IRS)(hobby loss" provision)
November 1, 2007... After studying the IRS's efforts to address noncompliance by certain high-income taxpayers who claim hobby losses, a government agency has recommended that legislators make changes to Code Sec. 183, known as the "hobby loss" provision. ...

Company appeals payment plan rejection.(EMPLOYMENT TAXES)(Dale Veer of United States. Internal Revenue Service rejected the proposal of payment plan of the Lofgren Trucking Service, Inc. )(Case overview)
November 1, 2007... An IRS Appeals officer rejected a corporation s proposed payment plan to cover past-due federal employment taxes, saying the corporation has not demonstrated its ability to pay current obligations. NEW CASE Lofgren Trucking Service, Inc....

Was worker liable for self-employment tax?(COMPENSATION & BENEFITS)(Federal Insurance Contributions Act)(Case overview)
November 1, 2007... Whether a worker is classified as an employee or independent contractor depends on a variety of factors. Proper classification is necessary to ensure that tax liabilities are paid by the appropriate party. NEW CASE The IRS said that a...

Open enrollment issues to consider.(COMPENSATION & BENEFITS)(open enrollment season for the health care )
November 1, 2007... With the rising cost of health care, employers are taking a closer look at the benefits they offer, and experts recommend that executives and employees carefully review the available options. Be Aware of Current Trends Watson Wyatt...

Senator pushing for better monitoring of EROs.(Executive's Briefcase)(electronic return originators)(Max Baucus)(Brief article)
November 1, 2007... In response to a Treasury Inspector General for Tax Administration (TIGTA) report, Senate Finance Committee Chairman Max Baucus (D-MT) is calling on the IRS to step up efforts to ensure the integrity of e-file providers and, in turn, protect...

Following lawsuit victory, dry-cleaning shop closing.(Executive's Briefcase)(Custom Cleaners)(Brief article)
November 1, 2007... Custom Cleaners, a Washington, D.C., dry-cleaning shop that successfully defended itself against a $54 million lawsuit, is closing its doors, according to a statement from the National Federation of Independent Business (NFIB) Legal Foundation....

Employee expense rules updated.(Executive's Briefcase)(Brief article)
November 1, 2007... The IRS recently issued guidance updating employee expense rules and substantiation requirements. Rev. Proc. 2007-63, IRB 200742, Sept. 27, 2007, details the rules under which the amount of an employee's ordinary and necessary business...

Tax changes for health benefits?(COMPENSATION & BENEFITS)
November 1, 2007... A recent study found that proposals to change the tax treatment of health insurance could lead to the end of employer-based coverage in its current form. Under current law, employers and employees receive a tax benefit for...