Sweeping New IRS “Repair Regulations” Impact Most Businesses
The IRS has released much-anticipated temporary and proposed regulations on the capitalization of costs incurred for tangible property. They impact how virtually any business writes off costs that repair, maintain, improve or replace any tangible property used in the business, from office furniture to roof repairs to photocopy maintenance and everything in between. They apply immediately, to tax years beginning on or after January 1, 2012. more

Congress Begins Work on Payroll Tax Extension as White House
Unveils New Proposals
The fate of the employee-side payroll tax cut along with a host of tax extenders and other expired provisions could be decided in coming weeks. A conference committee of House and Senate members is negotiating a full-year extension of the payroll tax cut and could add some or all of the tax extenders to a final package. Lawmakers also could extend the payroll tax cut without acting on any tax incentives. more

IRS Launches Third Version of Voluntary Offshore Disclosure Program
The IRS reopened its offshore voluntary disclosure program in early 2012 in response to what the government described as strong interest among taxpayers. The reopened program, the third of its type in recent years, encourages taxpayers with unreported foreign accounts to make full disclosures in exchange for a reduced penalty framework. Like its predecessors, the terms and conditions of the reopened program are very complex. The IRS has promised to provide more details. In the meantime, the prior offshore disclosure programs are guides to how the IRS intends to implement the third, reopened program. more

FAQ - What Tax Breaks Come with Raising a Child?
Taxpayers with children should be aware of the numerous tax breaks for which they may qualify. Among them are: the dependency exemption, child tax credit, child care credit, and adoption credit. As they get older, education tax credits for higher education may be available; as is a new tax code requirement for employer-sponsored health care to cover young adults up to age 26. Employers of parents with young children may also qualify for the child care assistance credit. more

How Do I - Receive My Tax Refund that the IRS Used to Offset My Spouse's Debt?
The Treasury Department is authorized to offset a taxpayer's tax refund to satisfy certain debts. A spouse who believes that his or her portion of the refund should not be used to offset the debt that the other spouse owes may request a refund from the IRS. more

February 2012 Tax Compliance Calendar
As an individual or business, it is your responsibility to be aware of and to meet your tax filing/reporting deadlines. This calendar summarizes important tax reporting and filing data for individuals, businesses and other taxpayers for the month of February 2012. more

IRS Audits of Higher Income Taxpayers Increase
The IRS audited one in eight individuals with incomes over $1 million in fiscal year (FY) 2011. While the overall audit coverage rate for individuals remained steady at just over one percent, the audit coverage rate for higher-income individuals experienced growth in FY 2011. This trend, however, could be slowed by IRS budget cuts. Congress appropriated $305 million less for the IRS in FY 2012 compared to FY 2011. more

Auto and Truck Maximum Values Updated for 2012 Cents-per-mile and
Fleet-average Valuation
Taxpayers whose employers provide company cars (or trucks and vans) for their personal use must factor that usage into their gross income. Personal use of a vehicle provided by an employer is considered fringe benefit income, and taxpayers generally may calculate its value using the "cents-per-mile" rule outlined by the IRS. more

Tax Gap Grows to $450 Billion - Compliance Rate Holds Steady
The "gross tax gap," or the amount of tax owed to the U.S. government that is not paid on time, climbed from $345 billion in Tax Year (TY) 2001 to $450 billion in TY 2006, the IRS has reported. (Because of the time it takes to collect unpaid taxes and to analyze the data, 2006 is the most recent year for which the statistics necessary for the report were available.) more

IRS Eliminates Tort Test for Exclusion of Personal Injury / Sickness Damages
Recent IRS regulations provide that damages received from a lawsuit or settlement as compensation for personal physical injuries or sickness may be excluded from gross income, even when they were not awarded in an action based on tort or tort-like injuries. The new guidance brings the IRS's official set of regulations up to speed with current law. more

IRS Relief for IRA Owners Entering into Broker Indemnification Agreements
The IRS is providing temporary relief for owners of individual retirement accounts (IRAs) who have entered into indemnification agreements with brokers that may result in prohibited loan transactions.  The relief is in response to a recent decision by the U.S. Department of Labor (DOL). more

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