Friday, May 31, 2013

This N That from the Tax World

May 31, 2013

IRS Making System Improvements for e-Filers

Changes the Internal Revenue Services have been making to their e-File computer system will result in a more reliable system and reduce delays in the processing of your tax returns, IRS officials said in a recent report.

The report noted that during the 2013 tax season, IRS officials had to reboot the system on at least two occasions to correct system performance problems. They spent a ton of our money to conduct a system evaluation to define the work that needed to be done.

Our fingers remain tightly crossed/:-)

Tea Party Groups File Suit Against IRS

Tea Party groups have banded together to file suit against the Internal Revenue Service and top administration officials in the wake of allegations that the IRS delayed applications for tax-exempt status from Tea Party groups by subjecting them to additional security.

The Obama administration has come under fire amid accusations that it played an inappropriate role in the IRS's actions against the Tea Party and its conservative base.

The lawsuit was filed by the American Center for Law and Justice on behalf of 25 Tea Party groups and it urges that the court to fine that the Obama Administration violated the First and Fifth Amendments to the US Constitution, the Administrative Procedure Act as well as the IRS's own regulations.

According to Accounting Today's Michael Cohn, the suit requests a declaratory judgement that the agency and some of its officials unlawfully delayed and obstructed the organizations' applications by means of conduct that was based upon unconstitutional criteria and seeks injunctive relief to protect its clients, officers and directors from further IRS abuse or retaliation.

The lawsuit seeks compensatory and punitive monetary damages the amount of which will be determined at trial.

General Fund Revenue Still Down in KY

The US economy seems to be on the upswing but revenue from key tax sources in the Bluegrass State saw substantial declines in April, according to a State Budget Director Jane Driskell.

Driskell released a monthly revenue report showing that corporate income tax revenue fell by nearly 90 percent in April compared to April 2012 levels says the Associated Press' Roger Alford.

The report showed property tax collections down by 53.5 percent. Cigarette tax revenue was down 22.2 percent. And collections from the all-important sales tax were off 7.3 percent.

The two bright spots in the monthly report were a 5.5 percent increase in income tax revenue and an 18.6 percent rise in coal severance tax collections.

Road Fund collections reached $143.1 million in April, an 18.3 percent over the April 2012 level.