GAO investigating corporate investment income reporting

Article Abstract:

The General Accounting Office (GAO) is investigating the degree that firms under-report investment income on tax returns, and the preliminary finding of 54 percent is prompting Congress to demand that the Internal Revenue Service (IRS) extend its document matching program (which currently applies to individuals) to corporations in order to gain $3 billion in lost tax revenues. The IRS denies charges of double standards and claims document matching is not feasible for corporate taxpayers because of varying fiscal year end dates, the complex matching that would be required to trace consolidated tax reports (reports for parent companies and subsidiaries on a combined basis), and allowance of accounting methods such as accrual accounting. Currently, corporations are audited by the IRS based on the size of the company; for example, 86 percent of companies reporting $100 million or more in assets were audited in 1985.

General government, not elsewhere classified, United States, Laws, regulations and rules, Investigations, Accounting and auditing, Investments, Finance, Tax auditing, Tax audits, United States. Internal Revenue Service, Tax returns, United States. Government Accountability Office

---

Will the Fed keep interest rates low to elect a Republican president?

Article Abstract:

Domestic and foreign investors assume that the US Federal Reserve Board (Fed) manipulates interest rates in election years in order to help elect politically compatible presidents. The Fed is certainly subject to a great deal of political pressure, but there is no persuasive evidence to support accusations of election-year monetary policy shifts. The Fed asserts that forces of supply and demand rather than politics shape its monetary policy. Analysts say investors should focus on the strength of the economy, inflation, and the dollar's performance in global currency markets rather than on the election.

Management, Elections, Presidents, United States. Federal Reserve Board, Presidential elections

---

Corporations grapple with the new alternative minimum tax

Article Abstract:

Under the Tax Reform Act of 1986, corporations must now calculate their tax liability according to two formulas, the alternative minimum tax (AMT) or the conventional method, and use the formula that has the higher tax liability. Companies that fall under the AMT formula will be liable for any income that is reported to shareholders, even if that income is not taxable under the basic formula. Some large corporations have been able to win 'transition rules' from Congress that will mitigate the impact of the new tax law.

Tax reform, Minimum tax

Similar abstracts:

• Abstracts: Internal control over the treasury function. Corporate treasuries and the euro. Your banks, and how to chose them
• Abstracts: Watching the revenue. Tax-related provisions in the new anti-terrorism law. Economic stimulus proposals
• Abstracts: How to compensate close corporation owners without violating nondiscrimination rules. Failure to meet nondiscrimination test will result in inclusion of fringe benefits

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.