According to CNN.com, IBM saved approximately $1.6 billion in the month of May 2007 by using a corporate tax loophole that has since been closed by the IRS. IBM participated in a $12.5 billion stock repurchase that took advantage of funds earned overseas that were not subject to U.S. taxes. IBM was able to save $1.6 billion in the transaction. Although the IRS would not comment on IBM's recent activity, two days after IBM's repurchase the IRS announced plans to issue regulations making companies pay U.S. taxes when they buy back their stock. The new regulations would treat funds used for buybacks as repatriated earnings.

Source: Roni's Blog

According to SFgate.com, Barry Bonds was out of the lineup for the second game in a row but vowed not to go on the disabled list. "I'm not going on the DL. Don't count on me seeing the DL at all," Bonds said. "I won't let myself. I'll work hard. I'll do what I have to do to make sure I don't go there ... unless I get hit by a truck. I'll play through it." He later claimed that he expects to return to the lineup for the series finale tonight. "I was sore (last week) in New York. This kept escalating," Bonds said. "Normally, I'd get through it. I'd never had shin splints. It started hurting in my knees, bad. ... Today, I feel good. I feel I can go out there and play."

Source: Ronis Blog

Earlier today Nina E. Olson, National Taxpayer Advocate, announced that the Internal Revenue Service will be awarding nearly $8 million in matching grants to Low Income Taxpayer Clinics (LITCs) this year. The IRS will be awarding LITC grants to 154 organizations from 49 states plus the District of Columbia, Puerto Rico and Guam. According to the IRS LITCs are "qualifying organizations that provide representation for free or a nominal fee to low-income taxpayers involved in tax disputes with the IRS or that provide education on taxpayer rights and responsibilities to taxpayers for whom English is a second language or who have limited English proficiency." Source: IRS.gov.

Source: Roni's Blog

According to Pacific Business News, hotel occupancy has fallen below the two-thirds mark throughout the Hawaiian Islands. During a seven day period spanning May 5th through May 12th, Statewide hotel occupancy slid down to only 58.8%. This represents a staggering 16.9% dip from the same week last year. The last time the occupancy rates fell below 59% was back in December of 2004. Hotel occupancy in Hawaii was actually lower than the national rate of 64.8%.

Source: Roni's Blog

According to the Cincinnati Enquirer, General Motors Corporation set a new world record last week when their Sequel SUV fuel-cell vehicles were each driven 300 miles on public road using only one tank of hydrogen. The point of the drive was to prove that the vehicle was ready for the public, and that it could travel long distances without problems. "This is a very significant event to us," notes Larry Burns, Vice President of Research, Development and Planning. "Our goal was to go 300 miles because that is what our customers tell us they need. This is a vehicle that can carry four or five passengers, but this is also a vehicle that emits just water. We are in the infancy of a whole new automobile." The test came just one day after President George W. Bush announced his plans to increase vehicle fuel-economy standards by the end of 2008.

Source: Roni's Blog

Last week, I sent an open letter to Congress, the U.S. Treasury, and the IRS identifying a problem that can be easily fixed and beneficial to taxpayers and the IRS. Here is a press release about the letter and including an actual photocopy.

Specifically, the problem was that the IRS requires a complete financial disclosure from all taxpayers who owe in excess of $25,000.00. The complete financial disclosure includes giving the IRS extremely personal information and private financial information. The disclosure is required even if you arrange to fully pay the amount owed within five (5) years, which is agreeing to a substantial payment. The disclosure also requires substantiation of all financial information claimed. This includes providing copies of all current financial records, such as bank statements, paycheck stubs, proof of payment for monthly expenses (i.e. medical expenses, child care, etc.). As you can imagine, such a system acts as a barrier for many taxpayers to get a fair resolution. In fact, it frightens many from even attempting to address their IRS tax debt.

Congress, the U.S. Treasury, and the IRS can work together to create a more efficient and effective program. Simply raising the bar to when the IRS requires a complete financial disclosure will go a long ways towards creating that program.

Source: Roni's Blog

According to the Washington Post, the IRS has bad news for homeowners who are seriously delinquent on their mortgages and hoping for debt relief. If your lender decides to modify your loan or forgive your debt, you could end up owing federal income taxes on that amount. The IRS essentially treats the amount that is forgiven as ordinary income. Lenders are even required by law to notify the IRS when they forgive the debt. This news is especially bad in the current market, where many people are finding themselves upside-down in the current market because of interest only loans or property value decreases.

Source: Roni's Blog

The IRS recently announced that purchasers of qualified Nissan and GM vehicles may continue to claim the Alternative Motor Vehicle Credit. The announcement comes after the IRS concluded its quarterly review of the number of hybrid vehicles sold. Nissan only sold 2,094 qualifying vehicles to retail dealers, while GM sold 2,927 qualifying vehicles to retail dealers in the quarter ending March 31, 2007.

The allowable credit amount for the vehicles is as follows:
Altima Hybrid — Nissan's only certified hybrid vehicle — $2,350.
Chevrolet Silverado Hybrid 2WD — $250
Chevrolet Silverado Hybrid 4WD — $650
GMC Sierra Hybrid 2WD — $250
GMC Sierra Hybrid 4WD — $650
Saturn Vue Green Line — $650
Saturn Aura Hybrid — $1,300

Source: Roni's Blog

According to the Wall Street Journal, more franchise businesses are adding a new element to franchise owners, a designated charitable cause. The tactic known as cause marketing is a process where businesses link themselves to a special charity or social causes and raise funds through promotions and sales. The tactic isn't new to big corporations like Nike, Home Depot, etc, but it's beginning to gain popularity in franchise businesses. Having a designated charitable cause allows companies to unite franchisees in various markets, convey a consistent image, and boost their profiles and bottom lines. "It's increasingly popular among franchise organizations who are trying to penetrate local markets, who are trying to bond with their franchisees and who are trying to help franchisees to attract and retain employees," says David Hessekiel, president of Cause Marketing Forum Inc.
Source: Roni's Blog

According to an Associated Press report, people who were hit hardest by refund anticipation loans were low income households. A North Carolina investigation found that people in the state spend about $44 million per year on refund anticipation loans with interest rates topping 800%. The study claims that nearly 86% of the refund loans issued in 2004 went to low-income borrowers. About 500,000 taxpayers in North Carolina get tax refund loans every year, with average costs ranging from $78.30 to $174.95. For more details on the study visit Forbes.com.

Soucre: Roni Deutch Blog

According to CarAndDriver.com, Mark Chernoby, Vice President of DaimlerChrysler, delivered a testimony calling on Congress to broaden tax credits to include all diesel vehicles. He spoke during a hearing in the U.S. Senate Finance's subcommittee on Energy, Natural Resources and Infrastructure where congress is looking into use tax incentives to speed introduction of more fuel-efficient vehicles. "The credit has been pivotal in establishing consumer acceptance of hybrid passenger cars and we believe it will be helpful in the future in encouraging more hybrid light trucks," Chernoby claimed. "Introduction of diesel passenger vehicles and light trucks would establish an altogether new market for biodiesel and renewable diesel."

Source: Roni Deutch Blog

As you have probably already noticed we recently unveiled a new layout for my blog. We also purchased a new name for the blog, which you can now access by typing in RonisBlog.com. In addition to the physical changes we will also be making some changes to the content we feature on my blog. As well as the regular tax news I will also be posting franchise news and special featured articles which will go more in debt into tax law issues. So remember to update your bookmarks with http://ronisblog.com and be sure and check back daily for updates.