CCH TAX NEWS for October 23, 2006

Oct 24, 2006 1 Replies

CCH TAX NEWS for October 23, 2006



FEDERAL NEWS



CCH Weekly Report --What's Happening on the Tax Front: SFC to Review JCT Options to Close Tax Gap; Baucus Presses Everson on Extenders Tax Provisions; IRS Helps Shut Down Drug Money-Laundering Operation

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Obligation to Replace Property Borrowed in Short Sale Was Code Sec. 752 Liability (COLM Producer, Inc., DC Texas)
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CEO Was Potentially Liable for Excise Taxes on Long Distance Telephone Service (Brinskele, FedCl)
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Ford Vehicles Certified for Hybrid Motor Vehicle Credit (IR-2006-165)
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STATE NEWS



Texas --Corporate Income Tax: Strategic Investment Area Counties Announced for 2007

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Very interesting. It makes sense that a company that collected a federal excise tax but failed to remit it to the IRS was responsible for paying it over even though the tax was later determined to be non-applicable.

The reason is that the money didn't belong to the company, it belonged to the customers they collected it from, who are entitled to have it refunded by the IRS. So it has to be collected so it can be refunded.

Stu

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