USLegal Reporter

The Internal Revenue Service began distributing payments today to taxpayers who are eligible to receive rebates as part of The Economic Stimulus Act of 2008. Rebates are going out ahead of schedule as announced by President Bush last Friday.

Rebates are being issued through a process based on the last two digits of the main tax filer’s Social Security number. The first wave of payments will go to those who requested to receive them via direct deposit. Paper checks will begin being mailed on May 9th.

The IRS expects all payments to be distributed to eligible recipients no later than July 11th.

Source: http://www.irs.gov/irs/article/0,,id=180250,00.html

The House of Representatives voted 402-0 today to pass a bill which would extend a moratorium on state and local Internet access taxes through 2014. The Senate unanimously approved the measure last week.

The bill has been extended twice before. Without it, taxes for Internet subscribers could increase as much as 17%. It does not prohibit sales taxes on items purchased online.

The measure now goes to President Bush who is expected to sign it in time to meet a November 1st deadline.

Source: http://www.informationweek.com/news/showArticle.jhtml?articleID=202800352

The IRS announced on Tuesday that it has filed suit against five Jackson Hewitt franchises for fraudulent tax return preparation practices. The government alleges that illegal practices by the defendants, such as claiming refunds based upon phony W-2 forms and exagerrating claims, has cost the U.S. Treasury a loss of over $70 million.

The lawsuit seeks an injunction against the defendants to prevent them from preparing further tax returns. In July 2006, a federal court in Miami, Florida barred a large Jackson Hewitt franchise from making frivolous claims on tax returns.
Source: http://www.irs.gov/newsroom/article/0,,id=169251,00.html