(RIVERWOODS, ILL., December 15, 2005) – CCH, a Wolters Kluwer business (CCH) and a leading provider of tax and accounting information, productivity software and services, announced today that it was selected by the Internal Revenue Service (IRS) to provide the Agency with sales tax data for all taxpayers to use during the 2005 tax filing season in determining their sales tax deduction options. Numerous CCH workflow tools were used, including CCH’s ZIPSales® Database and ZIPSales® Database with Taxability, as well as customized research using the CCH® Tax Research NetWork™.
"CCH is a leader in providing tax law information on the federal and state levels, and we have a long and trusted relationship with the IRS," said Kevin Robert, CCH CEO. "Delivering this comprehensive multi-jurisdictional sales tax information adds a new dimension to our relationship with the IRS. It provides us with an opportunity to directly support millions of taxpayers and continue to support the tax professionals they rely on in making informed decisions based on the authoritative information that we produce."
The optional sales tax tables the IRS is providing to taxpayers are needed to help comply with the American Jobs Creation Act of 2004, which allows individuals to choose to deduct their state and local sales tax rather than their state and local income tax on their federal tax return. To support this, CCH provided the IRS with sales tax information for all U.S. ZIP Codes using CCH’s ZIPSales Database, which provides sales and use tax information for every location throughout the U.S., its territories and Canada. As a result, taxpayers trying to determine whether to deduct their state and local sales tax versus their state and local income tax will be able to refer to the IRS tables rather than add up the sales tax they actually paid (using receipts), which would be difficult for most taxpayers.
To derive the tables, the IRS used CCH data relating to the taxability rules for more than 500 Bureau of Labor Statistics spending categories. CCH tools such as ZIPSales Database with Taxability, which includes a taxability matrix to determine whether or not specific products are subject to sales or use tax in each taxing jurisdiction, along with custom research using the CCH Tax Research NetWork, the industry’s most advanced tax research network, were used to collect this information. The IRS applied the taxability and tax rate information for the various state and local jurisdictions to determine the average amount of sales tax paid in each jurisdiction as a function of both income and family size. These averages appear in the IRS tables as a convenience for taxpayers who prefer not to rely on receipts to determine how much sales tax they paid.
About CCH, a Wolters Kluwer business
CCH, a Wolters Kluwer business (tax.cchgroup.com) is a leading provider of tax, audit and accounting information, software and services. It has served tax, accounting and business professionals and their clients since 1913. Among its market-leading products are The ProSystem fx® Office, CCH® Tax Research NetWork™, Accounting Research Manager™ and the U.S. Master Tax Guide®. CCH is based in Riverwoods, Ill. Wolters Kluwer is a leading multinational publisher and information services company. Wolters Kluwer has annual revenues (2004) of €3.3 billion, employs approximately 18,400 people worldwide and maintains operations across Europe, North America and Asia Pacific. Wolters Kluwer is headquartered in Amsterdam, the Netherlands (www.wolterskluwer.com). Its depositary receipts of shares are quoted on the Euronext Amsterdam (WKL) and are included in the AEX and Euronext 100 indices
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