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Google to IRS: Hand over our $83.5 million tax refund

Google has sued the Internal Revenue Service over a stock transaction dating back to 2004 with America Online.

The company filed the complaint in U.S. tax court on Thursday, claiming that the U.S. government owes the search giant $83.5 million. Bloomberg, which was first to report the news, spoke with a Google spokeswoman who said that the company hopes "to have it resolved soon."

Google argues that the IRS erroneously disallowed a $238.6 million deduction the company took related to the difference in value between what AOL paid to exercise a Google stock warrant … Read more

The tech behind Kinect and how it will control your living room

LOS ANGELES -- At first I thought I had misunderstood him, so I made sure to reply slowly. "So you're saying Kinect is going to blast IR signals at your living room, and they're going to reflect off walls and stuff and bounce back to control all of your devices?"

"That's correct," Marc Whitten said.

"Whoa," I replied.

"Kinect has a really powerful management of that energy," he explained. "It's just light," he went on, "but it just exists in a different spectrum." I … Read more

Deep breath: Senate set to vote on Internet sales tax

Many polls from the past few years have found that lawmakers in Washington, D.C. are just slightly less popular than catching the flu while on a beach vacation. Remarkably, the U.S. Senate could approve a bill this week that will likely make lawmakers even less popular with many online shoppers.

The Senate is expected to vote as early as Monday on the long-debated issue of an Internet sales tax. The bill being considered in Washington now would require online outlets with sales of at least $1 million to collect sales tax in all states, even those in which … Read more

Senators to IRS: Don't snoop on taxpayers' private messages

A dozen U.S. senators warned the IRS today against warrantless snooping on taxpayers' confidential e-mail, Facebook, or Twitter messages.

In a stiffly worded letter (PDF) to the tax collection agency, they asked the "IRS to confirm that it will immediately establish a warrant requirement when it wants to obtain e-mail and other electronic personal correspondence" from American companies.

The letter also asked the IRS to "provide a timeline" for updating its internal procedures to guarantee that the contents of electronic files would be accessed only after agents follow the privacy-protective traditional procedure of obtaining a … Read more

IRS chief: We'll rewrite our e-mail search policy

The head of the Internal Revenue Service said today the agency would abandon its controversial policy that claimed the right to read taxpayers' e-mail without first obtaining a search warrant.

Steven Miller, the IRS' acting commissioner, said at a U.S. Senate hearing that the no-warrant-required policy would be ditched within 30 days for e-mail, but he did not make the same commitment for other private electronic communications.

"We intend to do that" for e-mail, Miller said, in response to prodding from Sen. Ron Wyden, an Oregon Democrat who has become a frequent champion of civil liberties in … Read more

IRS remains mum on taxpayers' e-mail privacy rights

The Internal Revenue Service has declined to answer questions about whether it obtains a search warrant before perusing Americans' e-mail messages and other electronic correspondence.

CNET contacted the IRS last Wednesday morning to ask whether the agency's internal procedures require warrants signed by a judge. That was in response to newly disclosed internal IRS memos saying Americans enjoy "generally no privacy" in their e-mail, Facebook chats, Twitter direct messages, and similar online communications.

Despite repeated queries, the IRS has not responded to last week's questions. Instead, an agency spokesman provided a statement saying:

Respecting taxpayer rights … Read more

IRS doesn't believe in warrants for e-mail

CNET Update gets worked up over warrants:

The Internal Revenue Service has documents suggesting that it doesn't need a search warrant to access e-mail or private messages on Facebook and Twitter. CNET's Declan McCullagh has the story looking into the privacy guideline at the IRS that goes against what many lawmakers have argued.

Today's tech roundup also looks into the user data stolen from Vudu's offices, and T-Mobile's push for converts with an iPhone trade-in promotion.

Watch CNET Update in the video above, and subscribe to the podcast via the links below.

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IRS claims it can read your e-mail without a warrant

The Internal Revenue Service doesn't believe it needs a search warrant to read your e-mail.

Newly disclosed documents prepared by IRS lawyers say that Americans enjoy "generally no privacy" in their e-mail, Facebook chats, Twitter direct messages, and similar online communications -- meaning that they can be perused without obtaining a search warrant signed by a judge.

That places the IRS at odds with a growing sentiment among many judges and legislators who believe that Americans' e-mail messages should be protected from warrantless search and seizure. They say e-mail should be protected by the same Fourth Amendment … Read more

TurboTax Online Deluxe 2012

TurboTax is big in tax software, so we were interest to see how their online tax service compared to similar services from other big names in the tax prep game. TurboTax Online offers five options: Free, Deluxe, Premier, Home & Business, and the new Military Edition. The Deluxe edition is the most popular. Why? Maybe its mission: Maximize your deductions. TurboTax Deluxe 2012 is ready to help you prepare and file your 2012 taxes. Better yet, it's ready for the IRS: One of the advantages of online tax tools from trusted services is their ability to handle changes in … Read more

File your homeowner or investment income taxes online with TurboTax Deluxe 2012

TurboTax is big in tax software, so we were interest to see how its online tax service compared with similar services from other big names in the tax prep game. TurboTax Online offers five options: Free, Deluxe, Premier, Home & Business, and the new Military Edition. The Deluxe edition is the most popular. Why? Maybe its mission: maximize your deductions. TurboTax Deluxe 2012 is ready to help you prepare and file your 2012 taxes. Better yet, it's ready for the IRS: one of the advantages of online tax tools from trusted services is their ability to handle changes in … Read more