Accounting News


Tuesday, July 24, 2007
AICPA Seeks Changes for Tax Preparers

Provisions in the new Iraq war funding bill may have large impacts on tax preparers. The provisions went into law in May are expected to increase tax preparation fees charged by CPAs. The increased costs are the result of higher reporting standards. These higher standards may also have the unintended consequence of excessive disclosure for routing tax returns. This would burden the IRS with more work to verify the return.

The AICPA is leading the charge to repeal these new provisions.

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Accounting News


Thursday, July 19, 2007
PricewaterhouseCoopers Settles in Tyco Shareholders

Big Four accounting firm PricewaterhouseCoopers (PwC) has agreed to pay $225 million to Tyco International Inc shareholder in a settlement of a class action lawsuit.

The lawsuit is in response to the $5.8 billion overstatement of income declared by Tyco. The shareholders argued that PwC should have uncovered the fraud in their audits of the company.

After four years of litigation the shareholder received a total of $3.2 billion from PwC and the Tyco International In. The settlement covers new shares purchased between 12/13/99 and 6/6/02. The settlement must still be approved by a judge.

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Accounting News


Tuesday, July 3, 2007
Texas Loosens CPA Mobility Requirements

Texas is the seventh state to approve interstate mobility for CPA requirements. Accountants from states with equivalent requirements may now practice in Texas without holding a Texas CPA license. The exception is audits where a Texas license will be required.

And who are the six other states with existing laws to allow mobility: Indiana, Missouri, Ohio, Tennessee, Virginia and Wisconsin.

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