Accounting News


Friday, August 31, 2007
IRS Warns of Phishing Scam

The IRS has re-issued their warning about a phishing scam that claims to come from the IRS. The latest one asks the recipient to fill out a customer satisfaction survey. The survey is supposed to pay $80. However, if you fill it out you don't get $80 but hours trying to chase down an identity thief.

IRS Press Release

Labels:

Accounting News


Friday, August 24, 2007
8 Million Wasted Tax Filings

Treasury Inspector General for Tax Administration has released a report that between 2003 and 2006 US taxpayers filed eight million unnecessary tax returns. The reporst describes an unnecessary tax return as one from people who do not meet the filing requirements but still file Federal income tax returns. The intent is to either obtain a refund of taxes already paid or because they do not understand the law.

The report estimates that it took taxpayers an average of $390 million and 75 million hours per year preparing and filing these unnecessary tax returns. The IRS spent an average of $11 million to process the unnecessary tax returns filed each year.

Read the full report.

Labels:

Accounting News


Monday, August 13, 2007
Simplified Corporate Tax System?

Henry Paulson, Treasury Secretary has spoken several times that he believes the complexity of corporate tax rates are harming the competitiveness of US companies in world markets. Paulson said the corporate tax code "includes ad hoc policies and preferences that result in a narrow tax base and create distortions that divert capital from its most efficient use."

Paulson has also spoken in the past about a need to reduce the overall rate of taxes paid by businesses. However, it doesn't appear that the political climate will make that a reality anytime in the future. People always think that corporate taxes are paid by big companies and not just passed along to the consumer in the form of higher prices. As a result it makes raising the corporate tax rate a popular move when in comes time to raise for money for the government.

Labels:

Accounting News


Wednesday, August 1, 2007
SEC Approves New Auditing Standards

The Securities and Exchange Commission (SEC) has unanimously approved new auditing standards. The changes are designed to reduce costs and increase accuracy. The changes are also supposed to reduced costs for smaller public companies.

"In approving Auditing Standard No. 5, the Commission has strengthened investor protection by refocusing resources on what truly matters to the integrity of financial statements. This is an exceptionally positive step for both investors and for America's capital markets," said SEC Chairman Christopher Cox.

This new auditing standard no. 5 replaces the auditing standard no. 2 currently in place. It is half the length and generally regarded as easier to read.

Labels: