Accounting News


Thursday, May 26, 2011
GAO Recommends Pre-refund Checks

The GAO has recommended that the IRS expand checks on returns before sending out a refund. The goal is to correct errors and reduce identity theft.

The IRS processed 107 million refunds in 2010. Of those, 8.4 million had math errors. There are also errors with incorrectly claiming credits. There were 7.7 million errors from the Making Work Pay credit alone. A correction benefited the tax payer roughly 60% of the time.

The GAO also recommends that checks are made to detect systematic identity theft from individuals or tax preparers.

Labels: , ,

Accounting News


Tuesday, May 17, 2011
Tax Lady Closes Firm

Roni Deutch the self declared "tax lady" closed her law firm last week. She is also surrendering her license. Duetch is facing charges of cheating clients out $34 million. In April the court froze her assets so she was unable to pay back a debt of $10 million by the firm and another $4 million in personal debt. The order came after the firm launched a massive shredding operation to destroy 2.7 million documents requested for discovery. Her firm will lay off all 200 employees and Deutch faces jail time.

If you need ethical tax resolution help we have accountants all of the US ready to help.

Labels: , ,

Accounting News


Monday, May 16, 2011
Tax Reform on Flow-Through Business

Ernst & Young have released a study on the effect of tax reform on flow-though business. A Flow-through business is a legal structure where the taxes are paid by owners in the form of income. This eliminates the double tax from taxing the profits and then also taxing the owners income. Some forms of flow-through businesses are LLCs, S-corp and sole-proprietorships, and partnerships. These types of business represent 95% of all business and 54% of private sector employment.

The goal may be to streamline the tax code for c-corps by reducing tax rates and deductions it would be disastrous for flow-through businesses. It would increase tax rates for owners by 8% or $27 billion.

Labels: ,

Accounting News


Thursday, May 12, 2011
Payroll Service on the Go

If you are small business owner on the go then Inuit has a new payroll solution for you. They have introduced an iPhone app to interface to their payroll service. The payroll can be run by the business owner or their accountant. The app is free but requires the business to use Intuit Payroll.

------------------- Update 5/17 -------------------------

Intuit also has support for Android phones.

Labels: , ,

Accounting News


Tuesday, May 3, 2011
FASB Issues Ruling on Repurchase Agreements

The Financial Accounting Standards Board (FASB) updated the standards for repurchase agreements (repo). The ruling defines whether a repo should be accounted for as a sale or as secured borrowing. The decision is based on whether the entity has maintained effective control over the transferred financial assets. The update will be effective on December 15, 2011

Labels: ,