Federal regulators censured Ernst & Young LLP on Monday and ordered the accounting firm to pay $1.6 million to settle charges of compromising its independence and contributing to faulty accounting by a client in 2001.Advertisement

Massachusetts, one of the first states to pass a universal health insurance law, requires all residents, including uninsured adults, to purchase some kind of health insurance policy by July 1, 2007 or face a fine; but businesses and individuals will be given until January 1, 2009 to sign on for what the state considers a “minimum standard of care,” the Associated Press reports. The additional time was needed to allow employers, workers and insurers to make the transition to the new standards, which will include prescription drug coverage.

A U.S. Senate subcommittee was told Wednesday that California's innovative privacy laws are successfully protecting Californians by getting consumers, businesses, government agencies and others to change their behaviors in order to better protect personal information and fight identity theft.

Pannell Kerr Forster of Texas, P.C. (PKF Texas) was honored by the Texas Public Relations Association (TPRA), with a Bronze Best of Texas award for the business blog, www.fromgregshead.com.The blog, authored by Gregory Price, CPA, Director of Consulting Solutions at PKF Texas, provides insight, information and commentary on accounting and technology trends.“We are very excited that TPRA awarded PKF Texas with such a prestigious award for our blog.

The Connecticut Legislature is considering a measure that would increase the personal income tax rate for high income taxpayers and reduce the sales tax rate.While reducing the sales tax rate from 6 to 4.5 percent, the proposal, CT SB 1385, also would eliminate the property tax credit, establish a refundable credit equal to 20 percent of the earned income tax credit.The proposal also would increase the C corporation tax from $250 to $400 and increase the estate tax rate from 5 to 5.5 percent.

Kevin McGrath, CPA, has been appointed as the next chief operating officer for Crowe Group LLP and Crowe Chizek and Company LLC. McGrath is currently executive in charge of the firm’s Financial Institutions Group. He will succeed Frank Arford, who has been named chief executive officer of Horwath International. McGrath begins his new role on April 1, 2007. McGrath’s new responsibilities will include oversight of the firm’s specialized industry groups and the marketing, sales and communications functions.

The Wisconsin Legislature is considering a bill designed to prohibit a tax preparer or an entity that employs tax preparers from disclosing information obtained in the preparation of a client's tax return unless the tax preparer or entity discloses the parties to whom the tax preparer or entity intends to disclose the information, and the client consents in writing.The Bill, WI SB 69, has been referred to the committee of jurisdiction.

Indiana CPAs are guardedly optimistic with respect to the business climate in the U.S. economy for 2007 and slightly more optimistic about the prospects for Indiana’s economy, according to the recent poll conducted by the Indiana CPA Society. In comparison, in 2006, Indiana CPAs were a bit more neutral concerning Indiana’s economy.On a continuous rating scale from zero to 100 with zero being very pessimistic, 50 being neutral, and 100 being very optimistic, Indiana CPAs were found to be guardedly optimistic about the prospects for the U.S. economy with an average rating of 64.2.

A bill before the New York Legislature, designed to educate taxpayers about tax preparers’ qualifications, would require the Department of Taxation and Finance to publish a "consumer bill of rights regarding tax preparers."The bill, NY SB 2970, calls for extensive RAL disclosure requirements, but exempts enrolled agents. If passed, the legislation would require that all tax preparers obtain a license from the Department.