The Internal Revenue Service (IRS) released data last week based on random audits of 46,000 tax returns for 2001 that showed a tax gap of about $354 billion a year. IRS Commissioner Mark Everson said, according to Bloomberg.com, that most of the noncompliance occurs in businesses where there isn’t automatic reporting of information to the IRS, such as sole proprietors who report income and deductions on Schedule C.

The recent news on qualified plan governance is replete with violations of ERISA and common law principles. By properly scrutinizing these cases, plan sponsors can learn a valuable lesson in behavior avoidance.A common pattern we often see is the self-perpetuating behavior of sponsors, fiduciaries, administrators and advisors where inertia takes over and decision-making ceases being the product of a prudent process. Everyone is in a comfort zone and, consciously or unconsciously, fiduciary concerns are slighted because we stick with what we know.

Professional staffing firms are predicting that 2006 will the best year since 2000 for job seekers, especially in high-paying fields like financial services, and many employers are looking for strategies to keep their best workers.

Family limited partnerships (FLPs) are the target of increased scrutiny by the Internal Revenue Service (IRS). These vehicles are apparently a popular technique for reducing estate and gift taxes. The IRS is increasing the number of audits it performs, focusing on those taxpayers with incomes of $100,000 or greater, according to the Wall Street Journal.The IRS is concerned FLPs are being set up for other than legitimate business purposes. Audit interviews are focusing on how these partnerships are set up and run, according to the Wall Street Journal.

Bankers and economists say this year may be another global record-breaker for private equity deals.Private equity firms struck deals worth $396 billion in 2005, a third straight record year and a 51 percent increase over the year before, the Associated Press reported, citing Thomson Financial. Another record was reached in the amount of money raised by buyout houses in new investment–$261 billion, Private Equity Intelligence of London said.

Last week the Financial Accounting Standards Board (FASB) issued FASB Staff Position (FSP) No. FAS 123(R)-4:Classification of Options and Similar Instruments Issued as Employee Compensation That Allow for Cash Settlement upon the Occurrence of a Contingent Event. The guidance in this FSP amends paragraphs 32 and A229 of FASB Statement No.