Legal issues

Tax

Seller-Funded Down Payment Assistance Programs are Not Tax Exempt

The Sacramento, California-based Nehemiah Corp., a nonprofit mortgage assistance program, and 184 similar programs around the country, have been accused by the Internal Revenue Service (IRS) of operating a down payment scam and are no longer eligible for tax exempt status, the Sacramento Bee reports.

Ken Starr to Lead Legal Challenge to the PCAOB

In the latest in a series of attacks on the Sarbanes-Oxley Law of 2002, Kenneth Starr, the former special prosecutor in the Whitewater and Monica Lewinsky investigations, has mounted a lawsuit challenging the authority of the Public Company Accounting Oversight Board (PCAOB) on behalf of the Free Enterprise Fund, a business conservative group.
Tax

Testimony Ends in Enron Trial

Testimony has ended in the trial of former Enron executives Jeffery Skilling and Ken Lay. Both are facing multiple counts of fraud and conspiracy. Lay faces six counts, while Skilling faces 28 counts, in addition to insider trading and lying to auditors, according to the Associated Press.
A&A

Small Businesses Saved $6.6 Billion in 2006 Thanks to Advocacy

The Office of Advocacy of the Small Business Administration (SBA), the “small business watchdog” of the government, saved small businesses more than $6.6 billion during fiscal year 2005, according to a statement released last week.
Tax

Skilling Cross Examination Ends with Challenge, Denial

On Wednesday, the final day of cross examination in the trial of Enron’s former CEO Jeffrey Skilling, for conspiracy and insider trading, Federal prosecutor Sean Berkowitz surprised the Houston court when he suggested Skilling had lied about the reasons he resigned as Enron’s CEO in August 2001, the New York Times reports. Berkowitz asked Skilling whether he had told a friend, Dick Foster, in October 2001, that he was considering a chief executive position at Lucent Technologies.
A&A

Bankruptcy Filings Rebounding Despite Intention of New Law

The new bankruptcy legislation enacted on October 17, 2005, apparently only had a temporary effect on the number of bankruptcy filings.
Tax

Refund-Anticipation Loans Under Fire

Widely advertised and promoted by U.S. tax preparation companies, refund-anticipation loans are a $1.6 billion market in this country. Jackson Hewitt has seen their latest quarter, ended January 31, beat their quarter revenue estimates. The Asbury Park Press reports that their Money Now loan program has helped the price of its shares swell by more 8.8 percent in a year.
Community News

Enron's Skilling Denies Conspiracy

Former Enron Chief Executive Jeffrey Skilling attempted to undercut the government's case against his role in the fall of Enron by telling the jury he was not motivated by greed.Advertisement
Tax

Former Ernst & Young Clients Sue Over Tax Shelters

A Florida couple has sued their former accountants for selling them tax shelters that were rejected by the Internal Revenue Service (IRS).The suit contends that Ernst & Young defrauded Rocco and Mary Abessinio and other wealthy taxpayers, out of $5.9 million in fees for the bogus tax shelters, Reuters reported.
Tax

Intuit Sues H&R Block for Copying TV Ads; Experts Explore Legal Protection for Online Content

Intuit Inc. sued H&R Block for copyright infringement, on Monday, in San Jose, Calif., charging that the tax preparation company has aired television commercials that copy commercials for Intuit’s TurboTax software.

Chinese Companies Readying for Tough U.S. Audit Rules

Chinese companies listed in the United States are pouring time and money into preparations to comply with Section 404 of the Sarbanes-Oxley Act.Advertisement

Capital Gains Law, Investment Values Drive Second Home Market

The annual number of second homes purchased in the United States doubled between 2000 and 2004, from 405,000 to 881,000, according to research conducted by the National Association of Realtors (NAR).
Tax

Court Orders IRS to Turn Over Statistical Data by April 17

A federal court, on Monday, ordered the Internal Revenue Service (IRS) to turn over extensive statistical information to Susan Long, the co-director of the Transactional Records Access Clearinghouse (TRAC) and a professor at Syracuse University. The decision comes a week after TRAC released a report stating that only 30 of the nation’s 180,000 millionaires were subject to face-to-face audits during fiscal year 2005.
Tax

Accountants Can Help Identify Alter-Egos

Piercing the corporate veil is a law doctrine recognized throughout the country to prevent the abuse of corporations and protect creditors who might otherwise not be paid. When the veil is pierced, the courts will disregard the separate legal existence of corporations (including LLCs) and its shareholders or members.
Community News

Ex-Qwest Accountant Accuses SEC of “Abuse of Process”

The lawyer for former Qwest accountant James Kozlowski alleged in a suit filed in U.S. District Court in Denver last week that the the Securities and Exchange Commission (SEC) charged Kozlowski with fraud in March 2005 because he wouldn’t “spill the beans” on ex-chief executive Joe Nacchio. Eleven other ex-officials of the company were charged along with Kozlowski and Nacchio.
Practice Management

More Setbacks for H&R Block as it Launches New Bank

Within the last few months, H&R Block Inc., which is preparing to open H&R Block Bank in April, has been challenged in the courts on several fronts, admitted to mistakes on its own taxes, and acknowledged that it mailed out free software with the recipient’s Social Security number on the label.

Prosecution Rests in Enron Trial

The government rested its case today after the judge agreed to drop three of the 31 charges against Jeffery Skilling and a single count out of the seven against Kenneth Lay.
Tax

KPMG Case Takes Surprise Turn With Guilty Plea

One former KPMG LLP employee pleaded guilty to conspiracy and tax evasion charges in the government's criminal case involving sales of improper tax shelters.Advertisement
Practice Management

Former Andersen Partners Testify in Trial of Lay and Skilling

John R.
Practice Management

Tax Court Rules C-Corp Is Not a Qualified Personal Service Corporation

When is an accounting firm not a qualified personal service corporation (QPSC)? According to Judge Holmes of the U.S.

Pages


Already a member? log in here.