This News Wrap-Up Brought To You By:
THIS WEEK'S TOP NEWS
- Progress at PCAOB; Congress Drops PCAOB Salary Caps
- E&Y 'Vindicated' in $4.5 Billion Law Suit
- Firms Face More Lawsuits Over Tax Shelters
- Sprint CEO Fears Losing Everything in IRS Audit
- SEC Requires Analysts to Certify Reports
- Controversy Over TurboTax 2002
- New Report Says State Tax Systems Need Revamping
- Amnesty Program Leads to Online Sales Tax Collection
- Senate Banking Committee Approves Donaldson For SEC Chair
- New Tax Laws Favorable to Home Office Workers
"To inform, to enrich, to enlighten, to entertain."
One hundred years ago today, February 14, 1903, Congress passed legislation that gave birth to the Department of Commerce and Labor, as well as the Bureau of Corporations. These departments were a visible symbol to the American public that President Teddy Roosevelt was serious about clamping down on business corruption and establishing processes to cleanse corporate America.
On creating these arms of government, Roosevelt wrote, "The legislation was moderate. It was characterized throughout by the idea that we were not attacking corporations, but endeavoring to provide for doing away for any evil in them."
And so, here we are, 100 years later. Enron, WorldCom and a slew of other scandals has again raised the ire of the American public, and Congress has again taken measures to clamp down on business corruption and cleanse corporate America. And, sadly, chances are that 100 years from now the government will be dealing with some new wave of corporate scandals as well. But maybe we can learn from our mistakes this time so history does not have to repeat itself. Again.
Michael Platt, CEO
Comments? Submit a Letter to The Editor
"Get Fast Answers When You Need Them Most"
Accounting regulations and concepts that were once simple and objective have become increasingly complex and voluminous. With Comperio, the answers you need are always available - right now, right at your fingertips! Backed by the world's largest professional services firm and used by companies around the world, PricewaterhouseCoopers Comperio contains over 150,000 pages of global financial reporting and assurance literature that is accessible from your web browser and searchable by key words, topics, or terms. For your FREE 30-day trial of Comperio, visit us on the Web.
THIS WEEK'S TOP NEWS
Charles Niemeier is defending the timetable of scheduled work of the Public Company Accounting Standards Board, indicating that reviews of the Big Four firms will happen "as much ... as possible" in 2003. Meanwhile, Congress has dropped a proposed amendment to cap the salaries of PCAOB Board members, leaving untouched the $452,000 salary level that the Board has voted itself.
Ernst & Young breathed a sigh of relief this week as a judge threw out two out of three of the claims made against it in a negligence case brought against the Big Four firm by Equitable Life. Had it been successful, the suit could have cost the accounting firm $4.5 billion in damages.
"WHAT I WISH I HAD KNOWN ORUNDERSTOOD EARLY IN MY CAREER"
AccountingWEB is working in collaboration with professional
services firm management expert David Maister to generate input from our members that may be included in David's next book, designed to be "Advice For The Young Professional." What has your experience taught you that would be valuable to people just entering the profession? Contribute your ideas and leave a legacy.
Big Four firms Ernst & Young and KPMG are being sued by clients for selling tax shelters that have been found by the Internal Revenue Service to be illegal tax evasion strategies. Meanwhile shelter participants are relying on law firms to free them from the burden of paying penalties should the shelters be found to be illegal.
William T. Esrey, who recently resigned as CEO of Sprint Corporation, fears for his financial future as he places his fate in the hands of the Internal Revenue Service. Although the former executive expects Sprint to pay him $1 million per year for the next three years, that sum won't go far if he is charged a projected $63 million in taxes as well as interest and penalties.
TAX TIP: Roth IRAs
Confused about whether you can contribute to a Roth IRA? The IRS suggests checking these simple rules.
Stock analysts will now have to certify the truthfulness of their research reports, under a recent unanimous ruling by federal regulators.
The reviews of Intuit's TurboTax 2002 are in and users are giving the perennially popular income tax software two thumbs down. At issue is C-Dilla software, commonly known as spyware, which Intuit installed to stop illegal copying of TurboTax.
"2003 TAX CALENDAR"
Visit the AccountingWEB.com 2003 Tax Calendar today
A new report, "The Way We Tax: A 50-State Report," produced by the staff of Governing magazine, points out weaknesses in state tax systems across the country. "The vast majority of state tax systems are inadequate for the task of funding a 21st century government," the authors begin. "Many of those tax systems are also unfair."
Pressure by cash strapped states with increasing state tax collecting authority has resulted in an amnesty program for some major retailers turning a new chapter in the development of the Internet. On February 3, 2003, some online retailers began charging sales tax for online purchases, regardless of the state of residence of the customer.
"21 Checklists To Save Expensive Marketing Mistakes"
A downloadable collection of "21 Checklists" for use in planning and implementing the marketing ideas contained in our manual, LOW COST HIGH IMPACT WAYS TO WIN NEW CLIENTS, published as an e-Book, to help firms who want to earn better fees from their existing clients and win more new clients. Download for just $49.95 today!
This week, The Senate Banking Committee approved the nomination of William H. Donaldson as the next chairman of the Securities and Exchange Commission. The vote now goes to the complete Senate. It is expected that the vote before the complete Senate will take place this week.
In 1997 there were changes made to the tax law regarding the taxation of gains on the sale of a personal residence. Now, the Internal Revenue Service has issued regulations that clarify those 1997 changes. Tax preparers should go back over their clients' records for the past three years to determine if any changes are necessary as a result of these new regulations.
You can subscribe to the Premium Content Package today for just $49/year and get your FREE "35-Marketing Tips" downloadable document upon registration. If you have not yet upgraded your membership to the $49/year Premium Service, just go to our order page and sign up now.
Visit the Premium Content Page for more articles available to all Premium Members/Subscribers.
FREE PIZZA & DOUGHNUT CONTEST
ENTRY DEADLINE IS FEBRUARY 28
Make sure you enter your firm today for the FREE PIZZA CONTEST from AccountingWEB.com. AccountingWEB would like to sponsor one firm during the upcoming tax season (March 1st through April 15th). We will gladly pay for pizza and doughnuts during the six-week period between March 1 and April 15! Up to a $500 value. Visit the "Contest Rules" page for more information and instructions on how to enter your firm today! Good luck!
You may modify your newswire subscriptions, cancel your newswire delivery or change your password information by visiting the Profile Page on our secure server.
Subscribe to the AccountingWEB Premium Subscription Service. For full, unrestricted access to all articles in AccountingWEB, become a premium subscriber for just $49 a year!
Let AccountingWEB help your organization customize a marketing campaign for your products and services. Make sure you book your ad campaign in advance! Get your message in front our audience of accounting and finance professionals today. Our team can help you uncover promotional opportunities that are right for you.
Copyright (C) 2003 AccountingWEB, Inc.
All rights reserved.
"To inform, to enrich, to enlighten, to entertain."