Audit & Accounting

At least one in five workers eligible for the Earned Income Tax Credit will leave that money on the table this tax season, and Congress is looking to accountants and other tax professionals to help address the problem.During hearings before the House Ways and Means Oversight Subcommittee, congressional leaders said that while 22 million low-income families and individuals claimed EITC wage subsidies last year, millions more who are eligible for the tax credits don't receive them.

The Internal Revenue Service has rolled out its annual list of the 12 most blatant tax return scams. Topping the "Dirty Dozen" are fraudulent claims for the one-time Telephone Excise Tax refund. Also new to the list this year are abuses pertaining to:* Roth IRAs. Taxpayers should be wary of advisors who encourage them to shift under-valued property to these IRAs. In one variation, a promoter has the taxpayer move under-valued common stock into a Roth IRA, circumventing the annual maximum contribution limit and allowing otherwise taxable income to go untaxed.

The measures to close the tax gap offered by President Bush in his 2008 budget are somewhat modest, according to observers.The president's $2.9 trillion budget contains a number of legislative proposals to close the gap in four areas: by expanding information reporting, improving compliance by businesses, strengthening tax administration and expanding penalties.

The International Accounting Standards Board has announced the membership of a new Employee Benefits Working Group.The board established the group to assist in a project on post-employment benefits by providing a variety of exert perspectives, including those of actuaries, auditors, preparers and users of financial statements, and regulators. The group consists of 16 senior professionals with extensive practical experience in the operation, management, valuation, financial reporting, auditing or regulation of a variety of post-employment benefit arrangements.

The Securities and Exchange Commission has settled improper accounting charges it brought against a trio of former financial officers of Raytheon Co.

Blue & Co. LLC will acquire a 20-person accounting firm based in Columbus, Ohio.Blue’s deal to acquire Sheridan Barton Vasko & Co., which will operate under the Blue & Co. name, is expected to be completed June 1. Financial terms of the merger were not disclosed.

Edward A. Weinstein of New York will receive the New York State Society of CPAs’ Distinguished Service Award.

If you’re like most Americans, debt is a way of life, says Jason Rich. So what separates the rich from the poor? He claims that the wealthy use debt to improve their financial situation -- something he calls “Smart Debt” -- and the poor use debt for instant gratification by which they just keep getting deeper in the hole.Rich is a bestselling author with some 30 books to his credit, including the Wall Street Journal bestseller, "The Unofficial Guide to Starting a Business Online," and, "Job Hunting for the Utterly Confused." He has a new book on the market called "Smart Debt" (Entrepreneur Press), that offers strategies to avoid wasting money on fees and interests as a result of credit cards.

In a filing with regulators, General Motors said that ineffective internal controls over financial reporting might make it difficult for the company to execute on its business plan.

The Institute for Fraud Prevention has released a study saying that most financial statement fraud is orchestrated by an organization’s chief executive, who is usually aided by outsiders in the overriding of internal controls.