Practice Management

President Bush did not mention tax reform in his State of the Union Address, generally talking only about the importance of keeping the country competitive in the world marketplace by ensuring the economy continues to grow.

Smart and Associates LLP has acquired the compensation and benefits tax practice of KPMG. Terms of the transaction were not disclosed.

The Internal Revenue Service Oversight Board released its annual report on electronic filing to Congress, recommending that the IRS' E-filing goal be extended until 2011.

Midwest business and technology consulting firm Socius has acquired the consulting division of Bruner-Cox LLP, BC Technology Ltd.

Living in the world of accounting news from 9 to 5 everyday, it's become apparent that not a heck of a lot of my day job transfers over to my world outside of work.

Larger CPA firms have traditionally been interested in acquiring smaller firms, creating what might be termed a seller's market, and that situation still exists today.

One day into a recent four-day tour throughout India, Microsoft chairman and chief software architect Bill Gates announced that Microsoft would invest an added $1.7 billion into its Indian operations over the next four years.The increase in funding will nearly double the workforce Microsoft already has in place within India, from 4,000 to 7,000 employees.

While change in general is hard for all of us, including this author, perhaps the biggest change that an owner ever will make is the one that requires him to leave the firm. Knowing when to pass the baton and how to do it are actions that all of us will have to take sooner or later.It is incumbent on the firm, as well as individual owners, to lay out their plans. The sooner the plan is set in writing, the easier it will be for all involved to implement it. Not having a succession plan is like not having a will. You are going to let someone else determine what will happen.

H&R BLOCK TO PAY $62M TO SETTLE REFUND SUITS: Tax preparation giant H&R Block Inc. will pay $62.5 million to settle class-action lawsuits over its use of refund anticipation loans. Block said that the settlement would cover more than 8 million customers who received the loans between 1989 and 2005. The company has already set aside money for the potential settlement and announced that it plans to take a third-quarter charge of $31 million to cover the remainder of the settlement.The lawsuits said that RALs took advantage of financially unsophisticated taxpayers who were not adequately informed about high interest rates. Besides the cash settlement, Block agreed that it would better advise customers in the future about other options in filing taxes and gaining refunds quickly, as well as any interest charges or other fees they would have to pay. A federal judge in West Virginia was scheduled to review the settlement. If approved, the deal will resolve four class-action suits filed in West Virginia, Ohio, Alabama and Maryland, along with claims pending in 22 other states and Washington, D.C. Block still faces two other lawsuits tied to the loans.

It's no secret that mergers and acquisitions are an active part of the accounting profession today.As owners reach retirement age, they are looking for someone to buy them out and allow them to move on to a well-earned retirement. At the same time, growing firms are looking for merger candidates to gain clients, gain access to needed staff skills, or to establish a presence in a desired market location. With a marketplace like this of buyers and sellers, it's no wonder there is plenty of activity!