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"Small business to face closer audit scrutiny" (March 16-April 5, 2009, page 5) suggested that small businesses might be targeted by the nation's accounting standard-setters. Naturally, we meant those accounting organizations that set standards for audits, and only those small businesses that are subject to public-company rules.

Washington, D.C.-With millions of Americans needing help to survive the recession, job losses and home foreclosure, Congress is urging the Internal Revenue Service to cut some slack for taxpayers who are "struggling to stay afloat while their debts increase."At new hearings into whether IRS practices and policies are causing unwarranted pain for those suffering through the economic downturn, House Ways and Means Oversight Subcommittee Chairman John Lewis, D-Ga., called on the tax service to let people know what steps to take if they owe taxes and want to pay, but cannot.

NEW ACCOUNTING OVERSEER PROPOSEDWashington, D.C. - Two members of the House Financial Services Committee have introduced a bill that would establish a new Federal Accounting Oversight Board and probably loosen mark-to-market accounting standards.

In a classic episode of I Love Lucy, a fast-talking door-to- door salesman convinces Lucy she can't do without one of his "Handy Dandy" kitchen helpers, which in no time he quickly upsells to a Handy Dandy vacuum cleaner. When an irate Ricky discovers the purchase, he threatens to return it. True to form, the velvet-tongued pitchman has scant trouble convincing him to upgrade to a Handy Dandy dishwasher.This vignette bears a troubling comparison to the president's budget blueprint, which, just as quickly and via clever oratory, has spiked to a $3.6 trillion-plus spendfest that targets - surprise - raising taxes on the wealthy, earmarking $750 billion in additional financial bailout funds, and spending cuts against those whom he maintains "profited from an era of profound irresponsibility."

Given the significant number of audit failures in recent years and now the meltdown of the financial industry in the United States, the issue of auditor independence, audit fees and audit quality needs to be addressed.The relationship between auditors and their clients is a fee-based relationship that creates an inherent conflict of interest that can have a significant influence over an auditor's judgment and decisions, whether consciously or subconsciously, as a debtor-creditor relationship is created.

As the economy continues its downturn and the financial pressure on business increases, the risk of fraud becomes higher than ever.To help your clients protect their businesses, suggest that they evaluate the current state of their anti-fraud program to minimize the duration and potential loss of fraud. When evaluating a current program, they should consider their preventative measures, not just their detective measures.

SCHENCK FORMS CRISIS TEAMAppleton, Wis. - Schenck Business Solutions has formed a Financial Crisis Response Team to guide and assist companies challenged by the current economy. The multi-disciplinary team is comprised of firm members with expertise in cash management, banking and financing, operations consulting, process improvement, inventory and receivables management, strategy development, and technology integration. The resources of the team are coordinated by shareholder Dan Koszalinski, CMA, CPA.

Many are surprised to learn that while it sometimes appears that the Internal Revenue Code reaches into every aspect of our lives, it lacks focus in addressing the complex tax consequences that face the unfortunate victims of Ponzi schemes.Of course, if the reports are true, there may have never before been a Ponzi scheme like Bernard Madoff's, so it is time to take a fresh look at things.

MORE TAXPAYERS TO FILE ONLINENew York - Approximately 40 percent of online households plan to file their federal taxes via the Internet this year, up from under 34 percent four years ago, according to a report by researchers at the Conference Board and TNS, which surveyed 10,000 households and found that consumers' concerns about conducting financial transactions online have been easing over the last few years.

The $787 billion American Recovery and Reinvestment Act of 2009 (P.L. 111-5, Feb. 17, 2009) provides almost $300 billion in tax relief. As a stimulus package, the bill makes available over $280 billion in tax relief in the short term in 2009 and 2010. For business, over $75 million in tax benefits are provided for 2009 and 2010. Although most of that is accelerated depreciation, which, over a 10-year period when tax bills are "scored," almost evens out, the immediate benefits to business taxpayers are substantial. What's more, to avoid discouraging taxpayers from making investments and purchases before the act was passed, most of the tax incentives are retroactive to Jan. 1, 2009.While some of the business benefits can help businesses of any size, the act targets significant benefits at small businesses in particular. This is consistent with the Obama administration's view that small business is the principal engine for jobs growth. Notably, the act seeks to encourage spending for major purchases of capital equipment by extending enhanced small-business expensing and 50 percent first-year bonus depreciation. Small businesses that are incurring losses now but made profits within the last five years can take advantage of enhanced net operating loss carrybacks. S corporations and owners of qualified small-business stock also received benefits that can reduce their taxes.