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MOST COMPANIES DON’T PAY FEDERAL TAXESWashington, D.C. — Approximately two thirds of U.S. companies and foreign companies doing business in the U.S. paid no federal income taxes between 1998 and 2005, according to a new report. The Government Accountability Office found that over 38,000 foreign companies had zero tax liability in 2005, as did 1.2 million U.S. businesses — despite a combined $2.5 trillion in revenue for the companies.

My skepticism regarding the believability of government promises rises commensurate with the number of applications I receive for membership in AARP.Translation: I’m not quite as gullible as in my younger days. My skepticism is not without foundation, however. It applies even at the local level of government, let alone Washington.

I’m amazed at how clueless people claim to be when the piper finally takes its toll, as though risk assessment practices went unchallenged in days gone by. The truth of the matter is that many forewarned of the problems recently witnessed in the economy.I can personally point to an article I wrote titled “Risk evaluation: Just who is minding the store?” that appeared in Accounting Today (Aug. 23-Sept. 5, 1999, page 16). Among its admonitions is “that all market participants need to be assessing risks, rather than presuming the risks have been effectively shifted.”

A tax practitioner has teamed up with a software engineer to create a new tax prep program aimed at preparers who service Spanish-speaking taxpayers, especially undocumented immigrants who are ready to begin filing tax returns.Latino Tax Software’s MultiTax distinguishes itself from more established tax packages by helping clients obtain Individual Taxpayer Identification Numbers from the Internal Revenue Service and allowing them to file multiple years of tax returns that they have avoided filing earlier. The software also lets preparers toggle quickly between screens in English and Spanish.

In the first-ever visit to Congress by the American Institute of CPAs’ Major Firms Group, CPA executive leaders from 81 of the nation’s top 100 accounting firms visited Capitol Hill just prior to summer recess.The firms, representing more than 54,000 employees and their clients, discussed with lawmakers those legislative issues that are important to the accounting profession, including tax patents and uniform non-resident tax standards.

CANDIDATES MAKE TAX PLANSChicago — Sen. Barack Obama, D-Ill., called for an “emergency energy rebate” of $1,000 to be offered to families this fall, along with a $50 billion stimulus package to help jump-start job creation.

While many of the non-tax provisions of the Housing and Economic Recovery Act of 2008, enacted on July 30, 2008, appear directly focused at the problems arising from the housing and mortgage crisis that has developed over the last year, the tax provisions appear at best to have only an indirect effect on the individuals most impacted by the subprime mortgages and declining home values.The tax title to the legislation includes many provisions focused on the low-income housing credit, housing and mortgage bonds, and real estate investment trusts. This column, however, will take a closer look at some of the individual tax breaks and revenue raisers most likely to impact individual taxpayers and their tax returns in 2008 and coming years.

Rising gas prices, a declining housing market, the weakening of the dollar and fear of a recession — today’s economic conditions continue to point south, with no light at the end of the tunnel. Critical to these issues is the role of internal accounting and finance professionals, who in large part are responsible for making decisions that contribute to the success or downfall of an organization.For our economy to remain competitive, there needs to be a renewed emphasis on proper regulation and guidance within the profession. The demise of financial institutions over the years (the collapse of Bear Stearns, as an example) continues to validate why fundamental changes should be made to help ensure that financial reporting and internal control standards shift to a globally accepted method of risk management.

FASB DELAYS OFF-BALANCE-SHEET ACCOUNTING RULENorwalk, Conn. — Under pressure from banks and regulators, the Financial Accounting Standards Board has decided to reverse itself and postpone the effective date of an accounting rule that would have forced financial institutions to move assets and liabilities from special-purpose entities such as mortgage-backed securities onto their balance sheets.