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The turmoil in world markets coupled with the mortgage industry meltdown has sent economic confidence plunging nearly 10 percent among CFOs, according to a survey conducted by Financial Executives International and Baruch College's Zicklin School of Business.In its 2007 fourth quarter "CFO Outlook Survey," the CFO Optimism Index for the U.S. economy was at 56.26, a 10-percent decline since last quarter and a full 19 percent drop from where it was in the year-ago period. Nearly 100 percent of the CFOs polled indicated they are as concerned, or more concerned about a recession than last quarter, while over 95 percent report being as concerned or more about inflation than they were the previous period.

GAO Comptroller General David Walker, who has spent the last three years on a "Fiscal Wake-Up Tour," again reiterated his agency's warning that the country is on an "imprudent and unsustainable fiscal path," while stressing the need for bi-partisan cooperation and the courage to make tough choices for the longer term. Walker, who has traveled to some 25 states on his tour, said simulations by the GAO and the Congressional Budget Office show that despite a three-year decline in the budget deficit, the U.S. faces "large and growing structural deficits driven primarily by rising health care costs and known demographic trends." The auditor general pointed out that the first wave of Baby Boomers has already filed for early Social Security retirement benefits -- and will be eligible for Medicare in just three years. Walker said rapidly rising health care costs are not simply a federal budget problem, but rather the No. 1 challenge to the U.S. and that the problem calls "for us as a nation to fundamentally rethink how we define, deliver, and finance health care in both the public and the private sectors." Walker said "While Congress and the administration are focused on the need for a short-term fiscal stimulus, our long-term challenge increases the importance of careful design of any stimulus package. It should be timely, targeted and temporary, while at the same time creating a capable and credible commission to make recommendations to the next Congress and the next president for action on our longer-range and looming fiscal imbalance."

Private employment added some 130,000 jobs from December 2007 to January of 2008, according to the latest ADP National Employment Report. Employment within the service sector grew 141,000, while employment in the goods-producing sector declined 11,000, the 14th consecutive monthly decline in that area. Small and midsized businesses, defined as those employing fewer than 500 workers, added 122,000 jobs, while employment among larger companies with 500 workers or more added 8,000. Manufacturing employment in January was flat, thereby halting 18 consecutive months of declines. In January, construction employment fell 13,000, the 14th consecutive monthly decline. The February ADP report will be available March 5.

There’s a blog called “The Daily Mammal,” which might sound like a satirical name, but which is actually posted by someone who writes descriptions of different mammal species, and publishes them with drawings of the animal, one each day. Tuesday’s feature was the Evening Bat, part of the author’s North Carolina week.

The Internal Revenue Service warned taxpayers to beware of several current e-mail and telephone scams that use the IRS name as a lure.The goal of the scams is to trick people into revealing personal and financial information, such as Social Security, bank account or credit card numbers, which the scammers can use to commit identity theft. Typically, identity thieves use a victim's personal and financial data to empty the victim's financial accounts, run up charges on the victim's existing credit cards, apply for new loans, credit cards, services or benefits in the victim's name, file fraudulent tax returns or even commit crimes. Most of these fraudulent activities can be committed electronically from a remote location, including overseas. Committing these activities in cyberspace allows scammers to act quickly and cover their tracks before the victim becomes aware of the theft. The most recent scams brought to IRS attention are the rebate phone call, in which a bogus IRS employee tells the consumer he is eligible for a sizable rebate for filing his taxes early; a link for a refund that is e-mailed to tax-exempt organizations bearing the supposed signature of the IRS Exempt Organizations business division; and an e-mail inviting recipients to click on a series of links to download information on changes in the tax law, but which downloads malware onto the recipient's computer. A new scam, not seen before by the IRS, notifies the recipient by e-mail that his or her tax return will be audited. The e-mail instructs the recipient to click on links to complete forms with personal and account information that the scammers will use to commit identity theft.

The Senate Finance Committee held hearings on the nomination of Douglas Shulman to be commissioner of the Internal Revenue Service.

Accounting firm Templeton & Co. has combined practices with James Machen Chartered, a CPA and consulting firm based in Boca Raton, Fla.

The American Institute of CPAs has introduced ABMonline, the Web version of the Accountant's Business Manual.

The American Institute of CPAs told the Internal Revenue Service and the Treasury Department of its strong opposition to tax patents in a letter commenting on proposed regulations.

Congress can't seem to agree on what to do about an economic stimulus package, which could mire the effort to produce an effective package in time to do some good.