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Sixty percent of Internal Revenue Service employees were duped into giving control of their passwords to unauthorized callers, according to an inspection report that found lingering problems with computer security years after they were supposed to have been corrected.

In its second merger of the year, Pittsburgh-based CPA firm Malin, Bergquist and Co. LLP has combined with a firm based in nearby Erie, Pa.: Diefenbach Delio Kearney & DeDionisio.

The Internal Revenue Service has released drafts of the updated income tax forms for corporations and partnerships, and is asking for comments before it finalizes the changes for tax year 2008 and beyond.

Two New York firms are combining forces, with Tarrytown-based Platt, Barth, Elson & Steinman P.C. merging with New York City-based Marks Paneth & Shron LLP.

During World War I, Will Rogers said the strategy of fighting German U-boats would be unnecessary if you simply boiled the Atlantic Ocean.

Although there are reams of literature and generally accepted guidelines stating that people typically spend 75 percent to 80 percent of their pre-retirement income during retirement, some advisors have found that's not necessarily the case.In fact, some say the spending levels are about the same.

The Collection Financial Standards, the measures used by the Internal Revenue Service in negotiating installment agreements and offers in compromise, have been stuck in a time warp, according to observers."They haven't been updated since January 2006," observed New York-based attorney and CPA Michael Breslin, managing partner of FullServe Group LLC. "It has affected our ability to negotiate and it mandates higher amounts that are not fair. These numbers are based on 2005 figures and they were issued in early 2006."

Conceding that a full-blown repeal of the alternative minimum tax may now be near-impossible, representatives of the nation's enrolled agents urged Congress to place new restrictions on the type of tax preparers authorized to prepare AMT returns."Repealing the full AMT would be a huge step in the simplification of the Tax Code, but one that may no longer be in the cards," EA Frank Degen told the Senate Finance Committee on behalf of the National Association of Enrolled Agents. "Practically, we admit that full repeal of the AMT may be a bridge too far for Congress to cross."

The review of off-the-shelf accounting software in the July9-22, 2007, issue (page 22) incorrectly said that QuickBooks users' only options for payroll were QuickPay or an outside service bureau. In fact, QuickBooks offers a number of payroll add-on services, such as Standard Payroll, Enhanced Payroll and Assisted Payroll. In addition, QuickBooks Enterprise Solutions 7.0 handles up to 20 simultaneous users, not 10, and has a significantly larger database than the Premier Edition. Our apologies for the errors.

PWC TO PAY $225M IN TYCO SUITCONCORD, N.H. - Big Four firm PricewaterhouseCoopers agreed to pay $225 million to settle a securities and accounting fraud class-action lawsuit brought by Tyco shareholders.