Finance

There are certain things in life that are inevitable.

Sixty-one percent of senior financial executives believe their companies’ total effective state tax rate will increase, according to a survey by Grant Thornton.

Every other spring, members of the Council of the American Institute of CPAs gather by state delegation in the nation’s capital to talk with legislators about pertinent issues within the accounting profession.

A large majority of CFOs and senior controllers intend to take advantage of the bonus depreciation provision included in the economic stimulus bill, according to a survey by Grant Thornton.

Barry Melancon, president and chief executive of the American Institute of CPAs, welcomed more than 350 AICPA Council members to the nation’s capital and told the state delegations to get ready to meet with legislators on pressing issues in the profession.

The American Institute of CPAs kicked off its three-day Spring Meeting of Council with a series of briefings and updates to prepare for Capitol Hill visits in which legislative aides will learn about the issues most important to the accounting community.

The Senate Finance Committee heard from a panel of experts about the pros and cons of skewing energy tax benefits toward one technology, such as wind power, at the expense of another.

Sen. Charles Schumer, D-N.Y., along with the five New York City District Attorneys, has unveiled The Fighting Real Estate Fraud Act of 2009, a measure to help fight mortgage fraud scams across the country.

It's safe to say there hasn't been a time in recent history when small-business owners needed guidance from their accountants as much as they do now. It's becoming clear that for all their knowledge and energy, most entrepreneurs can't go it alone in these difficult times.

The Bernard Madoff situation is just the most notorious of dozens of Ponzi schemes that have surfaced since the current recession made it more difficult for the operators of those schemes to keep covering payouts and redemptions with money from new investors.

The economic downturn, coupled with proposals to make the Research and Development Credit permanent, the potential repeal of LIFO, and higher individual tax rates under the Obama administration, could significantly reshape the landscape of S corps over the next several years."For planning purposes, the proposal to make the R&D Credit permanent has significance because it will affect what types of investments companies will make," explained Rick Klahsen, managing director at RSM McGladrey's national tax department. "However, the proposed repeal of the LIFO inventory method would have a tremendous negative impact on S corporations. Many S corporations are manufacturers, and the loss of the LIFO method will cost them in terms of additional taxable income. It will cause them to take a look at the types of inventory investments they might make."

Among the many changes born of the financial crisis that's sweeping the globe are changes in internal auditing departments.

The Treasury Department hopes to convince more recipientsof federal benefits such as Social Security payments to sign up for directdeposit, instead of waiting for the check to arrive.

Neither the Internal Revenue Service nor the FederalHighway Administration knows how much money in excise taxes for motor fuel goesuncollected every year, according to a new report.

The economic crisis is forcing many states and cities to increase their sales tax rates to the highest average level ever, according to a new report.

Sen. Charles Grassley, R-Iowa, has commended the Internal Revenue Service for hiring more than 1,000 veterans last year.

The International Federation of Accountants has endorsed a set of proposals made at last week’s G-20 Summit of world leaders that aim to reform the global financial regulatory system.

With the repeal of the federal estate tax set for 2010 and its reinstatement scheduled just one year later, estate tax planning has become more complicated than ever. Wealthy clients need to incorporate flexibility into their current plans while taking advantage of favorable planning opportunities.

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.

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.