Finance

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.

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.

As governments desperately seek all kinds of additional revenue, senior business professionals see the increased possibility of an audit by taxing authorities as the most significant tax risk facing their organizations today, according to a new survey.

The Monitoring Board that was recently established to add more public accountability to the International Accounting Standards Board has held its inaugural meeting and picked its first leader.

The Financial Accounting Standards Board has issued a “plain English” summary of the board’s actions when it modified the standards for fair value and mark-to-market accounting in response to congressional demands.

Both the House and Senate approved the Democrats’ version of a $3.5 trillion budget plan for fiscal year 2010, but without a single Republican vote.

Accounting experts and industry organizations alternately praised and panned the Financial Accounting Standards Board’s decision to loosen the standards for fair value and mark-to-market accounting.

Lawmakers at a congressional hearing Wednesday pressed Internal Revenue Service Commissioner Douglas Shulman to ease up on audits of small businesses.

The Internal Revenue Service has issued guidance to clarify the COBRA benefits offered under the recently passed stimulus bill.