The vast majority - 88 percent - of small employers used a tax professional to prepare their most recent federal tax return. For those employers who employ 20 or more people, the percentage using a tax professional increased to 95 percent, according to the National Federation of Independent Business.

E&Y DECLINES RE-ELECTION AT TELETECH

Recently, Accounting Today printed both an article by Joel Jameson (March 19-April 1, 2007, page 14) and a letter from Alfred King (April 16-May 6, 2007, page 8) that rebutted our long-espoused view that financial reporting should be based on market values.

When it comes to retirement planning, there are a number of different choices. Two of the most commonly used are tax-deferred retirement plans - such as IRAs or 401(k)s - and cash-value life insurance.

TREASURY ISSUES ROTH 401(K) RULES

As an extension to the current financial and technical assistance programs the Small Business Administration provides to the military, the SBA has introduced the Patriot Express Pilot Loan, an offshoot of its SBA Express Program. Loans are available up to $500,000 and qualify for the SBA's maximum guarantee of up to 85 percent for loans of $150,000 or less and up to 75 percent for loans over $150,000 up to $500,000. For loans above $350,000, lenders are required to take all available collateral. The Patriot Express Loan can be used for most business purposes, including start-up, expansion, equipment purchases, working capital, inventory or business-occupied real-estate purchases. Patriot Express Loans feature the SBA's interest rates, which are generally 2.25 percent to 4.75 percent over prime depending upon the size and maturity of the loan. Local SBA district offices will have a listing of Patriot Express lenders in their areas. The SBA Patriot Express is available to military community members including veterans, service-disabled veterans, active-duty service members participating in the military's Transition Assistance Program, reservists and National Guard members. Details on the initiative can be found at www.sba.gov/patriotexpress

The manufacturing and wholesale distribution segments in the U.S. continue to see positive growth across several industry segments, as roughly half of small to middle-market companies in that space describe themselves as "thriving and growing." According to the RSM McGladrey 2007 Manufacturing and Wholesale Distribution National Survey, business conditions remained basically unchanged from the inaugural survey conducted last year. However, respondents in four industry segments --transportation, building materials, plastics and industrial equipment, reported that their outlook on business worsened over the last year, weighing down the overall percentage of companies who said their companies are "thriving and growing" from 58 percent in 2006 to 48 percent in 2007. For the second year in a row, survey responses indicate companies prefer domestic growth strategies over international. More than half (57 percent) of all companies surveyed indicated that they are relying on domestic sales of existing products. Only 36 percent reported they are relying on international sales of existing products. According to the poll, small to midsized companies have a strong need for workers with a variety of skill sets and experience levels. Workforce shortages will continue to strain resources, as 63 percent of survey respondents plan to expand their workforce within the next 18 months. Conducted this spring, the second annual RSM McGladrey survey gleaned the results from 947 surveys representing a cross sample of U.S. companies in varying industry segments and revenue size.

From Boston to Beijing, the accounting profession may soon have a new type of financial statement - one without net profit at the bottom line, with finance information separated from operations, tax information off to the side and cash flow reported separately.

The tax gap - the difference between the amount that taxpayers pay voluntarily and on time and what they should pay - continues to generate congressional hearings and legislative proposals. The most recent data from 46,000 returns examined under the National Research Program show a net gap of $290 billion for the year 2001.

The Treasury Department has created a committee to study problems in the accounting profession - and in something of an unexpected move, former Securities and Exchange Commission chair Arthur Levitt was selected to lead the effort, along with former SEC chief accountant Donald Nicolaisen.

Valuation for financial reporting has long befuddled accounting professionals. Differences among industrial sectors often lead to inconsistencies, and recent new requirements for fair-value reporting have made the process even more confusing.

Do consumers really understand what a fiduciary standards means in the financial services industry? And, perhaps more importantly, do they even care? A new survey from the National Association of Personal Financial Advisors (NAPFA) was unveiled recently at its annual convention in Chicago and it certainly answers those two questions.

Williams & Webster PS, a CPA and business advisory firm with offices in Seattle and Spokane, has been censured by the Public Company Accounting Oversight Board for violations stemming from a 2004 client audit.

Senators Max Baucus, D-Mont., and Chuck Grassley, R-Iowa, chairman and ranking member of the Senate Finance Committee, respectively, have introduced legislation to give more than $550 million in tax relief for veterans, soldiers and their employers.

The Sarbanes-Oxley Act hasn't helped in the long-running battle against corporate fraud, according to a recent survey of certified fraud examiners -- a staggering 76 percent of whom reported that fraud is more prevalent today than five years ago. The 2007 Report on Corporate Fraud, conducted for governance software vendor Oversight Systems Inc., noted that that was up nine percentage points from its survey in 2005, and that a mere 3 percent of respondents felt that fraud was less prevalent, down from 7 percent in 2005. "This survey indicates the checklist approach to compliance is not effectively reducing fraud," said Oversight Systems chief executive Patrick Taylor, in a statement. Furthermore, 43 percent of respondents felt that "vigilance and interest by corporate leaders" in creating a culture of integrity and fraud prevention had "already started to fade." Among the survey's other findings:

The Securities and Exchange Commission is preparing to fine telephone-equipment giant Nortel Networks as much as $100 million for accounting fraud, according to published reports. The reports also noted that SEC attorneys sought permission from the commissioners to inflict a fine of less than $100 million -- the first instance of a new policy that gives the politically appointed commissioners more say in corporate penalties. Previously, attorneys negotiated settlements without consulting the commissioners. Toronto-based Nortel inflated its earnings by $3.4 billion between 2001 and 2004, when the SEC began an investigation of the company's accounting. As an indicator of the scale of the possible fine, late in 2006, federal judges signed off on an estimated $2.4 billion payout by Nortel to settle a shareholder lawsuit.

The Public Company Accounting Oversight Board is currently accepting 15 member nominations and re-nominations for its Standing Advisory Group. The 31-member SAG is comprised of representatives from audit firms, public companies and the investment community. Appointments are for two-year terms. The audit overseer has also scheduled its next SAG meeting for June 21 in Washington. The focus of the meeting will center on interim standards and fair value. Both the SAG nomination forms and the Webcast for the June meeting can be accessed at www.pcaobus.org. In related PCAOB news, chairman Mark Olson told attendees at a governance and compliance conference late last week, that the simpler language found in Auditing Standard No. 5 on internal controls should help pare down the costs of 404 compliance. Olson said AS5, unlike its predecessor AS2, was written in English and not "audit-speak."

Yep, it's that time of the year again! CPA Wealth Provider is calling for nominations for its Fifth Annual Financial Planning Awards in any of the following categories: CPA/Financial Planning Firms, Broker/Dealers, and Financial Planning Software Vendors.Winners are those firms or companies that have taken the lead through innovation, efficiency, initiative, or growth in the financial planning area.

Thomas R. Smith, one of the country's leading attorneys in the area of mutual funds, has joined the Investment Management Division of the Securities and Exchange Commission as a senior advisor to Andrew Donohue, the division's director. Prior to joining the SEC, Smith was a partner with the New York office of Sidley Austin LLP, and also served as managing partner at Brown & Wood LLP from 1996 until the firm's merger with Sidley Austin five years later.

A few years ago, someone suggested that vendors who wanted to market against Intuit’s Quick Books should adopt a phrase like “Do you want it Quick? Or do you want it right?