Financial services conglomerate JPMorgan is expanding JPMorgan E-Tax — its Internet-based tax service providing institutional investors with global tax intelligence, rates and breaking news.

In 2007, financial reporting is at a crossroads - with far-reaching implications for businesses, investors and the capital markets.Appropriately, the International Accounting Standards Board and the Financial Accounting Standards Board have held public discussions with stakeholders and leading experts in Hong Kong, London, and Norwalk, Conn., discussing the creation of a new conceptual framework for financial reporting.

PWC EXITS AS BEARINGPOINT AUDITORBig Four firm PricewaterhouseCoopers resigned as independent accountant to troubled global consulting firm BearingPoint Inc., declining to stand for re-election.

Not long ago, one of us noted an inspirational quotation on the editorial page of the hometown paper. It captured our full attention because its insight applies to a major issue facing the financial reporting community and profession:"The disappearance of a sense of responsibility is the most far-reaching consequence of submission to authority."

Individuals typically transfer assets to family partnerships hoping to achieve large estate tax discounts for the assets that would not otherwise be available if the assets were retained in outright ownership. The discounts, in turn, could result in substantial tax savings. However, in order to achieve the desired results, a number of hurdles must be overcome.The Internal Revenue Service has issued Appeals Settlement Guidelines for family limited partnerships and family limited liability companies. These guidelines can help practitioners overcome some of the hurdles. By carefully examining this document and the pro- and anti-taxpayer cases examined in it, a practitioner should be in a position to craft an FLP or FLLC that will achieve a desired level of discounts for a client's estate.

FIDELITY GIFT FUND HAS RECORD YEARThe Fidelity Charitable Gift Fund reported its largest grant-making year in history, as overall grants to charity surpassed $950 million in 2006, up 13 percent from 2005. Since its inception in 1991, the Gift Fund has granted more than $6.5 billion to over 103,000 nonprofit organizations nationwide, as of Dec. 31, 2006.

The term "financial planning" covers a lot of area. On the high end, it can mean managing millions of dollars in assets, and continuously analyzing the results, yields and needs to determine the best allocation of capital.Financial planning also refers to the accountant or tax preparer who sees or hears from a client once a year, and uses the annual tax preparation appointment as a way of offering planning advice as well.

The Internal Revenue Service issued guidance identifying dozens of frivolous positions that taxpayers should avoid when filing their tax returns.The guidance lists 40 positions which have no basis for validity in existing law or which have been deemed frivolous by the U.S. Tax Court, or another federal court. If these or other frivolous positions are contained in a tax return, taxpayers could face a $5,000 penalty -- 10 times the previous maximum.

At least one in five workers eligible for the Earned Income Tax Credit will leave that money on the table this tax season, and Congress is looking to accountants and other tax professionals to help address the problem.During hearings before the House Ways and Means Oversight Subcommittee, congressional leaders said that while 22 million low-income families and individuals claimed EITC wage subsidies last year, millions more who are eligible for the tax credits don't receive them.

The Internal Revenue Service has rolled out its annual list of the 12 most blatant tax return scams. Topping the "Dirty Dozen" are fraudulent claims for the one-time Telephone Excise Tax refund. Also new to the list this year are abuses pertaining to:* Roth IRAs. Taxpayers should be wary of advisors who encourage them to shift under-valued property to these IRAs. In one variation, a promoter has the taxpayer move under-valued common stock into a Roth IRA, circumventing the annual maximum contribution limit and allowing otherwise taxable income to go untaxed.

The measures to close the tax gap offered by President Bush in his 2008 budget are somewhat modest, according to observers.The president's $2.9 trillion budget contains a number of legislative proposals to close the gap in four areas: by expanding information reporting, improving compliance by businesses, strengthening tax administration and expanding penalties.

The International Accounting Standards Board has announced the membership of a new Employee Benefits Working Group.The board established the group to assist in a project on post-employment benefits by providing a variety of exert perspectives, including those of actuaries, auditors, preparers and users of financial statements, and regulators. The group consists of 16 senior professionals with extensive practical experience in the operation, management, valuation, financial reporting, auditing or regulation of a variety of post-employment benefit arrangements.

The Securities and Exchange Commission has settled improper accounting charges it brought against a trio of former financial officers of Raytheon Co.

Edward A. Weinstein of New York will receive the New York State Society of CPAs’ Distinguished Service Award.

If you’re like most Americans, debt is a way of life, says Jason Rich. So what separates the rich from the poor? He claims that the wealthy use debt to improve their financial situation -- something he calls “Smart Debt” -- and the poor use debt for instant gratification by which they just keep getting deeper in the hole.Rich is a bestselling author with some 30 books to his credit, including the Wall Street Journal bestseller, "The Unofficial Guide to Starting a Business Online," and, "Job Hunting for the Utterly Confused." He has a new book on the market called "Smart Debt" (Entrepreneur Press), that offers strategies to avoid wasting money on fees and interests as a result of credit cards.

In a filing with regulators, General Motors said that ineffective internal controls over financial reporting might make it difficult for the company to execute on its business plan.

The Institute for Fraud Prevention has released a study saying that most financial statement fraud is orchestrated by an organization’s chief executive, who is usually aided by outsiders in the overriding of internal controls.

Optimism among small-business owners declined last month as fewer companies said that they expected sales to rise, according to the National Federation of Independent Business' index of business optimism.

Federal prosecutors have arrested a New York-based Internal Revenue Service agent on tax fraud charges, according to a published report.Harry Willner, 59, who has been an IRS agent for more than three decades, was charged with five counts of tax fraud on Monday. Federal prosecutors have accused him of cheating on his personal income taxes, as well as offering loopholes to other taxpayers.

Treasury Secretary Henry Paulson said that U.S. rulemakers should consider adopting "principles-based" regulations and accounting standards in a speech at the Capital Markets Competitiveness Conference.Paulson said that in particular, there should be a focus on three issues in the United States -- the country’s regulatory structure, its accounting industry and its legal and corporate governance environment.