IRS destroys 30 M Paper returns due to Backlog

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Income Taxes, Managerial Accounting, Uncategorized, Video Updates.

According to Accounting Today, the IRS destroyed about 30 M paper-filed information returns in March 2021 due to its inability to process them. Questions: What does the IRS typically use the information returns for? Since 2014, what has been the overall percentage increase of business tax returns that are e-filed? In 2018, what was the… Read more »

Suspension of Automated Notices

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Behavioral and Social Issues Related to Accounting, Income Taxes, Managerial Accounting, Uncategorized.

According to Accounting Today, the IRS will suspend more than a dozen automated letters it sends out to taxpayers, including collection notices, balance due notices and unfiled tax return notices, until it catches up on its backlog of unprocessed returns. Questions: Why is it doing this? A coalition of tax professionals was instrument in promoting… Read more »

AICPA fires back!

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Behavioral and Social Issues Related to Accounting, Ethical Dilemma, Income Taxes, Managerial Accounting, Uncategorized.

The AICPA takes issue with Charles Rettig, IRS Commissioner, for penalizing taxpayers and businesses when the IRS is failing to process returns on time. Questions: Who is the Congressional member who entered the AICPA letter into the Congressional Record, regarding this issue? What is the aggregate backlog of mail at the IRS? Why isn’t the… Read more »

DMX’s attorney cannot persuade the judge to go light on the tax fraud

Posted by & filed under Accounting Information Systems, Accounting Principles, All Articles, Auditing, Cost Accounting, Ethical Dilemma, Financial Accounting, Fraud Accounting, Income Taxes, Managerial Accounting, Video Updates.

Rapper DMX’s attorney played the rapper’s song “Slippin’” during his sentencing on Wednesday to help the musician express his struggles, but it was not enough to convince a judge to let the rapper off the hook. Instead DMX got 1 year in prison for tax fraud. Questions: 1. According to court records, how long did… Read more »

What a Business Model!

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In 2008, a thriving company named Science Care Inc developed a 55-page national expansion plan. Read what happened! Questions: 1. What was the company’s goal? 2. What company did Science Care Inc. model? 3. How much did the company earn From 2012 through 2014? 4. If a person donates a whole body when they die,… Read more »

Uber: Employees or Contractors?

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The California Labor Commission has found that a driver for Uber in San Francisco is an employee of the company. Questions: 1. Why is this such a nightmare for Uber? 2. Discuss how this will change the company’s accounting system and business model if this ruling is upheld and the costs involved. 3. The article… Read more »

Is it wise to taunt the IRS and the Tampa Police Department on Facebook?

Posted by & filed under Accounting Principles, Advanced Accounting, All Articles, Auditing, Fraud Accounting, Managerial Accounting, Video Updates.

As accounting firms frantically work during this season to prepare 2013 tax returns, this story takes a look back at the story of the “Queen of Tax Fraud.” Rashida Wilson, a 27-year-old Tampa woman, who once taunted police and bragged about her ill-gotten millions on a social media website, won’t be a free woman until… Read more »

Salute to Tax Day

Posted by & filed under Accounting Principles, Advanced Accounting, All Articles, Auditing, Cost Accounting, Financial Accounting, Financial Reporting and Analysis, Financial Statement Analysis, Fraud Accounting, IFRS, Intermediate Accounting, International Accounting, Managerial Accounting.

According to Adam Davidson (et. al), if economists ran the tax system, there would be virtually no exemptions or loopholes. But instead, he submits, businesses, rich people, Congressmen and attorneys spend a shockingly large amount of time lobbying for tax breaks or exploiting the loopholes that exist. The tax code in 1913 was 27 pages… Read more »