IRS Tackles The Latest Scam

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

According to Accounting Today, the Internal Revenue Service will be adding extra procedures to deter scammers who have been inundating the agency with bogus claims for the Employee Retention Credit. Questions: Source: Cohn, M. (2023) IRS plans new measures to curb Employee Retention Credit fraud. Accounting Today, July 26 (Retrievable online at https://www.accountingtoday.com/news/irs-plans-new-measures-to-curb-employee-retention-credit-fraud?)

New IRS requirements on R&D Refund Claims

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According to Accounting Today, the IRS wants more detailed information about all the business components for which the research and development credit claims relate for each year and for each business component. Questions: What is the form that is required under this new direction? How long have companies been allowed to take this research and… Read more »

New York Audits of Remote Workers

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According to Accounting Today, the New York Tax and Finance Authority sent out thousand of notices since the filing season ending in May to individuals earning as little as $100,000 a year. What do these individuals have in common? They have claimed to have left the state during the COVID-19 pandemic and New York wants… Read more »

Help is on the way for Student Loans!

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According to Benefits Pro, the American Rescue Plan just passed in Congress includes benefits for student loan borrowers and non-borrowers. Questions How do taxes impact student loan forgiveness? When colleges receive their allocations of the financial aid relief package, how should it be used? If you are a small business owner with a defaulted student… Read more »

Tax Policy: Not boring anymore

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According to the New York Times, tax policy used to be fairly boring and predictable. But in the past decade, it has become dynamic in a way that tax advisers don’t like: It changes with the political party in power. Questions: According to the article, changes for tax advisers with the political party in power… Read more »

Review your W-4 before it’s too late for 2018

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Congress passed major tax legislation at the end of last year that could affect your refund if you are one of the people who usually look forward to a refund. Questions: 1. According to the article, based on the new 2018 withholding tables, what percent of people have too much in taxes withheld? 2. What… Read more »

Inequality in Taxes

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Interestingly, in most places, a dollar is a dollar. However, under the new tax plans, that may change. Consider two chefs working side by side for the same catering company, doing the same job, for the same hours and the same money. The only difference is that one is an employee, the other an independent… Read more »

Who’s Scrooge this year? Ba-Humbug!

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According to the Washington Post, who sources Senate staffers, the Treasury Department refuses to stop forcing permanently disabled people to pay taxes on student loans that have been canceled, leaving a vulnerable population susceptible to thousands of dollars in charges. Questions: 1. What is the financial problem associated with each dollar forgiven? 2. What is… Read more »

Just Buy an EZ Pass and save your money next time!

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Watch out for bad information from your “expert” friends! That is what Jason Bourcier wishes that he would have done.   Bad information tip #1: A friend told him that when the toll booths were unmanned after 11:30 p.m., you could use the road without paying on the Dulles Toll Road. Bad information tip # 2:… Read more »

How to Earn $46,000 for Each Day Spent in Prison

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

Bradley Birkenfeld, the whistleblower in a tax fraud case against Swiss bank UBS AG, was awarded a record-setting $104 million reward from the IRS. Birkenfeld learned about the inner workings of UBS as an employee of the company and supplied many secrets about his former employer’s dealings with U.S. clients. Despite this, he was jailed… Read more »