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SEC Endorses SOX
Changes to Ease Smaller Company Burdens
The SEC endorsed
recommendations of the agency's professional staff to eliminate waste
and duplication in the Sarbanes-Oxley compliance exercise, in a move that
will particularly benefit smaller companies. Under the Sarbanes-Oxley Act,
PCAOB audit standards must first be approved by the SEC and cannot take
effect without a vote of the Commission. The Commission expects the new
PCAOB standard will be submitted for SEC review by the end of May or early
June, in time for the 2007 financial statement audits.
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IRS Warns of
Phony E-Mails Claiming to Come from the IRS
The IRS alerted taxpayers about on-going Internet scams in which
fraudulent e-mails are sent that appear to be from the IRS. The links
appear authentic and connect the victim to sites that resemble the genuine
IRS web site. The sites then prompt the victim for personal identifiers,
credit card numbers, PIN numbers or similar financial information. The IRS
does not send out unsolicited e-mails or ask for detailed personal and
financial information. Recipients of questionable e-mails claiming to come
from the IRS should not open any attachments or click on any links contained
in the e-mails. Instead, they should forward the e-mails to phishing@irs.gov
or call this toll-free hotline at 1.800.366.4484.
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Government
Sues Jackson Hewitt Franchises in Four States, Including Michigan
The Justice Department is suing five corporations that operate more than 125
Jackson Hewitt tax preparation franchises in the Chicago, Atlanta, Detroit
and Raleigh-Durham, N.C. areas. The outlets are accused of submitting
thousands of
fraudulent returns that cost the government more than $70
million. The Justice Department said fraudulent practices encouraged at the
franchises included using phony W-2 forms, bogus deductions and fuel tax
credits and false claims regarding the earned income tax credit. The
franchises were either totally or partially owned by Farrukh Sohail, the
Justice Department said. So Far, Inc., d/b/a Jackson Hewitt Tax Service is
the Detroit franchise named in the lawsuits.
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AICPA Speaks
Out on IRC 987
The AICPA recommended to the Department of the Treasury and the IRS that
they “reconsider the approach of the proposed regulations” relating to
Internal Revenue Code section 987 and offered to discuss with government
officials other proposals for determining section 987 gain and loss. The
AICPA said it is “concerned that the 2006 proposed regulations will
frustrate the currency reforms made by The Tax Reform Act of 1986 and will
pose an unreasonable compliance burden on taxpayers.” If Treasury and IRS
decide to continue the approach in the proposed regulations, the AICPA said the
almost 20 recommendations for modification outlined in its comments should
be made to the final section 987 regulations. Read the AICPA’s
cover letter,
comments and
Appendix A.
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IRS Seeks
Applicants for Electronic Tax Advisory Committee
Tax practitioners and business owners are invited to apply for seats on the
Electronic Tax Administration Advisory Committee (ETAAC) during the fall of
2007. Members are appointed by the Secretary of the Treasury and serve a
three-year term. Authorized by Congress, ETAAC provides an organized public
forum for discussion of electronic tax administration issues in support of a
major IRS goal: paperless filing of tax and information returns. Each June,
the Committee provides an annual report to Congress recommending actions the
IRS should take in electronic tax administration. Click
here for more
information on how to apply.
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GASB Project
Will Help Governments Report on Performance
The Governmental Accounting Standards Board (GASB) has added a project to
its current agenda that could result in suggested guidelines for governments
to help them effectively communicate their accomplishments to the public.
Specifically, the project, known as
Service Efforts and Accomplishments
(SEA) Reporting, will help governments report the measures they develop and
use to gauge the outcomes they achieve in pursuit of their public policy
goals. SEA reporting provides important information to help citizens and
their elected representatives better assess how well their governments are
achieving their public policy missions.
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New College
Grads Can Find Employers on Campus
Many new college graduates can find a job on their own college campus, according to a
report published by
the National Association of Colleges and Employers (NACE). Employers
responding to NACE's Job Outlook 2007 survey said on-campus interviewing is
the most effective technique for identifying and hiring new college graduate
employees. Employers also reported that their internship programs are a top
source of new college hires for their organization, and cited employee
referrals, cooperative education programs, job postings on the campus web
site, and faculty contacts as among their most effective hiring tools.
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Know Your
Responsibilities When Hiring Foreign Workers
The Social Security Administration has developed this
fact sheet that
addresses employer responsibilities when hiring foreign workers (e.g.,
students or cultural exchange visitors) who have applied for and are waiting
to receive a Social Security Number. An applicant/employee may work while
the application is being processed.
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Home Ownership
Out of Reach for Many Adult Americans, AICPA Poll Reveals
Two out of every five adult Americans (41%) feel they cannot afford to buy a
home, according to a new poll conducted by Harris Interactive for the AICPA.
Of that number, just over half (51%) cite lack of money as the primary
reason. American adults also report that their spending and savings habits
prevent them from achieving other life goals. The survey found that about
one-third of U.S. adults are delaying goals for financial reasons, including
higher education (11%), medical procedures (9%), marriage (6%), parenthood
(5%) or retirement (9%). Moreover, 16% of the U.S. adult population is
looking for a second or part-time job to meet current expenses. Three in ten
U.S. adults (29%) are not able to save any of their money. The AICPA’s 360
Degrees of Financial Literacy program features a consumer web site,
www.360FinancialLiteracy.org, with hundreds of free tools and resources to
help educate consumers about personal finance matters
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Understanding Connectivity: A Small Business Checklist
Small businesses need to make several considerations when choosing an
Internet service provider. They must understand that consumer connectivity
is insufficient. Having numerous workers simultaneously downloading web
pages, e-mails, online applications as well as accessing voice capabilities
requiring bandwidth speeds in megabytes per second (Mbps). To read this article in its entirety and
learn much more about developments in technology, access
Technology and
Productivity Weekly, the MACPA's electronic technology newsletter for
industry professionals, sponsored by Information, Inc.
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