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IRS disputes with business owners over shareholder executive compensation is the topic of a recent article titled “Navigating Tax Risks In Shareholder Executive Compensation,”written by principal Natasha Perssico Escobedo, MBA, CPA, AM-ASA, and published on Law360.com. The article also addresses relevant federal income tax statutes and judicial precedents related to shareholder-executive compensation.
In recent […]
Financial reporting frauds (also called management frauds) have become endemic, with huge losses being inflicted upon shareholders, creditors and others. Some of the most infamous frauds of the past two decades – Enron, WorldCom, Satyam, Olympus, Toshiba, and Parmalat being a small sample – have implicated the same key concerns. These include: the deviant “dark […]
The latest news about Valeant Pharmaceuticals International Inc., suggesting the need for restatements of recent periods’ financial statements, albeit with limited details reported thus far, again focuses attention on the common matter of the possible abuse of revenue recognition accounting principles. According the Valeant’s public disclosures to date, the issue appears to pertain to an […]
With Attention to Talent, Training and Tools, Audit Committee Appointments Might Prove More Attractive
It has become commonplace to decry the dearth of talented individuals willing to serve on corporate board audit committees and to speculate on the need to make such appointments more attractive to the right mix of financially literate individuals. For various valid […]
There has been a great deal of public debate regarding the U.S. corporate tax rate and the impact it has on tax compliance, so-called tax inversions, and economic policy, and inevitably some of this has had strong political coloration. Unfortunately, there appears to still be much confusion, and even misinformation, regarding provisions of tax law, […]
Once more a massive accounting fraud is galvanizing critics of corporate governance, both here and abroad, this time engagingly illuminated by the elaborately choreographed resignation of three top Toshiba Corporation executives following disclosure of a $1.2 billion profit overstatement reportedly occurring over a seven year period. Although details are still sketchy, the Financial Times cites […]
In a recent Wall Street Journal article (“The 109,894-Word Annual Report,” June 2, 2015), the fact that corporate annual reports on Form 10-K have expanded by some 40% over just the four-year interval 2010-2013, to an average count of 42,000 words, was bemoaned, with General Electric’s headlined filing cited as perhaps a record-setting […]
Revenue frauds have long been among the most popular forms of financial reporting manipulations. The SEC, for example, has traditionally identified revenue recognition infractions as being either the top or the second most common variety of the management and accounting frauds it has had to pursue.[i] The ACFE, a professional organization of fraud […]
Courts are increasingly treating accountants as fiduciaries, creating significant risk that they — and their insurers — may not realize they face.
Outside accountants – including auditors, those providing other attestation and compilation services, tax preparers and even mere advisers – are increasingly facing allegations that they served their clients in a fiduciary capacity. These are […]
Accounting expert Barry Jay Epstein co-authored an article titled, “Tax Heavens: Methods and Tactics for Corporate Profit Shifting,” with lead authors Mark Holtzblatt and Eva K. Jermakowicz, published in the January-February 2015 issue of the International Tax Journal. Excerpts from the article appear below.
Taxes paid to governments are among the most significant costs […]