March 2011 archive

House votes to reduce GRATs – Act before the effective date

A grantor retained annuity trust (GRAT) can be a tax-efficient technique for transferring to children property that the transferor expects to appreciate in value. The transferor (the “grantor” of the trust) creates an irrevocable trust, places property into the trust as a gift, and retains the right to a fixed payment each year until the …

Continue reading

Permanent link to this article: https://betweenthenumbers.net/2011/03/house-votes-to-reduce-grats-act-before-the-effective-date/

Hollywood Accounting: Another good reason to read (and audit) your contracts.

Hollywood accounting (or Hollywood bookkeeping) is the term used to describe how studios report profits on movies and television series. It often carries a derogatory connotation because of various common practices which don’t follow Generally Accepted Accounting Principles (GAAP) or necessarily reflect market realities.  These contractually-based practices often serve to reduce revenues, inflate costs, and eliminate …

Continue reading

Permanent link to this article: https://betweenthenumbers.net/2011/03/hollywood-accounting-another-good-reason-to-read-and-audit-your-contracts/

Large IRS Whistleblower Payoff Encourages Others

The Internal Revenue Service paid a $1.1 million reward to an anonymous whistleblower for information that exposed a tax fraud by Enron, Bankers Trust and others before the company collapsed.  The whistleblower, a Wall Street banker who has chosen to remain anonymous to protect his job and career, received the maximum reward of 15 percent. …

Continue reading

Permanent link to this article: https://betweenthenumbers.net/2011/03/large-irs-whistleblower-payoff-encourages-others/

Ninth Circuit Supports Lone Pine Orders Without Restrictions

A Lone Pine order is a case management device in which the judge requires the plaintiff to make a prima facie showing of injury, causation, and/or damages. Its purpose is to simplify or eliminate cases to lessen the burdens on the courts and defendants. In a Lone Star order, plaintiffs are required to show an …

Continue reading

Permanent link to this article: https://betweenthenumbers.net/2011/03/ninth-circuit-supports-lone-pine-orders-without-restrictions/

The IRS may get over a billion dollar windfall because taxpayers failed to ask for it.

There is no time limit for the IRS to pursue a taxpayer for failing to file a prior year’s return when money is owed to the government. The same is not true from the taxpayer’s perspective. Time is ticking for those who failed to file a 2007 tax return upon which the government owes a …

Continue reading

Permanent link to this article: https://betweenthenumbers.net/2011/03/the-irs-may-get-over-a-billion-dollar-windfall-because-taxpayers-failed-to-ask-for-it/

Judging a Horse Race Without Any Horses

Gallup recently announced the results of a survey that is interesting not so much for the results but the implied thinking about how people choose among a large list of possibilities with limited information.  Specifically the survey dealt with the Republican candidates for president in 2012, of which there are currently none. By comparison the …

Continue reading

Permanent link to this article: https://betweenthenumbers.net/2011/03/judging-a-horse-race-without-any-horses/

A Primer On Creating & Using Surveys

Opinion polls (surveys) are used extensively to understand almost everything that cannot be looked up as a scientific fact.  But, poll results are only as good as the sampling technique, survey instrument, and interpretation process that underlie the reported conclusions.  Lots of things can and do go wrong in this regard. This article provides the …

Continue reading

Permanent link to this article: https://betweenthenumbers.net/2011/03/a-primer-on-creating-using-surveys-2/

A Primer On Creating & Using Surveys

Opinion polls (surveys) are used extensively to understand almost everything that cannot be looked up as a scientific fact.  But, poll results are only as good as the sampling technique, survey instrument, and interpretation process that underlie the reported conclusions.  Lots of things can and do go wrong in this regard. This article provides the …

Continue reading

Permanent link to this article: https://betweenthenumbers.net/2011/03/a-primer-on-creating-using-surveys/

“Too Big to Audit” is no defense

The Government Accountability Office (GAO) again reported that it cannot render an opinion on the 2010 consolidated financial statements of the federal government, because of widespread material internal control weakness, significant uncertainties, and other limitations.” This has occurred for years. Although each year the federal government states improvements are being made, the bottom line answer …

Continue reading

Permanent link to this article: https://betweenthenumbers.net/2011/03/%e2%80%9ctoo-big-to-audit%e2%80%9d-is-no-defense/

The Answer is in the Questions

Rasmussen Reports released a poll on the Wisconsin public employees standoff that seems more intended to generate a predetermined result than real insight.  The headline poll result was 48% Back GOP Governor in Wisconsin Spat, 38% Side With Unions But as always, it it best to look at the actual questions.  Rasmussen asks five questions: 1* How closely …

Continue reading

Permanent link to this article: https://betweenthenumbers.net/2011/03/the-answer-is-in-the-questions-2/