February 2014 archive

Identity Theft Tops Consumer Fraud List

The Federal Trade Commission (“FTC”) released the agency’s Consumer Sentinel Network Data Book 2013, which summarized consumer complaints.  There were over 2.1 million complaints reported in 2013.  The following table summarizes the top ten types of complaints filed in 2013:   Category No. of Complaints Identity Theft 290,056 Debt Collection 204,644 Bank and Lenders 152,707 …

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IRS Reports its Investigative Wins

The IRS has released its Annual Business Report for 2013, detailing its investigative priorities and accomplishments during the year.  In terms of priorities, the focus has been on the following areas: Identity Theft Fraud Return Preparer Fraud & Questionable Refund Fraud International Tax Fraud Fraud Referral Program Political/Public Corruption Organized Crime Drug Enforcement Task Force …

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Liability Extended to Employees for Underreported License Fees

A recent case in the Canadian courts took the unusual step of extending liability to the employees working for the entity who underreported licensing royalties.  Plaintiff XY and Defendant JingJing entered into a licensing agreement for use of technology.  The Court found that JingJing breached the terms of the contract and falsified its records in …

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Permanent link to this article: https://betweenthenumbers.net/2014/02/liability-extended-to-employees-for-underreported-license-fees/

How Much is Michael Worth?

The IRS is taking serious issue with Michael Jackson’s estate over the value of various assets upon which taxes are due.  According to a recent article in the Los Angeles Times (“LAT”), there is over a billion dollar discrepancy between the value reported by his estate after his 2009 death and the amount concluded by …

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Auditing Standards Board Provides Guidance for Reliance on Internal Auditors

The Auditing Standards Board (“ASB”) has issued its Statement on Auditing Standards (SAS) No. 128, “Using the Work of Internal Auditors”.  SAS 128 defines the external auditor’s responsibilities in situations where they are (a) using the work of the internal audit function to obtain audit evidence or (b) using internal auditors to provide direct assistance …

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Recovering Investor Confidence After a Restatement

When a financial restatement is necessary, it is not surprising that investors will take some time to regain trust and give full credit to future earnings announcements.  A recent study, developed through a collaboration of professors from Singapore Management University and Boston College, suggests that the three quarter rebuilding period described in prior research may be …

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IRS rules on sales-based royalties treatment

The IRS has determined that for sales-based royalties for tax years ending on or after January 13, 2014, taxpayers can either allocate sales-based royalties entirely to property sold and include those costs in cost of goods sold or allocate sales-based rolaties betwen cost of goods sold and ending inventory using a facts and cirucmstances cost …

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