Practice management

The U.S. Securities and Exchange Commission “never took the necessary and basic steps” that would have led to the agency uncovering Bernard L. Madoff’s $65 billion Ponzi scheme, according to the full report issued Friday by the agency’s Inspector-General.

H&R Block reported a consolidated net loss for the first quarter of $133.6 million, or 40 cents a share, with much of the loss attributed to tax operations.

Former All-Star baseball pitcher Jerry Koosman received a six-month sentence for not paying his federal income taxes for 2002-2004.

The Cellular Telecommunications Industry Association has asked the IRS to repeal an old tax rule that required employees to maintain logs detailing their business usage of mobile phones.

The Sept. 16 deadline is nearing for submitting a preliminary application for the federal government’s Section 48C tax credit program for manufacturers of clean energy equipment.

A Florida tax preparer has been barred by a federal judge after he falsely told clients he was a former IRS employee and that the IRS had “pre-audited” their tax returns.

The Securities and Exchange Commission has released the executive summary of a report from its inspector general detailing the agency’s failures to stop Bernard Madoff from carrying out his Ponzi scheme.

Although it's often pointed out that the Internal Revenue Code has become lengthy and complicated due to all of the things that Congress tries to accomplish through the code other than simply raising revenue, it's less often observed that a complicated Tax Code also puts a tremendous burden on the Treasury and IRS to interpret it and provide timely guidance.

Agency compiles possibilities, but makes no recommendations

COURT ORDERS TEXTRON TO RELEASE TAX PAPERS

A federal court has denied a $473 million tax refund to Schering-Plough after the drug maker sought to avoid taxes on $690 million in profits it repatriated from offshore subsidiaries into the U.S. through some dubious transactions.

Accounting firm Crowe Horwath is responding to the wave of companies filing for Chapter 11 bankruptcy protection with a set of services to help them navigate the reorganization process.

The government is about to start offering a Cash for Clunkers type of program for old inefficient appliances this fall, so why not cash for clunker tax returns and financial statements?

The Financial Planning Association is urging SEC Chair Mary Schapiro to clarify and restrict the scope of authority of the Financial Industry Regulatory Authority related to financial planning services.

States get aggressive with sales and use tax to close gaps

IRS ADDS TO 'TRANSACTIONS OF INTEREST' LIST

As individuals try to reclaim some of the losses to their retirement portfolios, many tax advisors have become active participants in growing those accounts. With significant percentage gains and losses occurring from month to month, techniques to deal with this unfamiliar territory have become necessary. Some have already been tested by case law, while many others can be evaluated, at least for the time being, only through what's been said in private letter rulings or on the Internal Revenue Service's Web site in informal advice.

The American Institute of CPAs has written to the IRS asking the service to rely on the existing Circular 230 penalty structure for regulating CPA tax preparers rather than impose a new one.

Regional CPA and business advisory firm Weaver and Tidwell has launched a Transaction Advisory Services practice, an arm providing due diligence and business valuations to private equity companies as well as companies in transition.

IRS managers may start supervising tax audits more closely to help resolve disputes between taxpayers and tax examiners.