Tax practice

The Financial Accounting Standards Board has bowed to pressure from lawmakers and banking interests and put forward a proposal to relax fair value standards.

The Congressional Research Service has found that both the Senate and House bills that seek to tax bonuses paid to employees of entities receiving assistance from the federal government under the Economic Stabilization Act of 2008 may have constitutional problems.

Senate Finance Committee Chairman Max Baucus, D-Mont., has announced legislation that would make existing tax breaks permanent for working families and individuals.

Executives from the nation’s largest banks pledged their cooperation and commitment to President Obama and his administration in order to begin the recovery process.

President Obama and his top economic advisors have determined that neither General Motors nor Chrysler have put forth acceptable plans to receive more bailout funds, which could effectively shut down the two auto giants.

Frank Brosens, a founding partner at hedge fund concern Taconic Capital Advisors, has withdrawn his nomination as overseer of the $700 billion bank bailout program.

Both the House and Senate Budget Committees have finalized the markup of budget proposals that are similar to the administration budget proposal.

A searing report from the Government Accountability Office has charged the Small Business Administration with poor controls and oversight that resulted in a number of companies receiving undeserved funds from a program designed to boost small businesses in underserved communities.

The Obama administration will ask the Economic Recovery Advisory Board, led by former Federal Reserve Chairman Paul Volcker, to form a task force to recommend an overhaul of the tax code.

Treasury Secretary Timothy Geithner proposed a sweeping revamp of government regulatory powers over the nation’s financial system highlighted by establishing a single agency “with responsibility for systemic stability over the major institutions and critical payment and settlement systems and activities.”

The Internal Revenue Service is looking for civic-minded volunteers to serve on the Taxpayer Advocacy Panel, which listens to taxpayers, identifies key issues and makes recommendations for improving IRS service.

In a hearing before the House Financial Services Committee, Treasury Secretary Tim Geithner asked lawmakers to grant the Treasury Department more power to seize failing financial firms.

From Accounting Technology editor Bob Scott’s most recent popular e-letter “Consulting Insights" comes this Random Thought: “I’ve decided if I were a public official, I would run government like a business, meaning I would invest in financial instruments, treat my employees as disposable, and pay out enormous and unmerited bonuses.”

Employees at the Internal Revenue Service are running up millions of dollars in charges on agency-issued telephone calling cards with little control over their spending.

Sen. Chuck Grassley, R-Iowa, has asked Fannie Mae and Freddie Mac to account for their retention bonus programs while the entities were losing money and even after they accepted taxpayer-funded bailouts.

The Congressional Budget Office has revised its projection of the 2009 deficit, adding another $400 million and bringing the total to a numbing $1.7 trillion.

The Obama administration has revealed the latest measure in its colossal financial rescue plan, enticing private investors to buy up to $1 trillion in troubled assets carried by banks.

A federal judge has for the second time rejected a class action lawsuit against the Free File Alliance, the group of tax software vendors who provide free software and electronic filing to low-income taxpayers.

The Internal Revenue Service has added three new forms for correcting errors on employment tax returns.

PayCyle said that it has implemented the payroll tax reduction included in the recently passed economic stimulus bill.