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December 7, 2022

Accounting News Roundup: KPMG Capital’s Bad Investment; Tax Scams; Porn Industry Accountant | 02.01.16

Liar, Liar, KPMG Capital's Investment Into Norse Corp. On Fire [Forbes]
Back in 2014, KPMG Capital started announcing that it was investing in startups. Just a few months ago, KPMG announced it was the lead investor in Norse Corp, a cybersecurity company. Turns out, Norse isn't doing so well and KPMG Capital had a little more at stake than just its, uh, capital:

Not only did they plunk down funding for Norse, but they secured licensing rights for KPMG member firms to offer Norse threat intelligence products and services to clients through the network’s global cyber security practice, according to the press release.

I'm sure some of their other investments are working out a bit better.

Tax Scams Are Targeting Uninsured, I.R.S. Warns [NYT]
With tax season comes many tax season worries. Chief among those worries are tax scams of one sort or another. In this particular scam, shady preparers target uninsured taxpayers, often those "with limited English proficiency" including undocumented immigrants for penalties imposed by the Affordable Care Act:

In some cases, the agency said, unscrupulous tax preparers tell clients to pay the penalties directly to them, and they keep the money.

Most people do not owe the payment at all because they have health coverage, such as Medicaid or employer-sponsored insurance, or qualify for one of many available exemptions.

“However,” the I.R.S. said, “if you owe a payment, remember that it should be made only with your tax return or in response to a letter from the I.R.S. The payment should never be made directly to an individual or return preparer.”

Since undocumented immigrants are not required to have insurance, they are therefore exempt from the penalty, but many do pay taxes so they are especially vulnerable to this ACA-focused scheme.

Elsewhere in tax scams, two preparers in Denver ran a shop called Cheapertaxes LLC and " ‘doctored’ numbers on clients' tax return documents to ensure large refunds." When the clients couldn't pay, the tax prep perps had those refunds deposited directly into their bank accounts. This went on for four years, from March 2006 to April 2010. They were indicted in April 2014 and pleaded guilty just this month. "This is a prime example of a return preparer you want to avoid," said IRS Special Agent Captain Obvious.

What I Learned Working As An Accountant In The Porn Industry [HP]
Oh, how I wish this was part of PwC's sponsored content on HuffPo. Sadly, it's just HuffPo50 and, really, we don't learn anything other than working as an accountant in the porn industry is like work as an accountant in any other industry except there are sex toys on the same shelf as family photos. Also, you have to be careful of workplace accidents:

Behind my desk stood a very large file cabinet. I began searching through the files in order to get a feel for the job. Leaving it open, I pulled out the second drawer. I then turned around and wham! I found myself pinned between my desk and the cabinet, absolutely clueless to the cause of my demise.

So, I did what any working girl would do and started screaming. And screaming. Could no one hear me over the pleasurable moans emitting from the editing room? Or had only a few seconds actually passed when the first co-worker appeared at my office door?

"Oh my god!" A female shouted. "Are you okay?"

"What's going on?" the next person to arrive asked.

"Voice over try outs," someone else said.

Once the cabinet was pulled off my back, I started laughing. How could I not? Other than a minor backache, I was perfectly fine and how ditzy of me not to realize you cannot open the top drawers of a large piece of furniture and expect it to remain upright.

After regaining my composure another co worker came barging into my office. "So, I hear you like it from behind."

Yes, and their inside jokes are better.

Previously, on Going Concern…
I yakked with Jason Blumer and Greg Kyte LIVE last Friday about the cloud and whether it will save the accounting profession. Also, on Open Items: Conditions for offering signing bonus

In other news:

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