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Accounting News Roundup: Olympus Is Stuck with E&Y (And Vice Versa); Decision on New PCAOB Member Coming Soon; Another Failed Crusade Against IRS | 02.01.12

Next Steps For Olympus Don't Include Dumping Auditor Ernst & Young [Forbes]
Mostly because there isn't anyone left.

Will the I.R.S. Be Busy Next Year? [Economix/NYT]
Twelve percent of millionaire earners were audited in 2011, when Barack Obama was president, compared with 5 to 7 percent audit rates for 2004-9 (George W. Bush was president most of that time). Among people earning less than $200,000, a far lower percentage of returns are audited (about 1 percent in 2011).

Three UBS Clients Accused of Hiding Offshore Money From IRS [Bloomberg]
Stephen M. Kerr and Michael Quiel, who separately ran venture capital firms, were charged in an indictment made public yesterday in federal court in Phoenix. A former San Diego attorney, Christopher M. Rusch, was arrested Jan. 29 in Miami after being expelled from Panama at the request of the U.S. government. Kerr, who ran CCN Worldwide Inc., had accounts worth more than $5.6 million in 2007 that he failed to report to the Internal Revenue Service, according to a Justice Department statement and the Dec. 8 indictment. Quiel, who ran Legend Advisory Corp., had accounts valued at more than $2.6 million in 2007 that he also failed to report to the IRS, according to prosecutors and the indictment. He was arrested in the Phoenix area.

SEC soon may get new audit watchdog to focus on regulating financial reports [WaPo]
It sounds like the decision to appoint either Joe Carcello or Jeanette Franzel as your next PCAOB member is coming down to the wire. 

IRS Approves NSA as Continuing Education Provider [AT]
CPE provided by the National Security Agency?! Actually, no.

Ariz. man facing prison in Pa. scam arrested again [AP]
A man who's been confined to his Arizona home awaiting a federal prison sentence for pleading guilty in Pittsburgh to a nearly $2 million pyramid scheme last year has been arrested because Internal Revenue Service agents in Arizona contend he's continued to conduct other scams in the meantime.

Washington accountant faces prison in ‘ongoing crusade’ against IRS [SPI]

A Mount Vernon accountant with ties to a radical anti-government group in Washington will likely be headed to prison for what prosecutors call an “ongoing crusade” against the IRS and judicial system. Timothy Garrison – purportedly the treasurer of a radical anti-government group recently targeted by federal investigators – previously admitted to filing about 50 falsified tax returns on behalf of his clients. Federal prosecutors contended Garrison’s scheme cost the IRS of between $2.4 million and $2.5 million, though they acknowledge the exact figure is unknown.
PwC US Appoints Kevin Baldwin as Pacific Northwest Market Managing Partner [PwC]
Replacing Matt Kosmicki, who is headed to Charlotte, NC.


Posted in ANR