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Accounting News Roundup: Should Nonprofits Be Required to Disclose Their Donors?; Employees at LECG Dwindling; GE Tax Planning for Commoners | 04.04.11

Widespread cracks found on Southwest jet-NTSB [Reuters]
Evidence of widespread fuselage cracks and fatigue were found on a Southwest Airlines Co (LUV.N) jet that made an emergency landing in Arizona with a hole in the cabin, a U.S. safety investigator said on Sunday. The incident on Friday prompted Southwest, the largest domestic airline by passengers flown, to ground planes and cancel hundreds of flights over the weekend so it could inspect its older model 737-300s. Small subsurface fuselage cracks were found on two other planes, which may require repairs, Southwest said.

Bring Donors Out of the Shadows [NYT]
The billionaire industrialist brothers Charles and David Koch have drawn sharp criticism for their extensive giving to libertarian causes. Though some of their organizational ties are public, many are unknown, thanks to a provision in the tax code that allows the Koch brothers and other donors, on both the left and the right, to conceal the recipients of their largess, even as they get to write it off on their taxes. Fortunately, there is a solution to this problem: require all nonprofit organizations that engage in political advocacy to reveal their donors.

You’re not writing me another big check? You tax hiker! [Tax Update Blog]
Refundable tax credits draw the ire of Joe Kristan.

Lil Wayne falls in deeper tax hole [Tax Watchdog]
Perhaps this is why he was working so hard while in prison.

Disintegrating accounting firm LECG down to 70 employees [PBJ]
LECG Corp., which listed 1,200 employees just three months ago, said it now has fewer than 70 employees, the majority of whom management expects to leave within the next 30 days. The Devon, Pa.-based accounting firm has been selling off practice groups and paying down its $30 million debt. These transitions will not result in any proceeds to LECG’s common stockholders and it is not anticipated that future operations will, either.

Rich Are Targeted in IRS Audit Offensive [WSJ]
According to the agency’s latest statistical report for the fiscal year ended Sept. 30, the percentage of taxpayers who were audited increased in every category of adjusted gross income above $500,000, compared with a year earlier. The biggest jumps came at the top of the income ladder. About 18% of Americans earning at least $10 million were audited in fiscal 2010, up from 11% in fiscal 2009, according to the IRS. For those earning $500,000 to $1 million, the audit rate rose to 3.4% from 2.8%.

How You Can Pull a GE on Taxes [SmartMoney]
Without paying for all the lobbyists and tax lawyers.

Posted in ANR