Please ensure Javascript is enabled for purposes of website accessibility

ANR: IRS Digging Up Viacom Chairman’s Past; Bob Evans’ Accounting Error; Paul Ryan Likes the ‘Concept’ of an Online Sales Tax | 05.02.13

Billionaire Redstone Challenges IRS on Tax for 1972 Gift [Bloomberg]
The IRS told [Viacom Chairman Sumner] Redstone earlier this year that he owes $1.1 million in taxes and penalties, plus interest, because of the gift. The case involves stock in the family’s National Amusements Inc. received by Redstone’s son, Brent, and his daughter, Shari, after the settlement of an intrafamily lawsuit. “This is unheard of,” said Richard Behrendt, a former IRS estate and gift tax auditor who is now director of estate planning at Robert W. Baird & Co. Inc. in Milwaukee. “I can’t remember ever hearing of anybody going back 41 years to raise an issue. It’s really unprecedented in my experience.”

Oil and soda taxes advance in California Legislature [LAT]
Two controversial tax measures advanced Wednesday in the California Legislature — a penny-per-ounce levy on soda and a charge on oil pumped from the ground in the state. The Senate Health Committee members approved a bill by state Sen. Bill Monning (D-Carmel) that would charge the tax on sweetened beverages, including sodas, in hopes of reducing obesity among young people. The $1.7 billion that would be raised would go to a Children’s Health Promotion Fund to support a statewide program to prevent obesity in children. Monning said the tax in SB 622 would also reduce consumption of high-calorie drinks by children. […] The 9.5% oil extraction tax would raise $2 billion annually for public education and state parks and was approved by the Democrats on the Senate Governance and Finance Committee, which sent it to the Appropriations Committee.

Overview Of The New 3.8% Investment Income Tax, Part 3: Gains From The Sale Of Property [Forbes, Part 1, Part 2]
News you can use.

FASB proposal would guard private companies’ proprietary information [JofA]
Stakeholders have expressed concerns to FASB that certain disclosure requirements for nonpublic employee benefit plans would reveal sensitive proprietary information of private companies. FASB is addressing that concern by proposing an indefinite deferral of the effective date for certain disclosures about investments held by a nonpublic employee benefit plan in the plan sponsor’s own equity securities.

Accounting error plunges Bob Evans Farms to $55.2 million 3Q loss [CD]

The Columbus-based company said it has subtracted a substantial amount from the book value of its former Mimi’s Cafe business, which it sold this year for $50 million in cash and debt. In its fiscal third quarter, Bob Evans reported a noncash impairment charge of $22.7 million for the Mimi’s assets, which the company wanted to sell. Now, Bob Evans says the charge was $68.4 million.
Former accountant sues Black Elk, alleging fraud [HBJ]
An accountant who worked at Black Elk Energy Offshore Operations LLC in Houston is suing the company, alleging he was fired after saying he would alert auditors to more than $360,000 in fraudulent charges on the company’s credit cards, including more than $25,000 at “gentlemen’s clubs.”
Ryan backs 'concept' of online sales tax [The Hill]
Rep. Paul Ryan (R-Wis.) supports the principle that online retailers should have to pay state sales taxes. "I think the concept is right," Ryan, the chairman of the House Budget Committee, said at a town hall meeting earlier this week, according to the Wisconsin Reporter news site. In an emailed statement to The Hill, Ryan clarified that he does not support the Senate's legislation on the issue.
"It's got to be done the right way. I think the legitimate concern is can it be used to do other forms of taxation or retroactive taxation? You have got to make sure it doesn't do that. I don't think the Senate bill is written in a tight enough way to do that," Ryan said.
Chris Kelly, Half of Rap Duo Kris Kross, Dies at 34 [WSJ]
RIP Mac Daddy.
Giant Rubber Duck Sails Into Hong Kong [WSJ]
Just because.
Posted in ANR