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Friday Footnotes: Feds Get a Tax Preparer in Their Biggest Pandemic Relief Bust Yet; AI Is Coming For Offshore Busy Work | 4.10.26

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Apparently Shouting “Promote Me! Promote Me!” in a Partner’s Face Can Get You Promoted at Deloitte

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Top Remote Tax and Accounting Candidates of the Week | October 16, 2025

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Here Are Tax and Audit Salaries at Top 25, Top 300, and Regional Firms

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This Deloitte Office Has Eliminated Trash Cans at Desks to Make Staff Get Up Off Their Asses

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C-Suite CPAs Remaining Pessimistic on the Economy

This story is republished from CFOZone, where you’ll find news, analysis and professional networking tools for finance executives.

Following up from our brief mention yesterday, senior level CPAs have turned much more pessimistic about the economy. And somewhat surprisingly, they are partly concerned about deflation.

Just 21 percent of CPAs serving as C-suite executives said they are optimistic about the US economy, way down from 40 percent who were optimistic in May and the lowest level since April 2009, according to the American Institute of Certified Public Accountants and the University of North Carolina’s Kenan-Flagler Business School’s latest Quarterly Economic Outlook Survey. What’s more, pessimists outnumbered optimists by a two-to-one margin.

Even more worrisome, 78 percent believe US business conditions will not return to pre-recession levels until 2012 or later.

This sentiment seems to parallel a number of recent economic and corporate reports.


Altogether, 40 percent were pessimistic about the economy, up from 25 percent in the last quarter.

“Our survey signals the nascent economic recovery that buoyed expectations last quarter is stalling,” said AICPA Vice President for Business, Industry and Government Carol Scott, in a press release accompanying the survey’s findings.

What are these numbers crunchers worried about? Unemployment and a tight credit market, to name two.

The survey found that CPAs are much less concerned about inflation these days. This is not surprising, given the economy’s lackluster pace, the high unemployment rate and the inability of companies to raise prices.

Interestingly, 20 percent are now concerned their organizations will be impacted by deflation in the next six months.

This is further proof that deflationary fears are not just coming from a fringe group of radical thinkers, but are now entering the mainstream.

One silver lining from the survey: Nearly one-quarter of the survey participants are upbeat about the prospects for their own organizations. Still 55 percent of survey respondents do not anticipate their organizations’ employment levels returning to pre-recession levels in the next year, compared with seven percent who anticipate staffing levels returning to normal in the next year.

Compensation Watch ’10: Early Returns from Deloitte Are In

The first reports of Deloitte raises for audit professionals have come in from the Mid-America Region:

I’m surprised to see absolutely nothing posted about Deloitte raises. We have had the raise discussions in my office for staff and seniors, no double digit raises in sight. AIP (bonus) for Seniors and above. Managers- TBA.

Mid America Region- it’s looking like 2-9% for staff/seniors. AIP is supposed to be in the range of 2-12%, but that is the range for both seniors and managers. I spoke with a friend in another office in my region and their raises are looking pretty consistent, if not lower. Starting salaries are frozen- start classes from fall 09, 10, 11 will all at the same rate.

This is the earliest word we’ve received and comments have suggested that more news would come early next week. The tax practice still has their town halls next Tuesday but that could be to explain the numbers if in fact they are similar to audit’s.

So this could be a John Kerry-esque exit polls effect or maybe this is a sign of things to come. Either way, if you’ve gotten word, discuss below and keep us updated with any developments.

Tales From the CPA Exam: Is Gum Really Banned at Prometric?

Directly from CPAnet comes word that gum could possibly be banned by Prometric, although it may only apply if the testing staff are having a bad day. I didn’t see gum on the list of prohibited items either and would assume the rules are not there for interpretation by staff based on the mood they are in.

The test facilitator at Prometric today made me take my gum out before the exam. I rebutted with the fact that the AICPA does not prohibit gum in the list of prohbited items in the AICPA Candidate Bulletin: She then explained that people have left their gum in the testing center and it has been a “mess” to clean up. She seemed irritated and ornery, and I didn’t want to raise my blood pressure any higher before going into the test room… so I conceded and spit out my gum.

Now, I tend to consider myself to be a courteous and responsible gumchewer. I dispose of my gum in its original wrapper that always ends up in a trash can. One reason I like chewing gum while taking a test is b/c it allows me to harness any natural stress and focus on the task at hand. I really could’ve used some gum today, but I didn’t let that ruin my test. However, I will never be able to quantify the effect of my lack of gum on my final score tbd. Does anybody know the official gum rule? I think this lady was just having a bad day…

I didn’t attempt to reach Prometric to confirm this candidate’s story, I believe that our little candidate here IS a responsible gumchewer. Since this was posted on August 3 (assuming the night after the exam), the candidate still has until September 3 to request a rescore though it’s been several years since the AICPA has actually granted one (don’t waste the money).

I believe you can also contest the conditions of your testing center within the same 30 day window so if you absolutely must, go that route. Complain that you were subjected to conditions outside of your control that had a detrimental effect on your performance and see how that works out.

Or hope you passed and don’t bring gum next time. Regardless of why you wanted it, you should have been allowed it since it wasn’t on the list. Hopefully this person checks in and lets us know how it turns out.

Accounting News Roundup: JetBlue CFO Isn’t as Good at Gathering Trash as He Is with Spreadsheets; Dealing with a New Boss; IRS: Regs Won’t ‘Weed Out’ Preparers | 08.13.10

JetBlue CFO Flies Cross-Country, Collects Garbage [NYM]
JetBlue CFO Ed Barnes and VP Robin Hayes reportedly did their best to show up Steven Slater on a recent flight from New York to Long Beach. Apparently it is not uncommon for JetBlue execs to help out during the flight, however passengers can spot an amateur/numbers person when they see one:

“Barnes took one of the most challenging of the flight attendant’s duties upon himself: He gathered trash. ‘He never served anything, but he was the trash guy. He must have gone by eight times,’ our source said. ‘And he was kind of bad at it. He was really tall. There’s an art to reaching over people’s heads and h and not spilling it.’ Apparently both men were very nice, especially considering that the CFO was ‘clearly a guy who is used to doing spreadsheets and is now gathering trash.’ “

Leverage FASB Tools to Catch Up on New Accounting [Compliance Week]
“Although the FASB is a on a fast track to issue a host of major new accounting standards as part of its effort with the IASB to converge U.S. and international rules, the board has coupled that with an effort to get resources out that can help key stakeholders grasp the new era of accounting that is just dawning. In addition to the usual discussion papers and exposure documents laying out the full technical detail of its plans, the board also is publishing user-friendly summaries and producing podcasts and webinars that explain the major new initiatives as they are proposed.”

How to Deal With Your New Boss [FINS]
“You will have to prove yourself all over again. The work culture of the past will change, and the expectations will be intensified, at least in the beginning. Experts agree there are specific ways to respond that will maximize your chances of surviving, and even thriving. For finance professionals, managing a new boss comes with some added stressors that professionals in other fields may not experience.”


H-P Board Sued on Hurd Exit [WSJ]
“Hewlett-Packard Co.’s directors got slapped with a lawsuit over the departure of Mark Hurd—the same chief executive who handpicked most of the board’s members—even as they face the task of finding a replacement for the former CEO.

A Connecticut-based law firm filed a shareholder derivative suit in Santa Clara County Superior Court in California on Tuesday against H-P’s board, alleging directors violated their fiduciary duties in connection with the events surrounding the resignation on Friday of Mr. Hurd.”

FDIC opens its doors to carry out financial reform [Reuters]
“Bank regulators on Thursday pledged an ‘open door’ policy for carrying out financial reform, also saying they will inform the public of meetings between senior officials and private sector individuals.

The Federal Deposit Insurance Corp said it will release every two weeks the names and affiliations of people outside of the government who meet with agency officials to discuss implementing the Dodd-Frank law. The subjects that are discussed will also be made public.”

IRS Prepares Preparers for Preparer Requirements [Web CPA]
“An IRS official repeatedly reassured an audience of tax preparers that the agency isn’t aiming to take away their livelihoods or weed out people when its new registration, testing, education and e-file requirements take effect next tax season.”

Starting Salaries for The Big 4 Class of 2010

Per a request from our earlier post on full time offers for interns:

Hey Caleb,
I think it would be interesting to start a post on full time/internship compensation offers that have been rolling in and will continue coming to students for the next few months. Are the firms trying to lower starting compensation?

And a reader considering a mid-tier offer:

I am going into my fifth year this fall at a large university in the Southeast. I recently received an offer from mid-size firm to the tune of $49k, no signing bonus, and no CPA bonus (firm policy). My question is, in this market, is that what students are being offered in public accounting? I would just love to know what my friends at the Big 4 are getting! Because of these numbers, and me not being sure about whether or not I want to work for them, I am tinkering with the idea of going through another recruiting season. Do you think it’s a bad idea to keep this mid-size firm waiting?

So then. For those starting this fall in the Big 4, kindly enlighten the requesters with 1) your starting salary 2) your office 3) practice 4) signing bonus (if applicable) 5) Bonus for CPA (if applicable).

And give your thoughts on the reader’s question – should they keep the mid-tier firm waiting or take what they can get?

Or the commenter – are salaries looking lower from previous years or are the A1s already making A2s jealous?

Experienced Recruiting Amongst The Big 4 Gets Aggressive

As you know the Big 4 are extremely competitive when it comes to picking up talent. Now that the firms have amped up their experienced hiring, things appear to be taking an interesting turn.

Case in point, the following email went out to PwC professionals in the Southeast:

Hello. I work for Ernst & Young’s Assurance Recruiting Team and, through my networking, came across your name. I was wondering if you would be interested in making contact for professional networking purposes.

We are currently seeking managers and senior managers in our Southeastern markets. Your referrals would be greatly appreciated as you know the best people in this industry! We are expanding our Assurance Experienced talent pool and look forward to hiring only the best and brightest talent!

There are twelve more reasons to consider EY as a strong career option!! Ernst & Young was just named to FORTUNE’s “100 Best Companies to Work For” list for the 12th year in a row–and ranked highest among the global professional services organizations. The reason? Our people. Together, we’ve created a culture of learning, flexibility, inclusiveness and community responsibility that truly makes a difference.

I have been a finance/accounting recruiter for six years and assure you that not all Big 4 firms are cut from the same cloth……it never hurts to have a dialogue!!!

Thanks in advance for your time and consideration. Have a wonderful summer!

Say what you want about these particular tactics but if there is a need in a particular office or region, it is Big 4 recruiters’ job to go out and find the talent to fill that demand. Other Big 4 firms seem like a pretty good place to start since they have the “talent” that the firms want. Plus, the email does state that the intent of the message is to “open a dialogue” which, sure, could lead to someone switching firms but let’s be real – this happens.

And don’t forget! This isn’t confined to Dixieland. You may recall that PwC in the UK had been allegedly poaching E&Y partners, as reported by the Times Online.

So if you want to get all defensive about a rival firm going behind enemy lines to do their jobs, so be it, but your firm is likely doing the exact same thing.

Earlier:
Grant Thornton Picks Up Four Tax-Exempt Experts from WTAS

“Even liars and hucksters have First Amendment rights”

A horrible fate must await an attorney when a judge has these things to say about him:

“Just because other accountants and professionals were doing something wrong does not excuse Defendant’s misconduct.”

“Defendant’s reasoning is so specious that he should have known it was wrong.”

“Defendant has been quite adept at hiding his involvement in these activities in an effort to develop what he believes is plausible deniability. Ultimately, his denials are implausible.”

“As stated earlier, the Court believes that promotion of tax schemes and structures is now Defendant’s modus operandi. These were not isolated occurrences, and the nature of his preferred method of business indicates it will continue to ng business.”

“Defendant describes himself as a “rainmaker,” and the Court finds that practically everything he has done in that capacity has been improper. The Court has no reason to believe he would not concoct and promote some other scheme of doubtful validity.”

So this led to…maybe a referral to the local attorney disciplinary board? A broad and sweeping injunction against doing further tax work?

Well, a Kansas City judge barred defendant A. Blair Stover from promoting three “schemes” he no longer promotes anyway. The judge also required him to run any other tax planning ideas by the IRS before marketing them. No disbarment. No banishment. Just “sin no more.”

Why the seeming leniency?

An injunction prohibiting Defendant from providing tax advice raises serious First Amendment concerns. The Government has a strong and valid interest in preventing fraud, and the First Amendment does not protect fraudulent statements. However, the Government has no interest in preventing true statements, and even liars and hucksters have First Amendment rights. Conceivably, Defendant could provide lawful and accurate tax advice, and the Court is unwilling (and probably unable) to prevent him from doing so.

I like the First Amendment. Without it I might have been moved to an oubliette underneath IRS Headquarters long ago. Yet the first in line in the bill of rights hasn’t stopped other judges from shutting down tax scheme promoters. For example, a federal judge enjoined tax protest guru Bill Benson from:

promoting, organizing, or selling (or helping others to promote, organize, or sell) any other tax shelter, plan, or arrangement that incites or assists others to attempt to violate the internal revenue laws or unlawfully evade the assessment or collection of their federal tax liabilities or unlawfully claim improper tax refunds.

Benson appealed on First Amendment grounds. The Seventh Circuit turned him down:

Benson purported to be selling a way to avoid tax liability; what he was actually selling was a way to increase tax and criminal liability for failing to pay taxes. That is false advertising, which may be banned consistent with the First Amendment.

Some years back a Des Moines gentleman vigorously promoted Employee Stock Ownership Plans as a tax cure-all, which had a number of unfortunate consequences. The Eighth Circuit didn’t let the First Amendment get in the way from permanently enjoining him and his CPA practice “…from acting as a service provider to any ERISA plan.”

Perhaps there’s something in ERISA that overrides the First Amendment the same way “ERISA preemption” keeps states from regulating many features of pension plans. Maybe the Eighth Circuit was wrong. But if the Kansas City judge’s opinion gets it right, you can get away with a lot in tax practice before you are drummed out altogether.

Area Man Claims Racquetball Court Turned Church Lost Tax-Exempt Status Due to His Lack of WASPyness

We’re a little late getting to this story but whatevs. George Michael of Lake Bluff, IL is suing the town and the Land of Lincoln after the tax exemption of his home was revoked.

You see, George has an extremely ill wife (who is also religious) and he turned his racquetball court into an Armenian Church so they could worship in the comfort of an extremely high ceiling with transparent back wall. His brother got ordained online to perform the services, and voilà! A tax-exempt house of worship. At first, the Illinois Dept. of Rev. was cool with it but a judge wasn’t as accommodating, claiming that the Michaels are trying to dodge property taxes of $80k a year.

The Michaels took exception with this, arguing that Lake Bluff would prefer a more WASPy community and sued them claiming their lack of WASPyness. The Trib reports him saying, “I don’t think they want anything other than Anglo-Saxons in Lake Bluff.”


Whether Lake Bluff is trying to keep the nabe WASPtacular is not clear although the lawsuit does allege that “[he] heard someone use an unspecified racial slur ‘toward’ his daughters as he dropped them off at school.”

Lake Bluff of course doesn’t buy it and claims that GM is just trying to pull a fast one, sayeth the town’s attorney, “The church’s establishment was an ‘inappropriate attempt to escape the same property tax responsibilities that every other property owner in Lake Bluff is required to comply with.’ ”

Maybe Lake Bluff is on to something because we find out that something that isn’t up for debate is George Micahel’s overdue taxes. A sum that he, admittedly, might not be on top of:

Michael, a former executive at a Chicago bank taken over by the federal government this spring, denied that he founded his in-home church to avoid paying about $80,000 in taxes a year. He is willing, he said, to settle the bill.

But his tax tab remains unpaid, said Lake County Treasurer Bob Skidmore. Michael, who runs a real estate company, owes more than $239,000 in taxes from 2007 through 2009 and missed his first due date in June, Skidmore said.

Asked about that, Michael said his mail service is unreliable and he hadn’t seen the bill.

“I better check into it,” he said.

Blaming the WASPy mail carrier. That’s classy.

Man who turned mansion into church alleges bias after losing tax break [CT via TaxProf Blog]
Racquetball Court Turned Church Loses Tax Exemption [Web CPA Debits & Credits]

Job of the Day: BNY Mellon Needs a CFO

BNY Mellon is looking for an experienced professional to fill the CFO of Wealth Management role in Boston.

The position is primarily responsible for planning, controlling, and the direction of the fiscal operations of the organization as the direct subordinate under the CEO.

Qualifications include 15+ years of experience with a CPA or MBA a plus.


Company: BNY Mellon Wealth Management

Title: CFO

Location: Boston, MA

Description: Primarily responsible for planning, controlling, and the direction of the fiscal operations of the organization as the direct subordinate under the CEO. Serves as a member of the senior management team and participates in developing overall policies, programs, objectives and goals. Develops, implements, and administers financial and accounting policies, procedures and systems, and has a broad responsibility for the company’s fiscal operations. Maintains consistent and appropriate financial procedures throughout the company; monitors financial policies, procedures, systems and controls to ensure compliance with regulatory requirements. Directs the preparation of various financial and operating statements and reports to management, Board of Directors, etc.

Qualifications/Skills: The qualified candidate will have 15+ years of experience related to the position required. Excellent management (financial and general), presentation, communication and consultative skills required. Strong business and strategic perspective/focus, as well as superior leadership and negotiation skills, are essential. B.A./B.S. in Business or equivalent experience; M.B.A. or C.P.A. preferred. Progressive accounting and financial analysis experience with at least advanced financial management concepts and managerial accounting and reporting concepts and processes.

See the entire description over at the GC Career Center and visit the main page for all your job search needs.

Should Groceries Be Taxed?

An interesting idea from the Tax Foundation’s Blog today that comes by way of Nebraska State Senator Rich Pahls. TF reports that Senator Pahls plans on introducing legislation that would broaden the sales tax base that would, theoretically, lower income or property taxes. TF takes it slightly further than Senator Pahls and suggests that groceries should be included in this broadened base.

There are few states that already tax groceries: “Alabama, Arkansas (3%), Hawaii, Idaho, Illinois (1%), Kansas, Mississippi, Missouri (1.225%), Oklahoma, South Dakota, Tennessee (5.5%), Utah (1.75%), Virginia (1.5% + 1% local option tax), and West Virginia (5%),” and TF argues that more states could benefit from this policy:

Broadening the sales tax base and lowering the rate is a good idea and a move in the direction of sound tax policy. Services should be taxed. Groceries should be taxed. All end-user consumption should be taxed. There is no reason that entire sectors of the economy and swaths of consumption should go untaxed while others are singled out for taxation. Broadening the tax base allows the government to raise the same amount of revenue with a lower tax rate, which reduces distortions in the economy. Taxing all consumption at the same low rate keeps lawmakers from picking winners and losers in the market and ensures you will be taxed equally no matter what you choose to purchase.

Unless you’re one of those people that doesn’t want pay taxes period, this is a sensible solution for states looking to close their budget gaps (even just a little bit). BUT! As you might imagine, taxing groceries is a hot political spud that, for some, is simply not an option:

[T]his type of reform is seen as radical and a political non-starter. One reason is that people have concerns that changes such as applying the sales tax to groceries might unfairly or disproportionately impact the poor. Even Sen. Pahls seems reluctant to embrace this “emotional” reform.

First, remember that broadening the tax base allows us to lower the rate, so that everyone, poor and rich alike, will be paying a lower tax rate on their non-grocery purchases, offsetting some of the increased tax paid on groceries. Still, lower income people spend a disproportionate amount of their income on necessities like food, and they may very well come out behind even after accounting for the lower rate. Then I would recommend implementing or expanding food assistance programs (which provide free food, not just tax-free food) targeted at those who truly need it.

The bottom line is that most of us can afford to pay sales tax on our grocery purchases. Exempting groceries for everyone is a very costly and indirect way of providing assistance to the poor.

Forget for a second that most state politicians can’t entertain actual solutions to budget problems and taxing groceries is sound policy. Think about it. If a states settles on a 5% grocery tax and you purchase $100 worth, that’s an extra $5. That isn’t going to put anyone on the street and if it does, we recommend sticking to the produce section where food is considerably cheaper.

And from a more practical standpoint, it certainly makes more sense than taxing shoe shines and jugglers.

Broadening the Sales Tax Base in Nebraska is the Right Idea [Tax Foundation]