• H&R Block adds razzle-dazzle to tax prep in Times Square – So now tourists can get their tax returns done while they wait for their table at TGI Fridays. Just like at home! [NYDN]
• Can Goldman Sachs Bankers Deduct “Forced” Charitable Contributions? – Populist rancor will not subside until Team Jehovah is paying all our taxes every year for the rest of our lives. That’s the only fair solution here. [TaxProf Blog]
• SEC Won’t Seek Civil Charges for BofA Executives, Directors – But they are seeking new charges so let’s not get too excited Charlotte. [WSJ]
• Moss Adams Chair to Lead Private Companies Panel – Rick Anderson will chair the blue ribbon panel on private company GAAP. [Web CPA]
- Monday Morning Accounting News Brief: Claude Starts a Turf War With Consulting; An Article About How Much Big 4 Sucks | 5.4.26
- Friday Footnotes: Maybe Deloitte Doesn’t Need Employee Trust and Retention; Minnesota Wants to Tax Fraud at 100 Percent | 5.1.26
- Layoff Watch ’26: KPMG Cuts 4% From Consulting
The Lapsed Estate Tax’s First Victim
And by that we mean, he was only 13 hours away from 2010, when the estate tax expired.
Fritz Lohman of New York died at 11 am on December 31, just barely missing the opportunity to save his heir millions in taxes:
Lohman, 87, a SoHo real-estate magnate who pioneered the exhibition of gay art, died at home at about 11 a.m. on New Year’s Eve after a long illness. If he had instead passed away after midnight Jan.1, his partner of 48 years could have avoided paying at least $3 million in estate taxes — thanks to Congress letting that levy lapse for 2010.
For you populists out there, you could probably give a rat’s ass about but jesus, that just sucks. Thirteen hours. That’s shorter than some Law & Order marathons.
Dying 13 hrs. too soon cost $3 mil in taxes [NYP]
Your Client Dumps You Because…
Sometimes the reason for your firm getting the boot is pretty obvious and other times it isn’t. Fortunately for you, Tom Hood over at CPA Success lists the top seven reasons that your clients drop you like a sack of rocks and it sounds like the “It’s not you, it’s me” routine:
1. My accountant (CPA) doesn’t treat me right (two-thirds of the responses).
2. CPAs ignore their clients.
3. CPAs fail to cooperate.
4. CPAs let partner contact lapse.
5. CPAs do not keep clients informed.
6. CPAs assume clients are technicians.
7. CPAs use clients as training ground for new staff.
#1 seems a little vague (feel free to elaborate) to us but we’ve definitely seen 2 – 7 in action. We’d go so far to say that #4 and #7 are a little low on the list but that’s just our $0.02. Smaller clients, especially, want just a tiny bit of partner love every once in a while — lunch, bagels, anything! — but sometimes they’re lucky if they get a Christmas card.
Plus there are some clients that hate nothing more than an engagement team that turns over year after year. There’s nothing more annoying than answering the same questions every year by a different 22 year old accountant.
If you’ve got thoughts on, or additions to, the list drop them in the comments and discuss your client dissatisfaction experiences.
Wanted: Accounting Manager, Enforcer Experience a Plus
A source passed along a job opportunity for a company in Miami that needs an accounting manager. Doesn’t sound out of the ordinary but that there’s a little bonus in it for you if you can make it 365 days:
Accounting Manager – Pre IPO Company- Hospitality Industry
Location: Miami
Compensation: $90,000 – $100,000 + Bonus and other incentives (Free European Cruise after 1 year of employment)
Nice, right? There may be a bit of a catch though. Here’s part of the job description:
We are looking for an exceptional finance professional/ CPA who has very high ethics, strong interpersonal skills, loyalty to the company and to the President, someone who is very honest, trustworthy, hands on, very good with budgets, managing a complex debt structure, very good with complex capex projects, able to watch receivables like a hawk and not shy away from tough collections: able to work quickly and flexibly with cash flows and related dynamic Manage large outsourcing contracts/ contractors manage all expenses create reports for the Board and finance.
So based on the above, we’re thinking that not only must you be a master of double-entry accounting, you shouldn’t be afraid to break some kneecaps in order to convince some deadbeat customers to pay up. Do all this for one year, and you will have earned yourself a nice little vacation. Qualified applicants should get in touch and be prepared to demonstrate your abilities.
Happy (Belated) First Anniversary Satyam Fraud!
Technically it was last week but dang, it’s been a helluva year for Satyam and PwC.
Two auditors in jail, the PwC Chairman resigned, Jim Quigely couldn’t wait to tell everyone that Deloitte was the new auditor and P. Dubs would really, really be stoked if everyone just forgot the whole thing ever happened.
Despite the non-existent coverage in the U.S., our contributor Francine McKenna has covered this story from the beginning so we got her thoughts:
What do we know about the scandal one year later – its causes and how to prevent similar frauds in the future? Not much. The experts we should look to for answers, Satyam’s auditors Price Waterhouse India, are accused of being complicit and are still in jail. Who’s guarding the guardians? We’ll have to wait for the shareholders’ lawsuits and the SEC here in the US to hear what really happened, who all benefitted, and who is ultimately responsible.
Judging by the pace of things, we’re guessing the lawsuits won’t be resolved in our lifetime. While we are around however, we’ll keep you updated on what does happen whether it’s reasonable requests from PwC to jailhouse brawls (please God).
Job of the Day: Lots of International Accounting Experience Wanted
Specifically any of the following: UK, German, or Japanese GAAP. Plus if you’re on top of this IFRS thing, that’d be swell too. If you’ve got experience with all these then we’ll assume you’re a shoe-in.
Unless, of course, you have the personality of a park bench, in which case we’d say your chances are 50-50.
Check the details for a Senior Accountant position at Interactive Data in Boston after the jump.
Company: Interactive Data
Title: Senior Accountant
Location: Boston
Minimum experience: 5 years
Responsibilities: Prepare worldwide consolidated financial reporting for Interactive Data Corporation utilizing Oracle Financial Software; Responsible for specific Oracle and financial schedule requirements for both the monthly and quarterly close cycles; Performs quarterly review of financial records and ledgers of all US and non-US divisions, including divisions in Europe and Asia Pacific, to ensure accuracy, reporting consistency and US GAAP compliance as directed by Accounting Manager; Assist Corporate Controller in preparation of quarter SEC 10Q filing and annual SEC 10K filing. Works with other members of senior management to prepare final document; Assist Accounting Manager with regular training to all divisions on new developments in US GAAP and IFRS. Keep abreast of all new FASB and IASB issuances and make entire Finance community aware of such changes.
Qualifications: Bachelor’s degree in Accounting; CPA or equivalent non-US license is required; At least 5-8 years related experience.
Skills: International experience is a plus; Sound knowledge of US GAAP and IFRS knowledge is preferable; Knowledge of UK and/or German and/or Japanese GAAP is a plus; Willingness to travel; Travel expected to be about 15%-20% of time annually.
See the entire description over at the GC Career Center and visit the main page for all your job search needs.
Was Koss Fraud Made Possible by Incestuous Management?
Maybe! If you figure an incestuous management team is a clueless management team, the argument can certainly be made. How else could Sue Sachdeva hold garage sales at her desk without anyone noticing? This went on for five years:
How is it that nobody noticed $5 million missing each year when the company’s net income is about $5 million? I mean, the business of “stereo headsets” isn’t really a complex business model. There’s revenue, cost of sales, and expenses. How do you somehow manage to hide $5 million when expenses are only $10 million … and cost of sales is $25 million?
The answer becomes clear when you look at the company’s management team. Michael Koss is the company’s CEO. He’s also the company’s vice chairman, president, COO, and CFO. The company’s VP of sales is, that’s right, John Koss. Together they own 65 percent of the company’s stock. Another Koss, John Jr., owns 8 percent of the company’s stock. Who knows how many other Kosses there are scattered about the place. No checks and balances there. No hands on the wheel, either.
Sooo, the question becomes: Should Grant Thornton have noticed this sleepy management oversight? Did Michael Koss just give them the “I involved in every aspect of the business so there’s nothing to worry about” story and GT just bought it? Discuss.
The Problem with Incestuous Management [The Corner Office/Steve Tobak]
Glenn Beck, Who Doesn’t Hesitate to Point Out Other People’s Tax Problems, Had Some of His Own
Since he’s such a passionate guy, Glenn Beck will not hesitate to call someone out if he feels that they are cheating the American people. He’s a crusader for justice, after all.
For example, Tim Geithner, Health and Human Services Secretary Kathleen Sebelius, Tom Daschle, Labor Secretary Hilda Solis and others were all called “tax cheats” by GB early last year and he also mentioned that he wouldn’t entrust his children to them (nice touch).
So it’s more than a little awkward for Becks when Politico reports that Mercury Radio Arts, his production company, has had some of its own tax troubles:
Mercury, a private corporation that lists Beck as chief executive officer and his wife, Tania Beck, alternately as vice president or secretary, since 2007 has fallen behind on its New York City business income taxes and has been cited for filing errors related to its obligations under Texas franchise tax and New York state workers’ compensation insurance rules.
Politico reports that the company owed just over $25k in back taxes and penalties but since everything has been cleared up it’s NBD. However, we do seem to have a little bit of a pot and kettle situation. What’s even more stupid is that everyone is all bent out of shape over these people screwing up their taxes even though no one was willfully trying to dodge the tax law:
Dean Zerbe, national managing director for a company called alliantgroup that provides specialty tax services to accounting firms, said Beck’s situation “has the look and feel of somebody who is confronting an extraordinarily complicated tax situation — or at least the people he’s hired to do these things are — and is trying to comply but isn’t doing everything perfectly.”
The same, however, could be said of most of the Obama nominees Beck has blasted for tax problems, said Zerbe, who called them “people who were trying to comply with the spirit and the intent of the law.”
As it has been mentioned, our tax system is complicated and that’s putting it lightly. The fact that all these people made mistakes doesn’t go so much to anything about them as Americans as it does the tax system being a giant shitshow. So if that is indeed the case, does this mean that all this name calling and finger pointing is politically motivated? GET THE HELL OUT OF HERE.
What if it’s Beck with a tax ‘accident’? [Politico]
Tim Flynn Speaking at the KPMG Town Hall Meeting Circa Now
Our understanding is that T Fly is rallying the New York troops this morning so if he says anything worth noting (e.g. “I’m leaving the firm to become the next Treasury Secretary“), be sure to get in touch with us or discuss below.
We’re not sure if he’ll be giving pep talks to other offices so if you’re in not in New York and you’ve got TF on the docket, keep us updated.
Preliminary Analytics | 01.11.10
• Geithner Had No AIG Role, Says Official – Said official is Tom Baxter, General Counsel of the New York Fed. TB says that the situation ‘did not warrant the attention’ of TG. End of story. Darrell Issa isn’t buying what Bax is selling and has invited him to speak on the Hill about it later this month. Set the DVR. [WSJ]
• Geithner Has Support of Obama, Democratic Lawmakers, Aides Say – Until he doesn’t have it, which could be any day now. [Bloomberg]
• Banks Brace for Bonus Fury – “Critics of Wall Street firms are grumbling that this year’s bonuses are far too generous. But some recipients are none too happy, either: They’re complaining too much of the payout is coming in stock instead of cash.” [WSJ]
• Investor Alwaleed says Citigroup “on right path” – As long as his highness is convinced, there’s no reason the rest of us shouldn’t feel better. [Reuters]
• Did you donate for tax breaks? IRS wants proof – Such a bunch of sticklers. [CT]
Sam Antar Wants You to Think Like a Crook
In early December, the JDA gave us a little taste of how the mind of a crook works when she interviewed Sam Antar, the former CFO of Crazy Eddie’s.
We caught up with Sam again recently and in case you had decided that he had redeemed himself by speaking to universities, government agencies, and businesses telling those people how to detect fraud, Sam would take issue with that.
“I’m the same crook that I was when I was the CFO of Crazy Eddie’s. I haven’t changed. I got caught,” Sam told us. Sam doesn’t believe in redemption but he will tell you that he’s reformed, “A criminal is like an addict. You’re either in recovery or you’re not.”
In addition to his feelings on his past criminal behavior, Sam has strong opinions about the audit profession and how the current accounting curriculum does not adequately prepare young auditors for the masterminds they’re up against. “To catch a criminal, you’ve got to think like a criminal.”
Sam would never suggest that you all take a turn at white collar crime in order to become better auditors. That would disappoint your parents.
So what are his ideas? Here’s a few things to get you started:
• Sam believes that the current curriculum should be expanded to include criminology, criminal psychology, forensic accounting, and courses that focus on internal controls.
• With this expanded curriculum, an advanced degree program should be implemented for those students that wish to become CPAs.
• In addition, Sam believes that the CPA exam should be expanded to include a section dedicated to fraud.
We did some looking around and found that two schools: Carlow University in Pittsburgh and Franklin University in Columbus, OH both offer undergraduate degrees in Forensic Accounting and that two more: St. Thomas University in Florida and University of Charleston in South Carolina offer graduate degrees.
As long as white collar fraud remains front page news, there will be people asking “where were the auditors?” Right or wrong, that is the reality of the situation. You can fight it tooth and nail but ultimately the market will demand more forensic audits for high risk clients. Even if the odds of you finding a single fraudulent transaction in your entire career is nil, shouldn’t you be prepared for that chance?
Sam thinks so. And he convinced (or maybe just conned?) us. You still got it, Sam.
Photo by Buck Ennis for Crain’s New York and Investment News.
Review Comments | 01.08.10
• Tim Geithner Will Be Fired After The November Elections – Some say sooner. Takers? [Clusterstock/John Carney]
• Accounting Loses 2,600 Jobs in December – “Off 42,200 since recession began, according to today’s BLS estimates.” [CPA Trendlines]
• Steve Schwarzman Will Cut A Bitch Who Gets In Between Him And His Rom-Coms – SS would not be denied from perfect seating for It’s Complicated. [DB]
• NYC Stuyvesant Town complex misses payment – Doomed. [Reuters]
