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Footnotes is a weekly wrap-up of news from around the accounting profession hand-picked by Going Concern editors to keep partners, staff, and practitioners of all stripes informed. Sometimes there’s silly celebrity news, too. Celebrities not paying their taxes anyway. Published every Friday at 5 PM Eastern time.

Footnotes: Let’s Make a Deal; ATR Turns Your Beer Right Wing; Deloitte’s Maternity Ward | 03.07.14

JPMorgan whistleblower gets $63.9 mln in mortgage fraud deal [Reuters] Sooooo, who do I have to pay off to get my hands on one of these? [Twitter] I hope everyone is using their @taxreformer beer koozie tonight at #CPAC2014 @ Cpac 2014 — Paul Blair (@gopaulblair) March 7, 2014 Ex-trader convicted of defrauding bailout […]

Footnotes: The Greatest Lawyer Ad Ever; Deloitte to Dabble in Chocolate; Bad Day for EY to Talk About Fraud | 03.06.14

Guys, when Above the Law says this is the "greatest lawyer ad ever," they mean it [ATL] Investment firm Cerberus to buy Safeway for $9 billion [USA Today] Guy who is likely the founder of Bitcoin claims he isn't the founder of Bitcoin [AP] No, you're not crazy, Facebook has monkeyed with your news feed […]

Footnotes: Study Finds Criminal Auditors Charge More; Ban the Dollar; Pizza Party? | 03.05.14

Would you pay $499 for a device that turns "water" into $20 wine? Jesus not required [HuffPo] For those of you who partake in Lent: don't give up selfies, just be sure to ashtag them [WSJ] Winklevoss twins use bitcoin to book space trip on Virgin Galactic [NY Daily News] GE's CEO has been forced […]

Footnotes: Fast Track to Partner; A Bitcoin Robbery; Florida Man at it Again | 03.04.14

Are you an aspiring partner? Why not fast track the process? [JofA] Judge Calls Chevron Verdict Product Of `Egregious Fraud,' Unenforceable [Forbes] Obama budget proposes more child care help for younger kids [Don't Mess With Taxes] Remember the California couple who found $10 million worth in buried gold coins? Not only will they likely have […]

Footnotes: Who Knew Madoff Was a Liar?; Shorting War; Happy Face! | 03.03.14

Bernie Madoff lies about Wall Street fraud in videos played at workers’ trial [NY Daily News] Er, if war breaks out, does it really matter where you put your money? [MW] Your troll of the day: The IRS is the Problem [NRO] The Real Fraud Is The Fraud On The Market Theory [Forbes] The woman […]

Footnotes: 140,000 Comments; Uncle Sam Wants You to Drink; GRUB | 02.28.14

Well, we know at least one person who won't grow up to be a CPA The Third District Court of Appeal tossed out an $80,000 discrimination settlement Wednesday between Gulliver Preparatory School and its former headmaster Patrick Snay, ruling the ex-employee and his daughter breached the terms of a confidential agreement when she took to […]

Footnotes: Is That an Eagle or Something?; SEC and Trading; The Fine Art of Sexting Coworkers | 02.27.14

Some restaurants got the bright idea to add an "Obamacare surcharge" to orders [CNNMoney] The SEC Should Really Start a Hedge Fund I guess a bigger question, though, is why are so many SEC employees trading stocks in the first place? The authors' sample, which runs from August 2009 through December 2011, consists of 29,081 […]

Footnotes: Gimme Back My Bentley; Nice Guys Do Finish First (Sometimes); Can I Tell You a Secret? | 02.26.14

Man convicted of tax fraud wants Bentley, jewelry back [Tampa Tribune] The SEC reminds everyone they are pro-whistleblower [] A Christian pot shop takes on the IRS [TIME] Who says honesty doesn't a pay? A dude in New York state is $10 million richer after returning a bonus lottery ticket a store clerk issued him […]

Footnotes: Busy Season Lies; Can the IRS Stop the House?; A Literal Goldmine Among Dog Poo | 02.24.14

Three Mistakes to Avoid When Networking [Harvard Business Review] Mac users, I hope you've already updated (this goes for your devices too) due to a major security flaw [Mac Rumors] 12% of Americans say it's OK to cheat on taxes [CNN Money] A California couple taking their dog for a walk found $10 million in […]

Footnotes: Fed Crush Says What?; No Really, WhatsApp?; Mind the GAAP! | 02.24.14

Carl Icahn isn't feeling eBay right now [Bloomberg View] My raging ladyboner for Dick Fisher is still raging so hard I should probably call my doctor because it's definitely been longer than four hours Dallas Federal Reserve Bank President Richard Fisher said on Monday that he would like the U.S. central bank to continue to […]

Footnotes: Thar Be Jobs, Kids!; Regulators Heart Big Data; Another Celebrity v Accountant | 02.21.14

Securities Regulators Go Big on Big Data [CFO Journal] TGIF for normal people, this for Footnoted [Twitter] Help! My filings cup runneth over! — footnoted (@footnoted) February 21, 2014 If you're looking to get hired in Portland, maybe check here [Portland Biz Journal] And hey look, they're doing it in Baltimore too. [Baltimore Biz Journal] […]

Footnotes: Bring on the 10Ks; Don’t Bet on Herbalife; HFTs Need a New Source | 02.20.14

GrubHub Seamless Joins the Tech IPO Crush GrubHub Seamless Inc., the online restaurant-menu and takeout-ordering service, has made a confidential filing for an initial public offering, according to people familiar with the matter. Company officials have met with investment banks and could launch the IPO as soon as the first half of the year, one […]

Footnotes: WhatsApp Indeed; Accounting Games; Ex-Madoff Aide Has No Idea What You Are Talking About | 02.19.14

Things still suck for lawyers, they might just suck less than they have lately [ATL] Can you draw a perfect score in the accounting game? [JofA] Facebook is buying WhatsApp for $19 billion, so I guess now we know what's app! [WSJ] The IRS Is at a Tipping Point: Under Attack, Distrusted, and Underfunded [TaxProf] […]

Footnotes: Love is in the Air All Around Us Today! Plus Some Other Accounting Stuff | 02.14.14

America should make life easier, not harder, for activist investors Mary Jo White believes that shareholder activism has lost its “distinctly negative connotation”. That is partly because rule changes have made activism easier and therefore more commonplace. Nor is it restricted to America: shareholder activism is gaining in popularity around the world, in places such […]

Footnotes: Er, Isn’t the SEC Already Advocating For Investors?; Gossip Is Good; SWM Seeks J-O-B | 02.12.14

TIL: A little office gossip is actually good for your team [Lifehacker] Buffett's Pal Munger Heads a Very Weird Company [Bloomberg View] Question of the day: Okay folks. Any thoughts on why the U.S. investor protection agency (aka #SEC ) needs an investor advocate? #finreg — Emily Chasan (@echasan) February 12, 2014 How looking […]

Footnotes: The Real Debt Ceiling; Discount Ding Dongs; Extraordinary Bosses | 02.11.14

Ed. note: forgive the late Footnotes, apparently the state of Virginia is preparing for a snow lockdown so therefore I had to stock up on beer, cat food, and Butterfingers before the end of the world arrives in the Old Dominion. Silly Old South-ians, always bugging out about a couple flakes. If I am incapcitated […]

Footnotes: Explain Yo’self, Janet!; Bye Bye Bitcoin?; The SEC Isn’t Perfect After All | 02.10.14

The SEC's Quiet Insider-Trading Loss [Bloomberg View] Barclay's data breach might leave it in a world of hurt [CFO] Yellen, Carney Face Explaining Policy as Benchmarks Near [Bloomberg] Bitcoin had one hell of a day, THANKS A LOT MT GOX [DealBook] Better Markets sues Justice Department over JPMorgan deal [Reuters] Unnecessary disclosures targeted by SEC […]

Footnotes: ATR’s Gold Medal in Trolling; LOL Debt Ceiling; Insider Trading Hurts Exactly No One, Per This Guy | 02.07.14

Deloitte is big in Charlotte [Charlotte Business Journal] See this? According to John Carney, "this dramatic photo brings together all the victims of convicted insider trader Mathew Martoma." [Facebook] Hey guys! ATR isn't the only group who thinks taxing Olympic medals is totes unfair The U.S. Olympic Committee awards its athletes $25,000 for gold, $15,000 […]

Footnotes: Why Employees Stay; 2013 CPA Exam Candidate Performance; So Lisa Isn’t a Slut, Then? | 02.06.14

Unemployment Bill Stalled Anew in Senate [AP] The 2013 CPA Exam candidate performance book is out [PR via NASBA] Let's discuss this tweet: Employees stay for one key reason, the ability of their employer to develop and enhance their career, EY's Bill Leisy — EY Human Capital (@EY_HumanCapital) February 5, 2014 Former SAC Manager […]

Footnotes: Twitter Gets Unfollowed By Investors; Don’t Sweat Your Refund; A Great, Lazy Fraud | 02.05.14

What small business owners should know about the new Obamacare report [Washington Post] Twitter's first revenue announcement since going public in November was great, but shares tanked due to unexpectedly low user growth. Seems legit [USA Today] Should farmers embrace accrual accounting? [AG Web] Guys, don't worry, concerns over hitting the debt ceiling won't affect […]

Footnotes: Bernanke’s New Gig; What, the Treasury Worry?; Bird Flu and Chicken Wings | 02.03.14

Ben Bernanke has a new job, and hopefully won't screw everything up for all of us again [Bloomberg] H.P. Revises Autonomy Financial Reports, Citing Accounting Errors [Dealbook] Is this new IRS app an invitation to thieves? [InformationWeek] White House Punts On NFL Tax Question [TIME] Should the post office offer banking services to the under-served […]

Footnotes: Problem Sharing; It’s God’s Money; Mark-to-Who Cares | 01.31.14

Researchers in California have figured out that "a problem shared is a problem halved" for those of you who spend too much time in our comment section complaining *hint hint* [Daily Mail] Wall Street falls; Dow, S&P end worst month since May 2012 [Reuters] A former Christian radio host who hosted a show called "It's […]

Footnotes: Dress Code for Deloitte Partner’s Super Bowl Party; PCAOB Extends Comment Period on Partner Naming; Cursing at Work | 01.30.14

A Tale of Two Chinese Auditor Risk Factors [CFOJ] Rep. Jason Chaffetz (R-UT) has jumped on the make the NFL pay taxes bandwagon. [The Hill] I'm a little surprised that a partner would be such an awful speller. The dress code to the partner's pre Super Bowl party is "sthg u would wear on a […]

Footnotes: Madoff’s Loyal IT Guys; GTFO SOTU; No Accounting for China | 01.29.14

Madoff IT Guys Wrote Code to Trick Auditors, Jury Told [Bloomberg] You guys, the State of the Union is sooooo 2000 [NYT] 'Vampire' bank RBS accused of ruining businesses and lives [BusinessZone] It's totes LOL that Bernanke leaves the Fed with a final screw you guys and your little dollar too [Reuters] Nintendo plans to […]

Footnotes: Go Lira!; All’s Well That Ends Well (In China); You Autocomplete Me | 01.28.14

Central bankers in Turkey cooked up an idea to save the lira with some serious rate increases. HINT HINT, FEDERAL RESERVE [WSJ] The State of the Federal Budget Is Opaque [U.S. News] Yahoo had a crappy 4th quarter [Reuters] SEC-Deloitte Agreement Spurs Rally Led by Baidu [Bloomberg] Shit is getting real over at Herbalife [NY […]

Footnotes: Trouble in Bitcoin Land; A Date With ATR; PwC’s Long-Standing Headache Still an Ache | 01.27.14

Feds charge Bitcoin start-up founder with money laundering [The Switch via WaPo] The woman who has penned such classics as “Gettin’ Buck Wild: The Sex Chronicles II” and “The Heat Seekers” is Maryland's biggest tax cheat, says state comptroller Peter Franchot [WaPo] Well I know what I'll be doing tomorrow night, how about you? Join […]

Footnotes: How to Get Found on LinkedIn; More Drama in China; Fake Benjamins, Yo! | 01.24.14

Our friends at Vault have some advice on getting found by recruiters on LinkedIn. Go read that while we work on a post on how NOT to be found by recruiters since you clowns are always complaining about that [Vault] Is the SEC Going Easy on General Electric? [Bloomberg View] Check on the comments on […]

Footnotes: Sucks to be Herbalife; Barry Minkow Back at It Again; Trolling WEF | 01.23.14

The FBI warns of more Target-type attacks ahead [Reuters] Hollywood Conservative Group Grapples With IRS Scrutiny As It Seeks Tax-Exempt Status [Variety] Herbalife is not having a good day [Bloomberg] Land Value Tax Won't Fix San Francisco [Slate] A ship full of cannibal rats floating around in the ocean might hit land [Gawker] Conman Minkow […]

Footnotes: Whistleblowing Is Hard to Do; Chinese Company Gets in Its Own Way; Brewing Up Insider Trading | 08.02.13

Crowe Horwath is looking for a Fed Tax Senior Manager in Indy, IN. [GCJ] AICPA Launches Online Community for Young CPAs [AICPA] The Whistle-Blower’s Quandary Is reporting misdeeds an act of heroism or betrayal? [NYT] Dave Camp for Senate? [Bloomberg] China's Sinovel Wind Group Sets Rules to Prevent Accounting Errors [WSJ] Time Warner Cable drops CBS […]

Footnotes: PwC Poaches Someone From EY and Issues a Press Release, Part II | 02.21.13

Julianne Inozemcev now plays for the red team. [PwC, Earlier] A Proposal to Get Tax Reform Back on Track [Martin Sullivan] Woman shot by oven while trying to cook waffles Aalaya Walker was visiting a friend in St. Petersburg Monday when they decided they wanted some late-night waffles, The Tampa Bay Times reported. So Walker began […]

Footnotes: Seniors Wanted; A Deloitte Win; Stuff Creepy Accountants Like | 01.23.13

U.S. Budget Discord Is Top Threat to Global Economy in Poll [Bloomberg] Senior accounting positions hard to fill [CPA Practice Advisor] Accounting Problems Still Plague U.S. Government: GAO [The Fiscal Times] Goldman cleared of all charges in doomed Dragon sale [Reuters] Deloitte & Touche Wins Dismissal of Suit Over Ponzi Scheme [Bloomberg] The brothers behind […]

Footnotes: Who is resisting the Boehner?; A CPA firm Grinch; 77% of taxpayers go off the cliff | 01.03.13

SEC v. Deloitte. It’s Important. [China Law Blog] Who are the Boehner resisters? Too easy. [POLITICO] IRS Issues Withholding Tables to Reflect 2013 Tax Rates [Bloomberg] Controversial Dark Money Group Among Five That Told IRS They Would Stay Out of Politics, Then Didn’t [ProPublica] Christmas crook steals wreaths from Albany CPA firm [WALB 10] Sorry, […]

Footnotes: Most Disappointing Apocalypse EVER | 12.21.12

Oregon Promises Not to Change Tax Code in Nike Agreement [Tax Foundation] As Confusion Reigns, IRS Issues Statement To Employers On 2013 Withholding [Forbes] SEC Names Beswick Top Accountant [Compliance Week] Seidman hopeful for converged expected loss approach despite differing FASB, IASB proposals [Journal of Accountancy] Stone Resigns From Accounting Oversight Board After SEC Claims […]

Footnotes: Mo’ Money, No Money and Everything You Didn’t Want to Know About Grover Norquist | 12.07.12

KPMG built a replica of the Chicago Water Tower using books. For charity, of course. [KPMG] Accountable [Economist] Cheat Sheets To The Obamacare Investment Income Tax Regulations [Forbes] 10 Things You Never Knew About Grover Norquist, The Man Behind The GOP's 'No New Taxes' Pledge Somewhat legit. I only knew five. [BI] War Veteran’s Fund Losses […]

Footnotes: Fraud, Turkey, Fraud, Taxes and OMG Deer Nuts! Happy Thanksgiving, Y’all | 11.21.12

Was Autonomy Founder Aware of Accounting Problems? [CNBC] HP’s Explanation Still Makes No Sense [Jonathan Weil via Bloomberg] IRS says states must encrypt electronic tax records [WIS] Grover Norquist's tax pledge? It's still 'No' [Oregon Live] The Fiscal Cliff Drama, in WSJ Graphics [WSJ] Poll: Majority want tax hikes and spending cuts in debt deal […]

Footnotes: Let’s Just Be Glad This Election Will Be Over Soon | 11.05.12

Quick Temporary Acting Ed. note: and with this final Footnotes, our time together all day every day is coming to an end, just in time for Colin to return tomorrow and rejoice over Obama's inevitable re-election tomorrow (if you believe his sources, anyway). Thanks for playing nice and not making me cry, kids, it's been […]

Footnotes: Bacon Tax Scams, Sketchy Boyfriends and A Few New CPAs in Maryland Tonight | 11.02.12

Groupon responds to SEC inquiry on accounting [Reuters] Silicon Valley estate manager's former boyfriend faces $17 million theft charge [San Jose Mercury News] Tax haven property markets thrive as political scrutiny grows [Reuters] Union Busting by Profiting From Non-Profit Seen Violating IRS Rules [Bloomberg Businessweek]You guys, IT'S ABOUT BACON. Denis MacShame, and the vindication of […]

Footnotes: Too bad I didn’t know my credit was wack cuz now I’m drivin’ off a lot in a used subcompact | 10.15.12

Schumer to Tax Reform: Drop Dead [WSJ] UBS CFO Says 550 Fired After $2.3 Billion Trading Loss [BBW] Zynga and Facebook: A Close Relationship Can Distort Revenue [Francine McKenna in Forbes] The IRS's 'feeble' grip on big political cash [POLITICO] Escort Natalia Woolley guilty of retired accountant's death [BBC] Should the IRS report unpaid income […]

Footnotes: Romney Tax Returns, Romney Tax Returns and Romney Tax Returns | 09.21.12

Harry Reid Condemns Mitt Romney’s ‘Creative Accounting Harry Reid's famously unsubsantiated theory that Mitt Romney paid no taxes for a decade seems to be contradicted by Mitt Romney's latest disclosure, but he said Romney's decision to artificially inflate his tax rate in his 2011 returns should still raise concerns about his previous years' finances. [TPM] […]

Footnotes: Sudden Death of a Young Accountant; Tax Tattletales; Tax Avoidance Q&A on the Hill | 09.20.12

Accountant dies from heart attack during a game of cricket at Lords Philip Standing was only 30. [Telegraph] A Strategy of Tattletales at the I.R.S. [DealBook] Senate Report Details HP & Microsoft Offshore Tax Ploys [Forbes] Some E&Y extra specials in Orange County got their own press release. [E&Y] Fortune Finds 50 Women Who Haven’t Been Mommy-Tracked […]

Footnotes: Jeremy Newman – Back in the Game; Keep Those Travel Receipts!; Exhibit A for the 47% | 09.19.12

Newman confirmed as Audit Commission chairman [Accountancy Age] Prince to Answer IRS Information Request, Manager Says [BBW] What do Americans Think About Nonpayers? [Tax Foundation] Lessor defends aircraft industry in accounting spat [Reuters] Democrats make last-minute stab at tax extenders [The Hill] Why the tax law is so picky about documenting travel deductions [Tax Update] About […]

Footnotes: COSO Wants Comments; Mitt’s Mess; Hoogervorst’s ‘Red Herring’ | 09.18.12

COSO Issues ICEFR ED; Pay Att'n Plenty: Comments Due Nov. 20 [FEI] Romney Steps in Taxes, Again [Chris Bergin] IASB warns of reduction in bank lending [FT] UBS Accountant Found $3.6B Adoboli Trade Discrepancy William Steward, a former accountant in product control for UBS AG (UBSN), said he began looking into trades by Kweku Adoboli in […]

Footnotes: The Coming Auditor Revolution; The Top Firms You Don’t Know; Can’t Spell ‘Emmy’ Without E&Y | 09.17.12

Auditors Look Ripe For Revolution Earlier this year, investors pushed successfully for some major U.K. companies to change their pay policies. Now they have accounting firms in their sights. Some, including Legal & General Investment Management, one of the largest owners of FTSE 100 shares, want companies to change their auditors at least every 15 years […]

Footnotes: Tax Prof Victim of Alleged Hate Crime, Citigroup Is SO Fun, An Email You Never Want to Receive | 09.14.12

Did the Government Profit From AIG? That's the Wrong Question Treasury never uses the term "profit," even in press releases. The term it does use, "positive return", is a non-Generally Accepted Accounting Principles metric. Treasury has sunk to the level of a social commerce IPO like Groupon, whose infamous Consolidated Segment Operating Income (CSOI) –which was […]

Footnotes: Ex-Jenkens Lawyer Pleads Guilty; The Fed Wants to Party; Kanye Must Have Seen Romney’s Tax Returns | 09.13.12

Ex-Lawyer Donna Guerin Pleads Guilty in Tax-Shelter Case [BBW] IRS Needs Help Identifying Fraud Cases [AT] Which tax cuts stimulate the economy? [DCJ/Reuters] Bob Moritz is a responsible CEO [EL] Stanford Ex-Investment Chief Pendergest Holt Gets 3 Years [BBW] QE3 arrives The job of monetary policy, in the famous words of Fed chairman William McChesney Martin, is […]

Footnotes: Neil Barofsky on Auditors, Tax Credits in Chart Form, IRS Keeps ‘Em Honest | 09.12.12

Neil Barofsky On Bailouts, TARP, and Whether It Was All Worth It “The auditors have proven themselves to me, over and over again, to be more concerned about the steady stream of fees than in doing their job.” [Forbes] SEC whistleblower program stricter than IRS bounty which paid $104 million to felon, former official says [Reuters] […]

Footnotes: Healthcare Quagmire for IRS, Internship Value, Promoted CFO Pay Gap | 09.11.12

Health Law Means IRS Quagmire, Former Commissioner Says [BBW] Worthless Internships A more realistic look at the [Northwestern Mutual] survey […] might lead one to the conclusion that internships are pretty terrible. Students work at internships in order to look more attractive to potential employers. Then the work they do in those internships doesn’t have much […]

Footnotes: Turbo Tim Geithner, KPMG Swings and Misses, Facebook Does Employees a Tax Solid | 09.10.12

French newspaper to France's richest man: "Get lost, you rich bastard" [NS via TaxProf] Tim Geithner had a pretty good finish in Nation’s Triathlon 2:33:07 [WaPo] KPMG strikes out in bid to toss Texas Rangers fraud suit [TRNI] Finance Chiefs Should Steer Better Board Reporting, Experts Say [CFO] Why Facebook Is Paying the Tax Tab on Employee Compensation […]

Footnotes: Facebook Blamestorming; The Influentials; Grover Owned Tampa | 09.07.12

Facebook Investors Know Exactly Whom to Blame [Bloomberg] Top 100 Influential People [AT] In Retrospect, CNBC Thinks Investing With Bernie Madoff Wasn’t Such A Bad Idea [DB] Reading the Tax Reform Tea Leaves [Tax Foundation] Are You Ready for Candy Corn Flavored Oreos? No, Of Course You’re Not [Gawker] An Ad Agency Crowdsources Its Own […]

Footnotes: PwC’s Charity Work for ResCap, A Morbid Proposal, Trusting Your Accountant | 09.06.12

Chart of the day, party neighborhood edition [Felix Salmon] ResCap Says PWC Review Could Cost $250 Million, Up From $180 Million Since retaining PwC in May 2011, ResCap has paid the company $51.7 million in fees and expenses, the filing said. Since the bankruptcy filing, PwC has racked up about $7 million per month, but ResCap […]

Footnotes: Working the Pole for Tax-Exempt Status; Grant Thornton Dodges Last Refco Claim; One Down, Three Big 4 to Go | 09.05.12

NY Court to Decide if Lap Dance Is Tax-Exempt Art [AP] Obama Is Wrong On Romney Tax Plan Impact [Bloomberg] Peregrine trustee asks permission to hire PriceWaterhouseCoopers [DMR] Refco Trustee Dismisses Last Claim Against Grant Thornton [BBW] Auditors Give Banks a Pass on Reserves, KPMG Report Shows We've got three more "Big Four" inspections reports […]

Footnotes: Once Upon a Time, Paul Ryan’s Ex-Girlfriend Stole From Ernst & Young and Other Strange Things | 09.04.12

PwC to investigate computer meltdown at RBS [Telegraph] Paul Ryan's Ex-GF Served Prison Time For Wire Fraud Deneeta D. Pope — who made headlines recently as Ryan's African-American GF in college — was indicted by a Grand Jury in November 1999 for allegedly swindling her former employer — Ernst & Young — out of $77,000. Pope pled guilty in […]

Footnotes: Labor Day Weekend Edition | 08.31.12

That's it for us, capital market servants. We'll return Tuesday. Have a safe and laborless weekend! Laboring In The Big 4 – A Labor Day Special Report A little flash from the past. [RTA] World's richest woman says poor should have less fun, work harder Just in case you were beginning to think rich people were deeply […]

Footnotes: Broker-Dealer Audit Quality; Try Listening; Conventions’ Price Tag | 08.30.12

Four Years After Madoff, Audits and Auditors of Broker-Dealers Still Lousy Having your private company or fund audit performed by a Big Four audit firm is no guarantee of quality. As a matter of fact, I would argue that the quality may often be less than what you might get at a medium-size, regional firm […]

Footnotes: Bain Execs’ Taxes; A Former Bain Exec’s Taxes; Ingenuity at D.E. Shaw | 08.29.12

How Bain Capital execs lower their taxes Tax law is a funny thing, because certain strategies aren't black and white. They're subject to interpretation. When I asked a PE tax attorney if what Bain is doing is allowed, she told me that "allowed" and "not allowed" isn't always the right way to think about it. [Fortune] Man […]

Footnotes: Bain and PwC; Muni Bond Interest on the Chopping Block?; Isaac Blows | 08.28.12

Bain Capital Partners and PwC: A Rich and Varied Relationship [AB] Should Congress Curb Tax-Exempt Municipal Bonds? [T]here is the politics [to consider]. Is Congress really going to tell bondholders that those tax-exempts they bought in good faith (and at relatively low yields) are now going to become taxable? Imagine seniors with pitchforks. On the other […]

Footnotes: E&Y’s Legal Trouble in HK; Celeb Tax Troubles, Explained; GOP Tax Planks | 08.27.12

HK regulator launches legal proceedings against Ernst & Young Hong Kong's securities regulator said on Monday it had launched legal proceedings against Ernst & Young for failing to produce accounting records related to a Chinese company as specified, the latest auditor to run into trouble over a Chinese client. Ernst & Young claimed it did not have […]

Footnotes: IRS Helps Get Cash For College; Target Avoids the SEC; Quantifying Waves | 08.24.12

Thanks for allowing me to be your Master of Ceremonies today, kids, it's been my pleasure as always. Have a safe, happy and hopefully work-free weekend out there and Colin will be back to annoy the crap out of you all on Monday. Love, AG. Automated IRS system helps with college financial aid application [Shore […]

Footnotes: Bad, Bad Auditors; Bernanke Out Under Romney; Preparing for (the Possibility of) Civil War | 08.23.12

Bad Grades Rising at Audit Firms [NYT] Romney confirms he'd replace Bernanke [The Hill] Madoff Trustee Cleared to Return $2.4 Billion [WSJ] The US-China Accounting Standoff [HFN] Judge Wants Tax Increase To Defend Against (Possible) Civil War [Forbes] Grover Norquist Opposes Insane Texas Judge’s Tax Plan Asked for a ruling on whether such a tax increase […]

Footnotes: Goolsbee on Romney’s Tax Plan; PC Makers Taking Lumps; Don’t Mess with Gangster Granny | 08.22.12

Mitt Romney's Tax Plan and the Middle Class [WSJ, Earlier] Six Reasons My Kid is Better Than Your Kid [DT] Already Behind The Eight-Ball: Auditors of Broker-Dealers Are A Disaster [Forbes] If You’ve Got A Problem With Paul Ryan, Say It To Dan Loeb’s Face [DB] Despite Sales Drop, Dell CFO Is Bullish on Laptops Brian […]

Footnotes: More Trouble for Lauryn Hill, SEC Whistleblower Gets Paid, Worst Congress Ever | 08.21.12

Exploring Mitt Romney’s Taxes and Tax Plan [Economix/NYT] Lauryn Hill Now Facing State Tax Troubles [DT] Accountants: What it takes to start your own business [JofA] SEC Issues First Whistleblower Program Award “The whistleblower program is already becoming a success,” said SEC Chairman Mary L. Schapiro, who advocated for the program. “We’re seeing high-quality tips […]

Footnotes: Apple’s Value, Middle Class Charity, Simpler OCI | 08.20.12

Apple Becomes the Most Valuable Public Company Ever, With an Asterisk [Bits/NYT] Romney's tax returns take 2 [DMWT] The Rich Are Less Charitable Than the Middle Class: Study [CNBC] GOP lawmaker accuses SEC of dragging feet on JOBS Act [The Hill] ZAGG CEO Sold Stock Three Days before His Resignation [WCF] FASB Proposal Aims to […]

Footnotes: Office Gossip Is Good; Norquist: Ryan Will Basically Be Cheney; A Counteroffer for Obama | 08.17.12

Standard Chartered Fought the Lawsky and the Lawsky Won [Bloomberg] Baseball star Eddie Murray settles SEC insider trading charges [Reuters] Moonlighting: Office Gossip — Good for You?? [ATL] Russell Wasendorf Didn’t Mean “I have embezzled millions of dollars from Customer accounts at Peregrine Financial” In A Literal Sense [DB] Ryan Would Play ’Similar’ Role To […]

Footnotes: Sony Got a Lousy Audit; A Dewey Salary Data Dump; Ponzi Scheme Du Jour | 08.16.12

Sony Corp. and the Mystery of the Lousy Audit [Bloomberg] Dewey Have Data on How Much Partners Got Paid? Yes — Thanks to the Partner Contribution Plan [ATL] Walter White wanted for manufacturing meth [TN via io9] Man, 87, Busted for 400 Pot Plants in Backyard [Reuters] Ex-UGA coach Jim Donnan charged in Ponzi scheme […]

Footnotes: Groupon’s Accounting Dance; Romney’s Non-response Responses; PCAOB Requires More Talking | 08.15.12

Sen. Levin: New York regulator showed ‘backbone’ in bank settlement [The Hill] Groupon’s accounting shuffle: why it matters [ZDNet] Mitt Romney: Rich taxpayers will pay their share Q: Specifically what tax loopholes would you close and what exemptions would you eliminate to make the revenue-neutral equation work? A: Simpson-Bowles laid out a formula that shows that you […]

Footnotes: Janna Ryan, Standard Chartered Settles, The Groupon Backlash | 08.14.12

Paul Ryan’s Wife Is A Housewife Now, But She Used To Be A Lawyer And A Lobbyist At PwC, no less. [ATL] New York’s A.G. Probes Nonprofits’ Political Spending [Bloomberg] Grant Thornton creates scholarship fund for MSU students [AT] British Bank in $340 Million Settlement for Laundering [NYT] Punishing Groupon: Social Media Backlash? [CFO] First Strippers, […]

Footnotes: Paul Ryan’s Tax Returns, Paul Ryan’s Budget Plan, Paul Ryan’s Record | 08.13.12

Groupon’s Accounting Still Evolving [WSJ] Ryan Plans to Release Two Years of Tax Returns [AT] The Ryan Budget Plan May Be the New Centerpiece of Campaign 2012 [TaxVox] The Paul Ryan Record on Tax and Budget Policy [Tax Foundation] Insane Clown… Plaintiffs? Juggalos Consider Suing the FBI [ATL] Here Are Cinema’s 100 Greatest Maniacal Laughs […]

Footnotes: Dodgy Banks, Online Retailers with Sketchy Accounting, a Notable Obama Bundler | 08.10.12

What Goldman Sachs Did and the Justice Department Didn't [Bloomberg] Emails Describe Waging War — On Behalf of its Enemies [Gary Weiss] You Misplace 5 Or 6 Billion Dollars And All Of A Sudden People Stop Trusting You To Keep Track Of Your Money When JPMorgan’s whale drowned a lot of people asked “where were […]

Footnotes: Accounting Firms Get a Fun New Assignment | 08.09.12

Mitt Romney’s wrong: You can balance the budget through taxes. But you may not want to. [Wonkblog/WaPo] Zynga Is Said To Grant Stock Awards To Staff After Earnings Miss Stock options were given to all of Zynga’s full-time workers shortly after its earnings report on July 25, said the person, who asked not to be […]

Footnotes: Stay Classy, KPMG San Diego | 08.08.12

Indigestion for ‘les Riches’ in a Plan for Higher Taxes [NYT] IRS Workers Discouraged From Finding Fraud, Report Says [WSJ] Misunderstanding Tax Reform: The Case of The Olympic Tax Elimination Act Senator Rubio and Congressman Schock are correct that these high taxes on Olympic medal winners are symptomatic of our broken code, but they misunderstand the […]

Footnotes: Phil Mickelson’s Risky Bet, More on Deloitte, Standard Chartered, and Tax-free Medals | 08.07.12

Deloitte and Standard Chartered Bank: In Service To Profit Above All [Forbes] Does the Revolving Door Affect the SEC’s Enforcement Outcomes? [AAA] The Value Of The San Diego Padres Grew $300 Million In Three Years Because Baseball Owners Are Stupid Phil Mickelson was once known as a serious gambler. He bet obsessively on NFL games, even though […]

Footnotes: Nancy Pelosi Jumps to Harry Reid’s Defense and Other Questionable Moves | 08.06.12

Nancy Pelosi: 'It Is A Fact' That Somebody Told Harry Reid About Romney Not Paying Taxes [HP] Chesapeake Expects $7 Billion in Asset Sales This Quarter [WSJ] Governor Kasich's Latest Income Tax Reduction Plan [David Brunori] America’s Hottest Club Is Applebee’s [Gawker] The Numbers Inside a Hot-Button Issue "Who's right: Obama or Romney? Both. Or neither," […]

Footnotes: Setting a Date for Tax Reform (Sort of); Romney vs. Reid, Round 2; Banks’ Shady Customers | 08.03.12

House votes to start considering tax reform by April 30, 2013 [DMWT] Romney to Harry Reid: I pay "a lot of taxes" [CBS] Polish Shot Put Gold Medalist’s Celebration Nearly Interrupts Women’s 10K Final, Ends In Evil Laugh [Deadspin] Cocaine Cowboys Know Best Places to Bank Maybe if the bankers were the ones spraying machine-gun fire […]

Footnotes: Romney vs. Reid; Frank vs. Camp; Man (with Burrito) vs. Woman | 08.02.12

Romney Adviser Accuses Harry Reid Of McCarthyism Over Taxes [TPM] House passes plan for tax reform in 2013 [FAB/The Hill] Senate panel passes tax bill in rare bipartisan show Democratic Representative Barney Frank said the bill would give too much power to Republican Ways and Means Committee Chairman David Camp, and criticized its specificity on tax […]

Footnotes: Kansas City Sports, Atlanta Traffic, and DC Dealings | 08.01.12

Tax payers fund questionable Royals expenses [810WBH] The Kansas City Chiefs Are Using Taxpayer Money To Pay Their Taxes, Too [Deadspin] What happens when a real attorney tries tax protest arguments? Arguments that you don’t have to really pay federal income taxes never go away despite a long and dismal record of failure.  They are typically […]

Footnotes: Microsoft’s 10-K, Stiffing the IRS, and the SEC’s BS Case | 07.31.12

2nd Day of Power Failures Cripples Wide Swath of India [NYT] Microsoft's radical new business plan is hidden in plain sight [ZDNet] Peregrine Financial: 4 Common Methods of Camouflaging Fraud [WSJ] IRS Not Fully Reimbursed for Services to Other Agencies [AT] Federal Jury Doesn’t Want SEC To Take This The Wrong Way, But It Thinks […]

Footnotes: Another SEC Probe of a Deloitte Client and Other Aggravations | 07.30.12

U.S. probe into Chinese client deals fresh challenge to Deloitte [Reuters] 4 Percent Of Americans Think Jamie Dimon Is Prepping His Bike To Jump The 526 Feet Between The Top Of JPMorgan Headquarters And The Roof Of The Old Bear Stearns Building [DB] Dead Cat Mars Usually Lovely Albany Bar Exam Experience [ATL] House to vote […]

Footnotes: Facebook’s Earnings, Dirty Harry Norquist, and Hating The Olympics | 07.27.12

NUGENT: Grover Norquist — Beltway’s Clint Eastwood Dirty Harry Norquist, president of Americans For Tax Reform (, has never seen a tax increase he supports, which should immediately put him at the head of the line for a Presidential Medal of Freedom once Mitt Romney is elected. If there was a Hall of Fame of Common […]

Footnotes: Auditor Resignations, IRS Auctions, and Charitable Organizations | 07.26.12

Facebook Growth Slows Again; Shares Fall 10% [WSJ] Republicans Shouldn’t Cave on the Bush Tax Cuts [Bloomberg] Madoff Trustee Wants Victims to Get More Money [AP] Woman Accidentally Bakes Family’s Entire Life Savings After Husband Hides It in the Oven [Gawker] Trustee in Darren Berg Ponzi case ordered to pay Moss Adams $74K in legal […]

Footnotes: Mistakes Were Made | 07.25.12

Senate Passes Tax Measure With Election in Mind [NYT] Jumping to conclusions, Malcom Gladwell edition [Felix Salmon] Will Accounting Charges Spoil Facebook’s Earnings Debut? The company will incur a massive charge as it lifts restrictions on employee stock in conjunction with its second-quarter IPO. The company has warned that those could result in nearly a […]

Footnotes: An Unemployed Accountant and Other Things Deemed Unnecessary | 07.24.12

Of Crimes and Punishments — And Where Shall Justice Be Found? [Re:Balance] CFO Snapshot: Aon’s Christa Davies [Q:] What was the hardest part of getting the CFO title? [A:] It was convincing myself and others that I wasn’t a fraud because I did not have an accounting degree. [CFO] Accounting firms have no business on Facebook [AFR] IRS […]

Footnotes: Doomed Video Game Companies and Other Tricky Situations | 07.23.12

Libor: What Criminal Charges Are Likely?  [NetNet] Response to the $21 trillion Tax Avoidance Study [Tax Foundation] The Latest News on Tax Fairness [WSJ] Norquist: Bachmann claim 'indefensible' Americans for Tax Reform president Grover Norquist called Michelle Bachmann’s recent claim about Secretary of State aide Huma Abedin “indefensible.” Bachmann alleged recently that Abedin, wife of former Congressman […]

Footnotes: Lincome Tax Planning and Other Silly Things | 07.19.12

Priceless SpongeBob SquarePants Coins Couldn’t Prevent Collapse Of Peregrine Financial Group [DB] U.S. corporate auditor watchdog gains access to Spain [Reuters] You Got the Accounting Job. Now What? At PricewaterhouseCooper [sic], it takes an average of 13 years to become a partner, says Paula Loop, U.S. and global talent leader for the firm. As a person […]

Footnotes: Let’s Just Assume Everything Out of the SEC Is on Delay Until Further Notice | 07.18.12

US SEC delays court action seeking Deloitte China audit papers [Reuters] Grant Thornton chief calls for more action on fraud [Australian]   Baker Tilly slammed by $50 million jury verdict Hit with a $50 million verdict for negligence, Baker Tilly Virchow Krause LLP is suing its insurance carrier for refusing to cover most of the damages […]

Footnotes: Mean Regulators and Other Things That Suck | 07.17.12

Does Not Compute: PFG Head Says Spent Stolen Client Money To Comply With Regulator Demands "The note and the statement, which a person familiar with the situation said were left by Peregrine Chief Executive Russell Wasendorf Sr., blames the fraud on "mean spirited" regulators that dogged his firm, saying they were looking to put firms out […]

Footnotes: The Beginning or the End of IFRS and Other Mysteries | 07.16.12

GAAP / IFRS Convergence — Has the SEC Finally Shut It Down At Last? [Re:Balance] U.S. accounting pushback seen as temporary delay [Reuters] SEC Names Acting Chief Accountant [WSJ] Norquist’s Phantom Army [NYT] Auditors Are Asleep at the Switch on Banks' Risk Controls [AB] Republicans and Democrats Able to Agree That the Other Party’s Tax […]

Footnotes: Your Baby’s Stupid Name and Other Regrettable Choices | 07.13.12

In China, Little Urge to Audit the Auditors [NYT] Bankruptcy and fudged accounting in San Bernardino [Reuters] Wasendorf Fraud At Peregrine Lasted 20 Years, U.S. Says [Bloomberg] CEO Of Collapsed Brokerage Firm Unable To Conceal Sense Of Pride In Explaining How High-Level Scam Went Down [DB] Taxing the Rich, and Missing the Point The President’s […]

Footnotes: Did You Get Hacked Today? | 07.12.12

Yahoo hack reveals most-used passwords [CNET] Obama reflects on his biggest mistake as president [CBS] LePage: IRS headed toward killing people [The Press Herald] IRS Form 1099: God Particle Of The Tax System [Forbes] LIBOR Trickery Just the Tip of the Iceberg [CFO] State auditor uncovers bogus NMFA audit [AP] State auditor Hector Balderas says […]

Footnotes: Porn Stars, Puppies, and PEPCO | 07.11.12

Porn Stars Offer Free BJs to Miami Heat Fans, Cause NBA Lawyers To Stand At Attention [ATL] Romney Says He’ll Release 2011 Tax Return When It’s Ready [Bloomberg] Free the Puppies, Tax a Millionaire The right-wing radio hosts say the call for higher taxes is a socialist plot. There are a few delusional politicians who'd like […]

Footnotes: Give Me Liberty or Give Me $220 Million | 07.10.12

Profiles in Liberty: Grover Norquist, Anti-Tax Warrior [United Liberty] The 27 Companies Most Likely To Have An Accounting Scandal [Business Insider] Maryland Governor Misstates State Tax Comparisons [Tax Foundation] Proposed Bill Squashes Tax-Free Online Shopping [Mashable] MF Global deja vu? $220 million goes missing at futures brokerage [LA Times] "It feels like doomsday at mid-size […]

Footnotes: Failure All Around | 07.09.12

IRS: Don't Forget Tax Credit for Day Camp [AT] What The SEC And PCAOB Fail To Acknowledge About Chinese Fraud [RTA] SEC Shuts Down IFRS Decision Time Line [CW] So It Begins… Tony Nitti: "It’s a cheeky bit of strategy by the President.  By backing off his requirement that any lower and middle class extensions be […]

Footnotes: MIA PwC; More Calls for More of Mitt’s Tax Returns; The Greatest 8-K Ever | 07.06.12

Where Was Auditor PwC When Its Client Barclays Gamed Libor? [AB] DEAR MITT ROMNEY: It's Time To Release All Of Your Tax Returns [BI] AIG Sues U.S. Over Alleged $30.2 Million Tax Overpayment [Bloomberg] House sales not enough; Kenny Stabler owes $265,000 to IRS [MPR] Grover Norquist Pledge Against Taxes Attracts Fewer Republican Candidates [HP] […]