Read Tax Accounting Review - Summer 2007 text version

TAX ACCOUNTING REVIEW

S U M M E R 2 0 0 7

How Long Should I Retain My Tax Records?

As we have noted in prior editions of the Tax Accounting Review, a good time to review your tax record-keeping responsibilities is right after you have filed your tax return. Retaining and storing your income tax records is a crucial final step in fulfilling your tax filing responsibilities. Consequently, this is a refresher on the rules for maintaining your tax records, along with some information on storage options. When determining how long to retain most of your income tax records, it is important to look at the time frame over which the IRS (and other taxing authorities) can audit a return and assess a tax deficiency, or over which you can file an amended return to secure a refund. For most taxpayers, this period is three years from the original due date of the return or the date the return is filed, if later. For example, if you filed your 2006 Form 1040 on or before April 17, 2007 (disregarding the extended Northeast "storm" due date), the IRS has until April 17, 2010, to audit the return and assess a deficiency. The statute of limitations is extended to six years, however, if a return includes a substantial understatement of income (which is defined as omitting income exceeding 25% of the amount reported on the return). There is no statute of limitations period when a taxpayer fails to file a tax return or commits fraud. A taxpayer is considered to have committed fraud if the return is false or if there is a willful attempt to evade tax. An arguably good rule of thumb for keeping tax records is to add a year to the IRS statute of limitations period. Using this approach, you would retain your income tax records for a minimum of four years (three-year general statute of limitations period plus one year), but it may be more prudent to retain them for seven years, which is what the IRS generally, yet informally, recommends.

continued on page 2

How to Avoid an IRS Audit

Over the past five years, we repeatedly predicted that the IRS would increase its audit efforts. According to IRS data released earlier this year, our predictions have unfortunately come true and IRS enforcement efforts have increased in virtually every area. The IRS has issued its annual data book, which provides statistical data on its fiscal year 2006 activities, including how many tax returns it examines (audits) and on what categories of returns it focuses its resources. In fiscal year 2006, IRS enforcement revenues (from collection, examination and document-matching activities) increased to a record $48.7 billion. Out of a total of 132 million individual returns filed in 2005, approximately 1,284,000, or .97%, were audited, which, while low, is more than double the number examined for tax year 2000. Audits of S corporations and partnerships also increased substantially since tax year 2000, by 34% and 15%, respectively. The charts on the following pages highlight the trends in audits for these types of returns as well as for selected others.

Individuals

A key target of the IRS' enforcement efforts has been highincome taxpayers. Audits of individuals with incomes of $1 million and higher increased by nearly 33% in just one year, and one in every 16 faced audits in fiscal year 2006. Audits of individuals with incomes over $100,000 increased by 18% from 2005 and more than doubled from fiscal year 2001. Most of the increase in individual audits is attributable to "correspondence audits," which are less intrusive than "face-toface" audits and take little time to complete, making them very cost effective. In fiscal year 2006, more than three out of four audits were correspondence audits. When the IRS reorganized five years ago, it eliminated face-to-face audits for most taxpayers because the wage and investment division had, and continues to have, no field auditors. Taxpayers who report business-type transactions on Schedules C, E, F or Form 2106 still face the risk of a potential face-to-face audit, since these audits are handled by the Small Business/Self-Employed Division (SB/SE). Even so, 60% of the fiscal year 2006 audits handled by the SB/SE were correspondence audits. Although correspondence audits have become the principal method for generating additional taxes from individual

continued on page 2

INSIDE THIS ISSUE

How Long Should I Retain My Tax Records? . . . . . . . . . . . . . . pg. 1 How to Avoid an IRS Audit. . . . . . . . . . . . . . . . . . . . . . . . . . . pg. 1 Overview of the 2007 Small Business Act. . . . . . . . . . . . . . . . pg. 4 A Refundable Credit to Offset the "Secret Tax" May Be Available to You . . . . . . . . . . . . . . . . . . pg. 5 Tax Accounting Group News . . . . . . . . . . . . . . . . . . . . . . . . . pg. 7

How Long Should I Retain My Tax Records? (continued from page 1)

State tax rules should also be considered, but holding records long enough to satisfy IRS purposes will usually suffice for state tax purposes, assuming the federal and state returns were filed at the same time. Keep in mind, however, that certain tax records should be kept much longer than described above and some, indefinitely. For example, records substantiating the purchase price of property that could eventually be sold, such as investment property, business fixed assets and your principal residence, should be retained based on the record retention period for the year of sale. In addition, it is important to keep records of contributions to your IRA and other retirement accounts. If you make nondeductible IRA contributions, the IRS requires that you keep records until all of the money has been distributed from the tax-deferred accounts, plus a minimum of three years. Tax returns, IRS and state audit reports, and business ledgers and financial statements are examples of the types of records you should normally retain indefinitely. To muddy the waters even further, there may be non-tax reasons to keep certain tax records beyond the time needed for tax purposes. This might include documents such as insurance policies, leases, real estate closing statements, employment records and other legal documents. Feel free to contact us for additional guidance in this area. Finally, the IRS permits taxpayers to store certain tax documents electronically. Although the electronic storage rules are aimed primarily at businesses and sole proprietors, they presumably apply to individuals as well. These rules permit taxpayers to convert paper documents to electronic images, destroy the paper documents and maintain only the electronic files. Certain requirements must be met to take advantage of an electronic storage system (e.g., the electronic storage system must ensure that an accurate and complete transfer of the hard copy information is achieved and that an efficient retrieval of the information is possible, among other requirements), so contact us if you would like more details. We hope this overview helps you understand the income tax record retention rules. Remember, the burden is on you to prove the accuracy of your tax return, and with adequate records this burden is not onerous. If you have any questions regarding your specific situation or if you would like to discuss these rules in more detail, please do not hesitate to contact us. | | |

How to Avoid an IRS Audit (continued from page 1)

taxpayers, these audits can only identify discrepancies apparent from the information submitted by the taxpayers in their returns or from third party information provided by employers, banks and other sources. Therefore, these audits can fail to detect areas of under-reporting. However, for fiscal year 2006, 83% of correspondence audits resulted in a recommended tax change.

What All of This Means and How It Affects Your Risk

The IRS uses a variety of methods to select returns for examination, including computer scoring, identification of potential participants in abusive tax avoidance transactions, information matching and random sampling. If you are a high-income taxpayer, are self-employed, receive flowthrough income from a partnership, S corporation or limited liability company and/or claim business deductions, you have an increased risk of audit as a result of the IRS' increased enforcement efforts and its methods for selecting returns. One of the IRS' primary methods for selecting returns is a computer program called the Discriminant Index Function, or DIF. Under the DIF, your return is scored by mathematical formulas. The higher the "score," the higher the chances of an audit. Some of the items that may increase your DIF "score," and therefore increase your audit risk, include: · Higher income, greater than $100,000; · Income other than basic wages (contract payments, etc.); · Income from a flow-through entity, such as a partnership, S corporation or limited liability company; · Large casualty losses;

© Duane Morris LLP 2007 | A Delaware limited liability partnership

Business Taxpayers

The IRS is placing more emphasis on the growing area of pass-through entities. Audits of S corporation returns are at their highest level since 2000 and have increased by 34% since fiscal year 2005. Audits of partnership returns have also increased significantly (by 15%) and are at their highest level since 1998. Additionally, audits of small businesses organized as corporations have more than doubled since 2004. Perhaps due to the increase in S corporation and partnership audits, audits of large C corporations are down from fiscal year 2005, and IRS revenue agents are spending substantially more of their time on corporate audits that produce no more revenue for the government than they have in the past. Although correspondence audits are utilized, field audits are the most common type of small business audit.

2

TRENDS IN TOTAL IRS INDIVIDUAL AUDITS*

(IN THOUSANDS)

1,600 1,400 1,200 1,000 800 600 400 200 0 600 800 700 725 1,200 1,100 1,050 1,200 1,250 1,500

· Large business meals and entertainment deductions, or

other business deductions; · Excessive business auto use; · Self-employment income, or a low gross profit margin from self-employment income; · Low income with large business deductions; · High non-cash charitable contributions; · Hobby losses; and, · Little or no profit from a business operation. Another primary method used in selecting returns is the Market Segment Specialization Program (MSSP). The MSSP focuses on the industry the taxpayer is in rather than on what type of return the taxpayer files, the amount of gross income reported, or the ratio of deductions to income. Compliance activity is organized around market segments, where practical. A market segment can be an industry such as manufacturing, a professional group such as attorneys or an issue such as passive activity losses. The IRS currently has released audit guides on 87 industries, professions and issues. Individual market segments are then assigned to examiners with auditing experience, training and research responsibilities in that area. Additionally, returns may be selected because of information received from media sources, public records or individual informants (such as an ex-spouse or disgruntled employee or vendor). However, because these sources may be unreliable, the IRS evaluates the reliability and accuracy of the source before using such information as the basis for an examination. Once a return is selected for examination under a risk-based audit system, revenue agents and group managers exercise professional judgment on whether the returns should simply be surveyed or examined. Additionally, revenue agents utilize public information to assist them in determining the audit potential of a return. For example, an agent may check public records to see the average price of homes in a taxpayer's ZIP code. If the average cost of a home is $500,000 and the return shows inadequate income to sustain such a lifestyle, it is likely to be scrutinized further. Revenue agents also engage in pre-audit planning, which includes communication with a taxpayer's accountant, which helps to reduce the number of issues under examination. Agents are also encouraged to consult with divisional counsel for guidance on tax law matters and on issue development, which helps to reduce or eliminate bad issues from moving forward due to an agent's misunderstanding of the law.

continued on page 4

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

(preliminary)

IRS FISCAL YEAR * Source: Internal Revenue Service, Fiscal Year 2006 Enforcement and Service Results, November 30, 2006

TRENDS IN INDIVIDUAL HIGH INCOME (OVER $100,000) IRS AUDITS* (IN THOUSANDS)

300

250

250 220

200

200 160

150

150 130 100 105 90 135

100

50

0

1997

1998

1999

2000

2001

2002

2003

2004

2005

IRS FISCAL YEAR

2006 (preliminary)

* Source: Internal Revenue Service, Fiscal Year 2006 Enforcement and Service Results, November 30, 2006

TRENDS IN INDIVIDUAL HIGH INCOME (OVER $1 MILLION) IRS AUDITS*

18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 2004 2005 IRS FISCAL YEAR * Source: Internal Revenue Service, Fiscal Year 2006 Enforcement and Service Results, November 30, 2006 2006

(preliminary)

17,000

13,000

10,000

[ www.duanemorris.com ]

3

TRENDS IN SMALL BUSINESS (ASSETS UNDER $10 MILLION) IRS AUDITS*

70,000 60,000 50,000 41,000 40,000 30,000 20,000 10,000 5,000 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

(preliminary)

58,000

29,000

18,000 12,000 13,000 12,000

17,500

17,500

fashion to avoid any proposed adjustments to your tax return. Additionally, taxpayers may wish to engage a professional to conduct a "simulated audit" for the purpose of reviewing record-keeping policies and existing tax positions and obtaining advice on correcting problems or deficiencies that would be likely targets in the event of an actual IRS examination. We have received many requests to conduct "simulated audits" over the years and are currently conducting such audits for select clients. Feel free to contact us for a discussion of your risk and the benefits of a "simulated audit" in your specific situation. In the event you are contacted by the IRS and informed that your return is being audited or that an adjustment is being made to your return, please contact us. Even if the IRS is correct in making the adjustment, there may be an error in the recalculation of tax, an error we have found on many occasions. We have also successfully reduced multiple IRS assessments, including the reduction of a $2 million assessment to $110,000 and a $25,000 assessment to a $15,000 refund, plus interest. If you would like more guidance in this area, please contact us. | | |

IRS FISCAL YEAR * Source: Internal Revenue Service, Fiscal Year 2006 Enforcement and Service Results, November 30, 2006

What You Can Do

It is certain that the IRS is continuing the trend of its increased enforcement efforts, and it is important for you as a taxpayer to bring your files up-to-date in an organized

Overview of the 2007 Small Business Act

As noted above, Congress recently passed the 2007 Small Business Act (the "SBA"). This new legislation, whose stated purpose is to reduce the burden on small businesses of an increase in the minimum wage, contains an assortment of tax relief and tax increase (revenue-raising) provisions. This discussion highlights the provisions of the SBA that will affect the most taxpayers. Tax Relief Provisions: · Extend and liberalize the work opportunity tax credit. The credit is extended for 3.5 years with liberalized rules for hiring disabled veterans and workers in rural renewal counties. · Extend and enhance Section 179 small business expensing. The expensing limit is increased to $125,000 and the investment-based expensing phaseout is increased to $500,000, effective for tax years beginning after 2006, and the enhanced expensing provision is extended for another year (through 2010). · Extend and enhance certain Gulf Opportunity Zone (GO Zone) tax incentives. The small business expensing rules allowed for GO Zone businesses (i.e., $100,000 higher expensing limit and $600,000 higher phaseout point) are extended for one year (through 2008) for small businesses in the hardest hit area of the GO Zone. Similarly, the low-income housing credit rules for buildings in the GO Zones are extended and expanded, and the bond financing rules for repairs and reconstructions of residences in the GO Zones are modified. · Enhance the tip credit for certain small businesses. The federal minimum wage level for purposes of calculating the tip credit is frozen, thereby allowing restaurants to continue claiming the full tip credit despite an increase in the federal minimum wage. · Simplify family business tax. An unincorporated business that is jointly owned by a married couple in a common law state is permitted to file as a sole proprietorship (under prior law, assuming the married couple was not located in a community property state, both the married couple and the business were subject to penalties for failing to file as a partnership). The new law also ensures that both spouses receive credit for paying Social Security and Medicare taxes. This not only simplifies tax filing requirements but also, since both taxpayers are treated as having earned income, will not

4

© Duane Morris LLP 2007 | A Delaware limited liability partnership

result in any reduction to contributions to qualified plans for either taxpayer. Those contributions increase the value of other deductions since they reduce taxable income.

Permit an electing small business trust (ESBT) to deduct interest expense it incurs when it borrows funds to purchase S corporation stock.

· Waive

individual and corporate AMT limitations on work opportunity tax credits and tip credits. Prior law limited a small business's ability to claim the work opportunity tax credit and the tip credit by imposing a limitation that such credits could not be used to offset taxes that would be imposed under the alternative minimum tax (AMT). The new law provides a permanent waiver of the individual and corporate AMT limitations for the work opportunity tax credit and the tip credit, meaning they are effective even against the dreaded AMT. · Liberalize several S corporation rules. The new law also contains several provisions beneficial to S corporations, including measures that: Redefine "passive investment income" for purposes of S corporation revocation rules to exclude gains from the sale or exchange of stock or securities as an item of passive investment income. Exclude restricted bank director stock from treatment as S corporation stock. Set forth a special accounting rule for banks that become S corporations and that change from the reserve method of accounting for bad debts. Revise the tax treatment of sales of stock of wholly owned subsidiaries of S corporations. Eliminate pre-1983 earnings and profits arising during an S corporation year, regardless of whether the corporation was an S corporation in its first taxable year beginning after December 31, 1996.

Tax Increase (revenue-raising) Provisions · Raise the kiddie tax age from under-18 to under-19 (under-24 if a student). · Extend, from 18 to 36 months, the period in which the IRS must notify a taxpayer of the taxpayer's liability with respect to a tax return before the IRS must suspend the accrual of interest and penalties relating to that liability. In effect, this provides the government with an additional 18 months of interest and penalty before they are required to notify the taxpayer. · Eliminate the requirement that the IRS hold a collection due process hearing before issuing a levy on delinquent employment taxes. · Expand preparer penalties to all types of tax returns (e.g., employment, excise, exempt organizations, estate and gift tax) and increase the penalty amounts. Prior to the SBA, only preparers of income tax returns were subject to certain of these penalties, and the penalty rates were significantly lower. · Create a new penalty on claims for refund that are filed without any reasonable basis, which is a much easier standard for the IRS to base penalties on than the previous standard. · Increase the penalty for bad checks and money orders. Please keep in mind that the above represents only the highlights of the most important changes in the new law. Please do not hesitate to contact us at your convenience for more details on how you may be affected by this meaningful tax legislation. | | |

A Refundable Credit to Offset the "Secret Tax" May Be Available to You

One of the biggest and hottest tax topics continues to be the ever-growing exposure to the AMT. By law, everyone who files an income tax return is required to determine whether or not they have to pay AMT. Often, taxpayers who decide to prepare their own income tax returns fail to calculate this "secret tax." In short, the AMT is a separately computed federal income tax that eliminates many deductions and credits otherwise available to us, thus increasing our federal tax liability. Individuals are required to compute their tax under two systems, the regular tax system as well as the AMT system, and pay the higher of the two. In computing this secret tax, certain deductions are not allowed. The AMT now snags more and more people every year and was expected to affect about four million taxpayers this past tax season. Barring significant action by Congress, the number of taxpayers owing the AMT is expected to increase to 24 million in 2007 and to more than 30 million taxpayers in 2010. Recent studies have indicated that one in five taxpayers will have an AMT liability by the year 2010 if the system is not changed. Congress has been talking about eliminating this tax for many years. But to do so, other taxes would have to be raised to offset the lost AMT revenue, which is in the billions of dollars.

continued on page 6

[ www.duanemorris.com ]

5

The AMT, which was created about 40 years ago, was designed to affect high-income taxpayers claiming certain expenses or deductions that were disproportionate to income. Currently, it is affecting many other taxpayers due to the compression of the tax rates (from a high of 70% to the current maximum tax rate of 35%), rising incomes and the failure of the government to increase the exemption amount by the rate of inflation. Consequently, more and more taxpayers will be subject to the AMT (and many may not even know it). Taxpayers most likely affected include: · Taxpayers with annual incomes between $100,000 and $500,000. · Taxpayers with children. · Taxpayers who: Exercise incentive stock options

AMT attributable to deferral adjustments generates an AMT credit that can be used to reduce regular tax in a later year. The AMT credit for a year generally is limited and, as a result, cannot be used to reduce AMT liability in the year to which it is carried. In other words, if you are already paying AMT in a particular year, no AMT credit is allowed. Also, the AMT credit is nonrefundable, i.e., any amount in excess of the limitation cannot be refunded, although the excess can be carried forward (but not back) indefinitely. The legislative history indicates that Congress provided this refundable AMT credit, effective for tax years beginning after December 20, 2006 (an AMT credit was available in non-refundable form since 1987), in response to the hardships that resulted from the unfavorable treatment of ISOs under the AMT. Under the new rule, individuals who become subject to the AMT, or whose AMT liability increases as a result of exercising ISOs, may be entitled to a refundable credit attributable to that AMT liability. However, the new rule does not alleviate the immediate AMT burden that results from the ISO exercise, as discussed below. Here is the new rule in a nutshell followed by illustrations: If you have a "long-term unused AMT credit" (i.e., an AMT credit from more than three years ago that has not been used) for the tax year, your AMT credit for the year cannot be less than the "AMT refundable credit amount" for the year. In other words, if the refundable AMT credit amount is higher than the amount otherwise allowed, you can claim the higher amount. If this higher credit amount is more than your regular tax liability, you can get a refund for the excess. But the amount of the refund is limited to the amount of the "extra" credit allowed under this rule. Example (1): For 2007, Betty has an AMT refundable credit amount equal to $20,000. Her otherwise allowable AMT credit for 2007 is $15,000. Betty's AMT credit for 2007 is $20,000, the higher AMT refundable credit amount. She can reduce her regular tax liability for 2007 by $20,000. Example (2): As described in Example (1), Betty's allowable AMT credit for 2007 is $20,000, the higher AMT refundable credit amount. Betty's tax liability for 2007, before applying the credit, is $18,000. Thus, Betty needs to use only $18,000 of her available $20,000 AMT credit to completely eliminate her 2007 tax liability. She still has $2,000 ($20,000 - $18,000) of the credit remaining. The new rule allows Betty to secure a $2,000 refund. In other words, she receives the immediate benefit of a $2,000 refund now, instead of having to wait until a later year. The AMT refundable credit amount is based on the amount of the long-term unused AMT credit and is reduced for

Recognize large capital gains Pay large state and local taxes Incur significant unreimbursed employee business expenses or investment fees Claim child tax credits Pay large amounts of home-equity loan interest

Short of moving to a no- or low-tax state, there is not much you can do to avoid AMT. You can, however, take steps to minimize it, essentially by controlling the triggers to AMT such as those noted above. And, as a result of the 2006 Tax Relief and Health Care Act, a new refundable AMT credit may now be available to you to further minimize the AMT hit. Starting in 2007, individuals who have unused minimum tax credits (also called "AMT credits") from more than three years ago may be entitled to a reduction in income tax this year and possibly a greater refund. Some background information may be helpful. The AMT is imposed on alternative minimum taxable income (AMTI), which is taxable income increased by certain preference items and adjusted by denying the regular-tax income deferral allowed for certain items ("deferral adjustments"), some of which are noted above. For example, the rule requiring you to pay AMT on the value of the stock you receive (minus what you paid for it) in the year you exercise an incentive stock option (ISO), even though it is not subject to regular tax, is a deferral adjustment. Other deferral adjustment items, typically the result of having a different basis under the regular tax system than under the AMT system, include depreciation after 1986, gain or loss on the sale of property, loss limitations due to at-risk rules and passive activities.

6

© Duane Morris LLP 2007 | A Delaware limited liability partnership

high-income individuals. The AMT refundable credit (before reduction) is as follows: (a) For a long-term unused AMT credit of less than $5,000, you may be able to claim 100% of the long-term unused AMT credit; (b) For a long-term unused AMT credit between $5,000 and $25,000, you may be able to claim $5,000; (c) For a long-term unused AMT credit greater than $25,000, you may be able to claim 20% of the longterm unused AMT credit. Example (3): In 2010, John has a $1.1 million AMT credit, of which $1 million is a long-term unused AMT credit. Because John's long-term unused AMT credit ($1 million) is more than $25,000, he uses the formula described in (c), above, to compute his AMT refundable credit amount. John's AMT refundable credit amount for 2010 is $200,000 (20% of $1 million long-term unused AMT credit). This means John's AMT credit for 2010 cannot be less than $200,000. If your adjusted gross income (AGI) for a tax year exceeds an annually-adjusted threshold amount, you must reduce your AMT refundable credit amount by an "applicable percentage" of that excess. For 2007, these AGI thresholds are: $234,600 for married individuals filing jointly and

surviving spouses; $195,500 for heads of household; $156,400 for unmarried individuals (not surviving spouses); and $117,300 for married individuals filing separately. The long-term unused AMT credit for any tax year means the portion of the AMT credit for tax years before the third tax year immediately preceding the tax year. Thus, your long-term unused AMT credit for 2007 takes into account your unused AMT credits from 2003 and earlier years. In this computation, the credits are treated as allowed on a first-in, first-out (FIFO) basis. Under current legislation, the AMT refundable credit rules described above will not apply in determining your AMT credit for tax years beginning after 2012. As you can see, the new AMT refundable credit rules may help soften the blow of the AMT. However, the potential benefits from the credit also add to the complexity of the AMT itself. If you have engaged Duane Morris' Tax Accounting Group to prepare your tax returns, we will automatically determine if this credit is applicable to you. If you have not engaged us but would like to discuss how this new law impacts you and whether there is credit or refund opportunity available to you, please give us a call. | | |

TAX ACCOUNTING GROUP NEWS

The Tax Accounting Group welcomes Eric T. Sharpe as Fiduciary Tax Manager. Eric brings almost two decades of fiduciary and trust tax compliance experience, working with major Philadelphia and regional banking institutions and major international investment houses. Eric's practice will focus on the areas of federal and state taxation, with particular emphasis on income tax compliance and planning for estates, trusts and nonprofit organizations. The Tax Accounting Group assisted the Office of Federal Housing Enterprise Oversight (OFHEO) in conducting its extensive and complex Special Examination of Fannie Mae's manipulation of accounting and earnings to trigger bonuses for senior executives. The examination resulted in a comprehensive report of more than 340 pages and an agreement by Fannie Mae to pay $400 million in penalties and enter into a significant plan of remediation. Michael A. Gillen, Director of the Tax Accounting Group, appeared on "Money Matters Today" on CN8, The Comcast Network television program, on multiple occasions during 2007 and provided tax compliance and planning strategies for individuals and businesses. Mary Beth Lee, CPA, CFE, has successfully negotiated with the IRS a compromise of a new client's federal income tax liability, resulting in a savings of more than $700,000. Bruce Rogers, CPA, J.D., authored an article, "Important Changes Created by The Pension Protection Act of 2006," and was published in The Legal Intelligencer on January 30, 2007. Barbara Ruth, CPA, J.D., authored the article "Resolutions to Improve Your Financial Health" and was published in the The Woman Advocate, a newsletter published by the American Bar Association's Section on Litigation. Barbara is also a mentor with Philadelphia Futures, a nonprofit organization that provides promising urban high school students with the tools they need to achieve their dream of a college education. | | |

[ www.duanemorris.com ]

7

About Duane Morris

Duane Morris LLP, one of the 100 largest law firms in the world, is a full-service firm of more than 600 lawyers. In addition to legal services, Duane Morris has independent affiliates employing approximately 100 professionals engaged in other disciplines, such as the Tax Accounting Group. With offices in major markets, and as part of an international network of independent law firms, Duane Morris represents clients across the United States and around the world. | | |

About the Tax Accounting Group

The Tax Accounting Group, one of the largest groups of its kind in any law firm, has an active and diverse practice with more than 60 service lines in more than 45 industries, serving clients in 43 states and eight foreign countries. The Group's certified public accountants, certified fraud examiners, financial consultants and advisors provide a broad range of cost-effective tax preparation, planning and consulting services as well as accounting, financial and management advisory services to individuals, corporations, partnerships, estates and trusts, and nonprofit organizations. The Group also provides an array of litigation consulting services to numerous lawyers and law firms representing clients in regulatory and transactional matters and throughout various stages of litigation. Consulting services include, but are not limited to, case assessment and strategy development; asset recovery investigation and locator services; damage assessment and measurement; marital disputes; forensic and investigative accounting; fraud and embezzlement detection; and civil and criminal tax controversies. | | |

Tax Accounting Group

OF DUANE MORRIS LLP

Should you have any questions or comments regarding any of the items included in this report, please feel free to contact: Michael A. Gillen, Director 215.979.1635 [email protected] Rodney Anello, Tax Accountant 215.979.1632 [email protected] Annette H. Bonacquisti, MST 215.979.1628 [email protected] Michele D. Clancey, CPA, MST 215.979.1629 [email protected] William J. Friel, Tax Accountant 215.979.1596 [email protected] Vincent M. Hannigan, EA 215.979.1636 [email protected] Mary Beth Lee, CPA, CFE 215.979.1644 [email protected] Michael J. Lee, CFA, MBA 215.979.1650 [email protected] Steven M. Packer, CPA 215.979.1697 [email protected] Bryan J. Pennock, Sr. Accountant 215.979.1631 [email protected] Bruce J. Rogers, CPA, JD 215.979.1649 [email protected] David Rothschild, CPA 215.979.1627 [email protected] Direct Fax Number 215.979.1645

www.duanemorris.com/taxaccounting

Barbara A. Ruth, CPA, JD 215.979.1640 [email protected] Eric T. Sharpe, Tax Accountant 215.979.1659 [email protected] Stanley V. Todd, CPA, MBA 215.979.1637 [email protected]

As required by United States Treasury Regulations, you should be aware that this communication is not intended to be used, and it cannot be used, for the purpose of avoiding penalties under United States federal tax laws. This newsletter is for general information and does not include full legal analysis of the matters presented. It should not be construed or relied upon as legal advice or legal opinion on any specific facts or circumstances. The invitation to contact the authors or attorneys in our firm is not a solicitation to provide professional services and should not be construed as a statement as to any availability to perform legal services in any jurisdiction in which such attorney is not permitted to practice. Duane Morris is a registered service mark of Duane Morris LLP.

Duane Morris ­ Firm and Affiliate Offices | New York | London | Singapore | Los Angeles | Chicago | Houston | Hanoi | Philadelphia | San Diego | San Francisco | Baltimore | Boston Washington, D.C. | Las Vegas | Atlanta | Miami | Pittsburgh | Newark | Wilmington | Princeton | Lake Tahoe | Ho Chi Minh City | Duane Morris LLP ­ A Delaware limited liability partnership

Information

Tax Accounting Review - Summer 2007

8 pages

Find more like this

Report File (DMCA)

Our content is added by our users. We aim to remove reported files within 1 working day. Please use this link to notify us:

Report this file as copyright or inappropriate

504713


You might also be interested in

BETA
uniPoint V11 Suite Fact Suite p1.ai
Managing school attandance
Microsoft PowerPoint - TaxAdminComplianceStrategies_Presentations.ppt
Microsoft Word - Sample Quality Manual and procedures