National Taxpayer Advocate Nina E. Olson has released her annual report to Congress, urging simplification of the tax code and recommending measures to reduce the burden on taxpayers who are struggling to pay their tax bills.

The report takes note of the serious financial difficulties facing many Americans in light of the ongoing economic downturn. “It is imperative for the IRS to consider the circumstances of taxpayers facing economic hardship before initiating enforcement actions,” Olson wrote.

The report also designates the complexity of the tax code as the most serious problem facing taxpayers. According to data compiled by Olson’s office, U.S. taxpayers and businesses spend about 7.6 billion hours a year complying with tax-filing requirements. It estimates that U.S. taxpayers spend $193 billion a year complying with income tax requirements, an amount that equals 14 percent of the total amount of income taxes collected.

The NYSSCPA believes it may have found a solution in its Simple Exact Transparent (SET) Tax, a transparent way to see the impact of social and tax policy decisions made by Congress. SET allows taxpayers to see what taxes they owe, why they owe tax, where their money is going and how deductions directly benefit them. With the SET Tax, taxpayers’ burden would be reduced. The calculation of taxes would be reduced to a one-page tax form, with less chance of error.

The markets have spoken.

And they have picked International Financial Reporting Standards (IFRS) over U.S. generally accepted accounting principles (GAAP), according Sir David Tweedie, chair of the International Accounting Standards Board (IASB).

During a conversation with Floyd Norris, New York Times chief financial correspondent, Tweedie expressed confidence that the U.S. will remain on track to adopting IFRS despite new leadership at the Securities and Exchange Commission. Why? Because the markets are driving its adoption, according to Tweedie. International investors may opt not to bother learning GAAP in addition to IFRS. The use of GAAP once IFRS is the norm could even seem suspect to investors who may think companies are trying to hide something by reporting in GAAP, Tweedie said.

The FASB voted 3-2 to approve -- with some changes based on comment letters received -- Proposed Staff Position No. EITF 99-20-a, Amendments to the Impairment and Interest Income Measurement Guidance of EITF Issue No. 99-20.

A federal appeals court Tuesday upheld former Enron CEO Jeffrey K. Skilling's convictions for his role in the energy giant's collapse but ordered that he be resentenced, the Washington Post reported.

The success story of outsourcing calls to India may have come to an end with the revelation of a $1 billion accounting fraud scheme.

Nearly three weeks after unveiling his bare-bones budget proposal, New York state Gov. David A. Paterson is expected to argue for increased health insurance for New Yorkers before a joint session of the Legislature in his first "State of the State" address.

The Securities and Exchange Commission announced that it has selected a new acting chief accountant, James L. Kroeker. He will oversee accounting interpretations, international accounting matters, and professional practice issues. Kroeker replaces Conrad W. Hewitt, who retired from government service on Monday.

Was Sir David Tweedie, chair of the International Accounting Standards Board, yielding to political pressure in October when IASB allowed banks to move assets out of the fair value category retroactively to July 1, 2008, a move that Moody’s said allowed banks to cherry pick certain assets and avoid recognition of markdowns?

By Tweedie’s own admission: “Yes.”

Need a laugh today? Watch this YouTube video of Bernie Madoff at a 2007 roundtable explaining how the stock market functions. Madoff also postulates that the industry is overregulated.

His explanation of investing, punctuated by a constant nervous tic and wild gesticulations, may contain more irony than a town council meeting held by anarchists. Click the screenshot to go to the video.

A few choice quotes:

"It's impossible for a violation to go undetected."

"By benefitting one person, you're disadvantaging another person."

"The big money made on Wall Street is through taking risks."