NEWS HIGHLIGHTS FOR THURSDAY - 7.7.16

By:
Maya Lindsay
Published Date:
Jul 7, 2016

Accounting and Finance News Stories

The Multiple-Employer Trap

Accounting Today
All across America, hard-working people receive their personal income tax returns and wonder why they still owe money at tax time. For some the answer is that they sacrificed adequate withholding to receive more money with each paycheck.

The Big-Bank Bloodbath: Losses Near Half a Trillion Dollars
Wall Street Journal
Big banks are nearly half a trillion dollars in the hole. Since the start of 2016, 20 of the world’s bigger banks have lost a quarter of their combined market value. Added up, it equals about $465 billion, according to FactSet data.

The Mount’s Niemotko Joins NYS Society of Certified Public Accountants Board
Mount Saint Mary College
Tracey Niemotko, professor of accounting and chair of Mount Saint Mary College’s School of Business, was recently elected to The New York State Society of Certified Public Accountants Board of Directors as a Chapter Representative. Niemotko, who earned accounting and Juris Doctor degrees from Fordham University, is a certified public accountant and a certified fraud examiner.

U.S. Stocks Rise, Led by Riskier Sectors
Wall Street Journal
U.S. stocks rose Wednesday, nearly recovering from Tuesday’s retreat, as the most beaten-down sectors in recent weeks logged the biggest gains. Investors last month fled sectors that are often considered riskier, including health care and technology companies, in favor of companies that provide steady returns, such as utilities and telecommunications companies, which are often considered to be bond proxies.

Wells Fargo's Partial Tax Victory May Spur Billions in Refunds
Accounting Today
Wells Fargo & Co. got less than it wanted in a federal tax-refund lawsuit, yet the bank’s partial victory may spur billions of dollars in similar refund claims from companies that have done repeated mergers and acquisitions, tax lawyers say. The bank had sought refunds—valued at about $350 million as of 2011—tied mostly to interest on tax bills over decades.

Wealth Taxes Make Swiss Cheese of Declared Wealth
Wall Street Journal
Rising wealth inequality has been fanning political discontent around the world. But governments have long been disbanding the most obvious means to curb the trend: a wealth tax.

IRS instructs its auditors on inversion transactions and their consequences
Thomson Reuters
In a recently updated International Practice Unit (IPU), IRS provided guidance to its auditors on when the anti-inversion provisions under Code Sec. 7874 apply and the consequences of an 80% and 60% inversion. Corporate inversions (also called “expatriation transactions”) generally involve a U.S. corporation that engages in a series of transactions with the effect of moving its headquarters from the U.S. to a lower-taxed foreign jurisdiction.

AICPA's Melancon Sees Many Roles for CPAs in Battle against Cyber Crime
Yahoo Finance
Cyber crime has emerged as a leading financial and operational risk for all organizations of all sizes in all sectors. “With that in mind, the American Institute of CPAs (AICPA) is taking a multifaceted approach to cybersecurity through the work of the Assurance Services Executive Committee and the Center for Audit Quality. This work will allow CPAs to take a leadership role,” AICPA President and CEO Barry C. Melancon, CPA, CGMA, explains in a new video.

Businesses Say Proposed Tax Rule Is Too Complicated
Wall Street Journal
The federal government says U.S. corporations will spend a combined $13 million annually complying with proposed tax rules on internal corporate debt. But an industry trade group estimates that could be the cost for just one company.

States Fight to Enforce Online Sales and Use Taxes
CFO
The explosive growth of online retailing over the last 20 years has increased the pressure on states to seek to enforce sales and use taxes on online purchases. This year, many states have taken significant steps to enhance their ability to enforce payment of the taxes, and to expand their taxing and enforcement jurisdictions.

Central Banks Put Squeeze on Sovereign-Debt Market
Wall Street Journal
Christopher Sullivan, a money manager in New York, is worried that when he needs U.S. Treasury bonds one day, he might not be able to get them. On the surface, the concern might seem unwarranted: The U.S. Treasury has $13.4 trillion in debt securities outstanding, making the U.S. bond market the largest in the world and Treasurys among the most easily traded asset classes.

 

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