Microsoft Unit Faces Accounting Probe

According to this accounting and finance article, Microsoft Corp.'s search-technology unit Fast Search & Transfer is facing a police investigation in Norway concerning possible financial-accounting irregularities.

Norway's financial supervisory organization, Kredittilsynet, said Fast Search's accounting may have broken the law in addition to violating accounting standards. It reported the matter April 24, 2008, to the Norwegian National Police's financial unit, according to a statement issued by Kredittilsynet.

That unit referred the matter last week to the Oslo District Police. It further described the matter as "grave" because of the way the accounting had been handled, and the size and impact of the figures involved. The National Police said it decided not to pursue the matter itself due to lack of capacity.

The investigation was reported on Portfolio magazine's Web site.

Microsoft said in a statement it takes "any matter of this nature very seriously, and we are fully committed to taking all appropriate actions to ensure consistency with the company's core values."

Microsoft acquired Fast Search in late April for $1.2 billion as part of its effort to gain momentum against Web-search leader Google Inc.

Traders Accounting Seminars Are Moving To The Web

Traders Accounting, the largest online resource for day trading and advice on tax planning, announced they are going to put their popular accounting seminars online. The first will be discussing the biggest mistakes investors made in 2007 and show individuals and company's how to correct them for next year.

For more information on the June webinar, visit the accounting seminar's page or contact Ryan Gibson at 1-800-938-9513.

It's Not Just Taxes, It's the Dollar

From an article on income taxes and the economy:

The proper level of taxation has predictably emerged as a major presidential campaign issue. The irony here is that stock market returns since the 1950s show that the dollar's stability and its direction trump taxes as the greatest indicator of our long-term economic prospects.

Sadly, the dollar's fall this decade has not generated any kind of campaign comment from either side. Oddly enough, both Senators McCain and Clinton support a federal gas-tax holiday for the summer. But it should be said that this gimmick perhaps is the primary campaign's ultimate non-sequitur. To endorse an 18-cent-per-gallon tax cut on gasoline is to miss the point. Pump prices aren't high due to federal taxes, but instead are reaching nosebleed levels thanks to a collapsing dollar.

If it's agreed that stock market returns at the very least indicate long-term economic optimism, the dollar's fall should be issue no. 1 for candidates on both sides. Just as high tax rates erode the value of paychecks and investments, so does inflation. And when stock market returns over the last 60 years are considered, it becomes apparent that all three presidential candidates do not have their eyes on the ball. In short, it's the dollar, stupid.

Today's Republicans want tax cuts, while Democrats want tax increases. Judging by equity returns, both sides ignore the dollar at their peril.

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IRS says up to 350,000 tax rebate checks wrong

According to this article on tax rebate checks:

Up to 350,000 households aren't getting the $300 per child owed them as part of their economic stimulus rebate payments, the Internal Revenue Service said Thursday.

The tax agency says taxpayer human error and computer glitches were responsible for the problem affecting a tiny percentage of the 130 million taxpayers expected to benefit from the refunds the government began sending out last month.

IRS spokesman Terry Lemons said the agency was confident it had identified all the people affected by the mistake. He said the IRS will send letters to those who missed out on the refund and that checks for the child credit will be mailed out in July. People need not contact the IRS or file additional paperwork, he said.

FBI Warns of Tax Rebate Check Scam

According to this article on the tax rebate checks, as the IRS began sending economic stimulus checks to eligible taxpayers, the FBI is warned recipients about a scam related to the money.

Fraudsters are sending out fake e-mails notifying individuals that direct deposit is the fastest and easiest way to receive their tax rebate checks from the IRS.

After clicking on a link that appears to be from the IRS, computer users are asked to enter personal and other information, including bank account records, which scammers use to withdraw the money — usually via wire transfer.

According to the complaints received by the FBI, the fake e-mails claim, "Our records indicate that you are qualified to receive the 2008 Economic Stimulus Refund. The fastest and easiest way to receive your refund is by direct deposit to your checking/savings account. Please follow the link and fill out the form and submit before May 10th, 2008 to ensure that your refund will be processed as soon as possible."

The fraudulent e-mail warns that "Submitting your form on May 10th, 2008 or later means that your refund will be delayed due to the volume of requests we anticipate for the Economic Stimulus Refund."

In a report on Internet crimes last month, the FBI estimated that people lost $240 million to such crimes in 2007.

According to FBI officials, there have been more than 1,000 different e-mail scams purporting to be from the IRS in the past several years.

The FBI warning to consumers and computer users from the Internet Crime Complaint Center notes, "Consumers are advised that the IRS does not initiate taxpayer communications via e-mail. In addition, the IRS does not request detailed personal information via e-mail or ask taxpayers for the pin numbers, passwords."

Furor after Italian gov't posts each taxpayer's income online

If you're not glad you're an American, you will be after reading this income-tax-related story from Italy that was all over the news this week:

How do you say privacy in Italian?

We find ourselves asking that question after reading reports that say Italian officials posted the income of every taxpayer on the Internet as part of efforts to increase transparency.

"The tax authority's website was inundated by people curious to know how much their neighbors, celebrities or sports stars were making," BBC News reports. "The Italian treasury suspended the website after a formal complaint from the country's privacy watchdog."

Members of the outgoing government expressed shock that people were upset by the surprise disclosure of individual income data from 2005.

"This is a matter of transparency, of democracy,'' outgoing Deputy Finance Minister Vincenzo Visco tells Bloomberg News. "I don't see any problem. The whole world does this. Just watch any American TV show and you'll see." (We have no idea what he's talking about. Do you?)

By the way, a quick search suggests that the Italian word for privacy is privacy or segretezza.