IRS Auditing Corporate Executive Compensation Packages

[UpInArms]

http://www.accountingweb.com/cgi-bin/item.cgi?id=98426

Some of America’s largest companies are being advised to ramp up their internal auditing efforts in anticipation of an Internal Revenue Service audit of executive compensation packages.

Two dozen companies are already under the microscope with IRS auditors pouring over records covering corporate perks such as stock options, corporate jets, luxury apartments and other benefits, the Associated Press reported Friday. The IRS is not ruling out the auditing of executives’ personal returns as well.

"Executive pay packages have become much more complex. We're taking a close look at these vehicles to make sure they fully comply with the law," IRS Commissioner Mark Everson told the AP. The agency claims this is a corporate governance matter in line with efforts to crack down on abuses and excesses.

The audits, which cover companies with $10 million or more in assets, began this summer and seek to determine if companies are staying within IRS rules that govern payment of corporate officers and the doling out of luxury fringe benefits. The IRS has not identified the companies currently under scrutiny.

...more...

hmmmm.....

did the IRS decide that the waitstaff was not really hiding their huge incomes and thought - gee, who really is getting all the money?

[papau]

1. The Board of Directors doesn't care if no immediate tax deduction

So this is just BS

NO change folks - Big Exec pkgs continue because GOP types deserve them!

[havocmom]

2. Have they stopped auditing working poor who use earned income credit?

Did they finally figure out that driving an old beater car held together with wire is not camouflage to hide the extravagant lifestyle one gets from working for wages low enough to qualify for the earned income credit?

[papau]

3. Nope - the project I was in to make it easier for working poor seems to

be dead (we helped fill out IRS forms so they got earned income credit - volunteers because IRS .... - actually folks at IRS were quite nice, but I do not see program this year?????)

In any case, now we audit them!

All that money - if you can't steal from the poor - who can you steal from - Bush has no choice if he wants to keep employed all those folks that at one time audited the rich and corporate!

[54anickel]

4. Diverts attention from the problems of corporate "personhood" & Burmuda

tax loopholes.
That 10 million or more of assets statement bothers me a bit too.

Are leased buildings and equipment considered an asset?

If they are not, then this leaves out most of the service type companies which now make up most of our economy as many lease their buildings, furniture and computer equipment. Wouldn't this mostly hit manufacturing type companies that have equipment?

Any accountants out there? I used to do basic accounting. I remember a small business owner was always pre-occupied with keeping the assets part of his books low. Assets less liabilities equals owners equity. That's about all I remember from my old bean counter days.

[bain_sidhe]

5. Hmmm, must be Dem donors!

"The IRS has not identified the companies currently under scrutiny"

With the recent stories that the IRS is auditing liberal/progressive organizations. Interesting that they won't release the list of companies...

:tinfoilhat:

[denverbill]

6. I'll bet Home Depot isn't on that list.

I think it's fairly safe to assume they are all Democrats.