Compliance March 12, 2012

Long Island CEO Accused of Stealing from 401(k)

Suffolk County (New York) prosecutors say a Long Island CEO looted his employees' retirement accounts and bought expensive cars with the money.
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District Attorney Thomas Spota said Om Soni of Sonix Medical Resources diverted $278,000 from the company’s 401(k), with part of the money going to buy a Bentley and a Mercedes-Benz, the Associated Press reports. Soni already owned another Bentley, another Mercedes and a Lamborghini.  

Sonix Medical Resources went bankrupt in 2010.  

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Soni pled not guilty. His lawyer said Soni used his own money to prop up the company and that the cars had nothing to do with any missing funds, according to the news report.

Compliance March 12, 2012

IRS Calls for Recommendations for Guidance Priority List

The Department of Treasury and the Internal Revenue Service have invited public comment on recommendations for items that should be included on the 2012-2013 Guidance Priority List.
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Notice 2012-25 says the Treasury Department’s Office of Tax Policy and the Service use the Guidance Priority List each year to identify and prioritize the tax issues that should be addressed through regulations, revenue rulings, revenue procedures, notices and other published administrative guidance. The 2012-2013 Guidance Priority List will establish the guidance that the Treasury Department and the Service intend to work on from July 1, 2012, through June 30, 2013. 

In reviewing recommendations and selecting projects for inclusion on the 2012-2013 Guidance Priority List, the Treasury Department and the Service will consider the following:

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1. Whether the recommended guidance resolves significant issues relevant to many taxpayers;

2. Whether the recommended guidance promotes sound tax administration;

3. Whether the recommended guidance can be drafted in a manner that will enable taxpayers to easily understand and apply the guidance;

4. Whether the recommended guidance involves regulations that are outmoded, ineffective, insufficient or excessively burdensome and that should be modified, streamlined, expanded or repealed;

5. Whether the Service can administer the recommended guidance on a uniform basis; and

6. Whether the recommended guidance reduces controversy and lessens the burden on taxpayers or the Service.

Recommendations must be submitted by May 1, 2012.  

Notice 2012-25 is available at http://www.irs.gov/pub/irs-drop/n-12-25.pdf.

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