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Showing posts from August, 2013

Bounty hunter reality TV show/soul food restaurant?

The Securities and Exchange Commission filed a lawsuit this afternoon against John K. Marcum and his two companies, Guaranty Reserves Trust, LLC and Marcum Companies, LLC for running a Ponzi scheme. They allege that he bilked investors out of more than $6 million.
One of the strangest things, though, is that Marcum didn't just run a conventional Ponzi scheme, where new money flowing in provides the illusion of great dividends for earlier "investors"/victims. He also tried a variety of other things, such as day trading where he lost more than $900,000 of his investors's money. He also set up bounty hunter reality television show as well as a soul food restaurant run by the cast of that show.
When, shockingly enough, those things didn't make money, he appeared to have converted his companies into a Ponzi scheme to continue financing his life style. As a result, he faces the wrath of the SEC.
Of course, it's not clear how much damage they'll be able to infl…

Will the IRS listen to audit showing that more needs to be done?

The Treasury Inspector General for Tax Administration (TIGTA) released an audit report this morning, which showed that the Internal Revenue Service needs to do a lot more to crack down on fraudulent tax refunds. According to the IRS, $19.2 billion in fraudulent tax refund checks are issued every year. The key question is: will anything happen as a result of this report?
Unfortunately, it seems unlikely that this report will do more than gather dust on desks across Washington, DC. The IRS does not have a great track record when it comes to combating fraudulent tax refunds.
Moreover, making significant improvements in the IRS's Return Review Program will require adequate funding. This, of course, is something that the White House and Congress do not appear ready to give.

Sadness

When you stop to think about it, it's actually a little sad that I get excited when the Federal Reserve issues a new policy paper.
*Scratch that*

It's very sad. Very, very sad, indeed.

If anyone needs me for the rest of the day, though, I'll be off trying to console myself with a bottle of gin and a copy of the Fed's newest paper Capital Planning at Large Bank Holding Companies.

IRS launches Affordable Care Act website

The Internal Revenue Service has launched a new Affordable Care Act Tax Provisions website at IRS.gov/aca to educate individuals and businesses on how the health care law may affect them. The new home page has three sections, which explain the tax benefits and responsibilities for individuals and families, employers, and other organizations, with links and information for each group. The site provides information about tax provisions that are in effect now and those that will go into effect in 2014 and beyond.
Topics include premium tax credits for individuals, new benefits and responsibilities for employers, and tax provisions for insurers, tax-exempt organizations and certain other business types. Visitors to the new site will find information about the law and its provisions, legal guidance, the latest news, frequently asked questions and links to additional resources.
Several other federal agencies have a role in implementing the health care law, including the Department of Healt…

Federal Reserve issues new rule to set fees

The Federal Reserve Board issued a new final rule earlier today. This regulation establishes annual assessment fees for its supervision and regulation of large financial companies.
The Dodd-Frank Wall Street Reform and Consumer Protection Act directs the Board to collect assessment fees equal to the expenses it estimates are necessary or appropriate to supervise and regulate bank holding companies and savings and loan holding companies with $50 billion or more in total consolidated assets and nonbank financial companies designated by the Financial Stability Oversight Council for supervision by the Federal Reserve.
This rule outlines how the Board will determine which companies are to be charged. It also sets for the procedures for how they will estimate their applicable expenses and determine each company’s assessment fee. It further sets forth the procedure to bills for and collect these assessment fees.
Under the final rule, each calendar year is an assessment period.  For the 2012…