The Securities and Exchange Commission (SEC) has demonstrated an increased scrutiny of tax accounting by issuing two fines in the last seven months. Most recently, the SEC fined a taxpayer $200,000 for failure to have the proper controls in place to ensure accurate accounting related to compliance with states’ sales and use tax laws. As previously reported in the September 2010 issue of the SALT Shaker, the SEC fined a taxpayer for alleged improper accounting related to tax reserve manipulation.Continue Reading SEC Fines Company for Failure to Collect and Remit State Sales Tax
Former Dell Executives Manipulated Tax Reserves, Says SEC
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On August 27, 2010, the SEC charged two former Dell executives with fraud for their alleged misconduct relating to the use of the company’s excess tax reserves. SEC v. Davis, Docket No. 1:10-cv-01464 (D.D.C.); SEC v. Imhoff, Docket No. 1:10-cv-01465 (D.D.C.). The SEC’s complaint alleges that Dell improperly used “cookie jar” reserves to…