TAX NOTES
Capone Tax Records Released

In a rare move, the IRS made records relating to the three-year tax evasion investigation of Al Capone available to the public.

Posted on www.irs.gov, the documents include two 1931 letters from Special Agent Frank Wilson, updating Elmer Irey, chief of the Intelligence Unit, on the status of the Capone investigation, as well as Wilson’s 60-page summary report from 1933.

Prompted by a Freedom of Information Act request for the report, the IRS determined that the information could be released principally because Capone had never filed a tax return. The investigation led to Capone’s conviction for tax evasion for which he served 11 years in prison.

Source: www.irs.gov.

ON THE RECORD
Impossible to Ignore

“Let me…begin by talking about the elephant in the room. Actually, the three elephants in the room. That is—IFRS, XBRL and CIFiR.”

—SEC Commissioner Kathleen L. Casey, before the SEC Speaks forum, Feb. 8

Source: www.sec.gov.

TECH TALK
Could You Give Up E-Mail?

From 2002 to 2007, the Pew Internet Project tracked a sharp reversal in how people value specific technologies, attributing the change to the current mobile nature of media access.

Respondents said it would be very hard to give up the following devices:

Source: Pew Internet & American Life Project, www.pewinternet.org.

EMPLOYEE BENEFITS
Retirement Plans Off Autopilot

New funding rules for pensions and increased scrutiny of retirement plan operations are forcing companies to take more active roles in administering their retirement plans in 2008, according to a survey of 190 medium and large U.S. companies by Hewitt Associates, a global human resources services company.

Among companies that offer retirement plans, 63% said they were very likely to perform funding and accounting projections; 30% plan to perform an asset liability study; and 29% are very likely to assess the risks to their pension plans based on current strategies. Stressing employee accountability is expected to be a high priority of 56% of employers, while 50% said they would focus on helping employees better understand their retirement benefits.

Employers are also making greater use of automated features in 401(k) plans—44% offer automatic enrollment compared with 36% in 2007. Of those companies that offer automatic enrollment, 72% plan to convert their default investment fund to a premixed portfolio fund, including target-date funds.

Source: Hewitt Associates, www.hewitt.com.

CAREERS AND RECRUITING
Help Wanted: You Can Retire Later

According to a survey by CareerBuilder.com, three out of five workers age 50 or older plan to look for work elsewhere after retiring from their present jobs, with 51% of these workers putting off retirement until after age 65.

One place retired Americans can consider getting a job: the IRS, which recently joined the AARP’s National Employer Team, a program that connects workers over 50 with employers, and posted various full-time positions.

A full listing of participating employers can be found at www.aarp.org/money/careers/findingajob/featuredemployers/info.html.

Source: www.careerbuilder.com and www.aarp.org.

SMALL BUSINESS
It’s a Small World, and Getting Smaller

A recent study predicts that the number of U.S. small businesses trading globally will substantially increase, due to cross-border business opportunities, technological advances that help broaden social networks and reductions in export costs.

According to the Intuit Future of Small Business Report, a study that looked forward 10 years to examine the future prospects, influences and economic landscape of small business, almost half of U.S. small businesses plan to be involved in global trade by 2018.

The full report is available at www.intuit.com/futureofsmallbusiness.

THE WORLD’S DUMBEST FRAUDSTERS
Glass-Eating Fraud Scheme Shattered

Ronald Evano may not have liked the taste, but his and his wife Mary’s glass-eating insurance fraud scheme netted them over $200,000.

Evano pleaded guilty in federal court to 20 counts of conspiracy, mail and wire fraud, identity theft, making false statements and Social Security fraud for intentionally eating glass in restaurants, hotels and grocery stores, then filing false insurance claims that said he had found the glass in food he had been served. He was later sentenced to 63 months in prison.

Prosecutors said the twosome was treated for glass ingestion at least a dozen times in Massachusetts, Rhode Island, Maryland and Washington, D.C., incurring more than $100,000 in medical bills, which were unpaid.

The couple used fake names, Social Security cards and identification to pull off their con. An arrest warrant was issued for Mary Evano, who is a fugitive.

—Joseph T. Wells, CPA, CFE

EMPLOYEE BENEFITS
Executive Pay Growth Outpaces Revenue

In the year from February 2007 to February 2008, total overall executive compensation—including salary, bonuses, stock options, pension and other compensation—in domestic publicly traded companies increased 20.5%, according to a new study, while revenues increased just 2.8%.

The study was conducted by ERI Economic Research Institute and Career Journal, The Wall Street Journal Online’s channel for executives, managers and professionals.

A second study found that from 1997 to February 2008, the increase in overall compensation packages was 24.7%, while revenues for the 11-year period increased 93%.

Source: ERI Economic Research Institute, www.erieri.com, and Career Journal, www.wsj.com/careers.