Can I change the code on my expense reports?

[RodISHI]

Do you think the IRS would be okay if I change the expense codes from luxury items to say cleaning services while documenting business expenses?

Well worth reading the whole article.

John Byrne
Published: Friday February 6, 2009

Investment bankers racked up $100,000s in prostitution charges....

"Some of these guys, I was invoicing on corporate credit cards," she said. "I was writing up monthly bills for computer consulting, construction expenses, all of these things, I was invoicing them monthly so they could get it by their accountants."


Among the names the network says it confirmed

* a vice president of NBC Universal (owned by General Electric)
* the part owner of a Major League Baseball team who "loves Kelsey"
* the CEO of one of the country's largest private equity firms who met "Cameron" at the Peninsula Hotel
* a major New York real estate developer who, according to the list, "will come to the door wearing women's panties"
* a partner at the Wall Street law firm Cravath Swaine Moore "looking for a party girl to come fully equipped" and spent a total of $20,000
* an investment banker from Lehman Brothers who saw "Kelsey and Keely together" and later saw "Aria and Skyler at the same time"
* an investment banker at JP Morgan Securities who "loves Brooke" and spent $41,600
* an investment banker at Goldman Sachs who "only wanted all-American girls" and spent $27,000
* a managing director from Merrill Lynch who saw "Lana" using the name "Nataly"
* a managing director from Deutsche Bank "who called about seeing Nataly again"

 

[auditor0007]

I really don't care how much money anyone spends on a prostitute. However, when they use company money, they ought to be sent to jail. It's theft and fraud, just as if they spent the money on a vacation at company expense.

 

[RodISHI]

I really don't care how much money anyone spends on a prostitute. However, when they use company money, they ought to be sent to jail. It's theft and fraud, just as if they spent the money on a vacation at company expense.

Yea but they are executives and CEO's?

 

[American Horse]

I really don't care how much money anyone spends on a prostitute. However, when they use company money, they ought to be sent to jail. It's theft and fraud, just as if they spent the money on a vacation at company expense.

As you know RodISHI, This amounts to tax fraud, as well as employee fraud. These charges will show up in the tax returns as outsized expense deductions and will prompt audits. Corporate employees think these things will go undetected but there are formulae which will pick up on them. Corporate tax returns and therefore expense deductions are required to be audited by CPAs and someone will pick up on it.

...

 

[RodISHI]

I really don't care how much money anyone spends on a prostitute. However, when they use company money, they ought to be sent to jail. It's theft and fraud, just as if they spent the money on a vacation at company expense.

As you know RodISHI, This amounts to tax fraud, as well as employee fraud. These charges will show up in the tax returns as outsized expense deductions and will prompt audits. Corporate employees think these things will go undetected but there are formulae which will pick up on them. Corporate tax returns and therefore expense deductions are required to be audited by CPAs and someone will pick up on it.

...

That's silly as a CEO I get to set the rules. Don't I?

And I get to pick the accounting firm that best suits my interest. Don't I?

Results 1 - 10 of about 78,800 for "kpmg" " sued". (0.17 seconds)


I thought this one was out of those 78,000 possibilities of KPMG being sued was interesting....

Another one bites the dust.
Filed in archive Accounting by leon on December 15, 2006

The whining from auditors about getting liability caps is likely to get louder with news that troubled US mortgage finance company Fannie Mae is suing former auditor KPMG for $2 billion.

Fannie Mae's financial woes surfaced this year, some of which I covered some in this blog entry here. Now, Fannie Mae says KPMG failed to serve its role as an independent watchdog and prevent $6.3 billion in accounting errors.

Them numbers sure add up fast.

 

[xsited1]

Do you think the IRS would be okay if I change the expense codes from luxury items to say cleaning services while documenting business expenses?

Well worth reading the whole article.

John Byrne
Published: Friday February 6, 2009

Investment bankers racked up $100,000s in prostitution charges....

"Some of these guys, I was invoicing on corporate credit cards," she said. "I was writing up monthly bills for computer consulting, construction expenses, all of these things, I was invoicing them monthly so they could get it by their accountants."


Among the names the network says it confirmed

* a vice president of NBC Universal (owned by General Electric)
* the part owner of a Major League Baseball team who "loves Kelsey"
* the CEO of one of the country's largest private equity firms who met "Cameron" at the Peninsula Hotel
* a major New York real estate developer who, according to the list, "will come to the door wearing women's panties"
* a partner at the Wall Street law firm Cravath Swaine Moore "looking for a party girl to come fully equipped" and spent a total of $20,000
* an investment banker from Lehman Brothers who saw "Kelsey and Keely together" and later saw "Aria and Skyler at the same time"
* an investment banker at JP Morgan Securities who "loves Brooke" and spent $41,600
* an investment banker at Goldman Sachs who "only wanted all-American girls" and spent $27,000
* a managing director from Merrill Lynch who saw "Lana" using the name "Nataly"
* a managing director from Deutsche Bank "who called about seeing Nataly again"

Is this a list of the people in Obama's Administration?

 

[RodISHI]

Do you think the IRS would be okay if I change the expense codes from luxury items to say cleaning services while documenting business expenses?

Well worth reading the whole article.

John Byrne
Published: Friday February 6, 2009

Investment bankers racked up $100,000s in prostitution charges....

"Some of these guys, I was invoicing on corporate credit cards," she said. "I was writing up monthly bills for computer consulting, construction expenses, all of these things, I was invoicing them monthly so they could get it by their accountants."


Among the names the network says it confirmed

* a vice president of NBC Universal (owned by General Electric)
* the part owner of a Major League Baseball team who "loves Kelsey"
* the CEO of one of the country's largest private equity firms who met "Cameron" at the Peninsula Hotel
* a major New York real estate developer who, according to the list, "will come to the door wearing women's panties"
* a partner at the Wall Street law firm Cravath Swaine Moore "looking for a party girl to come fully equipped" and spent a total of $20,000
* an investment banker from Lehman Brothers who saw "Kelsey and Keely together" and later saw "Aria and Skyler at the same time"
* an investment banker at JP Morgan Securities who "loves Brooke" and spent $41,600
* an investment banker at Goldman Sachs who "only wanted all-American girls" and spent $27,000
* a managing director from Merrill Lynch who saw "Lana" using the name "Nataly"
* a managing director from Deutsche Bank "who called about seeing Nataly again"

Is this a list of the people in Obama's Administration?

She said she's still considering if will release the list of 9,800.

 

[garyd]

12 million people in NYC, given this day and age if only 9800 are hitting high class high dollar call girls I'd be surprised. The money in question here is chump change for that client list. All I want to know is how did these clowns get into those positions beiong that recklessly stupid? After the last idiot you'd have thought they'd have figured out cash only, fake ID and an absolute minimum of paper trail.

Compounding this sort of idiocy with tax fraud is just umbelievably stupid.

 

[American Horse]

12 million people in NYC, given this day and age if only 9800 are hitting high class high dollar call girls I'd be surprised. The money in question here is chump change for that client list. All I want to know is how did these clowns get into those positions beiong that recklessly stupid? After the last idiot you'd have thought they'd have figured out cash only, fake ID and an absolute minimum of paper trail.

Compounding this sort of idiocy with tax fraud is just umbelievably stupid.

the cash only crowd will have to pay for it themselves. To get "the company" to pay for it causes it to automatically be listed as an expense and a tax deduction. They will be caught, but how far down the line and how large the population of their cohort will determine their punishment. A high profile governor might not. The companies on whose books these charges are made will be penalized but by then the perps will have moved on, because the job wasn't important to them anyway.

...

 

[RodISHI]

Sounds good American horse but it really does not work that well to say they "will just have to move on."

You can bet these guys have a long list of buddies they kicked in for such services or parties where enjoyment was the key theme. Surely you are not as naive to think they will be actually penalized for it that will make any difference?

I did not personally here the stories but Rod did back when about how business gets done. He heard it from some of the upper echelon DOT guys. Obviously by the news story some of them use company funds to treat themselves aslo.

 

[American Horse]

12 million people in NYC, given this day and age if only 9800 are hitting high class high dollar call girls I'd be surprised. The money in question here is chump change for that client list. All I want to know is how did these clowns get into those positions beiong that recklessly stupid? After the last idiot you'd have thought they'd have figured out cash only, fake ID and an absolute minimum of paper trail.

Compounding this sort of idiocy with tax fraud is just umbelievably stupid.

How about this: The perpetrators in this may have known that since "everyone does it", that they wouldn't be prosecuted. The Corporations involved would have to press charges, and they may be unwilling (a little like Blogojevich would've been ignored had he not been so open with his actions; I for one am still waiting for his indictment).

For the Federal Prosecutor office to press charges they'll need a willing injured party. The IRS might, but if these are corrected and the taxes are paid they'll get what they want, and the actual ‘perps’ are not top echelon, just in-house corporate embezzlers. For the prosecutor it's not worth the resources to get all these guys to trial and find them guilty, and who knows who else might be snared. So far the only complainant is the prostitute; she may be prosecuted though, and the “Johns” go free.

If Blogo is never indicted, or if he’s never even found guilty, we might be as cynical as the OP story makes us feel in this case. It appears NY City and Chicago have something in common: screwy justice.

 

[garyd]

Or justice for sale. Better than it used to be though. 50 or sixty years ago they'd have shot the broad. and dumped her in the swamp where giants stadium is now.

 

[American Horse]

Or justice for sale. Better than it used to be though. 50 or sixty years ago they'd have shot the broad. and dumped her in the swamp where giants stadium is now.

Gary, it sounds like you were around there back then.
BTW the stone used for the new stadium comes fresh from our stone mills here in Indiana. I say that even knowing that the new stadiium is probably not looked on favorably by folks nearby.

...

 

[garyd]

I'm 60. So yeah I was around and I've been reading according to my mother since I was 2 or 3. Additionally my wife is a former Jersey girl, who swears Hoffa is under Giant's stadium somewhere.

For what it's worth it's gotten better largely because almost no one this days seems to get all that upset about rich bastards getting on with high priced call girls unlees they are politicians and then only if they are being more than slightly hypocritical about. (I.E. if you're raiding every bawdy house in town while sleeping with call girls on the side the hypocrisy meter irritates the crap out of most normal people.