The Securities and Exchange Commission has accused two KPMG auditors of rubber-stamping an audit of a failed Nebraska-based bank that hid millions of dollars in loan losses from investors during the financial crisis. The SEC says KPMG partner, John J. Aesoph, and senior manager, Darren M. Bennett, "relied on stale information and management's representations" in issuing unqualified opinions of TierOne Bank's 2008 financial statements and internal controls over its financial reporting. Read more...

The country did not plunge over the fiscal cliff, at least not in January. And processing to tax returns will start later than planned. But tax software vendors and the Internal Revenue Service did not wait for the outcome - they placed bets on which expiring tax credits would be extended. Read more...

Users of TaxWorks are flaying the company over its new tax preparation software. But whether problems are widespread or just a reaction by an installed base faced with a dramatically changed product remains to be seen. In comments on a blog on the TaxWorks website, several preparers complained they cannot print organizers, while some had trouble installing the software. The gripes are coming from new users and from practitioners who have bought the program for decades.

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