Taking advice can prove costly,
especially if it leads to your business being out of
compliance with government regulations. Not only can
you lose your position, savings. future income but you can even face jail time.
Since tax evasion, fraud
scandals are not only making daily headlines but putting
countless executives in jjail remember the Bernie's (Ebbers
and Maddoff). Today the risks executives face when
they accept "too good to be true" income from their companies
can lead to disaster.
It has been
almost 10 years since two top Sprint executives used tax shelters to avoid
taxes on $ 100 million of stock options. Back then The Wall Street
Journal sumed up the story well with its
headline “Troubling Options. Inside the Tough Call at
Sprint. Fire the Auditors or the Executives."
are a successful executive at one of the leading greentech
companies. You have hired a reputable law and audit firms to
provide you with guidance and credibility. You trust them
they are the gate keepers between your company and illegal
accounting and tax mistakes.
of your benefits your company encourages you to use your
auditors as personal tax advisors, so you do. The folks at
Sprint did just that and now they are paying the price. The
board wants to fire them and the IRS wants their money.
But the news
gets worse. There is no cash to pay the taxes. The profit on
the options was re-invested in Sprint stock, which has lost
significant value. And to top it off ---- is battling
What can you
do to prevent this from happening to you?
independent assessment of your past and current executive
compensation and loan programs. Find out the new rules under
the S/O act. ( Link to SEC site)
Find out if
the board has completed their assessment of the audit firms
as part of the new S/O process and review their findings.
Pay heed to
the old sayings “Nothing in life is free", If it sounds too
good to be true it is, pay now or pay more later.
The Blue Sage
Group to find out how you can protect your income in the
Contact Us now to see how we can help.