Zen, my quick take on EZEN....
I don't think "clerical errors" should be equated with accounting decisions on EZEN's valuation allowance. I don't think this will amount to much, however...
The key point that EZEN and its auditors have to focus on in FY06 is what is the chance that some of the valuation allowance will never be recognized? The huge NOL will shield EZEN from paying state and fed taxes for quite a while, but this valuation allowance is an off-balance sheet asset that needs to be recognized at some point by the company. They'll need to agree on what is appropriate and bring at least SOME of that allowance on to the balance sheet (as an asset.)
Once that happens, you'll see a big tax benefit in the quarter it occurs, and an increase in deferred tax assets on the BS. The tax rate that is then used to reduce pretax income on the IS should be close to statutory rates, unless they have deductions unrelated to the valuation allowance/deferred tax asset to use .
I'm not an accountant, but that's my best guess.