4.10.12 Large U.S. companies exit the recession at full speed
4.10.12 Venture capital fundraising slid 35% in Q1 — During the first quarter, venture capital fundraising dropped 35%, according to the National Venture Capital Association and Thomson Reuters. Forty-two funds raised $4.9 billion. Read more.
4.10.12 Banking sector is wary of U.S. Postal Service changes
4.10.12 AICPA: PCAOB should focus on auditors of broker-dealers with access to client funds
4.10.12 IRS introduces special correspondence exam priority toll-free number for practitioners
4.10.12 How a small business can fight an IRS audit
4.10.12 Top 10 Tax Resources (for 2012 Tax Season)
4.10.12 Obama plans to make tax on wealthy Americans a central issue
4.10.12 Federal Reserve Chairman Ben Bernanke says money-market funds need tougher oversight — Bernanke called for intensified efforts to ensure that money-market funds and other financial institutions that operate outside formal banking regulation can withstand major financial shocks. "An important lesson learned from the financial crisis is that the growth of what has been termed 'shadow banking' creates additional potential channels for the propagation of shocks through the financial system and the economy," he said. Read more at Bloomberg, Crane Data and Market News International
4.10.12 Rich countries' policies hurt world growth, Rousseff says — Brazilian President Dilma Rousseff told President Barack Obama that monetary policies of the wealthiest nations are a drag on global economic growth, especially among rapidly growing emerging economies. She later told Brazilian reporters that developed nations' reliance on interest rates close to zero to stimulate growth creates a "monetary tsunami" that damages Brazil. Read more at Bloomberg and Latin American Herald Tribune (Venezuela)/Agencia EFE.
4.10.12 AICPA submits comment letter on GASB's financial projection proposal — In its March 16 letter, the AICPA's State and Local Government Expert Panel strongly encouraged the Governmental Accounting Standards Board to categorize the proposed components of information intended to assess a state or local governmental entity's fiscal sustainability as supplementary information rather than required supplementary information. The AICPA recommended that GASB provide criteria for when such supplementary information would be voluntarily included. GASB released the document, Economic Condition Reporting: Financial Projections Preliminary Views, on Nov. 29, 2011, for comment. Members of the AICPA also testified at the GASB's March 29 public hearing on this topic.
4.5.12 AICPA suggests changes to internal control framework proposal — The AICPA has recommended changes to a proposal to update the internal control framework. In a letter to the Committee of Sponsoring Organizations of the Treadway Commission, the Institute expressed overall support for the project but asked COSO to, among other things, tie together concepts such as reasonable assurance; range of acceptability; and reducing risk of not achieving an objective to an acceptable level; and provide examples of those concepts. The AICPA recommended a few changes in specific principles in the updated framework, including a request that a principle focusing on fraud be extended to include potential errors, bias and abuses. Failing that, the AICPA requested that an additional principle be created to address those areas. Read more.
4.5.12 States continue to expand nexus definition in bid for more tax revenue
4.5.12 Estate tax resources for filing Form 706 and keeping portability
4.5.12 CPAs feel secure with top tech priority — The top technology priority for CPAs is securing the IT environment, but their biggest area of doubt is in making the most of new technology, according to the AICPA’s 2012 Top Technology Initiatives survey. More than 60% of respondents are confident about their firm’s information technology security. However, only one-third said their organization can tap into fresh technology to improve performance and generate additional revenue. Read more.
4.5.12 Internal audits zero in on technology risks
4.5.12 The Federal Trade Commission proposes protection for consumers’ online privacy. — Read more at The Washington Post, and CQ.com.
4.5.12 Mandatory CITP exam is coming in July — Beginning in July, the CITP exam will be required to attain the CITP credential. The deadline to apply while leveraging existing credential requirements is May 25. Find out whether you already qualify and apply for the CITP credential! Visit AICPA.org/CITP to learn more about eligibility requirements.
4.5.12 CITP Exam Sponsorship Program: See whether you already qualify! — The IT Section introduced the CITP Exam Sponsorship Program to assist CPAs interested in information management and IT and who want to complete the CITP exam and obtain the CITP credential. The sponsorship is designed as a reimbursement of expenses incurred in preparing for and taking the exam. Find out whether you qualify for the sponsorship. Download the application and take advantage of this great incentive.
4.5.12 AICPA submits comment letter regarding COSO exposure draft “Internal Control -- Integrated Framework” — Learn more by visiting AICPA.org/COSO or reading the March issue of Information Technology Corner.
3.30.12 House Subcommittee Hears Testimony from Profession on Accounting and Auditing — On March 28, Barry C. Melancon, CPA, CGMA, president and CEO of the AICPA, testified at the House Subcommittee on Capital Markets and Government Sponsored Enterprises’ accounting and auditing oversight hearing. He said the AICPA supports a strong, balanced and independent regulatory structure that protects investors but does not restrict the flow of capital. Other regulators and business leaders testified, including Public Company Accounting Oversight Board Chairman James Doty, who faced probing questions on mandatory audit firm rotation. Read Melancon’s testimony and this JournalofAccountancy.com article for more information.
3.28.12 JOBS Act passes House despite warnings of lax corporate governance — The House of Representatives has passed the Jumpstart Our Business Startups Act with bipartisan support. It was the last step before the bill can be signed into law by President Barack Obama, which he said he will do. A small number of Democrats opposed easing corporate governance and financial reporting requirements for initial public offerings and loosening other rules because they claim such measures will increase financial fraud. On March 19, AICPA President and CEO Barry C. Melancon, CPA, CGMA, sent the U.S. Senate a letter supporting the independence of the FASB and the uniform application of accounting and auditing standards to all public companies. Read more.
3.28.12 Auditor's reporting model proposal scheduled for Q3 release— The PCAOB's standard-setting agenda, released Monday, shows that a proposal in the auditor's reporting model project is on track to be issued for public comment in the third quarter. The agenda lists the second quarter of 2013 as the target for the final auditor's reporting model standard, or a reproposed standard for further public comment. PCAOB also outlined certain key dates for other projects, including the consideration of audit firm rotation. Read more.
3.28.12 How to apply basis and at-risk loss limitations to partnerships— Read more.
3.28.12 Now available: Three tools for improving boards' effectiveness— A high-performing board is one that adds value to the organization by achieving a full package of responsible activities such as ethical decision making; understanding the strategic environment; understanding the needs of employees, customers and all those in the supply chain; and anticipating future events in an uncertain world. Chartered Global Management Accountants can play key roles in supporting good governance by helping boards address these issues effectively. These three tools available on CGMA.org can help CGMAs support boards: CIMA Strategic Scorecard®, Tomorrow's Company: The Board Mandate and the AICPA Risk Governance Tool for Strategic Oversight. Download them today.
3.20.12 Manufacturers yearn for quicker, data-driven decisions—Manufacturers often aren't prepared to take advantage of available data to quickly implement good, quick decisions. Antiquated systems often are a barrier to efficiency. Three key considerations can accelerate savvy decision making. Read more.
3.20.12 FASB decides review of FIN 48 isn't necessary — In the wake of a post-implementation review conducted by the Financial Accounting Foundation, the Financial Accounting Standards Board announced that it does not plan to review or reconsider FIN 48, Accounting for Uncertainty in Income Taxes. The FAF review found that the interpretation is resulting in more consistent and useful information for users of financial statements. However FASB said it will weigh the review's technical findings in its own review of whether simplifications or modifications in U.S. GAAP are needed for private companies. Read more.
3.20.12 GOP increases pressure on Democrats to support JOBS Act — House Republicans are urging Senate Democrats to get on board with the Jumpstart Our Business Startups Act, which allows businesses to get capital with fewer regulatory restrictions. The Senate could vote on the measure this week, although some Democrats have expressed concern that investors could be duped by fraudulent businesses. The White House supports the legislation, which has already passed in the House. Read this AICPA Insights blog post about the AICPA's support for maintaining investor protections. Read more at The Hill/On the Money blog.
3.20.12 Free tax season resources from the AICPA PFP Division— Sample the PFP Division's member benefits this tax season by downloading a free checklist, created by expert CPA financial planners, to identify financial planning opportunities as you analyze your client's tax returns. Also, listen to a podcast covering proactive planning ideas for tax season . Finally, download a free two-page excerpt from Forefield Advisor's popular 2012 Key Numbers, which provides the most essential figures for busy season in one convenient document. PFP/PFS members have free access to Forefield (a $399 value), a premier web-based education and client communication tool. Join the PFP Section today and save $50 on your first year of membership when you enter promocode CPALDPFP at checkout.
3.19.12 Access a range of useful tools on the Journal of Accountancy's Tax Filing Season Resources page.
3.19.12 A continued thawing in U.S. housing? — The housing industry, a broad barometer of the U.S. economy, has shown some signs of movement following a lethargic 2011. But will sales, prices, new homes and optimism continue to increase? New data this week will offer clues. Also this week: a glimpse of the state of manufacturing in Europe and discussion on potential audit firm rotation for public companies in the U.S. CGMA Magazine.
3.19.12 M&A standards proposed for government — The GASB on Friday proposed standards intended to improve government entities' accounting and financial reporting for combinations and disposals. GASB Chairman Robert Attmore said state and local governments have been using guidance intended for the business environment to account for mergers and acquisitions. The proposed guidance is tailored to governmental situations and circumstances. Read more.
3.19.12 IRS tells examiners to hold off on repair cost examinations — Because of recent revenue procedures allowing taxpayers to file accounting method changes for their treatment of repairs and other tangible property costs, the IRS's Large Business & Industry Division has issued a directive telling its examiners, for tax years beginning before Jan. 1, 2012, to generally stop current exam activity on the issue of whether such costs must be capitalized under Section 263(a). For tax years starting in 2012 and 2013, they are to determine if the taxpayer filed Form 3115 and perform a "risk assessment" to determine whether to start an examination. Read more.
3.19.12 When is Form 8938 required for 2011 individual returns? — This webcast, IRC Section 6038D: Specified Foreign Financial Asset Reporting: When is form 8938 required in 2011 Individual Income Tax Returns?, to be held 2 to 3:30 p.m. ET on March 20, features Internal Revenue Service staff who will focus on IRC Section 6038D, and the temporary regulations released in December 2011 regarding the reporting of specified foreign financial assets that starts with calendar 2011 individual tax returns. The webcast is free (without CPE) for AICPA Tax Section members or available for a fee with CPE. If you are not an AICPA Tax Section member, you can still attend the webcast for CPE at a cost. The webcast will be rebroadcast at 3 to 4:30 p.m. ET on March 27.
2.28.12 New CITP Exam prep tool: CITP Exam sponsorship program —The first mandatory Certified Information Technology Professional Examination is scheduled for July 25 to Aug 31. Beginning July 25, applicants must pass the CITP Exam to attain the CITP Credential. Registration for the exam closes July 20. To help you prepare for the exam, the Information Technology Division has introduced the new CITP Exam Sponsorship Program to assist CPAs with interest in Information Management and Information Technology to complete the CITP Exam requirement and ultimately obtain the CITP credential. The sponsorship is designed to be a reimbursement of expenses incurred in the preparation and taking of the CITP Exam. You may already be qualified to receive the sponsorship award. Download the application today and take advantage of this great incentive. Visit the CITP Exam Web page for more resources to help you prepare for the exam.
2.24.12 AICPA committee advises changes in principal vs. agent proposal — In a comment letter to the Financial Accounting Standards Board, the AICPA's Financial Reporting Executive Committee stated concerns about operational challenges in a Proposed Accounting Standards Update, Consolidation (Topic 810) -- Principal Versus Agent Analysis. Read more.
2.10.12 Employers have incentive for teaching financial literacy — Efforts to educate employees about budgeting, investing and other financial matters are gaining ground, as companies find that money stress makes workers less productive. A Society for Human Resource Management survey of human resources professionals found that 83% said their companies were affected by workers' personal financial problems. About half said workers had trouble focusing on work, and 24% said financial problems led to tardiness and absenteeism. The AICPA and SHRM joined forces to launch the WLIFE awards, recognizing organizations with exemplary workplace financial literacy programs. Learn how to start one in your office. Time.com/Moneyland Blog.
2.09.12 Accounting jobs are growing at steady clip — The accounting profession can expect solid job growth for the next six years. The Bureau of Labor Statistics estimates that the sector will have grown 22% by 2018, from 2008. Public accounting firms, such as the Big Four, and other corporations are in hiring mode. FINS.com
2.09.12 Some CFOs worry about disclosure requirements in FASB proposal The FASB is generally receiving positive feedback on its revised proposed Accounting Standards Update on Revenue Recognition (Topic 605), in anticipation of the March 13 comment deadline. However, some CFOs say the standard will result in "onerous disclosure requirements" likely to lengthen financial statements. AICPA members can learn more about FASB's revenue recognition proposal and other convergence projects at the Financial Reporting Center on AICPA.org. CFOworld.
2.09.12 IRS proposes rules for foreign financial institution reporting and withholding under FATCA — The IRS issued proposed regulations on Wednesday under the Foreign Account Tax Compliance Act that would provide a step-by-step procedure for foreign financial institutions and certain other entities to use when identifying U.S. accounts, reporting on those accounts, and withholding tax on certain payments. The U.S. and five European countries also announced that they are exploring ways to cooperate in fighting international tax evasion. JournalofAccountancy.com.
2.09.12 The AICPA has several items on its tax advocacy to-do list — AICPA Insights.
2.09.12 Sign up for the AICPA Corporate Taxation Insider e-newsleter.
1.25.12 New Tax Provisions for 2012 — With the ringing in of the new year, several new tax provisions took effect.
Read this article, written by Alistair M. Nevius, here.
1.25.12 AICPA Suggests Consistent Treatment of All Tax Payments for Estates and Trusts — In a letter to the Senate Committee on Finance and the House Committee on Ways and Means, dated January 12, the AICPA suggested Congress pass legislation that treats all federal tax payments of trusts and estates, including estimated tax payments, backup withholding and regular withholding, consistently. Currently, the ability of a trust or estate to allocate its tax payments to its beneficiaries is different for each, which becomes confusing and unnecessarily complex to taxpayers and tax practitioners. Read the comment letter for more information, including details of the AICPA's proposal.
1.25.12 Sign Up for CPA Letter Daily to Get Tax News Every Day this Filing Season — CPA Letter Daily will run January 18 through April 17 and will feature daily tax news in its Tax Season Watch. Sign up for the free daily publication today to ensure you receive every issue with Tax Season Watch.
1.24.12 NASBA and AICPA Give Final Approval to Revisions To Continuing Professional Education Provider Standards — Boards of Directors for both NASBA and the AICPA today announced final approval of the proposed revisions to the Statement on Standards for CPE Programs (Standards).
To read the rest of the press release please click here.
1.23.12 Using Valuable Resources to Help Your Firm, Company and Career — Read a letter by AICPA Chairman Gregory J. Anton, CPA about what you can do to help your business.
Read the rest of the letter here.
1.06.12 What else is new for 2012? —
Several other new tax provisions took effect that practitioners should be aware of.
See the article in AICPA's Journal of Accountancy.
12.16.11 AICPA Outlines Concerns About Audit Firm Rotation — Mandatory audit firm rotation would be costly and could hinder audit quality rather than enhance it, the AICPA told the Public Company Accounting Oversight Board (PCAOB) in a comment letter December 14. The letter responds to a PCAOB concept release that said proponents of audit rotation contend that capping terms could limit client pressure on auditors. Read this JournalofAccountancy.com article for more information.
11.11.11 Send the Financial Accounting Foundation a Comment Letter Supporting an Independent Board for Private Company GAAP Modifications —The AICPA is urging CPAs to immediately send a comment letter to the Financial Accounting Foundation (FAF) to help make financial reporting more relevant and less complex for millions of the nation’s businesses. CPAs are asked to respond to FAF’s Plan to Establish the Private Company Standards Reporting Council, released on October 4 for public comment, and express support for the Blue Ribbon Panel on Standard Setting for Private Companies’ recommendation that FAF create an independent board to set exceptions and modifications in U.S. GAAP for private companies. According to FAF’s proposal, decisions of the new council would have to be reviewed and approved by the Financial Accounting Standards Board (FASB), which FAF oversees.
11.04.11 AICPA Asks For Review of PTIN Information Disclosure— The Internal Revenue Service was making available, under Freedom of Information Act requirements, information about tax return preparers who hold a personal tax identification number, including name, address, e-mail address and phone number. However, the IRS has indicated to the AICPA that it has temporarily suspended this practice. The AICPA is discussing with the IRS the appropriateness of the release of this information and has strongly suggested that PTIN holders be given an opportunity to opt out of the release of their information. For more information, visit AICPA.org.
10.19.11 AICPA Sends a Strong Message to FAF: Adopt the Blue Ribbon Panel Recommendations for an Independent Board — The AICPA governing council overwhelmingly approved a resolution that sends the FAF a strong message: either FAF moves to adopt the Blue Ribbon Panel on Standard Setting for Private Companies’ recommendations for a separate board— which is the AICPA’s preference— or the AICPA will consider other options. Read More.
10.14.11 IRS Panel Hears Concerns About Fingerprinting Proposal — Witnesses at an Internal Revenue Service (IRS) hearing on October 7 raised many concerns about the IRS’s plan to require fingerprinting as part of its return preparer regulation initiative. Patricia Thompson, CPA, and chair of the AICPA’s Tax Executive Committee, testifying on behalf of the AICPA, asked the IRS to consider alternatives that would reduce the burden and expense, and she reiterated the AICPA’s position that CPAs should remain exempt from the fingerprinting requirement. Read this article at JournalofAccountancy.com for more information. See responses from NVCPA Taxation Committee members Nina Gallagher and Candace Johnson.
9.16.11Professional Ethics Executive committee approves a number of proposals for exposure. —For information visit the AICPA website under Interest Areas.
9.16.11 Tax Strategy Patents Ban is Official — President Obama signed the bill this morning. Taxpayers have won a significant victory today with the enactment of the America Invents Act, a major patent reform measure that includes a provision to eliminate tax strategy patents fought for by the AICPA and individual state CPA societies. Several NVCPA Board members have been advocating this provision for years with personal visits, letters and emails to our elected federal officials. “This certainly is a day to celebrate the effectiveness of our on-going advocacy,” notes Carlene Gaydosh, current NVCPA representative of AICPA Council and a former President and Legislation Chairman of the Nevada Society of CPAs. “This passage of this provision was indeed a hard fought victory.” Read the AICPA Press Release here.
8.22.11 Exposure Draft: Proposed Changes to the AICPA Standards for performing and Reporting on Peer Reviews. Read more here.
8.17.11 N.Y. Becomes 48th State to Enact a Mobility Statute. On Aug. 17, N.Y. Governor Andrew Cuomo (D) signed a bill that modernizes regulations, allowing CPAs to represent clients across state lines. There are now only seven remaining states and jurisdictions without a mobility statute. However, this year, legislation remains active before the DC City Council, and the remaining states and jurisdictions are all having active conversations to consider how best to move the issue forward. For more information read this statement from AICPA president and CEO, Barry Melancon.
6.14.11 The AICPA is urging CPAs to immediately contact the Financial Accounting Foundation to express their support for the Blue Ribbon Panel on Private Company Financial Reporting’s major recommendations for differential standards and a separate, autonomous standard-setting body for private companies. Ten minutes of your time will make more relevant and useful accounting standards for private entities a reality.Watch AICPA CEO Discuss the issue here. Letter writing tool. PCFR Website.
4.20.11 The Internal Revenue Service provided guidance regarding the deductibility of investment advisory fees for the 2010 filing year that will last until final regulations are issued. The guidance followed a request by the AICPA for the current deductibility method to be continued until the final regulations are issued, so CPAs would not have to wait until the end of filing season each year to find out how inv
4.15.11 On April 14, President Barack Obama signed legislation repealing the expanded 1099 reporting requirements that were enacted last year. The bill was overwhelmingly approved by the House and Senate. The AICPA had advocated strongly for repeal of both provisions and as one of the only organizations advocating against the rental property requirement was a driving force in its repeal. When the Senate passed the bill on April 5 and sent it to President Obama for his signature, AICPA President and CEO Barry Melancon described the repeal as “a victory for taxpayers.”
4.6.11 On Tuesday, the Senate voted 87-12 in favor of repealing both recently enacted expanded Form 1099 information reporting requirements. The bill now goes to the president for his signature. The repeal is paid for by changing how excess advance payments of certain health care credits are taxed. For more information, read this statement from AICPA President and CEO, Barry Melancon, applauding the repeal of the provisions and read this JournalofAccountancy.com article.
2.17.11 The House Ways and Means Committee voted on February 17 to send to the House floor a bill that would repeal the expanded 1099 reporting requirements enacted last year as part of the health care law and the Small Business Jobs Act. The cost of repeal would be offset by changes to the IRC § 36B health care credit . JournalofAccountancy.com article for more information.