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 Special report covers world of IT and finance — The Financial Times offers a special report on the connection between technology and finance. Topics include collaboration between IT and finance professionals, battling data theft and cloud computing’s growing role.
4.5.12 Cloud computing isn’t a cure-all — Rob Livingstone writes, “Just make sure that when you launch your own cloud initiative, the driver is not enthusiasm for the technology but a deep knowledge of your own business requirements”. 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 Why sports teams are worth so much— Read more in the USA TODAY/Daily Pitch and Forbes.
3.28.12 U.S. exports to China pass $100 billion— Read more.
3.28.12 U.S. home prices sink to lowest level since financial crisis— 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 Data links IPOs to financial restatements— Read more.
3.28.12 How to apply basis and at-risk loss limitations to partnerships— Read more.
3.28.12 IRS increases its focus on transfer-pricing tax abuse— Read more.
3.28.12 Europe's sovereign-debt crisis isn't over, OECD warns— 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 Economists challenge idea that rising productivity cut jobs—Economists increasingly consider incorrect a widely held view that rising productivity reduced manufacturing jobs. Such employment fell because manufacturers were unable to successfully compete globally, experts said. Read more.
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 Financial advisers await clarification on 12(b)-1 fees—Financial advisers will receive guidance about revenue sharing and 12(b)-1 fees when the Labor Department unveils a revised fiduciary rule. The agency is drafting a series of exemptions to prohibited transactions for advisers working with retirement plans, said Deputy Assistant Labor Secretary Michael Davis. Read more at InvestmentNews and Reuters.
3.20.12 New PCAOB data bolsters case against mandatory auditor rotation—It will be difficult to implement a requirement for companies to periodically switch auditors because two out of the Big Four auditing firms are responsible for 70% of audits in several industries, data from the U.S. Public Company Accounting Oversight Board shows. This would mean companies could have trouble finding a CPA who is an expert in a particular industry if the requirement were to go into effect. The PCAOB will hold two days of public roundtables on this issue. 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 U.K. moves to reduce top income-tax rate of 50% — Read more.
3.20.12 Companies issue 30-year bonds at record pace — Companies are issuing 30-year bonds at a record pace this year to take advantage of low interest rates and investment demand. According to Dealogic, there have been 44 U.S. offerings of 30-year bonds this year, 52% more than the offerings at the same time last year and the most since at least 2000. 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 Bernanke and Geithner to testify at hearing on European crisis — The House Oversight and Government Reform Committee plans to hold a hearing on Europe's sovereign-debt crisis. The panel announced that Federal Reserve Chairman Ben Bernanke and Treasury Secretary Timothy Geithner will attend. The hearing will focus on U.S. exposure to Europe's issues and lessons that can be learned. Read more.
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 U.S. economic recovery is uninspiring but real — Many parts of the U.S. economy are showing signs of life, while others have stopped worsening. A few sectors, such as exports, are weakening, according to The Economist. "But economic recovery doesn't have to wait for all of America's imbalances to be corrected," the magazine notes. "It only needs the process to advance far enough for the normal cyclical forces of employment, income and spending to take hold. ... it now seems that, at last, they have."
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 GAO finds that IRS computer, data security is lacking — Read more .
3.19.12 SEC makes progress on consolidated audit trail, Schapiro says — The May 6, 2010, flash crash prompted the Securities and Exchange Commission to develop a consolidated audit trail of securities transactions. Chairman Mary Schapiro said the agency is proceeding with the effort. "At this point, the contours of the staff recommendations are being finalized, and I expect that the regulations will soon be considered by the full commission," Schapiro said. Read more.
3.19.12 Fed's stress tests bolster effort to recoup TARP funds — Treasury Secretary Timothy Geithner is striving to recoup the funds extended to financial institutions through the Troubled Asset Relief Program. Some of the banks, including Zions Bancorporation and Regions Financial, announced last week that they plan to repay the TARP funds after they passed the stress tests conducted by the Federal Reserve. "The administration needs to clean this out," said Clifford Rossi, a professor of business at the University of Maryland. "Now with the stress test release, this is a good time to pull the trigger." Read more.
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.
2.28.12 IVSC starts project to establish derivatives valuation standards — The International Valuation Standards Council is starting a project whose objective is to provide more transparency around the valuation process for financial derivatives. It begins the project even as the International Accounting Standards Board and the Financial Accounting Standards Board work on their own financial instruments accounting standards project. The goal for the IVSC project is investor protection. Read more.
2.28.12 Some observers say corporate tax reform could get done this year — Some Washington observers think a deal to overhaul the corporate tax code could be completed this year. These people, who represent the minority opinion, point to the open congressional calendar for the rest of year. Also, if Congress were to pass a comprehensive tax code reform, it would bolster its image to voters. Read more.
2.27.12 PCAOB will hold an open meeting on related-party audit standard— The Public Company Accounting Oversight Board will discuss a proposed standard for auditing related parties at an open meeting on Tuesday. The discussion will also look at amending other auditing standards for unusual transactions and broker-dealer auditors. Read more.
2.27.12 SEC chairman says U.S. won't be rushed into IASB rules— Mary Schapiro, chairman of the Securities and Exchange Commission, said the U.S. won't be rushed or forced into adopting international accounting standards. "I don't feel any pressure at all to go along with anybody," Schapiro said. "I feel pressure to do the right thing for U.S. markets and U.S. investors." More than 100 nations use the International Accounting Standards Board's accounting rules. Learn more about International Financial Reporting Standards at IFRS.com. Read more.
2.27.12 SEC zeroes in on corporate disclosures— The Securities and Exchange Commission is putting pressure on companies to be more forthcoming in their disclosure documents. The agency has focused on improving disclosures related to issues such as cash in overseas accounts, litigation and exposure to the European debt crisis. The push is aimed at getting investors better information about companies' risks, SEC Chairman Mary Schapiro said. The Wall Street Journal/CFO Journal.
2.24.12 Labor market shows continued improvement — The four-week average of U.S. workers filing new applications for jobless benefits continues to decline, furthering hopes that the job market is gradually improving. The number of new applications held steady for the past week, however, totaling 351,000, according to the Labor Department. The four-week moving average dropped by 7,000 to reach 359,000, the lowest since the week of March 22, 2008. Read more.
2.24.12 $10 billion program creates fewer jobs than claimed, WSJ finds — Companies that benefited from a $10 billion federal program to create jobs with renewable energy projects said they created more than 100,000 jobs. However, a Wall Street Journal investigation finds that far fewer jobs were actually created as some companies laid off workers and some renewable energy projects failed. Read more.
2.24.12 Obama tax plan would be a mixed bag for some companies — Retailers, health care providers and some manufacturing companies are likely to benefit under the President's proposal to overhaul corporate taxes, according to this analysis. However, multinationals that keep certain assets offshore could see their effective tax rate go up. The proposal also calls for a 25% tax rate for manufacturers, with the goal of increases for research and development and clean-energy production. Read more.
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.
2.24.12 Hoogervorst: Once U.S. moves to IFRS, Japan and India could follow — IASB Chairman Hans Hoogervorst believes the U.S. will adopt international accounting standards, although he doesn’t expect the country to fully embrace them within three years. The positive momentum to IFRS by the U.S., in whatever form, will encourage other nations, such as India and Japan to follow suit, he says. Read more.
2.24.12 Payroll-tax cut enacted and new Form 941 posted — President Barack Obama on Wednesday evening signed into law the bill extending the lower 4.2% Social Security tax rate through 2012. On Thursday, the Internal Revenue Service released an updated Form 941 for employers to use that reflects the extension of the lower rate. Read more.
2.24.12 $1 billion in tax refunds from 2008 are still waiting to be claimed — Accounting Today
2.24.12 Understanding procrastination can help you conquer it — People procrastinate for the same reason they borrow money -- to receive short-term gratification in exchange for consequences at a later date, says Rory Vaden, co-founder of Southwest Consulting. To resist the urge to procrastinate, envision how completing the task can improve your life or help you reach a goal. Also, keep in mind the law of diminishing intent, which says that the longer you procrastinate, the less likely you are to act, Vaden says. Read the full article at CIO.com
2.24.12 Can Steve Wynn turn Macau into Las Vegas? — Steve Wynn, the billionaire CEO of Wynn Resorts, wants to turn the Asian port city of Macau into a Vegas-style Disneyland for international gamblers. Wynn refers to China's nouveaux riches as "my people," saying their appetite for leisure rivals that of post-war Americans. "There's a huge pent-up demand here, a repressed craving for this kind of an exper¬ience," he says. "It's just like America was, in a way."For more on this story please visit Forbes, or Reuters.
2.24.12 How Stonyfield Farm saved cash by going green — Organic-yogurt company Stonyfield Farm has saved $18 million by curbing its carbon emissions, reducing waste and limiting its water footprint, says Wood Turner, the company's vice president of sustainability innovation. "We were founded on the idea that you do the right thing, that you embed these environmental values into your business, but over time, we've realized that focusing on impacts also reduces cost," Turner said. The Business Insider.
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.
2.10.12 Government and banks announce $25 billion settlement — State and federal government officials reached a $25 billion settlement with major banks over foreclosure issues. The deal will provide some relief to troubled borrowers and could help the economic recovery. However, it isn't expected to be a panacea for the housing market. "It is frankly a headline victory for both banks and attorneys general with a modest impact on the housing market," said Joshua Rosner, managing director at Graham Fisher & Co. The Wall Street Journal, Los Angeles Times, Bloomberg.
2.09.12 PCAOB Announces Settled Disciplinary Order for Audit Failures Against Ernst & Young and Four of its Partners Ernst & Young to Pay $2 Million to Settle Charges. Read the press release here.
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 Add Revenue, Not Workload — Hear from a panel of accountants who partner with myPay Solutions to process their clients’ payroll without the liability and hassle, while providing top quality service from a trusted provider. Learn more at a free one hour webcast: ADDING REVENUE, NOT WORKLOAD: How Firms are Getting Ahead with myPay Solutions. Register
2.09.12 U.S. companies plan to invest domestically as economy warms up. Read story here.
2.09.12 Corporate treasurers protest money market fund measures. Read the story at The Wall Street Journal/CFO Journal.
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 Officials and banks close in on $26 billion foreclosure deal — Read the story at The Wall Street Journal.
2.07.12 Congratulations to Johnson Jacobson Wilcox for being named the best small firm to work for for the second year in a row. — Are you one of the best accounting firms to work for? Accounting Today can help you find out! Click here for more information.
2.06.12 Making the Right Successor Choice
— As your client’s CPA and trusted adviser, you are in a good position to bring some objectivity in designing this process to achieve the best outcome. - by Heidi Bolger, CPA, ABV
2.06.12 Did You Know Napping Can Enhance Productivity?— The pesky issue of rest management - by Justin Locke
2.01.12 IRS refund delays cause problems for some taxpayers— Accounting Today
2.01.12 10 planning considerations when a client leaves a job — Tax practitioners can help clients who lose their jobs -- voluntarily or involuntarily -- mitigate some of the tax consequences through careful planning. Here are 10 planning considerations practitioners should make their clients aware of when they face the loss of a job.
2.01.12 Finance teams take on bigger strategy role, survey says — A Deloitte survey shows that setting strategy is becoming a higher priority for finance teams, which are encountering challenges as a result. CGMA Magazine.
1.31.12 Education tax credits, deductions and 529 plans can reduce tax liability — Fox Business.
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 IRS issues final regs on exclusion of damages for personal physical injury — The IRS on Friday issued final regulations relating to the exclusion from gross income for damages received on account of physical injuries or sickness (T.D. 9573). ... Read the rest of the article 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 Statutory definition of specified notional principal contract extended through 2012— The IRS issued temporary and identical proposed regulations on dividend equivalents for purposes of Sec. 871(m) (T.D. 9572; REG-120282-10). The regulations provide guidance to nonresident aliens and foreign corporations that hold notional principal contracts providing for payments determined by reference to payments of dividends from sources within the United States. Read more here.
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.
1.12.12 IRS Stakeholder Liasion Area Manager for Nevada, James Kinsley releases letter to NVCPA members— As the IRS Stakeholder Liaison Area Manager for Nevada, I want to thank you for your past support and ask for your continued partnership with your local stakeholder liaisons and me. SL is proud to be in our sixth year as the practitioners’ gateway to the IRS. We have had a busy year, holding practitioner events, conducting national webinars, and establishing web-based tax centers.
Read the letter.
1.06.12 IRS Kicks Off 2012 Tax Season with Deadline Extended to April 17 — On January 4, the IRS announced that taxpayers have until April 17 to file their tax returns. The IRS encourages taxpayers to e-file as it's the best way to ensure accurate tax returns and get faster refunds. The IRS has made a number of improvements to help make tax season easy for taxpayers. Read more
1.06.12 Thomas Pytel Jr. Joins CAMICO as
Vice President of Marketing and Communications — SAN MATEO, CA (January 6, 2012) – CAMICO (www.camico.com), the nation’s largest CPA-focused program of professional and employment practices liability insurance for the accounting profession, has appointed Thomas Pytel Jr. as Vice President of Marketing and Communications, with additional responsibility for agency management and direct sales. He succeeds Sandra A. Maker, who retired in December, 2011, after 19 years at CAMICO. Read more.
1.06.12 E-file Mandate —
Starting in 2012, tax return preparers who expect to file 11 or more individual, estate, or trust returns in a calendar year must e-file. Firm members are required to compute the number of covered returns in the aggregate that they reasonably expect to file.(Rev Proc 2011-25, 2011-17 IRB) Learn more.
1.06.12 IRS Guidance Coming For Payroll Tax Cut Recapture — View IRS news item.
1.06.12 Estate Tax Deadline —
Estates of decedents who died in 2010 have until Jan. 17, 2012, to elect not to have the estate tax apply and to have heirs' bases in assets they inherit determined under the modified carryover basis rules. This election is made by filing Form 8939, Allocation of Increase in Basis for Property Acquired from a Decedent.
For more on Form 8939 requirements, see the article in Tax Adviser by Carol Cantrell, chair of TSCPA's Federal Tax Policy Committee.
1.06.12 IRS Continues to Crack Down on False EITC Claims —
Effective Jan. 1, 2012, tax preparers must file a due diligence checklist, Form 8867, with any federal return claiming the earned income tax credit (EITC). The penalty for failing to meet the due-diligence standard increased from $100 to $500 per return and can be assessed to both the preparer and employer. Last year, the Treasury Inspector General for Tax Administration reported that as many as 28 percent of EITC credits paid to taxpayers were fraudulent, totaling around $13 billion. (TD 9570) Read EITC Due-Diligence Requirements article from AICPA's The Tax Adviser.
View the regulations. (.PDF)
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.
1.06.12 Online PTIN Troubleshooting Tips — All preparer tax identification numbers (PTINs) expired on Dec. 31, 2011, but the IRS will continue to accept PTIN renewals after the deadline. If you are experiencing technical difficulties when attempting to renew, go to the online troubleshooting tips on the IRS website. New PTIN application filings were shut down for two weeks, but should open again Jan. 9, 2012. Find out more.
1.06.12 IRS Letters and Visits
to Tax Return Preparers —
During the month of November 2011, the Internal Revenue Service sent letters to more than 21,000 tax preparers who prepared a large number of 2010 individual returns with Schedules A, C or E during the 2011 filing season. The IRS letters identified these recipients as preparing returns that have a high percentage of attributes associated with returns typically containing inaccuracies and misinterpretations of tax law. The letters remind preparers of the new tax return preparer requirements, their professional responsibilities associated with filing these types of returns, and consequences of filing incorrect returns. Read more here.
1.03.12 Informer Books Announces the Release of ‘Internet Marketing Bible for Accountants’ by Nick Pendrell — (January 3, 2012 - Indianapolis, IN) Informer Books today announced the release of Internet Marketing Bible for Accountants: The Complete Guide to Using Social Media and Online Advertising including Facebook, Twitter, Google and LinkedIn for CPAs and Accounting Firms, by Nick Pendrell. Read the official press release here.
12.15.11 IRS Urges Preparers to Renew PTINs for 2012 — The Internal Revenue Service today reminded tax return preparers to renew their Preparer Tax Identification Numbers (PTINs) before year’s end. All 2011 PTINs will expire on Dec. 31 and must be renewed annually. Read more from the IRS Newswire here.
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.
10.27.11 House Passes H.R. 647 and H.R. 2576 — A bill to repeal the 3% withholding requirement on certain payments made to vendors by Federal, state and local government entities, passed the House this morning by a vote of 405-16. To offset the cost of repealing the 3% withholding requirement, the House also passed H.R. 2576 by a vote of 262-157, which relates to the income calculations for Medicaid and health insurance subsidies. Repealing the 3% withholding requirement is generally supported by parties and the Obama Administration. However, it is expected there will be partisan battles in the Senate that will slow the process.
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.
10.4.11 The PCAOB Publishes Staff Audit Practice Alert On Audit Risks in Certain Emerging Markets
— The Public Company Accounting Oversight Board published a Staff Audit Practice Alert, Monday, October 3, 2011 to increase auditors' awareness of risks when performing audits of companies with operations in emerging markets. Read the PCAOB press release here.
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.
9.14.11 PCAOB Enters into Cooperative Agreement with Norway —"With this agreement, Norway's Financial Supervisory Authority (FSA) and the Public Company Accounting Oversight Board (PCAOB) are joining forces to improve audit quality and protect investors," said PCAOB Chairman James R. Doty. Read more here.
9.13.11IRS Offers Filing and Penalty Relief for 2010 Estates; Basis Form Now Due Jan. 17; Extension to March Available for Estate Tax Returns — The Internal Revenue Service announced today that large estates of people who died in 2010 will have until early next year to file various required returns and pay any estate taxes due. In addition, the IRS is providing penalty relief to certain beneficiaries of these estates on their 2010 federal income tax returns. 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.
8.16.11 The PCAOB Issues Concept Release on Auditor Independence and Audit Firm Rotation. Read the full press release here.
4.26.11 Financial Accounting Standards Board (FASB) Chairwoman Leslie Seidman and International Accounting Standards Board (IASB) Chairman Sir David Tweedie on April 14 said they will take “a few additional months” beyond June to complete convergence projects on revenue recognition, leases, financial instruments and insurance. A progress report released on April 21 provided information on how the organizations will tackle the convergence projects. The FASB and IASB recently released an online survey to generate feedback from users about the time and effort involved in adopting new standards. Read this JournalofAccountancy.com article for more information.
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.”
4.14.11 The heads of FASB and the International Accounting Standards Board (IASB) on Thursday announced they will take “a few additional months” beyond their June target date to complete priority joint convergence projects on revenue recognition, leases, financial instruments and insurance. JournalofAccountancy.com article.
4.12.11 On Tuesday, the IRS issued proposed regulations (REG-154159-09) that provide rules regarding who is the “taxpayer” for purposes of applying the IRC § 108 discharge of indebtedness rules to a grantor trust or disregarded entity. JournalofAccountancy.com article.
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.
3.24.11 The IRS has posted a series of questions and answers (FAQs) about the new requirement for large corporations to report their uncertain tax positions. The seven FAQs address both reporting requirements for Schedule UTP, Uncertain Tax Position Statement, and the IRS’ policy of restraint.. Read JournalofAccountancy.com article for more information.
3.9.11 The Senate voted 95–5 Tuesday to pass the America Invents Act (S 23), which was formerly called the Patent Reform Act. Included in the bill is a provision intended to stop the granting of patents for tax strategies. That provision, in section 14 of the bill, would deem any “strategy for reducing, avoiding, or deferring tax liability” to be prior art. Under U.S. patent law, to be patentable an idea must be novel and non-obvious; patents cannot be granted for ideas that are already within the body of public knowledge, which is known as prior art (35 U.S.C. § 102). Read JournalofAccountancy.com article for more information.
3.3.11 Today the House of Representatives passed the bill that repeals the expanded 1099 reporting requirements included in the new healthcare law. The vote was 314-112. Both the U.S. Senate and the House have passed bills to repeal the provision, but those bills are NOT the same, so the two chambers must negotiate a compromise. The primary issue for negotiations is how to make up the revenue that the government expected to raise with the provision, because that was part of the funding for the healthcare law. Read JournalofAccountancy.com article for more information.
2.28.10 The NVCPA wrote Senators Reid and Ensign to urge their support for legislative efforts to stop the issuance of tax strategy patents. As the Senate begins debate on S. 23, comprehensive patent reform, the NVCPA asked that they specifically champion the provision related to stopping tax strategy patents, Section 14 of the bill. This pro-taxpayer provision is a critical component of patent reform legislation and the NVCPA urges them to oppose any effort to weaken or remove it. Read Letter to Reid
2.28.10 The NVCPA wrote Senators Reid and Ensign to urge their support for legislative efforts to stop the issuance of tax strategy patents. As the Senate begins debate on S. 23, comprehensive patent reform, the NVCPA asked that they specifically champion the provision related to stopping tax strategy patents, Section 14 of the bill. This pro-taxpayer provision is a critical component of patent reform legislation and the NVCPA urges them to oppose any effort to weaken or remove it. Read Letter to Reid
2.25.11 The Accounting and Review Services Committee (ARSC) has issued Statement on Standards for Accounting and Review Services (SSARS) No. 20, Revised Applicability of Statements on Standards for Accounting and Review Services, to amend paragraph .01 of AR section 90, Review of Financial Statements, in AICPA Professional Standards so that SSARSs do not apply when the provisions of Statement on Auditing Standards (SAS) No. 100, Interim Financial Information, as amended by SAS No. 116 (AICPA, Professional Standards, vol. 1, AU sec. 722), and SAS No. 121 (see below), apply. SSARS No. 20 is effective for reviews of financial statements for periods beginning after December 15, 2011. Early application is permitted.
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.
1.31.11 The past year’s focus on the lack of relevance and increased complexity of too much of the information in private company GAAP financial statements has culminated in the Blue Ribbon Panel on Private Company Financial Reporting presenting its recommendations to the Financial Accounting Foundation (the oversight body of the Financial Accounting Standards Board). Read More
1.4.11 The Internal Revenue Service today opened the 2011 tax filing season by announcing that taxpayers have until April 18 to file their tax returns. The IRS reminded taxpayers impacted by recent tax law changes that using e-file is the best way to ensure accurate tax returns and get faster refunds. Read More