10.23.12 AICPA Launches Consumer Book Featuring Personal Stories and Advice from 125 CPAs to public
10.23.12 Proposed New Financial Reporting Framework for Smaller Enterprises Discussed
10.23.12 U.S. exporters lose business amid China's downturn— U.S. companies for heavy machinery, mining and metal processing, which thrived when China was growing rapidly, are laying off workers because of China's economic slowdown. China is the world's third-biggest customer of U.S. goods, after Canada and Mexico.
10.23.12 Consumers are unfazed by "fiscal cliff" talk, data show— American consumers are generally aware of the debate about the "fiscal cliff" awaiting the U.S. economy at year-end, but they aren't worried enough to scale back holiday spending plans, according to data from the National Retail Federation. The group predicts that sales over the holiday shopping season will jump 4.1%, its most optimistic forecast since the recession.
10.23.12 Private Company Council chair prefers holistic approach over differential standards— Billy Atkinson, the chair of the new Private Company Council, said he favors embracing differential accounting standards for private companies only after first exploring with the Financial Accounting Standards Board whether changes can be made to the standards to accommodate all companies.
10.23.12 U.S. leadership position among global accounting bodies in question if convergence, IFRS stall, AICPA's Melancon warns— Progress on convergence of international standards and U.S. GAAP might be slipping, AICPA President and CEO Barry Melancon warned in a speech Monday. He said lack of momentum on convergence and adoption of International Financial Reporting Standards for public companies could leave the U.S. at risk of international ramifications, including loss of its leadership position among standard setters.
10.23.12 Hoogervorst promises on-time delivery of conceptual framework— Hans Hoogervorst, chairman of the International Accounting Standards Board, says the board's conceptual framework project will finish on time. Revising the framework is essential because the IASB is "struggling with so many basic questions in terms of measurements," he said.
10.23.12 Corporate tax changes could turn choice-of-entity decisions upside down— Many businesses are formed as passthrough entities to avoid double taxation and to get the benefits of lower income or capital gain tax rates on income items passed through to the owner. However, in this article, Jose Zambrano, CPA, explores how proposed lower corporate tax rates and scheduled increases in taxes on qualified dividends could up-end the usual assumptions and make C corporations a more attractive choice of entity.
10.23.12 IRS will screen for refundable credit payment history — The Internal Revenue Service is putting in place a screening method that will display a taxpayer's history before the agency pays out a refundable credit claim. It is taking this step in response to a Treasury Inspector General for Tax Administration report that found the IRS had mistakenly issued $2.3 billion in refundable credits from 2006 to 2009.
10.23.12 Regulators struggle to agree on details of Volcker rule — The Securities and Exchange Commission is clashing with other regulators in crafting the Volcker rule, raising doubt that the rule will be finalized by year-end. The situation also raises concern that the agencies will issue conflicting standards. The dispute involves how to define market making and banks' ability to invest in hedge funds and other investment vehicles, sources said.
10.23.12 Student-loan debt levels vary from state to state — The average student-loan debt load for a graduating college senior in 2011 was $26,600. However, the amount can vary widely from state to state. Students graduating from schools in New Hampshire, Pennsylvania and Minnesota had the heaviest average debt loads.
10.23.12 A CPA's guide to using Google Places— Google Places is an important local search-engine-optimization tool as it helps clients find you online and directly affects search-engine-result page rankings, writes AICPA's Gregory J. Wright. To maximize results with Google Places, be consistent in how you list your firm's name, address, phone number, domain and e-mail address.
10.22.12 New MAP benchmarking survey points way to improved performance and profits for CPA firms— Looking for ways to take your accounting firm to the next level? The new National MAP Survey provides benchmarks you can use to enhance your strategy. How can you leverage MAP's financial, operational, and demographic data to improve your firm? Find out with this early look at the November JofA checklist, which outlines seven ways to make the most of the results. Also see a snapshot of MAP results.
10.22.12 Most CPA Firms Show Increase in Fee Revenue, AICPA Survey Shows— Profession Makes Progress As It Pursues Pre-Recession Benchmarks. Read the official Press Release.
10.22.12 Unemployment falls in 41 states, government says— U.S. joblessness declined in most states last month, the Bureau of Labor Statistics said. Unemployment fell in 41 states, rose in six states and remained unchanged in three, the agency said. Employers in California are putting new workers on their payrolls at a rate ahead of the national average. Read more here.
10.22.12 U.S. existing-home sales dropped from August to September— Home sales statistics are giving mixed signals about the state of the U.S. housing market. Existing-home sales in September were down 1.7% from August but were 11% higher than in September 2011. Read more here.
10.22.12 CFOs give the PCAOB their opinion on mandatory audit firm rotation— Chief financial officers and auditors voiced their dissent over a possible mandatory audit-firm rotation rule at a Public Company Accounting Oversight Board meeting. The gathering in Houston was the third in a series being held on auditor independence. Read more here.
10.22.12 Companies find tax efficiencies in M&A ... and authorities are watching— As global companies increase their focus on tax efficiencies in mergers and acquisitions, tax authorities are stepping up their scrutiny. In this risky landscape, companies need a coordinated strategy with respect to tax audits and disputes. Read more here.
10.15.12 NVCPA Sends 2nd Request for S.3485 inclusion in Lame Duck Session Legislation to Senator Reid. — On Monday, October 15, 2012, Nikki Nelon, NVCPA Legislation Chairman, and Sharon Uithoven, NVCPA Executive Director, sent a second letter to Senator Reid on behalf of the members of the NVCPA. The letter was a second request of the inclusion of S.3485, the Mobile Workforce State Income Tax Simplification Act, in legislation moving through the Senate during the lame duck session. Read the letter here.
10.6.12 Resources for Boosting Online Presence and Engaging Current Clients—Social commerce sales are expected to total $9.2 billion by the end of this year and could climb to $14.25 billion in 2013. Consumers are not just shopping for the latest gadget; they’re buying everything from groceries to professional services, including those offered by your members’ CPA firms. To help your members reach consumers online, the AICPA has created ready-to-go Google ads. Additionally, your members can learn how to optimize their online presence by reading this AICPA blog post.
In addition to the Google ads, your members can find other resources in the Tax Practitioner’s Toolkit. The AICPA's tax blurbs cover a wide range of tax topics that can be added to client communications. This month’s tips include reminders about why clients should call a CPA in the event they are contacted by a tax authority and the benefits of the small business health care credit.
10.6.12 AICPA Launches Video Highlighting CPA Lawmakers —The State Regulatory and Legislative Affairs Team has developed a new video that highlights CPA lawmakers, their background and experience, why they decided to run, and their relationship with their state societies. The video, State CPA Lawmakers: Answering the Call, was launched at the AICPA exhibition booth during the National Conference of State Legislatures in Chicago and includes interviews with lawmakers from four states talking about their unique experiences. The video is available on the aicpa.org homepage page.
9.26.12 IRS Revokes Covered Opinion Standards in Circular 230 — In a move some knew was coming, but really could not talk about, on September 14, the IRS revoked Section 10.35 of Circular 230 and issued Proposed Regulations that strengthen Section 10.37. Read More
9.26.12 Free Webinar Provides an Update on Small Firm Issues — Join Jim Metzler, CPA, AICPA Vice President, Small Firm Interests -- Public Practice and Global Alliances, along with Natasha Schamberger, CPA, AICPA Senior Technical Manager, PCPS/Firm Services, from 3 to 4 p.m. ET on Tuesday, Oct. 2, for the next online PCPS/Small Firm Update webinar. Jim spends much of his time on the road speaking to practitioners and getting feedback about the issues that most concern them. This webinar includes an environmental scan of the challenges and opportunities practitioners face today as well as best practices for common practice problems. Participants will also be able to submit questions about the issues facing their own firms. Register today.
9.26.12 Video Helps Students Understand 2012 AICPA Accounting Competition; Registration Closes Oct. 1— Students curious about the 2012 AICPA Accounting Competition can learn more by watching this behind-the-scenes video. The registration phase of the 2012 AICPA Accounting Competition is currently open to undergraduate students interested in advising a presidential candidate on the nation’s financial issues. The top team takes home $10K, but the submission date is closing in. All team rosters must be complete and proposals submitted no later than 11:59 a.m. ET on Oct. 1. Tell your students to view the video, read the rules and register now to submit their best solutions before time runs out.
9.26.12 COSO Releases Another ED on Internal Control Revisions— The Committee of Sponsoring Organizations of the Treadway Commission, of which the AICPA is a member, has released for public comment an exposure draft of its Internal Control Over External Financial Reporting: Compendium of Approaches and Examples. This Compendium, part of COSO’s overall project to update its Internal Control–Integrated Framework, has been developed to assist users when applying the Framework to external financial reporting objectives. The Compendium illustrates how the principles set forth in the proposed updated Framework can be applied in designing, implementing and conducting internal control over external financial reporting. Read this CGMA Magazine article for more information.
9.26.12 What Can CPAs do to Fight Identity Theft? — Taxpayer identity theft is a serious and growing problem. The IRS has put in processes to help protect taxpayers but thousands of individuals are still affected. Read this blog by AICPA Senior Technical Manager Benson Goldstein to learn what steps to take as CPAs to keep it from happening and links to resources to help advise your clients.
9.26.12 Audit Data Standard Comment Period Extended— The comment period for the Audit Data Standard has been extended to Sept. 28, 2012. The Emerging Assurance Technologies Task Force of the AICPA Assurance Services Executive Committee issued the exposure draft July 18. The full exposure draft includes standards that address both the general ledger and accounts receivable subledger.
9.26.12 AICPA Releases ED for Comment on Partner Equivalent and Related Revisions— The AICPA Professional Ethics Division issued an omnibus exposure draft that contains a proposed definition of partner equivalent and related revisions as well as the proposed deletion of the holding out requirement and proposed related revisions to the definitions of professional services and public practice. Comments are due Monday, Nov. 19.
9.26.12 New FVS Report Offers Recommendations to Improve Efficiencies of the Financial Expert Witness Role in the Court System— The AICPA Forensic and Valuation Services Executive Committee, in collaboration with the Institute for the Advancement of the American Legal System (IAALS) at the University of Denver, has written a report that outlines five recommendations to improve the legal system and better serve the public interest. This effort calls on CPAs, attorneys, judges and other stakeholders of the civil justice system to consider and potentially implement these recommendations to maximize both the effectiveness and efficiency of financial expert witnesses in the civil pretrial process. Learn more about this first for CPA forensic accountants.
9.26.12 AICPA Announces Newly-Formed National Commission on Diversity — The AICPA has announced the creation of the National Commission on Diversity to serve as champions of diversity within the accounting profession. The formation of the Commission reflects a renewed focus on diversity within the profession to reflect the changing marketplace and shifting demographics. Chaired by Ken Bouyer, America’s director of Inclusiveness Recruiting, Ernst and Young, the Commission is charged with developing strategies to increase the retention and advancement of underrepresented minorities in the accounting profession, and engaging members and the profession in this dialogue. To learn more about this strategic initiative, read the press release.
9.26.12 SOC Marketing and Communications Made Easy — Many CPA firms are developing niche practices performing Service Organization Control engagements in response to marketplace demands surrounding assurance of controls at service organizations. To help firms navigate this emerging service area, establish a niche practice and help clients, prospects and service organizations understand the benefits of SOC engagements, the AICPA has created a number of free resources and marketing materials in a helpful SOC Toolkit for Firms. CPAs can find marketing flyers and an illustrative infographic to help explain SOC engagements to clients and prospects. In addition, the AICPA has created a separate toolkit to help service organizations better understand and capitalize upon SOC 1SM, SOC 2 SM and SOC 3 SM Reports. Click here to access the SOC Toolkit for Service Organizations or share this toolkit with service organization clients and prospects.
9.26.12 Clarified Standards Transition Required for Year-End 2012 Audits— CPAs have fewer than 100 days to prepare for the Dec. 15, 2012 transition to the clarified auditing standards effective for calendar year 2012 audits. New requirements may affect interim testing and other fieldwork and some mandate changes to the report. The AICPA has developed the Improving the Clarity of Auditing Standards webpage with a number of free resources to help CPAs prepare for the Dec. 15 deadline.
9.14.12 AICPA Supports Bill That Limits Definition of Municipal Adviser— The House Financial Services Committee approved a bill that exempts CPAs who provide services to municipal governments from having to register with the Securities and Exchange Commission as municipal advisors. AICPA members are encouraged to contact their member of Congress in support of H.R. 2827, the Dold bill. For more information on this and other important legislation, visit AICPA.org.
9.14.12 Content and Structure of Auditor's Report Under Review— A wide variety of views over what should be included in the auditor's report emerged during an International Auditing and Assurance Standards Board round table on September 10. The IAASB has proposed that "auditor commentary" should highlight matters that the auditor believes are likely to be most important to users' understanding of the audited financial statements. Read this CGMA Magazine article for more information.
8.29.12 AICPA Provides Guidance on FSA Certification Letters — The AICPA worked with the FSA to come to a resolution that meets both the FSA requirements and the professional standards of our members. The AICPA created a new dedicated webpage to coordinate the FSA’s release of a statement certification letter. A sample engagement letter and sample disclosure letter, which can be used in connection with providing the statement for average AGI compliance verification, are also posted on the website. The engagement and disclosure letters should be signed by the client before the member signs the certification.
For additional guidance, visit the FAQ section of the AICPA’s webpage. If you have additional questions, contact Melanie Lauridsen, AICPA Tax Manager.
8.29.12 Free Client Letter on the Importance of 2012 Tax Planning Available for Download — This year presents an unprecedented opportunity for your members to differentiate their firms and demonstrate the significant value they provide to clients by having all of their retirement, estate, tax, investment and insurance planning needs in mind. With so many 2013 unknowns compounded by an election year, it’s important for them to let their clients know that nowis the time to see their CPA to avoid missing financial opportunities. To help you communicate the importance of 2012 tax planning, the AICPA’s PFP Section is providing a free customizable client letter that your members can send to individual clients. PFP Section members and CPA/PFS credential holders have additional access to all the Proactive Planning in Preparation for 2013 Toolkit resources.
8.29.12 ASB Seeking Feedback Specific to U.S. Auditor’s Reports —The AICPA’s Auditing Standards Board is requesting members complete a survey to help inform the ASB’s response to the International Auditing and Assurance Standards Board’s Invitation to Comment: Improving the Auditor’s Report. On June 22, the IAASB released its ITC, seeking input on potential changes to improve the information provided in the auditor’s report on financial statements. Read the ASB’s letter requesting member input and access the survey, which will remain open through September 10.
8.29.12 Case Studies Highlight CPA, CGMAs’ Positive Impact on Their Organizations — CPA, CGMAs are guiding critical business decisions and driving strong business performance all over the world using management accounting research, tools and techniques. Seven new case studies from companies such as Dell, Unilever, P&G and KPMG are now available on CGMA.org. These case studies highlight real-world examples of how CPA, CGMAs are positively affecting their organizations.
8.29.12 “The Fast-Track to Leadership” Report for CPA, CGMAs Highlights Skills Needed for Success — As a shortage of suitable talent stifles global growth plans, a new report by the AICPA and CIMA, sponsored by recruitment experts Hays, highlights how finance professionals have never had a better opportunity to progress their careers and make a real mark on their organizations. “The Fast-Track to Leadership: The challenges, opportunities and action plan” outlines how, in forward-looking organizations, finance is evolving from a focus on transactions and cost efficiency to a focus on decision support and strategy. The report draws upon the personal experience of leading CFOs and finance directors to illustrate how management accountants can maximise these opportunities.
8.29.12 A New Suite of Tools Helps CPA, CGMAs Improve their Organizations’ Efficiency and Effectiveness— These days, there is an expectation for finance to take on a broader role in terms of providing management information and analysis and become more influential in how the organization is managed. How finance takes on this broader role in serving the business in the future has implications for the types of skills needed and the development of those skills. To help finance organizations address these changes effectively the AICPA and CIMA have created three tools that can be used individually or in combination by a single CPA, CGMA or by the entire finance team:
8.29.12 Tool Helps CPA, CGMAs Build Strong Teams — Accounting is a team concept and not an independent function. To be successful, CPA, CGMAs must enhance their skills in developing a strong and interdependent team. A new tool, offered jointly by the AICPA and CIMA, provides information on how financial leaders can shape their team’s behaviors, make team decisions by consensus and facilitate the team in creating their own tools, value systems and standards to help them foster a team culture. How to develop a strong and interdependent team is available for download on CGMA.org.
8.29.12 “Managing Responsible Business” Explores Importance of Ethics— The “Managing Responsible Business” report discusses the specific role played and challenges faced by CPA, CGMAs in the ethics arena. Survey findings included in the report show that there are pressure points and ethical gaps within organizations and the report highlights the role management accountants can take. Also available is a short video on business ethics.
8.29.12 Three Ethics Resources for CPA, CGMAs — With the importance of ethics and non-financial reporting rising on the global agenda, CGMAs are in a unique position to make an important contribution to creating a sustainable ethical operating environment. The AICPA and CIMA have developed a number of resources to assist CPA, CGMAs in guiding their organizations to long-term sustainability and success.
8.29.12 Video: Managing Responsible Business — In light of the financial crisis and the ongoing turbulence in the world economies, there has never been a more important time to address the issues concerning ethics and ethical behavior within organizations. The AICPA and CIMA recently hosted Managing Responsible Business: The Future of Ethics—a roundtable discussion with a panel of experts on ethical culture, accounting for ethics, dilemmas, pressures and business issues. The series of three videos is available for viewing on CGMA.org.
8.29.12 Global Economic Forecast On-Demand Webcast — The archived version of the Q2 CGMA Global Economic Forecast webcast, “Q2: European storm clouds cast shadows on the global economy,” is available on CGMA.org. This webcast focuses on the results of the latest survey, the quarterly CGMA Global Index, and what CGMA executives from around the world are saying about the global economy and their domestic economy along with key expectations, plans and challenges for their own companies.
8.29.12 Beta Testing Still Open for CGMA COLT/CORT Tools — CPA, CGMAs can be among the first to beta test two new tools developed by the AICPA and CIMA: The Cost of Losing Talent (COLT) and the Cost of Replacing Talent (CORT). These tools address an urgent need to measure the cost to companies of losing and replacing talent. Total costs are surprisingly large, come straight off the bottom line and yet remain largely unknown. Data input is easy and completely anonymous.
8.29.12 Global Executives Discuss the Importance of Valuing the Human Dimension— The need to measure and manage the human dimension—relationships with customers, employees, partners and communities—although difficult, has never been greater if companies are to achieve long-term sustainable success. Executives acknowledge a clear imperative to go beyond the financials, and see this as an increasingly important issue to tackle. At the AICPA’s spring meeting of Council, Darren Gersh, Washington Bureau Chief of “Nightly Business Report,” Brad Dickerson, CFO of Under Armour, Inc., Kenneth Kelly, Senior Vice President and Controller of McCormick and Priyan Fernando, Executive Vice President of American Express Global Business Services, discussed the human dimension during the Rebooting Business panel. Watch the Rebooting Business video.
8.13.12 AICPA Calls on IRS to Revise Capital Gains Reporting Forms and Delay Matching — New formats for reporting capital gains and losses during the past tax season caused issues for tax practitioners and taxpayers alike. The AICPA recommended in a letter to the IRS that it seek greater standardization of the format and the data detailed on Forms 1099-B and capital gains/loss statements sent by brokers to taxpayers. The AICPA also recommended that the IRS delay matching taxpayer and broker information for 2011 gains and losses as “it will result in a waste of time, money and resources for the IRS, taxpayers, and the tax preparer community. We believe that cost basis matching should be delayed until such time as there is more consistency and reliability in the process.” In addition, the AICPA said the IRS should review and revise Forms 8949 and 1099-B to provide greater clarity in the tax information that must be reported by taxpayers.
8.13.12 Free: AICPA Personal Finance Report Card — The free AICPA Personal Finance Report Card contains coaching questions that CPAs can use to speak with their clients about their current financial situation, and identify opportunities to help them set and meet their goals. CPAs can use this report card as an interview tool with new clients and as a way of periodically reviewing client progress: not only does it help identify important issues, but it also is a great motivational tool, encouraging the client to take actions that will raise the score at the next meeting. This free tool is offered from the AICPA PFP Section. The AICPA is currently offering a discount on PFP Section membership. Interested CPAs can save $50 on their first year of membership by entering promocode CPALDPFP at checkout.
8.13.12 Free AICPA webcast for Tax Practitioners — State society members who want to learn more about how to use AICPA’s interactive checklists for the upcoming tax season can join AICPA for a free webinar on Wednesday, August 22, from 1-2 p.m. (EST). Please join the AICPA and learn more about how to get the maximum value from your interactive checklist process.
8.13.12 Exposure Draft of 3 Clarified SSARSs Issued, Including Proposed Revised Compilation Service Objective; Comment Period Ends Aug. 31 — The Professional Ethics Executive Committee has exposed for public comment a proposed revision to Interpretation 101-3, “Performance of Nonattest Services,” that clarifies, among other things, that the preparation of financial statements would be considered a nonattest service, regardless of whether such service was performed as part of an attest (audit, review or compilation) engagement. The Accounting and Review Services Committee has exposed for public comment a trio of proposed Statements on Standards for Accounting and Review Services that, if issued as final standards, would change the nature of a compilation engagement from a prepare and present (submission) service to a read and report service. The proposed SSARSs would also require legends, notations or disclaimer language be placed on or with the financial statements when the accountant prepares financial statements but is not engaged to compile. In addition to the proposed revisions, the trio of proposed SSARSs have been issued in the clarity format as part of the ARSC’s Clarity Project. The comment period on the exposure drafts ends Friday, August 31.
8.13.12 SOC Marketing and Communications Made Easy — Many CPA firms are developing niche practices performing Service Organization Control engagements in response to marketplace demands surrounding assurance of controls at service organizations. To help firms navigate this emerging service area, establish a niche practice and help clients, prospects and service organizations understand the benefits of SOC engagements, the AICPA has created a number of free resources and marketing materials in a helpful SOC Toolkit for Firms. CPAs can find marketing flyers and an illustrative infographic to help explain SOC engagements to clients and prospects. In addition, the AICPA has created a separate toolkit to help service organizations better understand and capitalize upon SOC 1SM, SOC 2 SM and SOC 3 SM Reports. Click here to access the SOC Toolkit for Service Organizations or share this toolkit with service organization clients and prospects.
8.13.12 ASB to Vote on Issuance for Exposure Proposed Amendments to SAS No. 122 — The AICPA’s Auditing Standards Board in response to members requesting further clarity, is planning on issuing an exposure draft of a proposed Statement on Auditing Standards, Omnibus Statement on Auditing Standards—2012, to amend two clarified standards that go into effect Saturday, December 15, 2012. This proposed SAS would amend SAS No. 122, section 600, Special Considerations—Audits of Group Financial Statements (Including the Work of Component Auditors), and section 800, Special Considerations—Audits of Financial Statements Prepared in Accordance with a Special Purpose Framework [AICPA, Professional Standards, AU-C sec. 600 and AU-C sec. 800]. An open ASB meeting, to be held by conference call at 10 a.m. ET on Thursday, August 16, 2012, will put the proposed SAS to a ballot for issuance for exposure. If you would like to attend the open ASB meeting, please register online and view the proposed SAS or contact Sherry Hazel. The AICPA welcomes input from auditors on these important issues. The comment period on the exposure draft ends on Tuesday, October 30. The ASB plans on issuing a final SAS to be effective Saturday, December 15, 2012.
8.13.12 MAP Survey to Close Aug. 17 — Firms now have until Friday, August 21 to submit their responses to the Private Company Practice Section/Texas Society of CPAs (PCPS/TSCPA) National Management of an Accounting Practice (MAP) Survey to help predict future growth, determine succession plans and compare their progress against firms of similar sizes and within their geographic locations. Participating firms will receive a free summary of the results comparing their firm to national data on a variety of general benchmarks. Members of the AICPA Private Companies Practice Section will receive a comprehensive report comparing their firm to other firms on all benchmarks in the survey. The comprehensive report will also be available for purchase for $300 for non-AICPA members. Click here for more information about the National MAP Survey.
8.8.12 Tax Advocacy Update —
The AICPA has been busy this summer formulating recommendations on policies and regulations. Most recently, the AICPA’s Tax Executive Committee sent a letter to a congressional tax committee expressing support for HR 5630, the Fighting Tax Fraud Act of 2012, asking it to consider other measures as well. The bill would increase penalties against preparers who alter taxpayers’ returns without their knowledge.
The AICPA also provided a recommendation to the IRS regarding accounting methods for gift cards. Retailers and other entities often participate in clearinghouses for card programs, with the settling of proceeds governed by service agreements. When redemption of a card involves two entities with unconsolidated financial results, the current rules are unclear as to how they report the revenue from the purchase of the card. Visit the tax advocacy web page to stay up to date on further developments.
7.25.12 Accounting and Auditing Technical Hotline Develops TPA on Lender Comfort Letters — No documentation or low-documentation loans remain popular options within the lending community, especially in lending to the self-employed. The information a prospective borrower is asked to furnish in connection with such loans is limited; however, lenders or brokers still attempt to assess a borrower’s creditworthiness and verify the accuracy of information provided to them by the borrower. Developed by the AICPA Accounting and Auditing Technical Hotline, TPA 9110.19 has been issued to provide nonauthoritative guidance regarding how an accountant may respond to a request from a client, lender, or loan broker to confirm client information in connection with a pending loan application.
7.25.12 Health Care Expert Panel Develops TPA on Accounting for Costs Incurred During ICD-10 Implementation — The U.S. health care system is scheduled to transition from the International Classification of Diseases, 9th Edition, to the ICD, 10th Edition, by Oct. 1, 2013. Developed by the AICPA Health Care Expert Panel, Technical Question and Answer 6400.48 has been issued to provide nonauthoritative guidance regarding how a health care entity should account for costs incurred in connection with the implementation of ICD-10. The TPA also includes factors to consider in the assessment of whether modifications to an entity’s existing software system result in additional functionality, as described in Financial Accounting Standards Board Accounting Standards Codification 350-40, Internal Use Software, beyond the original software’s capabilities and qualify as an upgrade or enhancement.
7.25.12 EITC Due Diligence Requires Paid Preparers to Submit Form 8867 — The IRS is sending out warning letters to those paid preparers who did not submit Form 8867 with EITC returns. Penalties will be assessed for 2012 returns. The online EITC Due Diligence training module can help you avoid penalties.
7.25.12 MAP Survey Extended - August 17, 2012 —
To ensure the most comprehensive results, the 2012 PCPS/TSCPA National MAP Survey has been extended through August 17.
If you haven't completed the survey already, please complete it at the following link: https://www8.intellisurvey.com/run/map2012/NV8343053926
We hope that you'll access the survey at the link above. Please do not forward this invitation to anyone else; your firm's responses will be keyed within the link. If a colleague would like to complete the Survey, invitations will be available online at: http://map.pcps.org
We hope this one-time extension gives everyone the extra time needed to complete the survey during a very busy summer. Unlike previous MAP surveys, there will be no further extensions, which delay the process and results. No responses will be accepted after August 17.
Thanks in advance for your participation!
7.19.12 Las Vegas Young Professionals attend 51's Baseball game — On June 14, 2012 the YCPA attended the Las Vegas 51's game as they played the Colorado Sky Sox. The event was attended by over 30 emerging young professionals and their families. It was a great time to relax and unwind after the busy season months. Young professionals from public accounting, industry, and education were all in attendance.
7.19.12 Small Business Rapid Resourcing Event — Friday, August 10, 2012 from 9:00 AM to 2:00 PM (PT) | Las Vegas, NV. For more information click here.
7.19.12 Alert: Fraudulent Email Scam Under Investigation
7.19.12 EITC Due Dilligence Requires Paid Preparers to Submit Form 8867 — The IRS is sending out warning letters to those paid preparers who did not submit Form 8867 wth EITC returns. Penalties will be assessed for 2012 returns. The online EITC Due Dilligence training module can help you avoid penalties. - Notice provided by QuickAlerts for Tax Professionals, an IRS email service. To subscribe please click here.
7.17.12 NVCPA member Bob Anderson appointed to the Nevada Board of Accountancy —NVCPA member, board director, and Las Vegas Chapter President Bob Anderson has been appointed to the Nevada Board of Accountancy by Governor Brian Sandoval. Anderson was one on a list of three Nevada CPAs which was provided to the Governor in late May in compliance with NRS 628.075. That Statute requests the Nevada Society of CPAs to provide recommendations to Nevada’s current governor for appointment to the State Board of Accountancy when vacancies occur.
7.13.12 Whether Taxes Will Increase in 2013 Remains Anybody’s Guess —The Supreme Court’s decision upholding the Affordable Care Act confirmed that taxpayers whose income exceeds a threshold amount will be subject to a 3.8% Medicare surtax on net investment income, effectively raising their marginal income tax rate. However, whether the Bush era tax cuts will be extended and, if so, for whom, remains an open question. In light of this uncertainty, CPAs may want to start planning for possible 2013 tax increases now, particularly for clients who will benefit from transferring assets to family members, decisions that can take time to make. Download a free Medicare surtax chart from Robert Keebler, CPA, and listen to his recent podcast on how to plan for the Medicare surtax.
7.13.12 Three Ethics Resources for CPAs—With the importance of ethics and non-financial reporting rising on the global agenda, CPAs are in a unique position to make an important contribution to creating a sustainable ethical operating environment. The AICPA and CIMA have developed a number of resources to assist CPAs in guiding their organizations to long-term sustainability and success. The Ethical Reflection Checklist is designed to provide organizations and individuals with an overview of how well ethical practices are embedded in the business. The CGMA Case Study: Navigating Ethical Issues highlights issues related to non-disclosure at the corporate level that come to the attention of non-executive financial managers and controllers. Responding to Ethical Dilemmas: CGMA Ethics Resourcesprovides links to resources to help CGMAs navigate ethical dilemmas and respond in a manner that upholds their professional standards.
7.13.12 Clarified Standards Transition Required for Year-End 2012 Audits — CPAs around the U.S. are enjoying summer breaks, but need to start preparing for the Dec. 15, 2012, transition to the clarified auditing standards effective for calendar year 2012 audits. New requirements may affect interim testing and other fieldwork and some mandate changes to the report. If your firm develops and maintains audit methodologies, then you need to be prepared—and to prepare clients who will be impacted by the clarified standards. Even if your firm relies on commercially provided audit methodologies, you still need to understand the underlying standards and requirements to ensure you use your methodology to complete audits as effectively and efficiently as possible while remaining compliant with the standards. The AICPA has developed the Improving the Clarity of Auditing Standards webpage with a number of free resources to help CPAs prepare for the Dec. 15 deadline.
7.13.12 Exposure Draft of Three Clarified SSARSs Issued, Including Proposed Revised Compilation Service Objective —The Professional Ethics Executive Committee has exposed for public comment a proposed revision to Interpretation 101-3, “Performance of Nonattest Services,” that clarifies, among other things, that the preparation of financial statements would be considered a nonattest service, regardless of whether such service was performed as part of an attest (audit, review or compilation) engagement. The Accounting and Review Services Committee has exposed for public comment a trio of proposed Statements on Standards for Accounting and Review Services that, if issued as final standards, would change the nature of a compilation engagement from a prepare and present (submission) service to a read and report service. The proposed SSARSs would also require legends, notations or disclaimer language be placed on or with the financial statements when the accountant prepares financial statements but is not engaged to compile. In addition to the proposed revisions, the trio of proposed SSARSs have been issued in the clarity format as part of the ARSC’s Clarity Project. The comment period for the exposure drafts ends Aug. 31.
7.13.12 Auditing Standards Board Issues SAS No. 126 on Going Concern — Read a summary of Statement on Auditing Standards No. 126, The Auditor's Consideration of an Entity's Ability to Continue as a Going Concern (Redrafted), which the Auditing Standards Board has issued as a result of its Clarity Project to supersede SAS No. 59, The Auditor's Consideration of an Entity's Ability to Continue as a Going Concern, as amended (AICPA, Professional Standards, AU sec. 341 and AU-C sec. 570). SAS No. 126 does not change or expand SAS No. 59, as amended, in any significant respect. The ASB has moved forward with the clarity redraft of SAS No. 59, as amended, so that it is consistent with the format of the other clarified SASs that were recently issued. However, the ASB decided to delay convergence with International Standard on Auditing 570, Going Concern, pending the Financial Accounting Standards Board’s anticipated development of accounting guidance addressing going concern. SASNo. 126 is effective for audits of financial statements for periods ending on or after Dec. 15, 2012.
7.11.12 AICPA Top Technology Initiatives Spotlights Key Opportunities for CPAs — Clients and employers turn to CPAs to deal with a wide variety of information technology issues, according to the 2012 AICPA Top Technology Initiatives Survey. Conducted early this year and overseen by the AICPA Information Technology Team, the survey is based on responses from 2,259 AICPA members who are interested in information technology. The study, which found that CPAs regularly tackle IT matters as part of their day-to-day responsibilities, showcases the knowledge and foresight that CPAs bring to IT-related concerns. Read more here.
7.11.12 New Fraud Resource Center on AICPA.org — Fraud is pervasive and having access to the right tools and resources to prevent, detect and respond to it is critically important. The AICPA has developed the new Fraud Resource Center to arm CPAs in public practice, government, business or industry to meet this challenge. Your members can choose from practice aids, articles, case studies, regulatory insights and more to help them improve their skills in this increasingly complex practice area.
7.11.12 Free Webinar - Small Firm Update — Join the AICPA on July 23, 2012, from 2:30 to 3:30 p.m. ET, as Jim Metzler, AICPA Vice President-Small Firm Interests, Public Practice & Global Alliances, and CPA Natasha Schamberger, AICPA Senior Technical Manager -PCPS/Firm Services, discuss the trends affecting CPAs, the challenges and opportunities practitioners face as well as best practices for common problems being used at successful firms across the country. This webcast is free and no CPE is offered. Click here to register.
7.11.12 AICPA Announces New Blog Posts and Newsletters Available — The AICPA published the June issue of CPA Advocate two weeks ago, highlighting AICPA, state society and member advocacy efforts in Washington, D.C., and beyond. The GAA, of which the AICPA is a member, published its bimonthly newsletter, GAA Accounting. Additionally, the AICPA's official blog, AICPA Insights, offers timely posts on the CPA profession. Catch up on these posts you might have missed and more. Be sure to see every post by signing up for AICPA Insights' RSS feed or email subscription.
6.21.12 New GASB Pension Standards Increase Transparency on Unfunded Pension Liabilities — State and local governments will be required to report unfunded pension liabilities on their balance sheets for the first time under two standards the Governmental Accounting Standards Board approved on June 25. The rule calls for governments to report in their financial statements a net pension liability that is equal to the difference between the total pension liability and the value of assets set aside in a pension plan to pay benefits to current employees, retirees and their beneficiaries. The AICPA supports the increased transparency in public pension benefits resulting from these new statements. Read the AICPA’s press release and this JournalofAccountancy.com article for more information.
6.21.12 Important Vote by GASB on new standards for pension plans scheduled June 25, 2012 — On Monday, June 25th, the Governmental Accounting Standards Board (GASB) will vote on two new standards (one for governmental pension plans and one for governmental employers) that would require state and local governments, for the first time, to report significant pension-related liabilities on their balance sheets. The new standards are expected to be approved by the GASB at the June 25th meeting and will be published within the next two months. Read more here. For complete background click here.
6.13.12 AICPA President and CEO Barry Melancon Addresses FAF Decision, AICPA Response in Video — In this short video, AICPA President and CEO Barry Melancon, CPA, CGMA, discusses the Financial Accounting Foundation's decision on May 23, regarding creation of a Private Company Council, the AICPA response to that decision and the Institute's project to develop a financial reporting framework for small- and medium-sized entities that do not require US GAAP financial statements. States are encouraged to include this video when covering private company financial reporting in e-newsletters and social media properties and on websites.
6.13.12 AICPA Announces Two New Mobile Apps to Assist CPAs and Future CPAs — The AICPA has released two mobile apps that help CPAs and CPA exam candidates: The Journal of Accountancy News App for iPad and CPA Exam Aid.
6.13.12 Total Tax Insights — The Total Tax Insights website provides need to know information regarding taxes and the AICPAs new Total Tax Insights Calculator while providing readers with the opportunity to get a clearer view of the taxes they pay.
6.13.12 AICPA and CIMA Introduce Innovation Outlook — CPA, CGMAs can play a number of roles in helping their organizations drive sustainable success. The new CGMA Innovation Outlook paper provides an overview of the themes the CGMA program will explore over the coming months and offers insights into the reports, tools and resources CPA, CGMAs can use throughout the year to help them address various issues within their organizations. From ethics and skills building to performance and risk management, CPA, CGMAs can support their organizations with a wide array of knowledge and plans, all available throughout the year at cgma.org. Find out more by viewing the report: Innovation Outlook: Framing the global management accounting agenda 2012/13.
6.13.12 Importance of Strengthening Ethical Culture Stressed in New CGMA Report CGMAs report a weakened "tone from the top" and more pressure to act unethically — especially in emerging economies-that makes managing business ethics increasingly important in today's business world. The AICPA and CIMA have released a new report, Managing Responsible Business, detailing views on business ethics, behaviors and controls within the organizations of nearly 2,000 CGMAs from 80 countries. In addition, AICPA and CIMA have released a new set of ethics-based tools and resources to help CPA, CGMAs strengthen the ethical practices in their organizations. Find an ethical management checklist, case study and video at cgma.org.
6.13.12 Cost of Losing Talent/Cost of Replacing Talent Tools in Beta Test on cgma.org — What is the cost of losing talent? How about replacing talent? Two new CGMA COLT/CORT tools address an urgent need to measure the cost to companies of losing and replacing talent. Total costs are surprisingly large, come straight off the bottom line, and yet remain largely unknown. CPA, CGMAs are invited to beta test and add valuable benchmarking information to the framework of these invaluable tools before their official launch. CPA, CGMAs should gather, then enter top line financial and operational data to produce instant outputs. The benchmarking information is anonymous. A short data collection guide explains what data is required and how CPA, CGMAs can collect it. Click here for more information.
6.13.12 Understand the 10 Steps to Performance Improvement with the New CGMA Target Setting Tool— Setting targets should encourage staff to succeed and drive superior performance. But setting the right targets is not easy, and as a result targetsetting has become a real issue for many organizations. Now available on cgma.org is a 10step tool, based on research by the Cranfield School of Management, that can help CPA, CGMAs better understand and set performance management targets.
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