News Headlines From the Journal of Accountancy
THIS WEEK'S NEWS HEADLINES
July 28, 2010
TIGTA Finds IRS Not Protecting Taxpayer Rights When Filing Liens
A report issued by the Treasury Inspector General for Tax Administration (TIGTA) says the IRS does not always follow legal requirements when issuing liens and lien notices. The report also concludes that, as a result, action is needed to protect taxpayer rights during the lien process.
July 27, 2010
IRS Provides Relief for Small Tax-Exempt Nonfilers
The IRS announced that is providing relief for small tax-exempt organizations that are supposed to automatically lose their tax-exempt status because they failed to file Forms 990-EZ or 990-N for the years 2007, 2008 and 2009. Under a special one-time program, the IRS is giving those organizations until Oct. 15 to preserve their tax-exempt status.
Journal of Accountancy Wins 2010 Tabbie Awards
The JofA’s website, journalofaccountancy.com, won the silver award for “Best B2B Website” in the 2010 Tabbie Awards competition, presented by Trade, Association and Business Publications International (TABPI). Two JofA articles also were honored in the “How-To” and “Technical” article categories.
July 26, 2010
Appeals Court Overturns Taxpayer Win in Tax Shelter Case
The Tenth Circuit Court of Appeals has overturned a rare taxpayer win in a case involving a son of boss tax shelter. The appeals court held that the transactions at issue lacked economic substance and were “structured from the outset to be a complete fiction.”
LAST WEEK'S NEWS HEADLINES
July 22, 2010
IRS Proposes PTIN Fees
In its push to regulate all paid tax preparers by next filing season, the IRS proposes charging $50 annually to issue and renew a required preparer tax identification number, plus a yet-unspecified fee by a third-party vendor.
FASB Expands Disclosures on Credit Quality of Financing Receivables
FASB issued an Accounting Standards Update that the standard setter said will require entities to provide additional information to assist financial statement users in assessing an entity’s credit risk exposures and evaluating the adequacy of its allowance for credit losses.
July 21, 2010
Obama Signs Dodd-Frank Reform Bill
President Barack Obama on Wednesday signed the Dodd-Frank Wall Street Reform and Consumer Protection Act into law. The CPA profession successfully advocated for CPAs on a number of issues, including protections to maintain FASB’s independence and inclusion of a provision to ensure permanent funding for GASB, and resisted duplicative regulation by the new Consumer Financial Protection Bureau for CPAs’ usual and customary activities.
July 20, 2010
Blue-Ribbon Panel Narrows Field for Private Company Financial Reporting
A blue-ribbon panel weighed in on seven alternative models for private company financial reporting at its meeting Monday, eliminating models that were based on IFRS and a model that effectively would have maintained the status quo.
NEWS HEADLINES FOR JULY 11–17, 2010
July 15, 2010
Financial Regulatory Reform Bill Clears Congress
The Senate on Thursday approved a major financial regulatory reform package that President Barack Obama is expected to quickly sign into law.
Blue-Ribbon Panel to Air Alternative Models for Private Company Financial Reporting
A blue-ribbon panel will meet Monday in Chicago to discuss possible alternative models and structures related to GAAP standard setting for private companies.
Regulations Issued on Preventive Services
As part of ongoing guidance on this spring’s health reform legislation, the IRS, Department of Labor, and Department of Health and Human Services have issued interim final and proposed regulations implementing the preventive health services rules in the acts (TD 9493; REG-120391-10).
July 14, 2010
New Leader to Review Post-Implementation of FASB, GASB Standards
The Financial Accounting Foundation, the parent organization of FASB and GASB, has named Mark Schroeder, a recently retired senior partner at Deloitte & Touche LLP, to the newly created position of post-implementation review leader.
PCAOB Proposes Higher Evidence Standards in Audit Confirmations
The PCAOB released for comment a proposed auditing standard that it says would update and expand the requirements related to the auditor’s use of confirmations, requiring a high level of evidence.
NEWS HEADLINES FOR JULY 3–10, 2010
July 9, 2010
IRS Launches Gulf Oil Spill Hotline, Plans Special Assistance Day
The IRS announced that it has set up a special toll-free telephone line for taxpayers affected by the oil spill in the Gulf of Mexico. The phone number is 866-562-5227, and it will operate on weekdays from 7 a.m. to 10 p.m. local time, the IRS said.
July 7, 2010
Former PCAOB and Fed Official Joins Center for Audit Quality
The Center for Audit Quality (CAQ) on Wednesday announced that former PCAOB and Federal Reserve Board official Angela Desmond has joined the center as senior director of external relations.
NEWS HEADLINES FOR JUNE 27–JULY 3, 2010
July 2, 2010
Closing Date Deadline for Homebuyer Credit Extended to Sept. 30
President Barack Obama signed the Homebuyer Assistance and Improvement Act of 2010 on July 2. The bill extends the closing date deadline to qualify for the first-time homebuyer credit under IRC § 36 from June 30, 2010, to Sept. 30, 2010.
June 30, 2010
G-20 Reiterates Call for Convergence
For the fourth time in less than two years, the Group of 20 (G-20) leaders called for a single set of global accounting standards and urged FASB and the IASB to complete their convergence projects.
June 29, 2010
FASB, IASB Propose Common Standard for Fair Value Measurement and Disclosure
FASB and the IASB on Tuesday issued separate exposure drafts intended to develop common requirements for measuring fair value and for disclosing information about fair value measurements in U.S. GAAP and IFRS.
June 28, 2010
Little Change for PCAOB Under High Court Ruling
The Supreme Court’s 5–4 decision Monday in the constitutional challenge to the PCAOB will leave the agency virtually unchanged. The court’s ruling will not affect day-to-day operations of the PCAOB, the agency said.
High Court Denies Business-Method Patent
The U.S. Supreme Court ruled Monday that a method of hedging against fluctuations in the price of energy or other commodities was an unpatentable abstract idea.
June 27, 2010
President Signs Bill Providing Temporary Funding Relief for Pension Plans
President Barack Obama signed HR 3962, the Preservation of Access to Care for Medicare Beneficiaries and Pension Relief Act of 2010, on Friday. The bill includes the so-called “doc fix,” increasing Medicare reimbursement to physicians by 2.2% through the end of November, in place of a scheduled 21% cut.
NEWS HEADLINES FOR JUNE 20–26, 2010
June 25, 2010
Banking Regulators Issue Final Guidance for Safe and Sound Compensation Practices
Several major federal banking regulators issued final guidance for structuring incentive compensation practices that do not undermine the safety and soundness of the financial institution or create undue risks for the banking system.
Terrorist Financing Reports Rise as Overall SARs Edge Down
The Financial Crimes Enforcement Network (FinCEN), a unit of the U.S. Treasury Department, reported the first year-to-year decline in suspicious activity reports (SARs) since 1996, dropping from 1.29 million in 2008 to 1.28 million in 2009, but SARs indicating terrorist financing activity increased for the first time since 2004 after several years of steady declines.
June 24, 2010
Big Changes Proposed for Revenue Recognition
FASB and the IASB on Thursday released a proposal that would create a single revenue recognition standard for both U.S. GAAP and IFRS. The standard is designed to streamline accounting for revenue across industries and correct inconsistencies in existing standards and practices.
June 22, 2010
Health Care Regulations Issued
The IRS and Treasury Department issued proposed regulations Tuesday further implementing provisions of the recent health care legislation concerning pre-existing conditions, annual benefit limits and coverage rescissions.
GASB Outlines Potential Improvements to Pension Standards
GASB issued a Preliminary Views document, Pension Accounting and Financial Reporting by Employers, listing what it believes are the most fundamental issues related to recognition and measurement of pension obligations by state and local government employers.
NEWS HEADLINES FOR JUNE 13–19, 2010
June 18, 2010
Go Easy on E-File Mandate, Committee Suggests
The IRS should phase in over the next three years a requirement that tax return preparers filing more than 10 returns do so electronically—a mandate that otherwise will take effect next year, an advisory panel said Friday.
June 14, 2010
Regulations Issued on Grandfathered Health Plans
The IRS, the Department of Labor, and the Department of Health and Human Services issued interim final regulations on June 14 regarding grandfathered health plans under the health reform legislation enacted in March.