December 1997 - Journal of Accountancy

EXECUTIVE SUMMARY THE TAXPAYER RELIEF ACT OF 1997 MADE more than 800 changes to the tax law, many of them complex, and will affect nearly all taxpayers—individuals, small businesses and corporations—in some way. HOW ARE CPAs COPING WITH SOME 800 pages of new rules? Katherine Rowe is concentrating on explaining

EXECUTIVE SUMMARY THE YEAR 2000 PROBLEM (Y2K)—where computers cant determine in what century to place years stored in two-digit format—is coming to a head. When the clock turns to January 1, 2000, two years from now, some computers will spew out erroneous information. THE ODDS OF FINDING a quick, easy

EXECUTIVE SUMMARY COMPANIES PAYROLL DEPARTMENTS face numerous issues that must be addressed to ensure that employees are paid, contractual obligations are met and tax and other withholding duties are upheld. AS THE YEAR 2000 APPROACHES, computers that have not been upgraded will have trouble distinguishing between dates that span the

EXECUTIVE SUMMARY MOST ENTREPRENEURS KNOW that success is elusive in the early years, but few realize how dangerous it is when success comes suddenly and explosively. THE UNDERLYING PROBLEM for such companies is its organizational structures: Everybody reports to the boss. The solution: Create a competent middle management level. ONE

Are electronic spreadsheet programs ready for the next millennium? That depends on the definition of “ready.” The two major spreadsheet programs—Microsoft Excel and Lotus 1-2-3—certainly are capable of calculating dates beyond December 31, 1999. But for them to do it correctly and avoid the ambiguity created by the Year 2000

The technical headaches caused by software that cant distinguish between the 20th and 21st centuries are only part of the problem facing businesses and the accounting profession. More serious—and for some possibly more expensive—will be the wave of lawsuits the Year 2000 (Y2K) issue is likely to trigger as those

EXECUTIVE SUMMARY COMPANIES ARE HAVING TROUBLE convincing customers its safe to do business on the Web. The AICPAs new CPA WebTrust program can provide a seal of assurance on audited sites. MORE THAN JUST A SEAL, WEBTRUST consists of a secured connection to a confirming page, assuring the customer the

EXECUTIVE SUMMARY AN OFFER IN COMPROMISE (OIC) IS A collection tool used by the Internal Revenue Service for taxpayers who cannot pay delinquent taxes in full but have some ability to pay from existing assets and current or future income. IN THE PAST, OICs WERE NOT A VIABLE option for

While many different kinds of software are affected by the Year 2000 problem (Y2K), accounting applications are probably the most severely affected and also the hardest to bring into compliance. Thats because accounting systems depend on many date-sensitive operations—from posting sales to inventory control, from accounts payable to receivables and