Right Guidance = Right Choice “The Right Philanthropic Vehicle” ( JofA, July01, page 22) laid out clearly the major alternative strategies and rationale that should guide a donor’s choice. The CPA, along with the client’s trusts-and-estates attorney and a philanthropy adviser, should be part of the team that guides a
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Exhibit 1: Tax Software Vendors Vendor Tax program Address Telephone E-mail address ATX Forms Saber, Max and Taxsolver PO Box 1040, Caribou, ME 04736 800-944-8883 sales@atxforms.com CCH ProSystem fx 21250 Hawthorne Blvd., Torrance, CA 90503 800-457-7639 cust_serv@cch.com Creative Solutions UltraTax 7322 Newman Blvd., Dexter, MI 48130 800-968-8900 sales@CreativeSolutions.com Drake Software
Taking the Temperature of Health Care Valuations
EXECUTIVE SUMMARY THE HEALTH CARE INDUSTRY HAS UNDERGONE significant change over the last decade, affecting delivery of services, payment mechanisms and providers’ organizational structure. Throughout a company’s lifecycle, certain events or business necessities—such as ownership transition, compliance with legal and regulatory issues and strategic planning—may require an independent appraisal of
Charitable Giving: Other Points to Consider
Charitable Giving: Other Points to Consider “The Right Philanthropic Vehicle” ( JofA, July01, page 22) addresses one of the fastest growing areas in financial planning. The article correctly states that a foundation can be used to fund several years of normal charitable giving. Making a substantial or extraordinarily large charitable
Expanded Innocent Spouse Relief
Expanded Innocent Spouse Relief IRC section 6015 allows certain taxpayers to claim relief from joint tax liability if they qualify as an innocent spouse. There are strict qualification rules. Recently the Tax Court allowed a taxpayer to raise the issue even though she failed to meet all the qualifications. Dorothy
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Exhibit 3: Discounted Expected Cash Flows Per Concepts Statement no. 7 Asset A Asset B Asset C Asset D Asset E Asset F Contractual (promised) cash flow $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 Expected cash flow $60,000 $50,000 $60,000 $46,000 $60,000 $55,445* Adjustments to reflect risk premium $200
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Exhibit 4: Present Value Adjusted for Uncertainty for Asset F Cash flow Probability Probability- adjusted cash flow Discount factor 6% Present value Year 1 Adjustment to reflect risk premium. $8,000 $10,000 0.10 0.90 $ 800 9,000 $9,800 (1,400) $8,400 0.943 $7,921 Year 2 $7,000 $10,000 0.15 0.85 $1,050 8,500
Small Businesses to Give Input on Audits
Small Businesses to Give Input on Audits The IRS has launched the Small Business/Self-Employed (SB/SE) Exam Reengineering Project to improve the audit process for small-business owners and self-employed individuals by reducing audit times, ensuring fairness in the process and encouraging tax compliance. IRS project teams will interview other IRS employees
Employee Benefits
EMPLOYEE BENEFITS The IRS issues final regulations related to the “minimum cost” requirement under IRC section 420, which governs the transfer of excess defined benefit pension plan assets to a retiree health account. The new rules, which apply to transfers occurring on or after December 18, 1999, have an effective
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Exhibit 1: ABC’s of the DCF Method
People in the News: Two CPAs Honored for Lifetime Achievements
For news from the AICPA and state societies, visit www.cpa2biz.com , which also offers online CPE, AICPA professional literature, practice management aids and links to state society Web sites. AUDITING Before dissolving itself on July 31, the Independence Standards Board approves issuance, as a staff report, of
Business Valuation Sites on the Web
BUSINESS VALUATION Valuators must use a broad picture approach. Taking the Temperature of Health Care Valuations BY LOREN GARRUTO AND OLIVER LOUD EXECUTIVE SUMMARY THE HEALTH CARE INDUSTRY HAS UNDERGONE significant change over the last decade, affecting delivery of services, payment mechanisms and providers’ organizational structure. Throughout a company’s
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Exhibit 5: Amortization of Bond Discount Using the Interest Method $400,000 of 9%, five-year bonds (semi-annual interest payments) sold to yield 10% at January 1, 2001. Selling price is calculated as follows: Present value of $400,000 in 5 years $400,000 0.61391 $245,564.00 Present value of interest payments $18,000 7.72173
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Exhibit 2: Cash Flows for Assets Undiscounted cash flows Traditional discounted cash flows Discounted expected cash flows at risk-free rate Asset A $60,000 $60,000 $60,000 Asset B $60,000 $60,000 $49,800 Asset C $60,000 $42,300 $42,300 Asset D $60,000 $35,760 $31,372 Asset E $60,000 $49,170 $49,170 Asset F $60,000 $44,860
Not All Are Fraud Audits
Not All Are Fraud Audits “…And Nothing But the Truth: Uncovering Fraudulent Disclosures” ( JofA, July01, page 47), contains interesting recommendations—but to be used under what circumstances? The article leads one to believe the recommended procedures should be added to every audit program as standard steps. I disagree. SAS no.
It “Pays” to Be No. 1
TAX MATTERS Source: Tax Foundation, www.taxfoundation.org .
Minimize Parachute Penalties
EXECUTIVE SUMMARY COMPANIES SHOULD NOT ENTER into golden parachute plans without careful consideration. CPAs called in to help draft these agreements can, through prudent planning, save their employers and clients significant sums. GOLDEN PARACHUTES CAN ENCOMPASS A VARIETY of benefits, including not just extended salaries and cash payouts but also
Auditing
For news from the AICPA and state societies, visit www.cpa2biz.com , which also offers online CPE, AICPA professional literature, practice management aids and links to state society Web sites. AUDITING Before dissolving itself on July 31, the Independence Standards Board approves issuance, as a staff report, of a
Women Entrepreneurs Get Know-How Their Own Way
A survey of nearly 1,200 business owners highlighted the different paths men and women take to successfully starting their own companies. Few owners had a mentor when they founded their businesses. Very successful women entrepreneurs also had followed a more varied career path than their male counterparts.
Stock Options Pitfalls and Strategies Du Jour
EXECUTIVE SUMMARY AS THE STOCK MARKET SLUMPED , the use of stock options as the ideal form of employee compensation lost some of its luster. To fill the breach, companies are scrambling to find remedial compensation strategies to protect their employees from market losses. These alternative methods include repricing, reissuing
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How to find the right CAS clients
The key to success with CAS is selecting the best clients. Tools like ideal client profiles (ICPs), buyer personas, and even artificial intelligence can help identify the businesses that best fit each CAS practice.
From The Tax Adviser
March 31, 2026
Current developments in taxation of individuals: Part 1
March 31, 2026
Current Developments in Taxation of Individuals: Part 1
March 6, 2026
