any businesses and government agencies have paid out damage awards or settlements to third parties for various violations. Whenever an award or settlement must be paid, proper federal tax reporting is required to avoid potentially substantial tax penalties. CPAs should be familiar with the four steps of such reporting, to
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Practice Makes Perfect
uccess on the computer-based test (CBT) version of the Uniform CPA Exam comes down to adequate preparation. In addition to reviewing the online tutorials, sample tests and exam interfaces at www.cpa-exam.org and meeting the academic requirements, most candidates recognize they need some type of structured review program prior to sitting
Highlights
As initially announced in the July JofA Highlights, the AICPA and FASB issued a joint proposal to improve the standard-setting process for the constituents of private company financial reporting ( www.pcfr.org). The initiative seeks feedback from owners, preparers, auditors, lenders, investors and bonding agencies on proposed enhancements to the board’s
The Lesson of Enron
ON THE RECORD he take-away from Enron is that ethics and compliance professionals have a terribly important job to do, and there’s a lot more to be done. They still don’t really have the power to say no to a CEO or CFO. Compliance and ethics professionals need to be
Warren Buffet Quote
AS QUOTED “In the business world, the rearview mirror is always clearer than the windshield.” —Warren Buffet
Financial Literacy
American companies can no longer afford to offer their employees adequate pensions, nearly three of four respondents (74%) said in an AICPA survey of CPAs serving as senior corporate executives ( www.aicpa.org/news/index.htm ). “This is a wake-up call,” said AICPA business and industry vice-president John Morrow. “Employees will have to
Social Security: What’s the Magic Age?
EXECUTIVE SUMMARY In determining the age at which a worker should apply for Social Security benefits, consideration should be given to current and expected future sources of income, age of beneficiary and spouse, health issues that could affect longevity and whether the beneficiary will continue to work while receiving benefits.
Singing the Lost Luggage Blues
GOLDEN BUSINESS IDEA H ow many of you business travelers have had lost or delayed luggage due to an airline snafu? With increased security regulations, airport congestion, tight connections and an increased volume of passengers and bags, the problem will only get worse. SITA, a global technology provider for the airline
Accounting
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. The AICPA issued four technical practice aids (TPAs) containing questions and answers related to FASB Interpretation No. 46(R), Consolidation of
The Ultimate Student Loan
NUMEROLOGY Regardless of income level, 66% of boomers felt responsible for paying their children’s college tuition. Source: Pew Research Center survey of 1,117 respondents age 41 to 59, http://pewresearch.org , 2006.
Lobbying and Political Activities of Public Charities
nder normal circumstances, charities must be careful how they deal with political issues, to ensure they do not engage in prohibited political activity. During an election year, they must be especially careful. Failure to monitor a charity’s activities or those of its members may trigger IRS sanctions, which can
Securing the Future
SURVEY SAVVY ith retirement approaching, 26% of baby boomers expected to live very comfortably and others (29%) said they’d meet expenses with a little left over. The remaining 41% foresaw either just meeting their basic living expenses or not having enough even for that. What retirement income were they all
Going Forward With Reverse Mortgages
EXECUTIVE SUMMARY Increased life expectancy has caused the elderly to need more funds after retiring, especially if they elect early retirement. The home is often the most valuable asset an individual owns. Reverse mortgages allow homeowners to continue to live in their homes while borrowing against the equity. A reverse
A Better Way To Stamp
In the December 2005 column , I suggested a way to place a stamp ( Prepared By: Reviewed By: ) in a spreadsheet. Reader Allison A. Schultz, CPA, CFO of Southern Aluminum, Magnolia, Ark., suggests an alternative method. After creating the stamp in Excel, highlight it and press Shift+Edit, bringing
Co-Op Real Estate Taxes Not Deductible for AMT
TAX CASE axpayers generally can deduct expenditures they incur directly, but not expenditures paid by others on their behalf. IRC section 216, however, allows tenant-stockholders to deduct a proportionate share of real estate taxes paid by a cooperative housing corporation (co-op). Ostrow v. Commissioner addressed the deductibility of these taxes
Outlook Has A “You’ve Got Mail” Option
I get so wrapped up in my work that I often forget to check my incoming e-mail for hours at a time. Is there some way to program Outlook to give me a nudge or even ring a bell when a message comes in? Outlook does AOL’s “You’ve Got Mail”
Print With Or Without Track Changes Comments
Key to Instructions To help readers follow the instructions in this article, we used two different typefaces: Boldface type is used to identify the names of icons, agendas and URLs. Sans serif type shows the names of files and the names of commands and instructions that users should type into
A Good Idea
In the February 2006 item “ Out, Out and Stay Out, You Stubborn Reviewing Toolbar, ” several readers correctly noted that the macro I suggested be recorded to Personal Macro Workbook , not New Workbook ; in that way it can be accessed whenever needed.
A Mutual Concern
Source: Civil Society Institute, Newton Centre, Mass., www.civilsocietyinstitute.org ,and Ceres, Boston, www.ceres.org , 2006.
When Is a Liability a Liability?
TAX CASE o deduct an accrued expense, an accrual-basis taxpayer must satisfy an all-events test. The test has two prongs: Does the liability exist and, if so, can it be measured with reasonable accuracy? Legally a liability exists when it is final, fixed and absolute; that is, when the last
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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
