Unlike loan proceeds, dividends are taxable income. The IRS closely examines loans a corporation makes to an employee-shareholder—and scrutinizes the transaction even more carefully when the employee-shareholder owns a controlling interest in the corporation. For a loan to be genuine, both the lender and the borrower must intend that the
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The magazines
Build Wealth, Not Credit
BUILD WEALTH, NOT CREDIT The Top Line article, “Five Facts about Your Credit” ( JofA , Nov.05, page 20 ), stated “Keeping active is key.” While continuing to use credit cards may keep your Fair, Isaac and Co. (FICO) score higher, it does nothing to address the real problem for
Highlights
The IRS clarified certain instructions for form 1040, schedule D, which the AICPA had said imposed significant burdens on individual taxpayers reporting capital gains and losses ( www.irs.gov/formspubs/article/0,,id=109875,00.html; www.irs.gov/businesses/small/article/0,,id=153349,00.html). Taxpayers can continue using a substitute statement to provide this information in a format similar to lines 1 and 8 of
Word Shortcuts
1 1 / 2 -line paragraph spacing: Ctrl+5 Centered paragraph: Ctrl+E Double-spaced paragraph: Ctrl+2 Justified paragraph: Ctrl+0 Left-aligned paragraph: Ctrl+L Right-aligned paragraph: Ctrl+J Single-spaced paragraph: Ctrl+1. Stanley Zarowin, a former JofA senior editor, is now a contributing editor. His e-mail address is zarowin@mindspring.com . Do you have technology questions for
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Exhibit 2
Accounting
The AICPA issued a set of technical practice aid questions and answers (TPAs 6910.16–.20) on presentation and disclosure issues facing nonregistered investment partnerships. Another set (TPAs 2130.09–.35) answers questions related to implementing Statement of Position (SOP) 03-3, Accounting for Certain Loans or Debt Securities Acquired in a Transfer. The TPAs
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Exhibit 5
Going to the Dogs
SIGNS OF THE TIMES There are all kinds of unique businesses out there that need the specialized functions a CPA can provide—such as assisting with bookkeeping and tax compliance and advising on the tax implications of forming an entity, York says. If you just take a look around, you may
Small Business Computer Security
If you are serious about data security for your desktops and laptops, you must do three things: Keep your software up to date, protect against viruses and set up a firewall. Here are some more steps to keep intruders—both human and digital—away. Keep your data safe. Implementing a regular backup
Cities for Relocation
TOP TEN Atlanta Austin, Texas New York City Orlando, Fla. Phoenix San Diego Scottsdale, Ariz. Raleigh-Durham, N.C. Tampa, Fla. Washington, D.C. Source: Yahoo! HotJobs, http://hotjobs.yahoo.com , 2005.
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Exhibit 4
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Exhibit 3
Tax Consequences of Home Purchase Programs
HOME SALES FOR JOB MOVES hen employees are asked to relocate to a new job site, employers often offer various benefits—including home purchase programs—to ease the transition. Using three examples, revenue ruling 2005-74 explains the tax consequences to employees and employers; CPAs should become familiar with them. FACTS In the
Maintain the Momentum
he job of a good manager is to keep everyone focused and driving toward the business plan. To do that you’ve got to cut off naysayers and what-if thinking, but be sure to listen to such comments in private to be sure you haven’t overlooked a plan flaw. Set short-term
A Tip of the Hat to CPAs
ON THE RECORD he certified public accountant (CPA) license, in particular, remains a key requirement for advancement in public accounting and private industry. In addition to the CPA credential, some of the most marketable certifications include the CIA, CMA and CFE. Also in demand are technology-based certifications, such as the
Beware Expert Predictions
SIGNS OF THE TIMES ou would think that experts are more likely to correctly predict the future (stock market and economic swings, to name a few). Well, think again. In fact, the more specialized the forecasters, the less likely their predictions are to hit the mark. This counterintuitive assessment is
Peer Review
The AICPA published online an article on members’ perceptions of its peer review program and other issues being studied by the Peer Review Task Force—for example, whether review results should be confidential ( www.aicpa.org/transparency/member_perceptions.htm ). The Institute encourages CPAs in public practice or business and industry to discuss the role
Educator/Researcher Lauded for Management Insights
Robert S. Kaplan, PhD., received the 2006 Lifetime Contribution Award from the Management Accounting Section of the American Accounting Association (AAA). The AICPA sponsors the citation, which recognizes individuals who have made a significant mark on management accounting education, research and practice. Kaplan, the Baker Foundation Professor at Harvard Business
Caught in the Tax Web
SIGN OF THE TIMES “NOTICE OF PENDING INTERNET POSTING,” begins a letter sent recently by the Wisconsin Department of Revenue to more than 7,000 people and businesses who owed the state taxes. It was fair warning that the names of those owing $25,000 or more were about to be posted for
Uncle Sam Saves Time and Money
Source: GAO, www.gao.gov .
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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
