The PCAOB for a second time delayed application of Rule 3523, Tax Services for Persons in Financial Reporting Oversight Roles, to situations where firms provide tax services to a client before they become the client’s auditor. The audit independence rule, which forbids firms from providing tax services during an “audit
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Heavy Price for Ignoring Levy Notice
In U.S. v. MPM Financial Group Inc., the Sixth Circuit scolded the defendant for exercising poor internal controls as it upheld a penalty for failure to comply with a notice of levy against one of its employees, who was also the corporation’s co-owner and president. Because the employer did not
Money Talks
Nearly 80% of adults in serious relationships have never hidden financial information from their spouses or partners, according to a Harris Interactive Personal Finance Poll. Despite this apparent honesty, more than half (51%) of survey respondents still argued about finances. The most common disagreements included: irresponsible spending (19%), not saving
No Penalty for BLIPS
In the widely reported case Klamath Strategic Investment Fund (see “Tax Matters,” JofA, March 07, page 72), the district court disallowed claimed losses on a finding that the transactions were shams and lacked economic substance. An important but less widely known aspect of the case was the court’s refusal to
Determining Basis for Gambling Losses
With the proliferation of legal types of gambling (lotteries, casinos, horse and dog racing, jai alai, bingo, etc.), many more taxpayers are in the (enviable) position of having to report winnings on their tax returns. While many taxpayers may generally know that they can deduct their losses
Financial Reporting
At an open meeting in April, the SEC endorsed the recommendations of the agency’s professional staff to eliminate waste and duplication in Sarbanes-Oxley section 404 compliance, a move intended to benefit smaller public companies. The SEC’s direction to its staff will focus on aligning the PCAOB’s new auditing standard (AS-5)
Report Says IRS Fails to Protect Sensitive Data
The agency tasked with processing more than 220 million tax returns annually is not doing an adequate job of protecting the sensitive personal financial information of the taxpayers submitting those forms, according to a report from the Treasury Inspector General for Tax Administration (TIGTA). TIGTA said IRS employees reported the
Shunning Spam
As technology advances, so do the tricks spammers use to deliver junk mail to your inbox. Save time, energy and IT resources by following these tips to reduce the unsolicited, and sometimes dangerous, messages: Don’t reply to spam, even to request removal. Any reply to spammers will confirm your e-mail address
Smart Stops on the Web
TECHNOLOGY CPA SEARCH www.ifacnet.com Use this global accountancy search engine to scan the Web for articles, management tools and practice techniques written by the International Federation of Accountants and its 155 international member organizations. Designed for practitioners in small to medium-size firms and in business and
Stakes Increase as High-Profile Bills Move Through
The new House and Senate Democratic majorities started the year with aggressive agendas, passing several pieces of legislation in the first 100 hours. However, as the burden of being in the majority takes its toll, they are finding it increasingly difficult to reconcile the differing House and Senate versions of
Flexing Your Super Financial Sleuth Power
EXECUTIVE SUMMARY Benford’s law holds that the leftmost digit in many types of numerical data is a 1 nearly one-third of the time, with probability inversely proportional to the value of each increasing digit. This phenomenon can be harnessed to analyze data to detect values that
Internal Controls
Despite making progress in safeguarding sensitive or confidential information, the SEC still lacks consistency in implementing key data controls, the GAO said in its annual audit released in April. Information security control weaknesses identified included 13 that remained unresolved from the previous year’s audit, plus 15 new ones, the GAO
Value Proposition
EXECUTIVE SUMMARY The CPA is the gold standard in financial credentials, but CPAs are increasingly in short supply. The result is that it is more difficult and more expensive for companies to find qualified CPAs. CPAs can benefit companies in a number of ways that they
Stay Connected on the Road
When traveling on business, it would be great if you could receive and send e-mail and easily perform other simple office tasks, like sending and receiving faxes or scanning documents into your computer—all without lugging around a ton of equipment. It would be even better if none
A Better Way
The January column included an item (page 73) that described a way to repair Word. After it ran, I realized there is a faster, easier way to do the job. So if any Office application appears in need of repair, open Control Panel and click on Add or Remove Programs.
Use Power Efficiently at the Office
Have a long-term goal to reduce your overhead and operating budget? Every few years firms can schedule professional energy audits, which pinpoint where your office is wasting energy and suggest how to increase efficiency. Follow these simple tips to keep your employees comfortable while cutting your summer energy bill: Install
New Law Provides AMT Relief
Individuals holding incentive stock options have historically faced a dilemma at tax time. If options are in the money, they may be subject to the alternative minimum tax (AMT) on paper profits even before selling their shares. If they sell their shares at a loss, their net
International
The SEC released new rules that will make it easier for foreign companies to deregister from U.S. exchanges if there is not significant interest in their securities offerings. By eliminating conditions that had been considered a barrier to entry, the SEC says the amended rules will encourage participation in U.S.
Pay Upfront on OICs
The IRS revised its offer-in-compromise (OIC) application package to reflect changes of the Tax Increase Prevention and Reconciliation Act of 2005. Form 656 includes a checklist designed to help taxpayers determine whether they are eligible to file an OIC before they prepare the form. Also, for OICs submitted after July
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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
