The Tax Court ruled that paying higher education expenses from an IRA was not a modification of a taxpayer’s annuity payments from the IRA that would have made the payments subject to the 10% additional tax on early distributions. Generally under IRC § 72(t), distributions received from an IRA before
Advertisement
The magazines
Microsoft’s Compatibility Program Lets Office 2003 Users Read Office 2007 Files
Q: Some of my clients have switched to Vista and Office 2007, but I want to stick with XP and Office 2003—for the time being, at least. And this is giving me a headache because I can’t open all the files I receive from people using Office 2007 files. What
ERM: Opportunities for Improvement
As the result of fallout from the ongoing economic crisis, failures associated with existing risk management processes are already generating calls for reform and increased regulatory scrutiny. SEC Chairman Mary Schapiro said in an April 2009 speech to the Council of Institutional Investors that “the Commission will be considering whether
How to Nail Down Those Wandering Callouts
Q: I use callouts frequently to add graphic aids to my memos. But soon after I put them in their proper place and start working on another part of the memo, some of them just seem to have a mind of their own, and they pick up and wander to
Bob Kerstein, CPA
Stock and bond certificates, to most people, represent a measure of financial investment in a company. The kinds of stocks and bonds I deal with represent insight into financial history. People like me who buy them are scripophilists, collectors of historical stock and bond certificates. I remember the day in
What’s Your Fraud IQ?
Placing a sizable amount of trust in staff members is part of the cost of doing business. Trusting workers with access to information, products, vendors and funds is necessary to run an effective and efficient operation. But some employees—when faced with sufficient pressure, a perceived opportunity, and the ability to
CFO 101: Five Prerequisites
To climb the ladder in most finance organizations, CPAs hone their skills in making accounting judgments, closing the books, accurately preparing financial statements and other reports and filing them on time. But current CFOs agree that to reach the top—the CFO position—another skill set is required. Unfortunately, these additional skills
Assessing the Allowance for Doubtful Accounts
Calculating estimates of the collectibility of accounts receivable and auditing those estimates is difficult. This article describes three techniques for assessing allowance for doubtful accounts estimates and complying with Statement on Auditing Standards (SAS) no. 57 and AU section 342, Auditing Accounting Estimates, which suggest auditors compare prior accounting estimates
Banking
Delinquencies and foreclosures on first-lien mortgages continued to climb in the first quarter of 2009, according to the most recent OCC and OTS Mortgage Metrics Report. The report also showed a similar rapid increase in loan modifications—in particular more sustainable loan modifications with lower monthly payments. The report covers
AICPA Presents Outstanding CPA in Government Award
Three CPAs received the 2009 AICPA Outstanding CPA in Government Awards, which were to be presented in August at the Governmental Accounting and Auditing Update Conference in Washington by AICPA Chairman Ernie Almonte. The awards recognize CPAs working in local, state, and federal government who made significant contributions to increased
An Invitation to Play in a Microsoft Lab’s “Sandbox” and, While There, Make Your Office 2007 Ribbon Less Bewildering
Q: I came across an intriguing Web site that invites visitors to try out prototype software developed by Microsoft Office Labs. Some of the stuff looks quite useful, especially the tool designed to improve the maneuverability of the Ribbon in Office 2007. But I was hesitant to try it, for
Obstacles (and Potential Embarrassments) to Avoid When Cleaning Out Old E-mails
Q: I ran into a very embarrassing situation. I need your advice so I won’t face this problem again, and maybe it’ll be helpful to your readers, too. Here’s what happened: When I read your June 2009 column item “It’s Not Enough to Just Delete Old Messages in Outlook, You’ve
Loan Refinancing Deemed a Taxable Distribution
The Tax Court found that the amount by which a taxpayer’s refinancing of a loan from his qualified retirement plan exceeded statutory limits was a deemed distribution subject to the 10% additional tax. Under section 72(p)(2), a loan from a qualified retirement plan to a participant is not treated as
Full-Time Medical Residents Not Exempt From FICA
Several circuits have ruled on whether medical residents are eligible for the student exception to FICA (see “Tax Matters: FICA for Medical Residents Splits Circuits,” JofA, Jan. 08, page 73). Until recently, the issue had been whether a medical resident could be considered a “student” and a hospital could be
Highlights
U.S. private companies may have a new choice for accounting and financial reporting—a slimmed-down version of IFRS tailored more to their needs. IFRS for SMEs (small- and medium-size entities) is a simplification of full IFRS. The International Accounting Standards Board (IASB), which released the new standard in July after
Computer Fraud Casebook: The Bytes that Bite
edited by Joseph T. Wells, CPA, CFE John Wiley and Sons Inc., 2009, 424 pp. Writing about accounting—or computers, for that matter—often can seem clinical to the point of disembodiment. The two together could be, well, a bit dry. Joe Wells can be counted on for a good tale or
The Readable Code and Regs: Partnerships, 2009 Edition
edited by Glenn L. Madere, J.D., LL.M. Readable Press, 2009, 1,078 pp. (vol. 1) and 1,382 pp. (vol. 2) Every neophyte in tax practice has no doubt wondered why someone couldn’t publish a plain-language gloss of the Internal Revenue Code and associated regulations. Let’s face it: Tax statutes and
Financial Reporting
FASB issued an exposure draft of a proposed Statement of Financial Accounting Standards, Disclosures about the Credit Quality of Financing Receivables and the Allowance for Credit Losses. The goal of the proposed statement is to provide more information regarding the nature of credit risk inherent in the creditor’s portfolio
Auditing
The PCAOB voted to adopt an amendment to a rule on the timing of certain inspections of registered non-U.S. public accounting firms. The amendment to PCAOB Rule 4003(g) gives the board the ability to postpone, for up to three years, the first inspection of any foreign registered public accounting
Regulation
The SEC proposed rule amendments that would require money market funds to maintain a portion of their portfolios in highly liquid investments, reduce their exposure to long-term debt and limit their investments to only the highest quality portfolio securities. The proposals also would require the monthly reporting of portfolio
Features
FROM THIS MONTH'S ISSUE
AI risks CPAs should know
Are you ready for the AI revolution in accounting? This JofA Technology Q&A article explores the top risks CPAs face—from hallucinations to deepfakes—and ways to mitigate them.
From The Tax Adviser
January 31, 2026
Trust distributions in kind and the Sec. 643(e)(3) election
January 31, 2026
Effects of the OBBBA on higher education
December 31, 2025
