The District Court for the Western District of Michigan affirmed a bankruptcy court’s holding that severance payments by a bankrupt company to its laid-off employees were not subject to FICA tax. The court held that because IRC § 3402(o) subjects a supplemental unemployment benefit (SUB) payment to income tax withholding
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Consumer Regulations
The Federal Reserve issued final rules that restrict the fees and expiration dates that apply to gift cards. The rules are intended to protect consumers from certain unexpected costs and require that gift card terms and conditions be clearly stated. The rules go into effect Aug. 22. Previous JofA articles
The Recovery Act: An Auditee’s Perspective
In response to the severe economic crisis, the $787 billion American Recovery and Reinvestment Act (Recovery Act) became law in February 2009. The primary goal of this act was to create and save jobs and stimulate long-term economic growth. Only $275 billion of the Recovery Act funds allocated for contracts,
Banking
The federal banking agencies, in conjunction with the Conference of State Bank Supervisors (CSBS), released a policy statement on their expectations for sound funding and liquidity risk management practices. The Interagency Policy Statement on Funding and Liquidity Risk Management, adopted by the FDIC, the Federal Reserve, the Office of the
Widow Not Barred From Innocent Spouse Claim
The Tax Court determined that a widow was not prohibited from raising the issue of relief from joint and several liability for three tax years that had been previously litigated. The court concluded that the exception to res judicata applied, but it did not address whether the taxpayer qualified to
Alternatives for the Lost Compressed-Weekend Option in Outlook 2007
Q: Did Microsoft hide the compressed-weekend option in Outlook 2007, where Saturday and Sunday share one box in the calendar? A: No, it’s not hidden, it has been removed. However, there are some things you can do to partially compensate for the loss. For example, you can adjust your calendar
A One-Click Way to Close Multiple Applications—Free
Consider this scenario: You’ve got six applications open, and to apply a program’s upgrade or to shut down your computer for the night, you’ve got to close each of those open apps—one at a time. This means you first have to save any files that need saving and then click
IRS Provides Guidance, Steps Up Exams of Sec. 199 Issues
Code § 199 provides a deduction equal to a specified percentage (9% for 2010 and subsequent years) of the lesser of qualifying production activity income (QPAI) or taxable income. In brief, QPAI equals eligible receipts, or domestic production gross receipts (DPGR), less allocable cost of goods sold and other deductions.
Opening the Door to Financial Regulatory History
At a time when financial regulatory reform is capturing headlines, an online museum administered by the SEC Historical Society is granting users from Wall Street to Main Street equal access to resources, relics and research material. The online galleries at sechistorical.org preserve eyewitness accounts, oral histories, correspondences, research papers and
Sixth Circuit Finds False Imprisonment Settlement Payments Taxable
The Sixth Circuit affirmed a Tax Court decision that settlement proceeds received for false imprisonment were not excludable under IRC § 104(a)(2) as amounts received due to physical injury. Brenda Stadnyk was falsely imprisoned as the result of an auto dealership’s criminal complaint against her. She had stopped payment on
ESOP Article Overdue
I am a CFO associated with a 100% employee-owned company. I found Scott Miller’s article (“The ESOP Exit Strategy,” March 10, page 32) very timely and long overdue. It is my opinion that the ESOP tool is one of the best—if not the best—available tools for owners of companies to
Shortcuts
Excel: A quick way to copy the number in a cell that is immediately above the cell you’re in: Press Ctrl+” (that’s Ctrl plus the quote mark, which means you have to hold down the Shift key as well). That also copies the number’s formatting. Word: To format (bold, underline,
FASB’s Position on Uncertainty Makes No Sense
With regard to your article “An Update on Accounting for Uncertainty in Income Taxes” (Dec. 09, page 45), I wish to question what was wrong with the accounting rule makers. The position FASB is taking with regard to private companies makes no sense at all. The article states that the
IFRS Article Appreciated
I wanted to let you know that I thought the article “Countdown to Convergence” (March 10, page 24) was very good. I participated in the AICPA IFRS revenue recognition task force and I am helping write IFRS questions for the 2011 CPA exam, so I have a particular interest in
News Highlights for June 2010
The PCAOB proposed for comment an auditing standard, Communications with Audit Committees, and a series of related amendments to its interim standards. The proposal includes a requirement for the auditor to establish a mutual understanding of the terms of the audit engagement with the audit committee and to document that
Don’t Neglect to Elect
A wide range of federal tax elections gives individual taxpayers options for how they report certain income or expense items. Some of the more common elections for individuals concern retirement plans, medical expenses and interest expense. Each election has specific rules as to who can make the election, when and
Financial Reporting
FASB and the IASB published an exposure draft, Conceptual Framework for Financial Reporting: The Reporting Entity, that is part of a joint project between the boards to develop a common and improved conceptual framework for developing future accounting standards. The ED discusses what constitutes a reporting entity, which in different
Keeping Fraud in the Cross Hairs
Five percent of annual revenue—that’s the estimate of how much money the typical organization loses to fraud, according to participants in the 2010 Report to the Nations on Occupational Fraud and Abuse. The report, prepared by the Association of Certified Fraud Examiners, an international organization of more than 50,000 fraud
Request for Replacement Estate Tax Check Denied
The U.S. Court of Federal Claims held it did not have jurisdiction to issue a replacement check to a U.S. executor after a foreign executor named to the same estate cashed a refund check from the IRS. The issue arose after a U.S. citizen died in 2006 while living in
CPAs Work for Clients, Not IRS
I suspect my note will be only one of many you will receive about the article “Tax From the Top” (April 10, page 16). Someone needs to advise the IRS that we, CPAs, are not partners with the IRS. We are advocates for our clients; we are professional, ethical and
Features
FROM THIS MONTH'S ISSUE
4 ways solo practitioners can stand out
Five years ago, a grieving Angel Zhen started his own CPA firm with no clients and no revenue. Today, he has 300 clients, $600,000 in revenue and 12 weeks of annual vacation. In this JofA article, he shares how he set up his firm and how you could do the same.
From The Tax Adviser
April 30, 2026
Current developments in taxation of individuals: Part 2
April 30, 2026
