The International Accounting Standards Board (IASB) issued a minor amendment to IFRS 1, First-time Adoption of International Financial Reporting Standards. The amendment relieves first-time adopters of IFRS from providing the additional disclosures introduced in March 2009 in an amendment to IFRS 7, Improving Disclosures about Financial Instruments. It thereby ensures
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Tax Treatment of Adoption Expenses
Of the family-related “life events” with significant implications for taxes, adoption of a child ranks among the potentially most expensive. Most readers of Adoptive Families who answered the magazine’s request to report the costs of a completed adoption gave figures between $25,000 and $30,000 (tinyurl.com/yjxlvre). International adoptions tend to be
Lisa Baskfield, CPA
You never know when or how you will be inspired or where that inspiration will take you. About two years ago, a chance dinner with Ernie Almonte, the past chair of the AICPA’s board of directors, inspired me to get involved in helping members of the American military with their
Create Your Own Lookalike Office 2003 Toolbar and Add It to the Ribbon
Q I’ve just switched from Office 2003 to Office 2007, and although it’s clearly more powerful, I’m not enamored with the Ribbon. I waste loads of time in frustrating searches through its scattered maze of functions. Isn’t there some way I can keep the Office 2007 muscle but go back
Navigating the R&D Tax Credit
Although it has a well-deserved reputation for complexity and uncertainty for taxpayers, the research tax credit of IRC § 41 nonetheless remains a valuable source of support to businesses that conduct qualified research and development. In fiscal year 2009 alone, the credit represented an estimated $5.6 billion federal subsidy for
Toward a (More) Paperless Tax Practice
Nearly all CPA firms prepare tax returns electronically. However, many still also use some old-fashioned methods, such as sending out tax organizers manually. Here are tips to more fully realize what it means to go paperless. First, understand and share the goal: A more efficient, digital tax process can help
Government
GASB issued two statements intended to improve consistency in the measurement and financial reporting of other post-employment benefits (OPEB) such as retiree health insurance, and the effects of municipal bankruptcy (see “Official Releases,” March 10, page 77). Statement no. 57, OPEB Measurements by Agent Employers and Agent Multiple- Employer Plans,
Line Items
SECURITIES BASIS REPORTING PROP. REGS ISSUED The IRS issued proposed regulations (REG-101896-09) in December relating to how securities brokers report sales to the IRS and how stock basis is determined. The regulations also proposed a Feb. 15 annual deadline for brokers to supply certain information statements. The proposed rules reflect
How to Get Experience in M&A-Related Disputes
Editor’s note: This is a sidebar to “The CPA’s Role in Quantifying Post-Acquisition Dispute Damages,” March 2010. Most CPAs with an accounting and auditing background have advised a client who has acquired or sold a business or business interest. Disputes may arise related to the M&A transaction as outlined
Correction
In “Tax Season Kicks Off” (Jan. 10, page 32), the section on “Business Relief” misstated the amount of new or used tangible personal property placed in service during the tax year that was eligible for expensing under section 179 in 2008. The correct amount is $250,000, the same as in
Charitable Deduction Due to a Partial Disclaimer
The Eighth Circuit upheld the Tax Court’s decision to allow a charitable deduction involving a disclaimer by an heir of a portion of her interest in an estate. The Tax Court had held the disclaimer was not qualified under IRC § 2518 with respect to property that passed to a
Reader Input
Paul McClain, controller at the Hillcrest Medical Center in Tulsa, Okla., reminded me of this handy tip for those still using Office 2003: If you have files or folders you use fairly often but you do not want to clutter your desktop or your Start menu with shortcut icons, click
The CPA’s Role in Quantifying Post-Acquisition Dispute Damages
Given today’s environment of bankruptcies, bank failures and recessionary pressure, consummating merger and acquisition transactions is more challenging than ever. The potential disputes arising from the challenges of an M&A transaction are numerous. The following two types of disputes are the focus of this article: working capital disputes regarding whether
Internal Control: Test Your Knowledge
Today many companies recognize the desirability as well as the requirement to have an effective system of internal control. Yet, designing and implementing a cost-effective system of internal control is a daunting, if not overwhelming, task. One way to overcome resistance to internal control is to educate stakeholders at every
Acquisition Intermediary’s Role Ignored
The Fifth Circuit Court of Appeals upheld a decision of the U.S. District Court for the Southern District of Texas that recharacterized a corporation’s acquisition of assets as an acquisition of stock with a subsequent liquidation of the acquired corporation. The appellate court agreed with the IRS and the district
IRS to Register and Test Signing Preparers
The IRS on Jan. 4 said it will require registration of paid, signing tax return preparers as well as competency testing and continuing education for preparers other than practitioners (CPAs, attorneys and enrolled agents and others authorized to practice before the IRS). The plan also calls for extending the requirements
Minding the GAAP
Should private companies adhere to the same set of accounting standards as public companies? This question has been debated for decades by various committees and organizations. In January, Rick Anderson, chairman and CEO of Seattle-based Moss Adams LLP, was named chairman of a new blue-ribbon panel tasked with making recommendations
NOL Carrybacks and the Statute of Limitation
With the introduction of the five-year net operating loss (NOL) carryback in IRC § 172(h) many taxpayers are now examining their tax situations to determine how to best take advantage of the new rules. However, as taxpayers evaluate their situations, they should also consider the impact that carryingback an NOL
Voluntary Tax Payment Not Exempt From Early Withdrawal Penalty
Although paying a tax levy can exclude early IRA withdrawals from an otherwise applicable 10% penalty, a notice of intent to levy does not have the same effect, the Tax Court held. If a taxpayer is under 59½ years old, IRC § 72(t) generally imposes an additional penalty tax of
Method of Calculating Buy-In Payment Approved
The Tax Court approved a software company’s method of valuing a buy-in payment for the transfer of intangible assets to a subsidiary, calling the IRS’ redetermination of the buy-in payment amount “arbitrary, capricious and unreasonable.” The case concerned tax years 1999 through 2001 of VERITAS Software Corp. (VERITAS U.S.), which
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