GASB issued its Suggested Guidelines for Voluntary Reporting, SEA Performance Information. The purpose of this document is to provide state and local governments with suggested guidelines intended to provide a common framework for the effective external communication of service efforts and accomplishments (SEA) information. GASB said the reporting of
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IRS PROPOSES PTIN FEES The IRS proposed (REG-139343-08, issued July 23, 2010) to begin charging all authorized tax preparers a $50 user fee to obtain or renew annually a preparer tax identification number (PTIN). The fee would be on top of a fee charged by a third-party vendor that will
Correction
The July 2010 article “Charitable Planning” mischaracterized the effect of unrelated business taxable income (UBTI) received by a charitable remainder trust (CRT). For tax years beginning after Dec. 31, 2006, UBTI would not cause a CRT’s income from sources other than UBTI to become taxable. UBTI itself, however, is subject
Test Your Knowledge of Professional Ethics
Many AICPA members have expressed confusion about provisions covered under Interpretation 101-3, Performance of Nonattest Services, of the AICPA Code of Professional Conduct. For example, what nonattest services can a CPA perform for an attest client? What are the requirements involving management responsibilities to oversee the project? This quiz is
Patti Named CAQ’s Senior Director of Professional Practice, Policy & Research
Allison M. Patti joined the Center for Audit Quality for a one-year fellowship as senior director of Professional Practice, Policy & Research. A partner at Deloitte LLP and a former professional accounting fellow in the SEC’s Office of the Chief Accountant, Patti will help guide the CAQ’s member services, professional
Jurisdiction Not Limited to Award Amount, Tax Court Says
The Tax Court ruled that an IRS letter denying a tax whistleblower’s claims was a “determination” giving the Tax Court jurisdiction to review the matter under IRC § 7623(b)(4). Thus, the court declared that its jurisdiction is not limited to the amount of an award but includes any determination by
Online Selling and Third-Party Network Reporting
The payment settlement reporting requirements of new IRC § 6050W, which go into effect next year, apply broadly to transactions conducted by debit or credit card, as well as third-party network transactions. While CPAs’ clients can easily understand how accepting payment cards at point of sale might affect them, those
JofA Website and Articles Win Business Publication Awards
The JofA’s website, journalofaccountancy.com, won the silver award for Best B2B Website in the 2010 Tabbie Awards competition, presented by Trade, Association and Business Publications International (TABPI). Two JofA articles were also honored in the How-To and Technical article categories. The awards, which recognize excellence in editorial content and design,
Vetting a Vendor: Questions to Ask Before Making an Investment
Editor’s note: Also read “Cloud Computing: What Accountants Need to Know” in the October 2010 issue of the JofA. Ample research must be done before selecting any vendor, but specific areas should be addressed when choosing to move your data to the cloud. The following are some questions to
IRS Issues Final Regulations on Tax Shelter Excise Taxes
The IRS and Treasury Department issued final regulations under IRC § 4965 for excise taxes on tax-exempt entities that enter into prohibited tax shelter transactions and on their managers who approve such transactions or have reason to know that they are prohibited tax shelter transactions. Certain tax-exempt entities such as
Some Audit Documents Protected
The District of Columbia Court of Appeals held that the work product privilege protected two documents created by taxpayer Dow Chemical Inc. from discovery by the IRS and might protect another document created by Dow’s independent auditor, Deloitte LLP. The D.C. Circuit thus affirmed a holding by the District Court
Cloud Computing: What Accountants Need to Know
There’s no arguing that “cloud computing” is gaining a great deal of momentum. Worldwide, cloud services revenue is forecast to reach $68.3 billion in 2010, a 16.6% increase from 2009 revenue of $58.6 billion, according to analyst firm Gartner Inc. So what does this mean to the accounting profession? What
Make Training Grants Work for You
The U. S. job market remains hobbled as many employers delay hiring. But economically trying times offer opportunities to prepare for future growth. The AICPA has identified resources for training and assistance to help financial executives meet these challenges. Training must evolve from an agreement between the employer and a
Company’s Deduction for Shareholder-Executive’s Pay Reduced
The Tax Court reduced a corporation’s deduction for compensation to its CEO, but by much less than the IRS sought. Factors favoring the taxpayer were consistent compensation policies and that the owner was the driving force behind successful operations. Weighing against the taxpayer for one tax year was a negative
XBRL
The IFRS Foundation (formerly the IASC Foundation) published its first interim release for the IFRS Taxonomy 2010, which is a translation of IFRS as issued Jan. 1, 2010, into XBRL. This IFRS Taxonomy interim release reflects improvements to IFRS for the 2008–2010 project cycle, which was published in May 2010
Banking
The federal financial regulatory agencies and the Conference of State Bank Supervisors issued guidance that encourages financial institutions to work with customers and consider measures to assist creditworthy borrowers affected by the BP/Deepwater Horizon oil spill in the Gulf of Mexico. The federal financial regulatory agencies include the Federal Reserve,
Guard Against Cybertheft
A type of fraud has come into the public eye in the past year in which the criminal surreptitiously obtains financial banking credentials, hijacks a corporate computer, and steals money from the victim’s bank accounts. In this scenario, referred to as a fraudulent electronic funds transfer (EFT) transaction, a cybercriminal
Income Tax Accounting for Trusts and Estates
Estates and nongrantor trusts must file income tax returns just as individuals do, but with some important differences. For one, their income is taxed at either the entity or beneficiary level depending on whether it is allocated to principal or allocated to distributable income, and whether it is distributed to
Taxpayers Who Built New Home Denied Exclusion
The Tax Court held that a married couple could not exclude gain under IRC § 121 from the sale of a house that they had never lived in, built after they had demolished their former residence on the same site. The court held that Congress intended that the exclusion should
Ethics Story Wins Best Article Award
Martin A. Leibowitz and Alan Reinstein received the JofA’s Lawler Award for the best article of 2009. Their article, “Help for Solving CPAs’ Ethical Dilemmas” (April 2009, page 30), discussed the AICPA’s guide to help CPAs comply with rules 102–505 of its Code of Professional Conduct. Leibowitz is a faculty
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
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Current developments in taxation of individuals: Part 2
April 30, 2026
