In three recent cases, the Tax Court and Court of Federal Claims have held that a member of a limited liability company (LLC) or a limited liability partnership (LLP) should be treated as a general partner rather than presumptively as a limited partner for purposes of testing for material participation
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International
The IASC Foundation, the parent body of the IASB, on July 1 formally changed its name to the IFRS Foundation. The name change is designed to reflect more clearly what the foundation does, namely the publication and promotion of International Financial Reporting Standards (IFRS). The International Financial Reporting Interpretations Committee
Maximizing the Section 199 Deduction
Every business in the manufacturing sector, whether small or large, should consider the manufacturing deduction under IRC § 199. While section 199 comes with a complex set of rules, it nonetheless represents a valuable tax break for businesses that perform domestic manufacturing and certain other production activities. However, businesses should
Dealing With Clients in Financial Distress
Managing receivables is difficult in the best of times, and these challenges have been made even more difficult by the current economic environment. But there are several steps your CPA firm can take. Get a handle on billing issues at the outset. First, send out invoices in a timely manner.
Corrections
The “Roth IRA Conversion Quiz” in the August 2010 issue contained an incorrect answer to Question 10: “The original owner of a Roth IRA can always choose to take the money out, but is never required to.” The correct answer is “True.” The July 2010 article “Charitable Planning”
You Can Program Outlook to Delay the Transmission of an E-Mail Message
Q: There are times, especially when I’m handling a time-sensitive issue, that I would like to be able to delay the actual transmission of my e-mails. In other words, I’d like to write them now, but I don’t want them transmitted for, say, an hour, day or week. Oh, sure,
The Coming 1099 Revolution: Are You and Your Clients Ready?
Revenue-raising provisions in the Patient Protection and Affordable Care Act, PL 111-148, and the Health Care and Education Reconciliation Act of 2010, PL 111-152, like their health care provisions, have far-reaching implications. One could even fundamentally change the way we do business and keep records in the United States—by dramatically
Payment Processing Tips for Small Businesses
In a tight economy, small businesses are finding it increasingly necessary to offer their customers a payment card (credit/debit) option. CPAs can use these tips to educate their small business clients about payment processing: —By Greg Hammermaster (ghammermaster@sagepayments.com), president, Sage Payment Solutions. More from the JofA: Find us
Beware of State-Federal NOL Differences
State net operating loss (NOL) rules generally differ from federal NOL rules, and state NOL rules often differ from one another. This is especially true with respect to carrybacks of NOLs—which, unlike for federal returns, the majority of states do not allow—and carryforwards. This lack of consistency can lead to
The Foreign Account Tax Compliance Act
A key component of the federal government’s push for heightened tax compliance among U.S. taxpayers with foreign accounts and assets is the Foreign Account Tax Compliance Act (FATCA). In an interview in February this year with the JofA, IRS Commissioner Doug Shulman called the then-pending legislation “the next big thing”
Professor’s Innovative Teaching Helps Earn Accounting Education Award
G. Peter Wilson, Ph.D., professor of accounting at the Carroll School of Management at Boston College, received the Institute’s 2010 Distinguished Achievement in Accounting Education Award. The award recognizes full-time college accounting educators for excellence in teaching and for national prominence in the accounting profession. The award brings professional recognition
Accounting Standards Executive Committee Name Changed to Financial Reporting Executive Committee
The AICPA Council approved a proposed board resolution to change the name of the AICPA’s Accounting Standards Executive Committee (AcSEC) to the Financial Reporting Executive Committee (FinREC). In his opening remarks, AICPA Chairman Robert R. Harris pointed out that the new name would better reflect the committee’s evolving role and
Line Items
SUPREME COURT WON’T REVIEW TEXTRON The U.S. Supreme Court declined to review Textron Inc. v. U.S. (Sup. Ct. docket no. 09-750), letting stand a First Circuit Court of Appeals decision that the work product privilege did not protect the corporation’s tax accrual workpapers from an IRS summons. For the First
Step Transaction Doctrine Collapses LLC Interest Gifts
In a second decision (Pierre II) involving Suzanne Pierre’s transfer of a single-member limited liability company (LLC) interest to two trusts, the Tax Court applied the step transaction doctrine to the gift and sale transactions at issue in the case and slightly reduced the lack-of-control discount. Previously, the court had
Kevin Yeanoplos, CPA/ABV/CFF
Sometimes life gets away from us, and it takes a significant event to put things into perspective. That’s what happened to me seven years ago at age 46, when, one day at work, I suddenly discovered I could not move the left side of my body. The stroke I suffered
Authors Contributing to the August 2010 Issue
Convergence Milestone page 26 Matthew G. Lamoreaux is a JofA senior editor. He oversees coverage of international issues, financial reporting and corporate finance. He has more than 12 years of experience writing and editing for professional publications. He has a B.A. in English and has studied management and economics
Employee Involvement in Practice
The article “Employee Involvement: A New Blueprint for Success” (May 2010, page 46) affirmed many of the initiatives we have been implementing over the past year. At Concannon, Miller & Co. PC, our GO To Team consists of five individuals from all levels of our professional staff whom we have
Too Soon for IFRS Testing?
The AICPA should be applauded for being at the forefront requiring U.S. accountants to understand IFRS by including IFRS on the CPA Examination (“CPA Exam to Undergo an Evolution,” May 2010, page 54). The confluence of global and U.S. events is rapidly moving the world into using “a single set
Roth IRA Conversion Quiz
By now, CPAs have heard much about Roth IRA conversions made widely available in 2010. Take the following test to see how much you’ve learned. TRUE OR FALSE? 1. Starting in 2010, there are no income limitations to make regular contributions to a Roth IRA. 2. Roth IRA investment income
Replacing SAS 70
Guidance for CPAs who audit the financial statements of entities that outsource work to service organizations and those who report on controls at service organizations is being revamped and relocated. Since 1992, Statement on Auditing Standards (SAS) no. 70, Service Organizations, has been the source of the requirements and guidance
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
