March 2009

March 6, 2009

Concerns About CPA Letters to Third Parties

A CPA receives a request from a client to provide a letter to the client’s mortgage broker, lender, adoption agency, or other third party. The request seems simple enough and harmless. All the client asks is that the CPA verify that this is her client, that she has been preparing

March 6, 2009

Taxpayers Receiving Bigger Refunds This Season

With five and a half weeks to go in tax season, the IRS reports that more taxpayers have filed returns this year than last and that those taxpayers are receiving larger refunds. As of Feb. 27, individual taxpayers had filed 56 million returns with the IRS, a slight increase over

March 5, 2009

Banking Regulator Urges Change in Accounting for Loan Losses

U.S. Comptroller of the Currency John Dugan said the “incurred loss” model banks use to account for loan losses may need to be changed to a more counter-cyclical approach that would allow provisions to be made earlier in the credit cycle when times are good. Dugan, who is the

March 4, 2009

Effort to Simplify International Audit Standards Completed

The International Auditing and Assurance Standards Board (IAASB) has completed its clarity project, an initiative to update and reposition auditing standards in a form that is easier to understand, implement and translate. The clarified standards are effective for audits of financial statements for periods beginning on or after Dec. 15,

March 4, 2009

TIGTA: Some Tax Shelter Promoters Not Disciplined

The IRS’ Office of Professional Responsibility (OPR) was unaware of a significant number of licensed tax practitioners who had been assessed penalties, enjoined by federal courts or criminally sentenced for promoting abusive tax shelters, the Treasury Inspector General for Tax Administration (TIGTA) found in an audit. As a result, the

March 3, 2009

IRS Announces Revisions to Form 941

The IRS announced that in mid-March it will start sending employers new Forms 941, Employer’s Quarterly Federal Tax Return. Employers will use the revised form to claim the new COBRA premium assistance payments credit, which was introduced by the recent stimulus act, the American Recovery and Reinvestment Act of 2009,

March 2, 2009

Clarified Risk Standard Proposals Available

The AICPA released for exposure certain risk assessment standards rewritten as part of its clarity project. The proposed risk assessment standards have been redrafted into a format that clearly identifies objectives, relevant definitions, requirements, and application and other explanatory material. Comments on the exposure drafts are due April 30.

March 1, 2009

Sixth Circuit Upholds Use of Life Tables for Lottery Lump Sum

The Sixth Circuit Court of Appeals ruled in Carol J. Negron v. U.S., docket no. 07-4460, that the IRS annuity tables of IRC § 7520 provide a realistic and reasonable estate valuation of a state lottery prize paid as a lump sum. In so doing, it reversed a district court’s

March 1, 2009

Pursuing a Ph.D. in Accounting: Walking in With Your Eyes Open

After teaching mathematics for a number of years, I was contemplating a change in careers. After researching possible career choices, I took an accounting night class at a local university. I enjoyed the logic and structure of the class and quickly decided this was my niche. Next, I set my

March 1, 2009

Tools and Tips: Be an “Energy Star”

Editor’s Note: Also see “Be an ‘Energy Star’,” March 09 ENERGY AUDIT TOOLS Home Energy Saver (free residential online tool provided by Lawrence Berkeley National Laboratory) Portfolio Manager (free online tool developed by EPA for commercial buildings Home Analyzer and Business Analyzer (free auditing tools developed by Aclara Software) PRODUCT INFORMATION

March 1, 2009

IFRS Requirements for Recognizing Impairment on Securities

Given the movement toward acceptance of IFRS in the U.S., a discussion about other-than-temporary impairment on securities would not be complete without a discussion of the IFRS requirements. IFRS requirements for recognizing impairment on securities are specified in International Accounting Standard no. 39, Financial Instruments: Recognition and Measurement. IAS

March 1, 2009

Securities Covered by EITF 99-20

Accountants often struggle when attempting to determine whether an investment is covered by Emerging Issues Task Force (EITF) Issue no. 99-20, because its scope provisions contain a “double negative” that may make interpretation difficult. In summary, the scope of EITF 99-20, Recognition of Interest Income and Impairment on Purchased

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.