Editor’s note: This is a Web-exclusive exhibit for “Password Management Strategies for Safer Systems.” Primary Security Risks Effective Countermeasures Failing to enhance password security in order to focus on searching for a “perfect” security system and obtaining more funding. Immediately improve password security procedures. Implementing new system security procedures or
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Password Management Strategies for Safer Systems: Glossary of Key Terms
Editor’s note: This is a Web-exclusive exhibit for “Password Management Strategies for Safer Systems.” Term Definition Clear Text Unencrypted characters in, for example, a password. Crack To decode an encrypted password. Social Engineering A hacker’s use of a plausible pretext to intimidate or trick an employee into divulging a password
CPAs Embrace Twitter
Twitter has taken the Internet by storm. Like LinkedIn and Facebook, Twitter hosts a growing community of CPAs and financial professionals, but unlike its social-networking peers, the microblogging Web site limits users’ messages, questions and conversations to 140 characters (including spaces). To put this limit into perspective, this paragraph has
CPA Financial Planners Assess New Risk Environment
Eighty percent of CPA financial advisers are strongly recommending a mix of growth and income securities for their clients, according to an online survey of members of the AICPA’s Personal Financial Planning Section. The survey, conducted between April 22 and June 4, showed that CPAs are re-evaluating their clients’ risk
Foreign Bank Account and Other Foreign Information Return Developments
The IRS on June 24 released 20 new updated frequently asked questions (FAQs) on its offshore income voluntary disclosure program (VDP) and foreign bank and financial accounting reports (FBAR). The IRS also provided to the AICPA FBAR Task Force the street address for FBAR submissions by private delivery services: IRS
ETAAC Recommends Congress Mandate More E-Filing
Do-it-yourself e-filing by individual taxpayers increased 19% from 2008 to 2009, the Electronic Tax Administration Advisory Committee (ETAAC) said in its 2009 Annual Report submitted to Congress on Wednesday. However, e-filed returns by tax preparers were down 1%. Overall, the committee estimates that for major form types, 59% of returns
TIGTA: 1040 Tweaks Needed, Drabness to Stay
A few relatively minor changes to Form 1040 could yield improvements in preventing common taxpayer errors, the Treasury Inspector General for Tax Administration (TIGTA) said in an audit. Analyzing the approximately 7 million math error notices the IRS sends annually, TIGTA homed in on some of the most frequent taxpayer
Deducting Losses for Defrauded Investors
The financial collapse of high-profile investment institutions has generated billions of dollars of losses. A recent report notes that federal and state prosecutors “are preparing for a surge of prosecutions of financial fraud.”1 A question may arise as to whether these losses for tax purposes are to be treated as
Obama Announces New Regulatory Reform Proposals
President Barack Obama on Wednesday presented a plan for regulatory reforms in the financial services industry. The details of the plan were revealed in an 89-page Treasury Dept. report titled Financial Regulatory Reform: A New Foundation.
Obama Announces Broad Regulatory Reform Proposals
President Obama on Wednesday presented a plan for regulatory reforms that would consolidate banking regulators, create new government agencies and give new powers to the Federal Reserve. One proposal of particular interest to the accounting profession includes three recommendations addressed to accounting standard setters. The plan echoes the Group of
Revamped IT Certification Available
The AICPA on Monday unveiled revisions to the Certified Information Technology Professional (CITP) credential that will reward accountants for real-world experience, life-long learning and, optionally, similar credentialsfrom other organizations. The announcement came at the AICPA Tech+ Conference in Las Vegas. Because CPAs have taken on more responsibility in the areas
FASB Issues Standards on Securitizations, SPEs
FASB on Friday published standards that change the way entities account for securitizations and special-purpose entities. Both standards will require new disclosures. FASB Statement no. 166, Accounting for Transfers of Financial Assets, and Statement no. 167, Amendments to FASB Interpretation No. 46(R), will affect financial institution balance sheets beginning in
New Car Buyers in States With No Sales Tax Can Still Take Sales Tax Deduction
On June 10, the IRS announced that new car buyers in states with no sales tax are entitled to take the new car sales tax deduction under IRC § 164(b)(6) (IR-2009-60). The American Recovery and Reinvestment Act of 2009 introduced a deduction for taxpayers who buy new cars, light trucks,
SEC Considering New Proxy Disclosure Rules on Executive Compensation
SEC Chairman Mary Schapiro announced Wednesday that the commission is considering a package of new proxy disclosure rules that would provide more information to investors on public companies’ compensation decisions. “At the SEC, our role has not been to set pay scales or cap compensation,” said Schapiro in a news
FBAR Voluntary Disclosure Questions Answered
The IRS has answered 51 “frequently asked questions” (FAQs) about its voluntary disclosure and settlement option for previously unreported offshore financial accounts and entities and income from them. The six-month window for making disclosures under the program ends Sept. 23. Although IRS Commissioner Doug Shulman said the program can allow taxpayers
IRS Offshore Voluntary Compliance Program Questions
The information below includes questions that IRS Criminal Investigation special agents have asked some taxpayers participating in the IRS Offshore Voluntary Compliance program. Practitioners might want to document the facts as fully as possible in a detailed summary when submitting under the program. Those considering the Offshore Voluntary Compliance program
PCAOB Chairman Resigns
Mark Olson on Monday announced his resignation as chairman of the PCAOB, effective July 31. In his letter of resignation, Olson indicated “the decision is entirely personal” and reflects his desire “at this time of life to establish new priorities,” according to a PCAOB press release. He has no immediate
SEC Staff Updates Guidance on Business Combinations and Consolidation
The SEC’s Office of the Chief Accountant last week published a Staff Accounting Bulletin (SAB) that updates previous guidance by removing material no longer necessary because of developments in U.S. GAAP regarding business combinations and noncontrolling interests in consolidated financial statements. FASB Statement no. 141(R), Business Combinations, and Statement no.
IRS Proposes New Cell-Phone Fringe Benefit Substantiation Rules
Employer-provided cell phones have gone from an exclusive perk to common equipment in the 20 years since Congress made them subject to strict substantiation requirements for business use. Monday, the IRS proposed simplifying those rules. Generally, employees must include in income the fair market value of fringe benefits provided by
IRS Changes FBAR Reporting Requirements for June 30, 2009
June 30 is the deadline for filing the current year Report of Foreign Bank and Financial Accounts, Treasury Form TD F 90-22.1 (FBAR). “United States persons” having a financial interest in or signature authority or other authority over any financial account in a foreign country have an FBAR filing requirement
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
