The Ninth Circuit has held in a group of consolidated cases that the Tax Court has jurisdiction to decide in partner-level proceedings whether a partnership’s transactions were tax-motivated (Keller, No. 06-75466 (9th Cir. 6/3/09)). The case concerns the outstanding tax liabilities of 16 partners who invested in cattle partnerships that
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Supreme Court Grants Cert. in Bilski Case
On Monday, the U.S. Supreme Court granted a writ of certiorari in the case of Bilski v. Doll, Sup. Ct. Dkt. No. 08-964. The Court has agreed to review the Federal Circuit’s earlier decision in the case and address the question of when business methods are eligible for patent protection.
Brad Smith: Brace for “The New Normal”
Accountants need to be able to help small business make the fundamental changes necessary in this economy, according to Intuit president and chief executive Brad Smith. How does Intuit view today’s economic climate? We’ve all seen fundamental changes in the economy in recent months. In fact, 70% of Americans are
Explaining the Sample Fixed-Price Agreement
Editor’s note: This is a Web-exclusive sidebar for “Pricing on Purpose: How to Implement Value Pricing in Your Firm.” Also see Exhibit 7, a sample fixed-price agreement. Date of the FPAThe fixed-price agreement (FPA) shown in Exhibit 7 can be either for a calendar or fiscal year, depending on
A Lesson in Value Pricing Ice Cream: From an Accountant
Editor’s note: This is a Web-exclusive sidebar for “Pricing on Purpose: How to Implement Value Pricing in Your Firm.” The history of business is the history of epiphanies. Sometimes the fog clears up, and the right path is seen. This certainly happened—with respect to pricing—for Ben Cohen and Jerry
Top Tech Tactics for These Tough Times
Sponsored by: CCH, a Wolters Knuwer Business – Intuit Quickbooks – SurePrepLLC Mike Sabbatis: Connectivity is about to change everything David Wyle: CPAs need to be ready for a new boom Brad Smith: Brace for “the new normal”
David Wyle: CPAs Need to Be Ready for a New Boom
Vast new advisory opportunities are pushing CPAs to seek efficiencies in compliance work. Smart outsourcing solutions offer a new path to expanding a CPA firm’s capabilities. How do you see CPA firms faring in this economy? The financial meltdown presents mixed challenges for the accounting industry. With revenues in decline,
After Action Review
Editor’s note: This is a Web-exclusive sidebar for “Pricing on Purpose: How to Implement Value Pricing in Your Firm.” The following questions should be answered by the pricing council/CVO after each major engagement: Did we add value for this client? How could we have added more value? Did we
Sample Change Order
Editor’s note: This is a Web-exclusive sidebar for “Pricing on Purpose: How to Implement Value Pricing in Your Firm.” Client: Date: Project description and scope of services [and estimated completion date, if appropriate]: ________________________________________________________ __________________________________________________________ Price:$_____________ We believe it is our responsibility to exceed your expectations. This Change Order
Pricing Council and CVO Purpose and Criteria
Editor’s note: This is a Web-exclusive exhibit for “Pricing on Purpose: How to Implement Value Pricing in Your Firm.” Examples of purpose and strategy statements for the role of the pricing council and chief value officer (CVO) are: To ensure the firm prices on purpose, according to the value received
Disadvantages of Hourly Billing
Editor’s note: This is a Web-exclusive exhibit for “Pricing on Purpose: How to Implement Value Pricing in Your Firm.” Hourly billing misaligns the interests of the CPA and the client—the client wants work done effectively, whereas the CPA firm wants to log more hours. It does not focus on what
Sample Fixed-Price Agreement
Editor’s note: This is a Web-exclusive exhibit for “Pricing on Purpose: How to Implement Value Pricing in Your Firm.” November 19, 2009 Dear Client: In order to document the understanding between us as to the scope of the work that ABC, CPAs will perform, we are entering into this Fixed
Mike Sabbatis: Connectivity is About to Change Everything
New economic realities are meeting next-wave technologies to create new opportunities for CPA firms, according to Mike Sabbatis, president of CCH, a Wolters Kluwer business. How do you read the economy today? Today, accounting firms face challenges everywhere on the horizon. The economy is in turmoil following a financial meltdown.
The Five Cs of Value
Editor’s note: This is a Web-exclusive exhibit for “Pricing on Purpose: How to Implement Value Pricing in Your Firm.” For a firm to price on purpose, it must understand the Five Cs of Value: 1. Comprehend value to clients. 2. Create value for clients. 3. Communicate the value you create.
IRS Notice Provides Work Opportunity Credit Definitions
The IRS has released a notice that defines the terms “unemployed veteran” and “disconnected youth,” for purposes of the IRC § 51 work opportunity credit (Notice 2009-28). The notice also gives transition relief to employers who hire employees from those targeted groups after Dec. 31, 2008, and before July 17,
New Disclosure Required for Subsequent Events
FASB on Thursday issued new rules that should alert financial statement users about the timing and events at issue in the statements. FASB Statement no. 165, Subsequent Events, takes effect soon. It applies to interim and annual periods ending after June 15, 2009. The standard requires the disclosure of the
Tax Amnesty Programs and Voluntary Compliance Initiatives: A Way to Mitigate Declining State Revenues
Since 2000, more than half of the states have offered tax amnesty programs one or more times (see Federation of Tax Administrators, “State Tax Amnesty Programs” (July 2007)). The programs allow taxpayers to “come clean” and report and pay delinquent tax liabilities. They are popular with taxpayers because they provide
New Expatriation Forms 8854 and W-8CE Now Available
A new version of Form 8854, Expatriation Information Statement, and new instructions were posted on the IRS Web site on May 14. The form expands the previous Form 8854 into parts A and B, with part B aimed at those new to the expatriation regime. The IRS has also issued
CPAs Becoming More Familiar With IFRS, Many Want More Time
CPAs hold mixed views on the SEC’s proposed timeline for the adoption of IFRS by U.S. public companies, according to an AICPA survey. Asked whether they think the timeline, which would require IFRS adoption for public companies starting in 2014, should be changed, 47% of CPA respondents said it should
Economic Outlook Improves
Optimism about the U.S. economy’s prospects improved sharply in the second quarter, but compensation freezes, layoffs and capital spending cuts are still on the horizon for about half of companies, according to a new survey of CPA financial executives. Nearly one-fifth of respondents were optimistic or very optimistic about the
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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
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