The AICPA, the Financial Accounting Foundation (FAF) and the National Association of State Boards of Accountancy (NASBA) on Friday announced the members of the new blue-ribbon panel on U.S. accounting standards for private companies. The 18-member panel includes lenders, investors and business owners as well as preparers and auditors. The
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IRS Issues Regulations on 2009 Reduced Estimated Tax Options
The IRS on Friday released temporary and proposed regulations relating to reduced estimated income tax payments for qualified individuals with small business income in 2009 (TD 9480 and REG-117501-09). The regulations provide guidance on who is a qualified individual and what is a small business for these purposes. The American
Taxpayers Have Until Feb. 28 to Make Haiti Donations and Deduct Them on 2009 Returns
Taxpayers have until midnight on Sunday, Feb. 28, to make cash contributions to charities providing earthquake relief in Haiti and deduct them on their 2009 tax returns, under the provision of the Haiti Assistance Income Tax Incentive Act, PL 111-126. Contributions made after that date and before the end of
No IFRS Requirement Until 2015 or Later Under New SEC Timeline
The SEC unanimously approved on Wednesday a new timeline that envisions 2015 as the earliest possible date for the required use of IFRS by U.S. public companies. The SEC action calls for more study of IFRS and a 2011 vote on whether to move ahead with a mandate to use
Tax Court Rules on Valuation of Life Insurance Policy in Bargain Sale
In a case of first impression, the Tax Court has held that where taxpayers purchased a life insurance policy on their lives from their profit-sharing plan, they could not reduce the taxable value of the policy by the amount of the policy’s surrender charge (Matthies, 134 T.C. no. 6). The
Optimism Jumps Among Manufacturing Finance Execs
Amid widespread uncertainty regarding government actions, the real estate market and credit, CPA financial executives expect slow employment and economic growth, according to a survey released Tuesday and co-sponsored by the AICPA. However, the outlook for the beleaguered manufacturing sector brightened considerably from the fourth quarter of 2009. Results from
IRS Initiatives Could Change Compliance Landscape in 2010
During the latter part of 2009, the IRS announced a number of new compliance initiatives that, when fully implemented, have the potential to dramatically alter how the IRS deals with certain groups of taxpayers. The programs are important not only in how they will directly affect the targeted taxpayer groups
SEC to Consider IFRS Statement
In its first formal action on IFRS since Chairman Mary Schapiro took office, the SEC plans to consider its policy on the use of IFRS by U.S. issuers at an open meeting Wednesday. The SEC, under former Chairman Christopher Cox, published in November 2008 a proposed road map for the
Tax Court Allows LLC Member’s Losses; Rules Against IRS on Limited Partner Issue
The Tax Court held on Tuesday that an LLC member who materially participated in the management of an LLC is not treated as a limited partner and is therefore not subject to the passive loss limitations under IRC § 469 (Newell, TC Memo 2010-23). The taxpayer owned one-third of a
IRS Issues 2010 Updates for Automobile Depreciation Deduction Limits
The IRS provided the 2010 inflation adjustments to the depreciation limitations and lease inclusion amounts for certain automobiles under IRC § 280F (Revenue Procedure 2010-18). For passenger automobiles (other than trucks or vans) placed in service during calendar 2010, the depreciation limit under IRC § 280F(d)(7) is $3,060 for the
IRS Issues 2009 Form 990; Explains Significant Changes
The IRS has issued final 2009 versions of Forms 990 and 990-EZ, as well as their instructions. The IRS has also provided a detailed explanation of significant changes to the forms. Form 990, Return of Organization Exempt From Income Tax, was extensively revised for 2008. The new Form 990 is
Tax Consequences of Rollovers from Employer Plans to Roth IRAs
Starting in 2010, taxpayers can make rollovers from non-Roth retirement accounts to Roth individual retirement accounts (IRAs) without regard to the former $100,000 modified adjusted gross income (AGI) limit and (in 2010 only) can benefit from a special two-year averaging provision (the taxable portion of the rollover is taxed in
Request for Audit Reconsideration
IRC § 6404(a) allows the IRS to abate any assessment of tax and applicable interest and/or penalties if the assessment is excessive, erroneously or illegally made, or made after the statute of limitation has expired. If an erroneous assessment has been made and a taxpayer has not paid it, under
Appeals Court Upholds Return Preparer’s Conviction in RAL Wire Fraud Case
The Fourth Circuit Court of Appeals upheld the conviction of a Maryland tax return preparer for preparing false tax returns and for wire fraud, where the preparer used interstate wire communications to secure refund anticipation loans (RALs) for his customers based on the false tax returns (U.S. v. Mehta, docket
Senate Passes Bill to Limit Reportable Transaction Penalties
The Senate passed a bill (S. 2917) Tuesday that would modify the amount of the penalty for failure to report tax shelter transactions under IRC § 6707A. The Small Business Penalty Fairness Act of 2009 passed by unanimous consent. The bill would set the amount of the penalty under section
Regulators Encourage “Prudent” Practices to Spur Lending to Small Businesses
The federal financial institutions’ regulatory agencies and the Conference of State Bank Supervisors issued a statement that reiterates and elaborates their supervisory views on prudent lending to creditworthy small business borrowers, noting a concern that the economic downturn may be making lenders overly cautious. The Interagency Statement on Meeting the
New Accounting Methods Subject to Automatic Change Procedures
The IRS has issued new guidance on automatic accounting method changes. Revenue Procedure 2009-39 provides certain additions, modifications and clarifications to Revenue Procedures 2008-52 and 97-27 (as modified, amplified and clarified by various other revenue procedures). Revenue Procedure 2008-52 provides procedures for taxpayers to obtain automatic consent for certain changes
Financial Accounting Foundation to Maintain XBRL Taxonomy for U.S. GAAP
The Financial Accounting Foundation announced it will take on responsibility for the ongoing maintenance of the XBRL U.S. GAAP Financial Reporting Taxonomy. Its activities will focus on updating the taxonomy for changes in U.S. GAAP, best practices in taxonomy extensions, and technical enhancements. The taxonomy is a list of computer-readable
Obtaining a Power of Attorney Through IRS E-Services
E-services is a suite of Internet-based products that allows tax professionals to conduct client business with the IRS 24 hours a day, 7 days a week. Compared with mailing or faxing a Form 2848, Power of Attorney and Declaration of Representative, the e-services application is a much faster way for
Tax Court Allows Medical Deduction for Sex Change Operation
In a case of first impression, the Tax Court has held that a taxpayer can take a medical expense deduction for the costs of a sex change operation (O’Donnabhain, 134 TC no. 4). However, the taxpayer’s expenses for breast augmentation surgery were disallowed by the court as cosmetic surgery. The
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