The United States and Switzerland announced a new protocol, amending the income tax treaty between the two countries to allow the Swiss government to provide information to the IRS on U.S. account holders of Swiss bank UBS. The protocol has been approved by the Swiss Federal Council and was signed
Advertisement
PCAOB Seeks Comment on Proposed Auditing Standard on Communications
The PCAOB on Monday proposed for comment an auditing standard, Communications with Audit Committees, and a series of related amendments to its interim standards. The proposal includes a requirement for the auditor to establish a mutual understanding of the terms of the audit engagement with the audit committee and to
GASB Proposal Addresses Reporting on Component Units, Equity Interest Transactions
GASB issued an exposure draft of a proposed statement, The Financial Reporting Entity, an amendment of GASB Statements No. 14 and No. 34. The proposed statement is intended to improve guidance for including, presenting and disclosing information about component units and equity interest transactions of a financial reporting entity. Component
IRS Updates FAQs on Proposed Return Preparer Registration Plan
The IRS updated its online frequently asked questions page about its proposal to require return preparers to register with the IRS and for unenrolled preparers to pass a test and take annual continuing professional education (CPE) courses. (For prior JofA coverage, see “IRS Proposes New Requirements for Return Preparers” (1/5/10).)
Adoption Credit Increased, Made Refundable by Health Care Act
The Patient Protection and Affordable Care Act (PL 111-148) temporarily increased the adoption expense credit and fringe benefit exclusion limit for adoption assistance programs and made the credit refundable. The changes are effective for tax years beginning after Dec. 31, 2009. The act increased the statutory maximum credit and exclusion
Fed Issues Final Rules on Gift Card Fees, Expiration Dates
The Federal Reserve Board on Tuesday released final rules that restrict the fees and expiration dates that apply to gift cards. The rules are intended to protect consumers from certain unexpected costs and require that gift card terms and conditions be clearly stated. The rules go into effect Aug. 22.
Tax Provisions in the Health Reconciliation Act
Late Thursday, Congress passed the Health Care and Education Reconciliation Act of 2010 (HR 4872). The bill now goes to the president for his signature. The Reconciliation Act amends various provisions of the Patient Protection and Affordable Care Act (PL 111-148), the large health care reform act that was enacted
IRS Issues Prop Regs on Use of PTINs After 2010
The IRS issued proposed regulations (REG-134235-08) on Wednesday that would require paid return preparers to use a preparer tax identification number (PTIN) on all tax returns after Dec. 31, 2010. The proposed regulations are the first guidance issued by the IRS under its proposed plan to require registration of all
Refunds Up, Returns Down in 2010
The IRS reports that the size of the average refund is almost 10% bigger this tax season compared with last year. The average refund, through March 12, is $3,036, up from $2,770 at the same time last year. The IRS says this increase is due to various new credits and
Tax Provisions in the Health Care Act
The Patient Protection and Affordable Care Act (H.R. 3590), passed by Congress on Sunday, contains numerous tax provisions. The Reconciliation Act of 2010 (H.R. 4872), which also passed the House on Sunday, contains many other tax items, including extending the general exclusion for reimbursements for medical care expenses under an
Ninth Circuit Says Exempt Organization Late-Filing Penalty Amount Is Mandatory
The Ninth Circuit Court of Appeals held that courts and the IRS have no discretion to reduce the amount of the late-filing penalty for tax-exempt organizations under IRC § 6652(c)(1)(A), overruling a district court decision (Service Employees Int’l Union, docket no. 07-17256 (9th Cir. 3/17/10)). The Service Employees International Union
President Signs Hiring Incentives Act With Tax Provisions
President Barack Obama on Thursday signed the Hiring Incentives to Restore Employment Act (HR 2847). The bill passed the House on March 4 and the Senate on Wednesday. The bill contains several tax items, the biggest of which is a payroll tax credit for employers who hire workers who have
IRS Issues 2010 List of “Dirty Dozen” Tax Scams
The IRS released its annual list of scams that taxpayers should watch out for. The IRS uses the list to alert taxpayers both to potential swindles as well as areas where the IRS is aware that taxpayers will try to cheat. The list, which the IRS dubs the “dirty dozen,”
GASB Offers $5K Grant; Proposals Due May 28
GASB is soliciting proposals for the Gil Crain Memorial Research Grant. Applications for the $5,000 grant are due May 28. GASB will announce the recipient on June 15. The grant encourages the academic community to conduct applied research that is relevant to the board’s standard-setting activities. Applicants’ proposals may address
Growing Opportunities: The Agricultural Chemical Security Credit
During these depressed economic times, taxpayers are increasingly confronted with issues related to cash flow management and the need to reduce taxes. In many cases, taxpayers are looking at all possible tax-saving opportunities. There is a little-known tax credit opportunity that may bring additional benefit to taxpayers that deal with
FASB, IASB Proposal Seeks to Clarify Reporting Entity Concept
FASB and the IASB Thursday published an exposure draft, Conceptual Framework for Financial Reporting: The Reporting Entity, that is part of a joint project between the boards to develop a common and improved conceptual framework for developing future accounting standards. The ED discusses what constitutes a reporting entity, which in
Comment Deadlines Nearing for Certain Clarified Exposure Drafts
The Auditing Standards Board recently issued additional Proposed Statements on Auditing Standards resulting from its clarity project, through which all of its auditing standards will be redrafted over the next one to two years. The goal of the clarity project is to make auditing standards easier to read, understand and
Web Lookup for Recovery Payments Coming Soon; Automated Phone Service Now Available
The IRS has established an automated telephone service to confirm whether taxpayers received an economic recovery payment in 2009. The Service also said on its Web site that it will provide a Web-based service, “Did I Receive a 2009 Economic Recovery Payment?” for looking up the information, starting March 23.
IRS Designates Chile Earthquake a “Qualified Disaster”
On Tuesday, the IRS designated the Feb. 27 earthquake in Chile as a “qualified disaster” for purposes of IRC § 139 (Notice 2010-26). As a result, victims of the earthquake who receive qualified disaster relief payments will be able to exclude those payments from income. The notice also allows employer-sponsored
AICPA Extends Contract With CPA Exam Partners
The AICPA, the National Association of State Boards of Accountancy (NASBA) and Prometric have extended until 2024 their contract to jointly offer the CPA Examination in the U.S. The agreement represents a 10-year extension of the exam contract. Under the partnership, the AICPA is responsible for developing and scoring the
Features
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.
From The Tax Adviser
January 31, 2026
Trust distributions in kind and the Sec. 643(e)(3) election
January 31, 2026
Effects of the OBBBA on higher education
December 31, 2025
