The IRS issued a revenue ruling on Tuesday to clarify the application of the all-events test’s recurring-item exception under Sec. 461(h)(3) to certain fact patterns (Rev. Rul. 2012-1). The ruling addresses four questions: Is the amount of a taxpayer’s liability material for purposes of the recurring-item exception if the liability
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Transit Pass and Vanpool Benefits to Shrink in 2012
Millions of people across the United States will experience a significant increase in the cost of their daily commute to work, and many employers will suffer a corresponding increase in payroll taxes for 2012 and beyond, unless Congress acts. The monthly tax exclusion for employer provided transit pass and vanpool
IRS Reminds Dual Citizens and Americans Living Abroad of FBAR, Other Filing Requirements
In a fact sheet (FS-2011-13) released Friday, the IRS reminded U.S. citizens and dual citizens of the United States and foreign countries who live abroad about U.S. filing requirements, including Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts (FBAR). Some dual-citizen taxpayers may have only recently learned
Standard Mileage Rates for 2012 Released
The IRS on Friday released standard mileage rates for use in 2012 (Notice 2012-1). Taxpayers can use the optional standard mileage rates to calculate the deductible costs of operating an automobile. For business use of an automobile remains at 55½ cents per mile. For medical or moving expenses, it is
Time to Test-Drive the Revenue Recognition Proposal
GE’s global technical controller said a new standard on revenue is close enough to reality that he is instructing business managers to keep the likely new regulations in mind as they draw up contracts. “To the extent you’re entering into five-, 10-, 15-year contracts today, you really need to think
IRS Holds First Hearing on Real-Time Tax System
The IRS held a public hearing on Thursday to gather feedback on how to implement a system in which the IRS would match information on tax returns with data from third-party information returns during the processing of the return. Under the proposed “real-time tax system,” if the IRS found discrepancies
Letters to SEC Show Support of Global Standards, According to Official
Comment letters to the SEC revealed support for the idea of global standards but that further progress on convergence is desired before IFRS is incorporated in the United States, according to a key SEC official. In written remarks, SEC Deputy Chief Accountant Paul Beswick said the goal of a single
Technology 2012 Preview: Video
With 2012 just around the corner, the JofA gathered the three technology keynote speakers from the AICPA’s 2011 Practitioners Symposium/TECH+ Conference to talk about tech trends heading into the new year. The nearly 90-minute conversation covered a wide range of technical issues critical to all CPAs. Participating in the call
Survey of CPAs Shows Economic Pessimism Still Prevalent, But Shrinking
Pessimism about the U.S. economy among CPA decision makers has shrunk slightly, but remains high, according to the AICPA Economic Outlook Survey for the fourth quarter of 2011. Forty percent of the 916 qualified respondents in the survey said they were somewhat or very pessimistic about the economy. That was
FASB, IASB Chiefs Agree New Convergence Model Is Needed
The heads of the U.S. and international accounting boards that have been working to resolve standards differences agree that their current convergence process should be replaced by one that is more manageable and effective. FASB Chair Leslie Seidman said Tuesday at the AICPA National Conference on Current SEC and PCAOB
New Auditors’ Reporting Model Proposal Set for Release in Q2
The PCAOB’s proposal for a new auditors’ reporting model should be completed by the second quarter of 2012, PCAOB Chairman James Doty said Monday. Speaking at the AICPA’s National Conference on Current SEC and PCAOB Developments in Washington, Doty gave an update on the PCAOB’s initiative on the form and
SEC Won’t Decide on IFRS for At Least a Few More Months
The SEC’s decision on whether to incorporate IFRS for U.S. issuers is at least a few months away. SEC Chief Accountant James Kroeker said the SEC staff will need at least a few more months to produce a final report that would position the commission to make a determination on
Final Regs Issued on Low-Income Community Businesses and New Markets Tax Credit
On Friday, the IRS issued final regulations on how entities serving certain targeted populations can qualify as active low-income community businesses for purposes of the Sec. 45D new markets tax credit (T.D. 9560). The new markets tax credit encourages capital investment in economically depressed areas by private investors in exchange
PCAOB Boosts Budget 11.4% to Accommodate Increased Inspections
The PCAOB has increased its budget for the 2012 fiscal year by 11.4%, or $23.3 million, over the 2011 budget, according to a news release. The 2012 budget is approximately $227.7 million, compared with $204.4 million for the 2011 fiscal year. The budget is subject to SEC approval. Staffing and
AICPA to IASB: Completion of Conceptual Framework Is Key
The AICPA’s senior technical committee for financial reporting advised the International Accounting Standards Board (IASB) to continue focusing on completion of a conceptual framework, including a presentation and disclosure framework. The IASB requested the feedback when it issued its Agenda Consultation 2011 in July. Richard Paul, chair of the AICPA’s
Survey: CFOs Anticipate Hiring in Accounting and Finance
CFOs expected to hire more accountants and other finance professionals early next year. But many were having a hard time finding skilled professionals to fill the positions, according to a survey by staffing services firm Robert Half International. Twenty percent of 1,408 CFOs at U.S. companies said they expected to
Featured Online Content for December 2011
FEATURED VIDEO The Cloud: Security and Opportunities Donny Shimamoto, CPA/CITP, managing director of IntrapriseTechKnowlogies, examines risks and rewards of cloud computing and explains how business concerns should play the key role in deciding whether to move services to the cloud. The video is available here. ONLINE EXTRAS ARTICLE IRS
European Commission Proposes Regulatory Changes for Audits
The European Commission today proposed sweeping regulations that would, if approved, trigger major changes in the relationships between European public companies and their auditors. The changes include: Limiting to six years the period that an outside auditing firm can perform audits for a company. A cooling-off period of four years
Planned Job Cuts Dip Slightly in November, Challenger Says
The pace of U.S. job-cut announcements slowed slightly in November, but the 11-month total for 2011 exceeds the 12-month total from 2010, global outplacement firm Challenger, Gray & Christmas announced Wednesday. Planned job cuts unveiled by U.S.-based employers in November decreased 13% from the same month in 2010, when employers
Q&A Issued on Small Business Lending Fund Auditor Certification
As a result of the Small Business Lending Fund enacted into law as part of the Small Business Jobs Act of 2010, the AICPA Audit and Attest Standards staff has issued Technical Practice Aid (TPA) 9110.18, “Small Business Lending Fund Auditor Certification Guidance.” The aid provides guidance on how an
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