The IRS issued an update and new guidance Friday (Revenue Procedure 2011-47) for use of a federal per diem rate to substantiate the amount of ordinary and necessary expenses for lodging, meals and incidental costs paid or incurred for business-related travel away from home. The IRS stated that this revenue
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Estates Must File Form 706 to Make Portability Election
The IRS on Thursday issued Notice 2011-82 to alert executors of the estates of decedents dying after Dec. 31, 2010, of the need to file a Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, within the time prescribed by law (including extensions). Form 706 must be filed to
Mortgage Defaults Drive 88% Jump in Suspected Fraud
The Treasury Department’s Financial Crimes Enforcement Network (FinCEN) said mortgage loan fraud suspicious activity reports (MLF SARs) almost doubled in the second quarter of 2011 compared with the second quarter of 2010 as 63% of all filings related to activities that occurred four or more years ago, coinciding with the
FASB Panel Recommends Areas of Improvement in Standards for Nonprofits
The NAC heard feedback from three working groups that formed recommendations for FASB to add to its standard-setting agenda. FASB has not yet considered the recommendations. The NAC created the working groups earlier this year (see previous JofA coverage, “FASB Not-for-Profit Panel’s Subgroups to Study Possible Improvements”). The NAC charged
IRS Issues Guidance on Fingerprinting, Other Registered Tax Return Preparer Details
The IRS provided more details Wednesday of its still-developing requirements for all paid tax return preparers to be registered and undergo a background check, to include fingerprinting. The IRS said CPAs are exempt from fingerprinting “at this time.” It also said it will not require individuals to be fingerprinted prior
IRS Offers Employee Reclassification Agreement
Employers may reclassify independent contractors as employees and limit the resulting federal payroll taxes for their most recent tax year, plus avoid related penalties and interest for prior years, under an IRS program announced Wednesday. In Announcement 2011-64, the IRS outlined its new Voluntary Classification Settlement Program (VCSP). Unlike an
FASB Standard Broadens Disclosures on Multiemployer Pensions
FASB issued Accounting Standards Update no. 2011-09, Compensation—Retirement Benefits—Multiemployer Plans (Subtopic 715-80): Disclosures about an Employer’s Participation in a Multiemployer Plan. The ASU requires employers to provide more information about their financial obligations to multiemployer pension plans. Multiemployer pension plans commonly are used by an employer to provide benefits to
President Signs Patent Reform Bill Banning New Tax Strategy Patents
On Friday morning, President Barack Obama signed into law the Leahy-Smith America Invents Act (HR 1249), which reforms the U.S. patent system and stops the granting of patents for tax strategies. The bill had been passed by the Senate earlier this month and by the House of Representatives in June.
FASB Issues Update to Simplify Goodwill Impairment Testing
FASB on Thursday issued Accounting Standards Update (ASU) no. 2011-08, Intangibles—Goodwill and Other (Topic 350): Testing Goodwill for Impairment, that the board said simplifies how public and nonpublic entities test goodwill for impairment. The amendments permit an entity to first assess qualitative factors to determine whether it is more likely
FinCEN Proposes Mandatory E-Filing of BSA Reports
The Treasury Department’s Financial Crimes Enforcement Network (FinCEN) on Wednesday issued a proposal to mandate that almost all FinCEN reports required under the Bank Secrecy Act (BSA) be filed electronically as of June 30, 2012. Currently, about 85% of FinCEN reports are filed electronically through its free BSA E-Filing system.
PCAOB, Norway Reach Accord on Auditor Inspections
The PCAOB on Wednesday said it entered into a cooperative agreement with the Financial Supervisory Authority (FSA) of Norway for the oversight of audit work performed by public accounting firms that practice in the two regulators’ respective jurisdictions. The PCAOB had been blocked from inspections in Norway since 2008, the
Guidance Issued on Tax Treatment of Business Cell Phones
The IRS issued a notice on Wednesday providing guidance on the tax treatment of employer-provided cell phones now that they have been removed from the definition of listed property (Notice 2011-72). The notice discusses the treatment of employer-provided cell phones as an excludible fringe benefit. The IRS says it has
International Committee Releases Draft Framework for Integrated Reporting
The International Integrated Reporting Committee (IIRC) calls for a new approach to corporate reporting in a discussion paper released Monday. The paper, Towards Integrated Reporting: Communicating Value in the 21st Century, discusses the rationale for integrated reporting, offers initial proposals for the development of an international integrated reporting framework, and
2010 Estate Tax Payment, Carryover Basis Election Extended
Executors of estates of most decedents who died in 2010 now can get an automatic extension until March 19, 2012, to pay any estate tax due as well as to file an estate tax return, the IRS announced Tuesday. The announcement, in Notice 2011-76 and News Release IR-2011-91, also postpones
President’s Jobs Bill Contains Many Tax Proposals
President Barack Obama submitted his American Jobs Act to Congress on Monday, and among its provisions are several tax items, including a temporary payroll tax cut, a limit on itemized deductions for certain high-income taxpayers, and a proposal to tax carried interests as ordinary income rather than capital gains. The
IRS Issues Accounting Software Examination Guidance, Meets with AICPA
The IRS Small Business/Self-Employed Division (SB/SE) has issued guidance for its field examiners on when to request backup files of taxpayers’ accounting software during an examination, what the limits are on reviewing those electronic files, and how examiners must safeguard those records (SBSE-04-0911-086). The IRS has also updated its online
Congress Passes Tax Patent Reform; Sends Bill to President
On Thursday evening, the Senate passed the America Invents Act (HR 1249) by a vote of 89–9. The Senate’s version of the bill was identical to one passed by the House of Representatives in June, and it now goes to President Barack Obama for his signature. The act reforms the
Estate Tax Form, Instructions Finalized for 2010; Due Sept. 19
The IRS on Thursday posted the instructions for Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, for decedents dying in 2010. For most 2010 decedents, the due date is Sept. 19. The form itself was posted on Sept. 3, but without instructions. For decedents who died between Jan.
Final Regs Implement Form 990 Changes
The IRS issued final regulations Wednesday (TD 9549) implementing extensive revisions made in 2008 to Form 990, Return of Organization Exempt From Income Tax. The final regulations provide new threshold amounts for reporting compensation, require that compensation be reported on a calendar-year basis and modify the rules requiring information reporting
Economic Optimism Slumps, Execs Anticipate Double-Dip Recession
Economic optimism dropped to a two-and-a-half year low as more than 60% of CPA financial executives thought it was likely the U.S. would experience a double-dip recession, according to results released Wednesday from the AICPA Business & Industry Economic Outlook Survey Q3 2011. Optimism for the U.S. economy significantly dropped
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