The Treasury Inspector General for Tax Administration (TIGTA) on Wednesday reported on the IRS’s progress in retiring its Legacy e-File system and moving to the Modernized e-File (MeF) system (TIGTA Rep’t No. 2012-20-121). The IRS started to phase out the legacy system in 2004 with the introduction of an internet-based
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How can the nonpayment testing period for COD income be improved?
In Notice 2012-65, the IRS asked for public comments on whether it should amend existing Regs. Secs. 1.6050P-1(b)(2)(i)(H) and (iv), which require applicable financial entities to issue Forms 1099-C reporting cancellation of debt (COD) income when a 36-month nonpayment testing period has expired. Under Sec. 6050P and its regulations, COD
Organizations fighting U.S. debt get support of AICPA board
A continuing devotion to fiscal responsibility has led to a resolution by the AICPA board of directors supporting two nonpartisan organizations devoted to combating the U.S. federal debt. In the resolution, the AICPA expresses support for the Campaign to Fix the Debt and the Comeback America Initiative, which express concern
FASB’s developing model “totally” changes impairment concept
The new concept of recognizing impairment of financial instruments based on expected credit losses, which FASB is developing, will represent a substantial change in industry philosophy and practice, according to board member Lawrence Smith. “I think we’ve changed the concept totally,” Smith said Friday during a webcast devoted to explaining
To ascend to CFO role, controllers must take a broader look at business
Controllers hoping to make the move to CFO must be willing to add new words to their vocabulary. The focus on numbers, while important, has to change from lookback mode to look-ahead. Concerns about month-end close should not be forgotten, but they should be accompanied by thoughts such as, “How
CPA representation grows in Congress with reelections, likely House newcomers
The number of CPAs in Congress is growing as a result of Tuesday’s elections. Rep. Brad Sherman held off Rep. Howard Berman in an unusual and hotly contested race between two congressional Democrats in California’s 30th District as all eight CPAs serving in the House of Representatives won reelection. In
New financial reporting proposal for going concern gaining steam
Going-concern financial reporting in the United States appears headed for new requirements after FASB decided to adopt a new model this week in a project that still has several issues to be decided before the scheduled release of an exposure draft in the first half of next year. The model
Obama can’t expect a “fiscal honeymoon” in second term, Fitch says
Newly reelected President Barack Obama and Congress need to quickly come to an agreement on how to avoid the so-called “fiscal cliff” and raise the government’s debt ceiling, if the nation wants to avoid another recession, Fitch Ratings said Wednesday. “The economic policy challenge facing the president is to put
Leave-based donation programs allowed for Hurricane Sandy relief
In response to the extraordinary damage caused by Hurricane Sandy and the extreme need for relief, the IRS has released guidance for employers who are considering adopting leave-based donation programs to aid the storm’s victims (Notice 2012-69). A leave-based donation program allows employees to forgo vacation, sick, or personal leave
FASB extends comment deadline for disclosure framework
In recognition of the damage caused by Hurricane Sandy, FASB has extended the comment deadline for its disclosure framework project to Nov. 30. The deadline for comments on its Invitation to Comment on a disclosure framework had been Nov. 16. The objective of the project is to improve effectiveness of
One-time abatement of $5,000 frivolous filing penalty announced
Taxpayers who have filed all required tax returns and paid all outstanding tax liabilities, including penalties (except for the Sec. 6702 penalty) and related interest, may qualify for a one-time reduction to $500 of any unpaid penalties that the IRS has assessed (Rev. Proc. 2012-43). Under Sec. 6702, a $5,000
Sandy’s sobering reminder: Prepare for the worst
As business owners affected by Hurricane Sandy attempt to pick up the pieces and get back to work, their plight serves as a reminder to others that it makes sense to prepare for the worst in business. Jim Hardy, CPA/ABV/CFF, said it’s a mistake for business owners to think that
PCAOB inspection process explained in CAQ guide
PCAOB inspections are inevitable for firms that audit public companies. Firms that audit more than 100 public companies are inspected yearly. Firms that audit fewer than 100 public companies are inspected at least once every three years. A high-level overview of that process is provided by the Center for Audit
Gartner: Android, Apple to spark surge in smart device sales
Worldwide sales of smartphones and tablets will soar past the 1 billion-unit threshold in 2013, while the Android, Apple iOS, and Windows 8 operating systems will spark a multiyear surge in mobile device purchases by businesses, the information technology research and consulting company Gartner forecast Tuesday. In a news release
Accounting profession at tech tipping point, Wolters Kluwer exec says
Cloud, mobile, social media, and Big Data are the emerging technologies having the most impact on the accounting profession, according to a survey of more than 400 U.S. accountants released Monday by software provider CCH, a Wolters Kluwer business. The results of the CCH Technology Survey were unveiled on the
IRS extends deadlines, provides relief for Hurricane Sandy victims
Late on Friday, the IRS announced various tax relief measures for individuals and businesses affected by Hurricane Sandy in Connecticut, New Jersey, and New York (e-News for Tax Professionals No. 2012-44). The relief applies to taxpayers in areas in those states declared a disaster area by the Federal Emergency Management
How to keep a natural disaster from becoming a financial disaster
A natural disaster does not have to be a financial disaster, too. Estimates of damage caused after Hurricane Sandy ravaged the East Coast have run as high as $60 billion. CPA personal financial planning experts say that taking the right steps after a disaster can help people protect their surviving
S.C. taxpayers’ Social Security numbers, credit cards hacked
The South Carolina Department of Revenue is providing affected taxpayers a year of credit monitoring after a hacker stole information including 3.6 million Social Security numbers and 387,000 credit and debit card numbers from its computer systems. State revenue officials announced Friday that the S.C. Division of Information Technology learned
IASB creating forum; FASB extends private company comment deadline
The International Accounting Standards Board (IASB) is proposing the creation of a 12-member forum of national standard setters and regional bodies. In an Invitation to Comment (ITC) issued Thursday, the IASB proposed that the Americas, Asia-Oceania and Europe each should get three automatic seats on the forum, which will provide
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