The International Accounting Standards Board (IASB) decided this week to re-expose its proposals for insurance contracts accounting. Although the project, which has been undertaken jointly with FASB, has been in progress since 2007, the IASB decided that re-exposure for public comment is appropriate because substantial changes—whose effects need to be
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TIGTA shines light on large tax delinquencies of federal government agencies
The Treasury Inspector General for Tax Administration (TIGTA) found that 70 federal agencies had unpaid employment taxes totaling $14 million, and 18 federal agencies were delinquent in filing 39 employment tax returns, as of Dec. 31, 2011, in a report issued Thursday (TIGTA Rep’t No. 2012-30-094). Although federal agencies are
U.S. starting salaries in accounting and finance appear headed for an increase in 2013
U.S. accounting and finance starting salaries will rise in 2013 despite an uncertain economy, according to a recently published salary guide. Average starting salaries for corporate accounting employees in the United States are projected to increase between 2.7% and 4.5% compared with 2012, depending on the position and the size
Survey takes pulse of board members, shows opposition to audit firm rotation
Corporate board members charged with oversight of U.S. public companies are opposed to mandatory rotation of external auditors by more than 2 to 1, a new survey shows. Mandatory audit firm rotation is a continuing subject of debate in Europe and the United States, where regulators are exploring such a
Special per diem rates updated for 2012–2013
The IRS on Wednesday issued the annual update of special per diem rates for use in substantiating certain business expenses taxpayers incur when traveling away from home (Notice 2012-63). The notice provides the transportation industry meal and incidental expenses rates, the rate for the incidental-expenses-only deduction, and the rates and
Tax Court defines gross receipts for the research credit
The Tax Court on Monday clarified that nonsales income is included in gross receipts for purposes of the Sec. 41 research credit (Hewlett-Packard Co., 139 T.C. No. 8 (2012)). The Tax Court granted partial summary judgment to the IRS, holding that for purposes of calculating average annual gross receipts under
California becomes 49th state to pass CPA mobility law
California Gov. Jerry Brown on Thursday signed a bill allowing CPAs from outside California to represent clients in the state without being subject to additional license requirements. The law takes effect on July 1, 2013. It will allow out-of-state CPAs to provide many services to their clients without obtaining a
PTIN information release concerns aired
The AICPA has expressed concerns to the IRS about the Service’s public release of information of CPAs and other federal tax return preparers the IRS collects as part of its preparer tax identification number (PTIN) registration requirement. Some of the PTIN information is subject to public release under the federal
Draft instructions to Form 706 provide guidance on portability election
On Tuesday, the IRS posted a draft version of the instructions to Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, a follow-up to the draft Form 706 that was posted in August (see “Draft Form 706 provides check box to not elect portability”). The draft instructions provide more guidance
Investor confidence in U.S. markets rises, CAQ survey shows
U.S. investors’ confidence in domestic capital markets has rebounded, but their faith in markets outside the United States has continued to decline, according to new research by the Center for Audit Quality (CAQ). Sixty-five percent of investors reported that they have some, quite a bit, or a great deal of
FIN 48 among first priorities for new Private Company Council chair
The standard known as FIN 48 will be among the first issues the newly formed Private Company Council (PCC) discusses, Billy Atkinson said Wednesday after being named the council’s chairman. Atkinson said FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes, has been a concern for private company representatives.
U.S. attorneys are authorized to fight stolen identity refund fraud
In an effort to better combat crimes involving stolen identities and tax refund fraud, the Justice Department is changing the procedures it uses to handle such cases. Under Tax Division Directive No. 144, released on Wednesday, U.S. attorneys’ offices will no longer need prior authorization from the Justice Department’s Tax
COSO proposals give real-world internal control examples
News reports show the frightening weather satellite images of a hurricane that’s causing concern for leaders of an automobile manufacturing plant. The possible effects on the supply chain as the storm approaches one of the company’s suppliers seem obvious. The problems this could cause for internal control over the company’s
COSO seeks comment on internal control proposals
The Committee of Sponsoring Organizations of the Treadway Commission (COSO) is seeking public comment on a proposed document that explains how to apply its guidance to internal control over external financial reporting. COSO on Tuesday released an exposure draft of its Internal Control Over External Financial Reporting (ICEFR): Compendium of
Private Company Council selections expected this month
A new system for creating exceptions to U.S. GAAP for private companies will move forward with the selection this month of members of the Private Company Council (PCC). During an informational webcast conducted Friday, FASB said the agenda for the Financial Accounting Foundation (FAF) includes a September date for PCC
Corporate equity reduction transaction guidance issued
The IRS issued proposed regulations governing the availability of net operating loss (NOL) deductions that are attributable to corporate equity reduction transactions (CERTs) under Secs. 172(b)(1)(E) and (h) (REG-140668-07). The CERT rules were enacted in response to the use of NOL carrybacks to finance leveraged buyout transactions and are intended
IRS proposes changes to Circular 230 rules governing written tax advice
On Friday, the IRS released proposed regulations that would eliminate the complex rules in Circular 230 governing covered opinions (REG-138367-06). To replace the covered opinion rules, the proposed regulations would expand the requirements for written advice under Circular 230, Section 10.37. The proposed regulations would also make several other changes
AICPA urges Congress to quickly fix tax cliff
Congress must reach an agreement on expiring tax provisions as soon as possible because small businesses are being impeded from long-term tax and cash flow planning and prevented from making informed decisions. That is the message Jeffrey Porter, vice chair of the AICPA Tax Executive Committee, delivered to the House
Publicly traded property defined for determining issue price of debt instruments
The IRS issued final regulations defining “publicly traded property” to determine the issue price of a debt instrument (T.D. 9599). The final regulations adopt the rules proposed in January 2011 but with a few significant changes (REG-131947-10). Under the previous regulations (Regs. Sec. 1.1273-2), property was publicly traded (i.e., traded
Scope of appropriate content, structure in auditor’s report under debate
Change apparently is coming to the auditor’s report, but views vary over the appropriate content and structure for reports, and particularly over the issue of “auditor commentary.” The question of appropriate content and structure for the auditor’s report was the subject of an International Auditing and Assurance Standards Board (IAASB)
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