On Wednesday, the Tax Court held that a flight attendant who was a resident of Hong Kong and a U.S. citizen could not claim 100% of her wages were excludable under the Sec. 911 foreign earned income exclusion (Rogers, T.C. Memo. 2013-77). The court also upheld an accuracy-related penalty under
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Survey: Business development now tops FVS practitioners’ list of concerns
The top priorities of forensic and valuation services (FVS) accountants have changed drastically over the past few years, with business development concerns outpacing technical issues, according to a new AICPA study. The 2013 FVS Membership Top Issues Survey found that “bringing in new clients,” the classic business development imperative, ranked
New AICPA not-for-profit guide available
A new, greatly enhanced AICPA audit and accounting guide, Not-for-Profit Entities, is available in ebook form. The AICPA Auditing Standards Board (ASB), Financial Reporting Executive Committee (FinREC) and Not-For-Profit Guide Task Force have revised the guide, making significant enhancements to improve user understanding and minimize diversity in practice. Enhancements include:
Employers have additional time to claim work opportunity tax credit
On Friday, the IRS announced that it was extending the time employers who want to claim the work opportunity tax credit (WOTC) have to file Form 8850, Pre-Screening Notice and Certification Request for the Work Opportunity Credit (Notice 2013-14). Form 8850 is usually due no later than 28 days after
Economic optimism still neutral, but rising
Business executives are upbeat about their revenue and expansion plans in the next 12 months. But optimism about the U.S. economy remains lukewarm, according to the first-quarter AICPA Business & Industry Economic Outlook Survey. The CPA Outlook Index (CPAOI) rose seven points to 66—the second-highest CPAOI reading in the five
Sec. 6708 regs. permit material advisers to request extension
On Thursday, the IRS issued proposed regulations under Sec. 6708 governing the penalty for failure of material advisers to provide lists of advisees (i.e., investors) in reportable transactions (as required by Sec. 6112), which applies if the advisers do not supply the lists to the IRS within 20 business days
IASB’s financial instruments impairment proposal differs from FASB’s
In a convergence project that has experienced divergence, the International Accounting Standards Board (IASB) on Thursday published its proposed financial instrument impairment standard. Although the IASB and FASB agreed that it is time to move from an incurred loss model to a more forward-looking expected loss model, they could not
FASB will review business segment reporting concerns
Although a post-implementation review of FASB’s standard on business segment reporting was mostly favorable, FASB announced Wednesday that it will consider whether additional review is needed and will meet with stakeholders and SEC staff to discuss concerns raised during the review. The Financial Accounting Foundation (FAF) post-implementation review released in
FASB amendments clarify derecognition of foreign asset guidance
FASB amended financial reporting standards to resolve diversity in practice related to financial reporting involving the narrow issue of a parent entity’s accounting for the cumulative translation adjustment of foreign currency into net income upon derecognition of foreign subsidiaries or assets. The amendments are contained in Accounting Standards Update (ASU)
Sequestration will lead to IRS cuts in services, enforcement, and tax-related payments
Now that sequestration has taken effect, the IRS has announced the following reductions in tax-related payments as a result of the Budget Control Act of 2011, P.L. 112-25. These reductions are effective beginning on March 1, 2013, until either the end of the government’s fiscal year (Sept. 30, 2013) or
Private-investigator licensing emerges as potential threat to CPAs
The AICPA has made available to members an online guide detailing which states and cities require CPAs practicing forensic accounting to be licensed as a private investigator. More than 40 states have enacted laws requiring private investigators to buy a license to operate in their state. Most of those regulations
All 2012 tax returns can now be filed with IRS
The IRS on Monday announced that it finished updating its processing systems and is now accepting all returns that include the 29 forms that were delayed by the late passage of the American Taxpayer Relief Act of 2012, P.L. 112-240. On Sunday, the IRS began accepting from e-file transmitters returns
SEC warns investors, advisers of funds custody issues
After identifying numerous issues with custody of investors’ funds, the SEC on Monday issued a risk alert underscoring existing rules. An SEC review of recent examinations of investment advisers where significant deficiencies were detected showed custody-related issues in about one-third of the firms examined, resulting in the alert by the
FASAB proposes property, plant, equipment implementation guidance
A Federal Accounting Standards Advisory Board (FASAB) committee is seeking comments on its proposed implementation guidance for financial reporting on general property, plant, and equipment cost accumulation, assignment, and allocation. The release of the exposure draft was announced Friday by Wendy Payne, who chairs FASAB’s Accounting and Auditing Policy Committee
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