Formerly available only to large and midsize businesses and in a geographically limited pilot program for smaller entities, the IRS’s Fast Track Settlement program is now available to smaller businesses nationwide, the IRS announced Wednesday. Fast-track settlement allows the IRS and business or self-employed taxpayers under examination to use alternative
Advertisement
Historic revenue recognition standard takes big step forward
A financial reporting standard designed to increase global comparability of one of the most important items in financial statements is nearing completion after an important vote Wednesday. FASB directed the board’s staff to draft a final revenue recognition standard to be submitted to the board in December for final approval.
SEC’s ramped-up scrutiny means CFOs need to reevaluate processes
CFOs and finance departments may want to undergo a careful evaluation of their financial reporting systems and processes, experts say, now that the SEC is ramping up its scrutiny of accounting and auditing. After years of declining enforcement actions for financial fraud and issuer disclosure, the SEC’s Division of Enforcement
Health FSA use-it-or-lose-it rule modified to allow a $500 carryover
On Thursday, the IRS issued Notice 2013-71, which permits companies to amend their Sec. 125 cafeteria plans to allow participants in health flexible spending arrangements (FSAs) who do not use all of the money in a plan year to use up to $500 in the next plan year, in addition
PTIN renewal system reopens
On Thursday, two weeks after the end of the government shutdown, the IRS reopened its registration system for renewing preparer tax identification numbers (PTINs) for the 2014 filing season. When the IRS reopened on Oct. 17, it announced that while the PTIN registration system was available for new PTIN registrations,
IRS releases inflation adjustments for 2014
On Thursday, the IRS issued the annual inflation adjustments for 2014 for more than 40 tax provisions and the tax tables for 2014 (Rev. Proc. 2013-35). Among the inflation-adjusted amounts that have increased are the personal exemption, which increased from $3,900 in 2013 to $3,950 for 2014, and the standard
Collectibility threshold added in significant change to rev rec proposal
FASB and the International Accounting Standards Board (IASB) made a significant change in a major project Wednesday by adding a collectibility threshold to the converged financial reporting standard they are developing for revenue recognition. In what’s scheduled to be their last joint meeting on a project that will significantly affect
Social Security wage base rises to $117,000 for 2014
On Wednesday, the Social Security Administration (SSA) announced that the wage base above which taxes for old age, survivors, and disability insurance (OASDI) are not due will increase from $113,700 to $117,000 in 2014. The new rate means employees will pay a maximum of $7,254 of OASDI in 2014, with
Guidance issued for FFIs with FATCA agreements
On Tuesday, the IRS issued its latest guidance in preparation for the implementation of the Foreign Account Tax Compliance Act (FATCA) reporting and withholding requirements (Notice 2013-69). The guidance applies to foreign financial institutions (FFIs) entering into an FFI agreement with the IRS under Sec. 1471 or to FFIs or
Ineffective income and withholding verification hinder IRS in detecting fraudulent returns
On Monday, the Treasury Inspector General for Tax Administration (TIGTA) released the results of its review of the IRS’s fraudulent tax return detection system, the Electronic Fraud Detection System (EFDS), concluding that inadequate income and withholding verification resulted in the IRS’s missing many fraudulent returns (TIGTA, Income and Withholding Verification
PCAOB standard for auditing revenue may be on the horizon
Auditing revenue will need to be an area of focus for PCAOB standard setting in the near future, PCAOB member Jay Hanson said in a speech Monday. FASB and the International Accounting Standards Board are in the closing stages of developing a converged financial reporting standard for revenue recognition. The
Strategic planning leads list of finance priorities
Harnessing data for strategic planning, streamlining processes, and bracing for heightened regulatory concerns are the top priorities for CFOs and the finance function, according to a new survey report. Finance executives were asked to rate how different issues and capabilities ranked among their priorities in business consulting firm Protiviti’s 2014
PCAOB continues focus on audits of internal control over financial reporting
The PCAOB maintained its focus on audits of internal control over financial reporting (ICFR) Thursday by issuing its second report in 11 months on the subject. Staff Audit Practice Alert No. 11, Considerations for Audits of Internal Control Over Financial Reporting, discusses application of PCAOB standards to audits of internal
New opportunities for CPAs in proposed crowdfunding rules
Rules on crowdfunding proposed by the SEC on Wednesday would create opportunities for startups and small, private businesses to raise cash through internet-aided sales of securities—and would create opportunities for work by CPAs. The SEC commissioners voted 5–0 to propose the rules that are designed to comply with a provision
Filing season will be delayed, IRS says
The IRS announced on Tuesday a delay of one or two weeks in the start of the 2014 filing season as a result of the 16-day government shutdown to allow adequate time for the IRS to prepare and test systems. The return filing start date was originally going to be
Internet Tax Freedom Act preempts Illinois click-through nexus law
On Friday, the Supreme Court of Illinois held that Illinois’s click-through nexus law is expressly preempted by the federal Internet Tax Freedom Act (ITFA), P.L. 105-277, which prohibits states from imposing discriminatory taxes on electronic commerce (Performance Marketing Ass’n v. Hamer, No. 114496 (Ill. 10/18/13)). The Illinois law (35 Ill.
Private company initiatives making progress
David Morgan, CPA/PFS, said members of the Tennessee Bankers Association seemed pleased earlier this fall after he gave a presentation about the features of the AICPA’s Financial Reporting Framework for Small- and Medium-Sized Entities (FRF for SMEs). “Once … it was explained to them, that it was a good alternative,
A leadership tutorial from education innovator Sal Khan
Sal Khan’s story has many of the markings of a classic Silicon Valley narrative. Khan, an investment analyst working in Boston at a hedge fund, in 2004 began using Yahoo Doodle and phone calls to tutor a faraway cousin struggling with math. That evolved into posting simple video lessons on
Six trends that are reshaping business
Accountants excel at analyzing numbers and developing strategies based off them. The way University of North Carolina at Chapel Hill professor James Johnson, Ph.D., sees it, the numbers describing the demographics of the United States leave accountants little choice today but to embrace diversity and new business practices. Johnson spoke
Commission to survey accounting profession’s diversity climate
An AICPA-led body plans to gather perspectives on the profession’s views on diversity and inclusion through a survey and provide a new best practices resource for firms that are developing diversity initiatives. The recently formed AICPA National Commission on Diversity & Inclusion is charged with developing methods to help the
Features
FROM THIS MONTH'S ISSUE
AI risks CPAs should know
Are you ready for the AI revolution in accounting? This JofA Technology Q&A article explores the top risks CPAs face—from hallucinations to deepfakes—and ways to mitigate them.
From The Tax Adviser
January 31, 2026
Trust distributions in kind and the Sec. 643(e)(3) election
January 31, 2026
Effects of the OBBBA on higher education
December 31, 2025
