October 2014

October 13, 2014

Changes made to IRS streamlined offshore compliance procedures

The IRS updated its streamlined offshore compliance program to provide procedures taxpayers residing both inside and outside the United States should use to participate in the program. The streamlined offshore compliance program is for taxpayers whose failure to comply with requirements to report offshore assets is nonwillful. It is designed

October 9, 2014

AICPA asks for raise in repair regulations’ de minimis safe harbor threshold

Jeffery Porter, CPA, chair of the AICPA’s Tax Executive Committee, wrote to Andrew Keyso, IRS associate chief counsel, on Wednesday, raising the AICPA’s concerns about the low amount of the de minimis safe harbor threshold in the tangible property regulations (T.D. 9636) that were issued in September 2013, and about

October 9, 2014

Notice defines terms for economic substance doctrine

On Thursday, the IRS provided guidance defining “transaction” for purposes of applying the Sec. 7701(o) economic substance doctrine and “similar rule of law” for purposes of the Sec. 6662(b)(6) accuracy-related penalty (Notice 2014-58). The economic substance doctrine is a common law judicial doctrine that disallows tax benefits of a transaction

October 9, 2014

Investors’ confidence in U.S. public companies grows

Investors’ confidence in investing in U.S. public companies—and in audited financial information released by those companies—has risen to a seven-year high in 2014. According to the Center for Audit Quality’s (CAQ’s) Main Street Investor Survey, 80% of 1,049 investors surveyed said they have some, quite a bit, or a great

October 8, 2014

Ibanez ruling set precedent for right of CPAs to advertise dual credentials

This June marked the 20th anniversary of a U.S. Supreme Court ruling that remains of interest to the accounting profession because the litigants included a state board of accountancy and a dually credentialed attorney advertising that she was both a CPA and an attorney. In Ibanez v. Florida Board of

October 8, 2014

Global cyberattacks rose 48% in 2014

It should be no surprise amid the constant barrage of headlines about cybersecurity incidents that the number and cost of breaches is on the rise. Security incidents cost businesses an average of $2.7 million each year, according to a survey by PwC. Despite the burgeoning threat, information security is an

October 2, 2014

Regulation, inflation drove audit fees higher in 2013

Regulatory oversight and inflation have played significant roles in the rise in fees U.S. companies paid in 2013 to external auditors, according to new research by Financial Executives International. The 87 public companies participating in the survey reported an average rise in audit fees of 4.5% over the previous year,

October 2, 2014

Continued rise projected for accounting salaries in 2015

Starting salaries for accounting and finance professionals in the United States and Canada across a wide range of positions are expected to trend upward again in 2015, according to forecasts in salary guides published by staffing services firm Robert Half. Average starting salaries for corporate accounting positions are projected to

October 1, 2014

PCAOB may consider different mechanism for naming engagement partner

The PCAOB may consider a different mechanism for disclosing the name of the engagement partner after a proposal last year raised significant objections from the accounting profession. Some investors have told the PCAOB that placing the name of the principal partner for engagements in public company audit reports would allow

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.