The Seventh Circuit affirmed the dismissal of a suit objecting to the IRS’s decision to delay imposing the Sec. 4980H employer mandate penalty until 2015 (Association of American Physicians and Surgeons, Inc., No. 14-2123 (7th Cir. 9/19/14), aff’g No. 13-C-1214 (E.D. Wis. 3/18/14)). Under Sec. 4980H, an applicable large employer
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Details of proposed anti-inversion rules are revealed
The IRS followed up on the Treasury Department’s Monday announcement that it is cracking down on corporate tax inversions by providing more detail on how the crackdown will work (Notice 2014-52). The new rules, which will be issued as regulations, generally apply to inversion transactions occurring on or after Sept.
Treasury moves to curb tax inversions
The Treasury Department announced late on Monday that it will take steps to curb corporate tax inversions, a growing tax minimization strategy that has been the subject of many headlines recently. In a prepared statement, Treasury Secretary Jacob Lew hailed the move as the first steps in making “substantial progress
SEC expects to pay whistleblower a record $30 million
The SEC expects to pay an award of more than $30 million to a whistleblower—a total that’s more than twice the previous record payout announced in the commission’s 2-year-old whistleblower program. An informant living in a foreign country who provided important, original information that led to a successful SEC enforcement
Auditors still responsible for going-concern evaluation under PCAOB rules
Recent changes to U.S. GAAP do not change public company auditors’ responsibilities for following existing PCAOB standards when considering a company’s ability to continue as a going concern, the PCAOB said Monday. In a staff audit practice alert, the PCAOB said current auditing requirements remain in force in light of
Dispositions of property get automatic accounting method change procedures
The IRS on Thursday issued Rev. Proc. 2014-54, providing procedures for taxpayers to obtain automatic consent to accounting method changes involving dispositions of tangible depreciable property. The guidance outlines how taxpayers may obtain the IRS’s automatic consent to change to certain methods provided in recently finalized regulations (T.D. 9689, issued
Changes proposed to allocation rules for rollovers
The IRS says it has become aware that some plan providers have been treating disbursements from retirement plans that contain both pretax and after-tax contributions as a single distribution of the aggregate disbursement amount, rather than as separate distributions, as required by the regulations. In proposed regulations issued on Thursday
IRS announces proposed changes to cafeteria plan elections and lookback period
The IRS issued two notices on Thursday, proposing to change the rules for when a taxpayer can revoke health care coverage in a cafeteria plan and enroll in a plan on the Health Insurance Marketplace exchanges, and how to measure the lookback period for determining who is a full-time employee
Special per diem rates issued for 2014–2015 travel expenses
On Friday, the IRS issued its annual update of special per diem rates for use in substantiating certain business expenses taxpayers incur when traveling away from home in 2014 and 2015 (Notice 2014-57).The notice provides the transportation industry meal and incidental expenses rates, the rate for the incidental-expenses-only deduction, and
Regulations update hybrid defined benefit plan rules
On Monday, the IRS released final and proposed regulations providing guidance on so-called hybrid defined benefit pension plans (T.D. 9693 and REG-111839-13). The regulations deal with changes made by the Pension Protection Act of 2006, P.L. 109-280, and the Worker, Retiree, and Employer Recovery Act of 2008, P.L. 110-458. The
PCC approves private company GAAP exception for certain acquired intangible assets
The Private Company Council (PCC) voted Tuesday to approve a GAAP alternative that will allow private companies to elect not to separately recognize and measure certain intangible assets acquired in a business combination. Private companies that elect the alternative would not recognize: Noncompetition agreements. Customer-related intangible assets that are not
ASB proposes moving content of AT Section 501 into GAAS
The AICPA Auditing Standards Board (ASB) is proposing moving a section of its attestation standards into generally accepted auditing standards (GAAS). Engagements performed under existing AT Section 501, An Examination of an Entity’s Internal Control Over Financial Reporting That Is Integrated With an Audit of Its Financial Statements, as well
PFIC reporting rules do not apply to certain marked-to-market stock
On Wednesday, the IRS announced that it will amend the regulations governing the reporting requirements for U.S. persons who hold stock in passive foreign investment companies (PFICs). The amendments will provide that, if a taxpayer marks to market PFIC stock under Sec. 475 or any Code section other than Sec.
IRS explains power-of-attorney requirements for corporate taxpayers
On Tuesday, the IRS’s Office of Professional Responsibility (OPR) issued a bulletin clarifying when corporate officers or employees must have a valid power of attorney in order to represent the company before the IRS (OPR Bulletin 2014-12). The bulletin also discusses how the existence of a power of attorney may
PCAOB alert calls for auditors to focus on revenue
The PCAOB on Tuesday urged auditors to focus on the board’s standards for auditing revenue. In Staff Audit Practice Alert No. 12, Matters Related to Auditing Revenue in an Audit of Financial Statements, the PCAOB discusses board requirements for auditing revenue that are relevant to significant audit deficiencies found frequently
CPA practitioners sue to stop PTIN fees
Two CPAs have filed suit in the U.S. district court for the District of Columbia, asking the court to stop the IRS from charging fees for issuing preparer tax identification numbers (PTINs), to obtain refunds of fees paid in the past, and to enjoin the IRS from asking for more
U.S. accountants’ optimism returns to pre-recession levels
Not since 2007 have U.S. accountants in industry felt as optimistic about the future of their companies and the state of the domestic economy as they do now. While concerns about regulatory requirements linger, and some companies remain hesitant to deploy cash or hire, those potential obstacles can’t stem the
AICPA seeks comment on next format of CPA exam
The AICPA is inviting public comment as it shapes the next version of the Uniform CPA Examination, to ensure that it continues to reflect the skills that newly licensed CPAs need to protect the public interest. An Invitation to Comment, issued Tuesday, is the first document available for public comment
Worry-free payroll
Find out what top payroll vendors have to say about the latest trends and issues in payroll! This special focus report provides information on: – The changing landscape of payroll and payroll-related applications – Technology hurdles – How payroll companies work with CPA firms And more! Click here to access
Capital gain, not amount realized, determines application of 6-year collection statute
On Thursday, the Tax Court held that gross income for purposes of Sec. 6501(e) statute of limitation calculations includes only the gain from the sale of investments and not the amount realized from their sale (Barkett, 143 T.C. No. 6 (8/28/14)). The court distinguished its holding from the Supreme Court’s
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