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
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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
Smart ways to tap accountants’ business process acumen
It’s not unusual for organizations to run into problems when they implement business solutions. Some organizations cannot launch the software at all. Others struggle with cost overruns or lose revenue because a software malfunction, inadequate training, or improper configuration leads to business interruptions, said Bob Gaby, CPA/CITP, CGMA, principal of
IRS and Tax Court reopen after government shutdown; PTIN renewals delayed
After President Barack Obama signed the bill reopening the federal government and raising the debt limit, the IRS posted a notice on its website Thursday morning notifying workers to report to work no later than four hours after “the start of their tour of duty that begins at 6 a.m.
Government shutdown, debt ceiling deal includes one tax provision
Wednesday’s deal to fund the federal government through Jan. 15 and to extend the federal government’s borrowing authority through Feb. 7 in the end contained only one tax provision, making a minor change to 2010’s health care legislation. The agreement, H.R. 2775, was passed by the Senate in a 81–18
UK regulator creates 10-year retendering requirement
Companies in the U.K. FTSE 350 will be required to place their audit contracts out for bid every 10 years under new rules announced Tuesday by the U.K. Competition Commission (CC). The rules represent a softening of the five-year mandatory retendering proposed earlier by the CC. Some businesses and regulators,
AICPA committee calls for different dividing line on leases
An AICPA committee has suggested that FASB and the International Accounting Standards Board (IASB) create a dividing line between Type A and Type B leases that is different from the line the boards proposed. In a letter submitted to the boards Monday, the AICPA Financial Reporting Executive Committee (FinREC) supported
Survey shows mixed report on progress for women in finance careers
A new survey presents mixed views on the progress women have made in the past 10 years in their ability to advance in the finance field. More than half (53%) of CFOs say there has been no change in women’s ability to advance in careers in the finance field in
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FROM THIS MONTH'S ISSUE
4 ways solo practitioners can stand out
Five years ago, a grieving Angel Zhen started his own CPA firm with no clients and no revenue. Today, he has 300 clients, $600,000 in revenue and 12 weeks of annual vacation. In this JofA article, he shares how he set up his firm and how you could do the same.
From The Tax Adviser
April 30, 2026
Current developments in taxation of individuals: Part 2
April 30, 2026
