On Monday, the IRS issued proposed regulations under Secs. 6015(f) and 66(c) changing the deadline for taxpayers to request innocent spouse relief from joint liability (REG-132251-11). The proposed rules generally adopt new time limitation rules announced in Notice 2011-70, and, as a result, the regulations are effective the date the
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“Private attorney general” can deduct his lawyers’ fees as trade or business expenses
In a case of first impression, a federal district court held that a taxpayer who zealously and single-mindedly pursued False Claims Act lawsuits against his former employer was engaged in the trade or business of prosecuting those lawsuits and he could deduct legal expenses related to that trade or business
Six areas where new revenue recognition standard will require judgment
The new, converged revenue recognition standard will include substantially less industry-specific, “bright-line” guidance than many U.S. companies are accustomed to. The standard that FASB and the International Accounting Standards Board are expected to issue this year will create the need for new judgments to be reached by financial statement preparers
PCAOB to consider proposing new auditor’s reporting model
The PCAOB will meet Tuesday to consider proposing a new auditor’s reporting model as well as new auditor’s responsibilities for other information in an annual report that contains audited financial statements and the auditor’s report. The contents of the auditor’s report have been the subject of significant activity by standard
California CPA wins AICPA’s Maximo Mukelabai Award
The AICPA on Thursday honored California CPA Jeremy Dillard with the Maximo Mukelabai Award, which recognizes a young CPA who has demonstrated an exceptional commitment to the accounting profession. Donny Shimamoto, CPA/CITP, CGMA, founder and managing director of Hawaii-based Intraprise TechKnowlogies LLC, presented the award at the AICPA’s E.D.G.E. Conference
Aug. 30 IRS furlough day canceled
The IRS announced that it will remain open on Aug. 30, canceling a previously scheduled furlough day. However, in making the announcement, IRS Acting Commissioner Danny Werfel said that the Service is still evaluating whether it must take a furlough day in September. In April, the IRS announced that it
FASB to propose relief for private companies from VIE requirements
FASB moved closer Wednesday to providing relief for private companies from variable-interest entity (VIE) consolidation requirements for common control leasing arrangements, which are considered costly and irrelevant by many small business owners. The board voted to endorse a decision by the Private Company Council (PCC) to propose an alternative for
IRS releases draft net investment income tax form
On Wednesday, the IRS released a draft of Form 8960, Net Investment Income Tax—Individuals, Estates, and Trusts, a new dual-purpose form that will be used by individuals and trusts and estates to compute the new 3.8% tax and then to report the tax on Forms 1040, U.S. Individual Income Tax
NFPs excluded from FASB’s proposed definition of a public business entity
FASB would not consider not-for-profits (NFPs) and employee benefit plans public business entities for purposes of future standard setting, according to a new proposal the board exposed for public comment Wednesday. FASB is defining a public business entity to prevent confusion over which entities can apply the alternatives within GAAP
AICPA asks Congress to block change in DOL fiduciary rule for ESOP appraisers
The AICPA has endorsed legislation designed to block any proposal from the U.S. Department of Labor (DOL) that would change the definition of “fiduciary” as it applies to the valuation of employee stock ownership plans (ESOP). The DOL in recent years has sought to expand the definition of a fiduciary
IRS issues final rules on exceptions from REIT or RIC built-in-gain recognition
On Thursday, the IRS issued final regulations that provide guidance on the recognition of built-in gain in certain transfers of property from a C corporation to a regulated investment company (RIC) or real estate investment trust (REIT) (T.D. 9626). The final regulations adopt proposed regulations issued in April 2012 (REG-139991-08)
2013 tax software survey: Individual product survey responses
In this year’s survey by the JofA and The Tax Adviser, more than 5,000 CPAs assessed the software they used to prepare 2012 tax returns. The survey was conducted in May 2013. Overall, respondents rated their software an average of 4.1 out of 5. Users of three products, Lacerte, ProSystem
White House announces nominee for IRS commissioner
The White House announced on Thursday that President Barack Obama will nominate John Koskinen as the new IRS commissioner. In a statement, the president said, “John is an expert at turning around institutions in need of reform.” He added, “I am confident that John will do whatever it takes to
SEC strengthens broker-dealer audit requirements
The SEC on Wednesday approved rule amendments that strengthen audit requirements for broker-dealers. The amendments are intended to increase protections for investors whose money and securities are turned over to SEC-registered broker-dealers. The final rules are available on the SEC’s website. Under previous rules, broker-dealers are required to file annual
Public, private companies report rise in audit fees in FY 2012
Fees for external audits of financial statements paid by U.S. public and private companies rose in fiscal year 2012 over the previous year, according to a new survey report. Audit fees paid by 87 public companies averaged $4.5 million in FY 2012, according to a Financial Executives International (FEI) report.
Final regs. clarify who is subject to 50% limit on meal and entertainment expenses
On Wednesday, the IRS issued final regulations clarifying which party is subject to the 50% limit on deductible meal and entertainment expenses under Sec. 274(n) (T.D. 9625). The final rules adopt proposed regulations issued in July 2012 (REG-101812-07) without substantive change. As the IRS emphasized in the preamble to the
Comments requested on proposed net investment income tax form
On Monday, the IRS published a notice and request for comments from taxpayers on a new dual-purpose form that will be used by individuals (using Form 1040, U.S. Individual Income Tax Return) and trusts and estates (using Form 1041, U.S. Income Tax Return for Estates and Trusts) to compute the
Proposed international standard would change auditor reports
International auditor reporting guidelines would change significantly and require more communication from auditors under standards proposed Thursday by the International Auditing and Assurance Standards Board (IAASB). The IAASB’s exposure draft includes a new proposed international auditing standard, Communicating Key Audit Matters in the Independent Auditor’s Report, which directs auditors to
ASB proposes clarifying attestation standards
The AICPA Auditing Standards Board (ASB) is proposing changes to its attestation standards as a part of its clarity project. An exposure draft issued Wednesday would clarify and recodify certain Statements on Standards for Attestation Engagements (SSAEs) in the AICPA’s Professional Standards. The ASB has undertaken the clarity project to
FASB, IASB creating team to aid revenue recognition transition
FASB and the International Accounting Standards Board (IASB) plan to create a joint transition resource group to aid in implementation of the upcoming, converged standard on revenue recognition. The standard will have wide-ranging implications for many businesses, and the transition group will be tasked with keeping the boards up to
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