Accounting standards for risk financing and insurance-related activities of state and local governments, including public risk pools, achieve their purpose, according to a Financial Accounting Foundation (FAF) review report released Tuesday. GASB Statements No. 10, Accounting and Financial Reporting for Risk Financing and Related Insurance Issues, and No. 30, Risk
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Revised proposal would clarify which projects GASB can consider
The Financial Accounting Foundation (FAF) on Tuesday issued a revised proposal describing a process that would decide which information GASB could consider for its standard setting for state and local governments. Under the proposal, GASB would consult with the FAF trustees’ Standard-Setting Process Oversight Committee to determine whether particular information
Online FATCA registration system launched
The IRS on Monday announced the launch of an online system that foreign financial institutions (FFIs) can use to register with the agency to meet their obligations under the Foreign Account Tax Compliance Act (FATCA) (IR-2013-69 (8/19/13)). The system allows institutions that must register with the IRS to create an
PCAOB calls for more care in audits of brokers and dealers
The PCAOB is urging auditors of broker-dealers to conduct audits with due professional care and skepticism after PCAOB inspectors identified deficiencies in 57 of the 60 audits of broker-dealers reviewed during the final 10 months of 2012. A report on the PCAOB’s interim inspection program for broker-dealer audits, which was
Amounts on late-filed S corporation return were not disclosed on taxpayer’s return
For purposes of determining whether there had been a substantial understatement of gross income on a taxpayer’s return, the IRS Office of Chief Counsel determined that amounts on a Form 1120S, U.S. Income Tax Return for an S Corporation, filed after the three-year statute of limitation expired, were not considered
IRS issues draft FATCA report form
On Thursday, the IRS released a draft Form 8966, FATCA Report, which will be used by foreign financial institutions (FFIs) and withholding agents to comply with their FATCA reporting and withholding requirements. Under the Foreign Account Tax Compliance Act (FATCA), enacted as part of the Hiring Incentives to Restore Employment
Revenue procedure provides liberal relief for late S corp. elections
On Wednesday, the IRS consolidated the provisions of a number of previous revenue procedures for requesting relief for late S elections under Sec. 1362, late qualified subchapter S trust (QSST) elections, late electing small business trust (ESBT) elections, late qualified subchapter S subsidiary (QSub) elections, and late corporate classification elections
Final rules issued on IRS disclosure of tax return information under health care law
The IRS issued final regulations about how it will release certain tax return information to the Department of Health and Human Services (HHS), as required by 2010’s health care legislation (T.D. 9628). The final regulations, which will be effective Wednesday, describe certain items the IRS will disclose in addition to
PCAOB proposes sweeping changes to the auditor’s reporting model
The PCAOB on Tuesday proposed sweeping changes to the auditor’s reporting model for U.S. public companies that would include a requirement for auditors to identify and describe “critical audit matters.” In addition, new standards and related amendments proposed by the PCAOB would require: A statement of auditor independence. This would
CAQ provides guidance to audit firms for reporting on policies and practices
Six possible elements of audit quality are highlighted in a report released Tuesday by the Center for Audit Quality (CAQ). The report describes elements of audit quality that audit firms could consider in refining or developing their own reporting regarding their public company audit practices. The elements are: Firm leadership
Disclosure Authorization and Electronic Account Resolution e-services get three-week reprieve
On Friday, the IRS announced that it is delaying the retirement of the Disclosure Authorization (DA) and Electronic Account Resolution (EAR) electronic services for three weeks (e-News for Tax Professionals, No. 2013-32 (8/9/13)). They were scheduled to be suspended on Aug. 11, but instead they will be available until Sept.
Proposed rules reset limitation for pursuing equitable innocent spouse relief
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
“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
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