The number and complexity of cyberattacks, especially those targeting mobile devices, grew at an alarming pace in the second quarter, security technology company McAfee Labs said in its latest Threats Report. McAfee identified more than 8 million previously undiscovered samples of malicious software, or malware, during the three months that ended
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Guidance issued on employee expense reimbursement arrangements
The IRS issued guidance on situations in which employers recharacterized wages as nontaxable reimbursements and whether they satisfied the business connection and other requirements to be treated as paid under an accountable plan under Sec. 62(c) (Rev. Rul. 2012-25). The revenue ruling covers four situations. In three of the four
Private-company financials often shielded from employees
Employees at publicly traded companies have an advantage when it comes to understanding the financial health of their companies. After all, public companies are just that: public. And they release detailed financial results each quarter for the world to see. Employees at private companies, however, aren’t as plugged in. Indeed,
Employee health insurance safe harbors expanded
The IRS expanded and revised optional safe harbors on which applicable large employers may rely in complying with requirements starting in 2014 to provide health insurance coverage to their full-time employees. The safe harbors, described in Notice 2012-58 and previous notices, provide methods of determining the full-time status of seasonal
CPAs sour on U.S. economy as election nears
After rising significantly at the end of 2011 and the beginning of 2012, CPA business leaders’ optimism over the U.S. economy has faded substantially in recent months, according to the latest AICPA Business & Industry Economic Outlook Survey. With an uncertain political environment in the run-up to the Nov. 6
FASB sees flexibility, relevance as cures to disclosure overload
As described by FASB member Marc Siegel during a webcast Wednesday, disclosure requirements are becoming increasingly burdensome for financial statement preparers. One objective of a current FASB project is reducing the volume of those disclosures by enabling flexible requirements geared toward relevance. Siegel described the disclosure overload problem in detail
Accounting and finance hiring plans stabilize
Accounting and finance staffing appears to be entrenched in a period of relative calm, a recent survey of CFOs shows. Eighty-nine percent of the more than 1,400 U.S. CFOs surveyed by staffing services firm Robert Half expect to maintain their current staffing levels in accounting and finance during the fourth
Accounting method changes to be allowed in corporate reorganizations
The IRS on Wednesday announced a change in its policy on automatic accounting method changes in corporate reorganizations (Rev. Proc. 2012-39). Taxpayers that engage in a tax-free reorganization or liquidation under Sec. 381(a) after Aug. 31, 2011, will be allowed to make automatic accounting method changes in the tax year
Proposed regs. issued on allocating Sec. 263A costs under simplified methods
The IRS issued proposed regulations that affect taxpayers who produce or resell property and allocate costs under the simplified production method or simplified resale method (REG-126770-06). The proposed rules would govern the taxpayers’ treatment of negative additional costs under those methods. Sec. 263A requires taxpayers to capitalize certain direct and
Taxpayer Advocate Service changes criteria for accepting cases
The Taxpayer Advocate Service (TAS) changed its criteria for accepting individual taxpayer cases for assistance, reducing the instances in which it will accept cases. The TAS said it took this action so that it can focus on cases “where we can add the most value.” In a notice to taxpayers
Statutory definition of notional principal contract extended further through 2013
The IRS announced that, in response to comments that the proposed effective date of regulations issued under Sec. 871(m) would not give taxpayers sufficient time to build and test the systems required to implement the rules, it was further extending the effective date until 2014 (Correction to T.D. 9572, 8/31/12).
Payroll & HR solutions
Sponsored by: AccountantsWorld · ADP · Paychex · SurePayroll Payroll and human resources administration and management are natural extensions to a CPA firm’s business. Numerous accounting firms already extend these services, and many are weighing the pros and cons. No matter which model you choose, offering these services is a
2012 tax software survey: Individual product survey responses
In this year’s survey by the JofA and The Tax Adviser, more than 6,070 CPAs assessed the software they used to prepare 2011 tax returns, revealing what they liked and disliked about their software. The survey was conducted in May 2012. Overall, respondents were pleased with their software: On average,
Proposed amendments clear way for audits of SME Framework financial statements
Proposed amendments to auditing standards issued today by the AICPA Auditing Standards Board (ASB) include changes that would clear the way for audits of financial statements prepared in accordance with the special-purpose financial reporting framework for small and medium-size entities (FRF-SME) the AICPA is developing. The proposal, Omnibus Statement on
FASB takes new path in contentious financial instruments project
FASB is crafting a new expected credit loss impairment model in hopes of moving forward again in the joint accounting for financial instruments project the board is pursuing with the International Accounting Standards Board (IASB). In July, IASB Chairman Hans Hoogervorst reacted with consternation when informed that FASB intended to
FASB releases proposed 2013 U.S. GAAP taxonomy for comment
FASB released Thursday the proposed 2013 U.S. GAAP Financial Reporting Taxonomy for public review and comment. The taxonomy is a list of computer-readable financial reporting labels coded in XBRL, a computer language that allows companies to tag the pieces of financial data included in typical long-form financial statements and related
IRS launches redesigned website; temporarily takes down some services
Taxpayers and tax practitioners vising the IRS online will find a redesigned IRS.gov website, which is scheduled to go live on Aug. 30; however, the IRS also announced that it is taking down several of its online services during the Labor Day weekend. Shutdown of web services Certain services will
Comment deadlines extended on proposed professional standard revisions
Two AICPA committees are extending comment deadlines to Nov. 30 on recently proposed revisions to professional standards. The proposed change to the ethics rules would require CPAs who prepare financial statements for attest clients to apply the general requirements of Interpretation No. 101-3, Nonattest Services, to maintain their independence. The
IRS changes stance on application of Sec. 6662 penalty to frozen refundable credits
The IRS announced, in Program Manager Technical Advice (PMTA) 2012-16, that it would no longer impose a penalty under Sec. 6662 for a substantial understatement of tax when a taxpayer claims a refundable tax credit he or she is not entitled to, but the IRS does not pay the refund
AICPA provides guidance on FSA certification letters
In response to a Farm Service Agency (FSA) initiative requesting that CPAs certify some clients’ income, the AICPA has worked with the FSA to create a certification letter CPAs can use and is providing its members with sample engagement and disclosure letters to be used in connection with providing a
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