The IRS issued temporary regulations relating to the treatment of upfront payments made pursuant to certain notional principal contracts (NPCs) for U.S. federal income tax purposes (T.D. 9589). The temporary regulations establish an exception to the definition of U.S. property for obligations of U.S. persons arising from upfront payments made
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Illinois “click-through nexus” law held unconstitutional
On Monday, the Circuit Court for Cook County in Illinois issued an eagerly awaited order explaining its bench decision on April 25, which declared Illinois’s “click-through nexus” law unconstitutional (Performance Marketing Ass’n v. Hamer, No. 2011 CH 26333 (Ill. Cir. Ct. Cook Cty. 5/7/12)). The order found that the law
FASB clarifications include plans for qualitative disclosures for financial instruments
FASB on Wednesday clarified its plans regarding requirements for specific qualitative disclosures and the definition of “financial institution” that will be included in the liquidity disclosures section of its proposed Accounting Standards Update (ASU) on accounting for financial instruments. The board decided that a reporting entity should provide any additional
Litigation, regulation expected to add to forensic and valuation workload
Forensic and valuation CPAs expect increases in litigation and regulation to add to their workload and make it challenging to hire and keep qualified employees, according to a new AICPA survey. Attracting and retaining qualified staff led the list of top challenges over the next two to five years, identified
To prevent fraud, offer a hotline, train employees on fraud prevention, report says
Providing individuals a means to report suspicious activity and conducting targeted fraud awareness training for employees and managers are two key elements in detecting and preventing fraud, a new report says. Fraud is most commonly detected through employee tips, and organizations that have anti-fraud training programs for employees, managers, and
TIGTA and Congress focus on identity theft and tax fraud
On the same day the House Ways and Means Oversight and Social Security Subcommittees held a hearing on tax fraud involving identity theft, the Treasury Inspector General for Tax Administration (TIGTA) released a report saying the IRS does not handle identity theft issues well (TIGTA Rep’t No. 2012-40-050). Tuesday’s congressional
TPA gives technical guidance for health care entities
The AICPA Health Care Expert Panel has developed technical guidance on the application in consolidated financial statements of a recent accounting standards update for health care entities. Technical Practice Aid (TPA) 6400.47 provides nonauthoritative guidance on the application of FASB Accounting Standards Update (ASU) No. 2011-07, Health Care Entities (Topic 954):
Final regulations issued on deduction of prepaid mortgage insurance premiums
The IRS on Friday issued final regulations governing the allocation of prepaid mortgage insurance premiums for periods after Dec. 31, 2010 (T.D. 9588). The final regulations adopt rules that were issued as proposed and temporary regulations in 2009 (T.D. 9449; REG-107271-08). The deduction under Sec. 163(h)(3)(E) for mortgage insurance premiums,
Financial matters are top cause of couples’ spats, survey shows
Couples argue more about financial matters than any other topic, according to a Harris Interactive survey conducted for the AICPA. Twenty-seven percent of respondents in a national survey who are married or living with a partner said disagreements over money are most likely to prompt an argument. None of the
IASB proposes package of IFRS amendments
As part of its annual improvements project, the International Accounting Standards Board (IASB) published for public comment Thursday an exposure draft of proposed, narrowly scoped amendments to 11 IFRSs. Subjects of the proposals include short-term receivables and payables in IFRS 13, Fair Value Measurement; recognition of deferred tax assets for
FASB to revisit going-concern question
FASB on Wednesday decided to revisit the question of whether management should be required to assess if there is doubt about an entity’s ability to continue as a going concern. The decision came as a result of FASB’s recent decision not to pursue going-concern-type disclosures in its project about liquidity
Terms in OIC agreement take meaning from Code, court holds
The Second Circuit Court of Appeals held on Wednesday that the terms “refund” and “overpayment” in an offer-in-compromise (OIC) agreement are specialized tax terms that take their meaning from the Internal Revenue Code and are not given their “plain English” meanings, despite the colloquial tone of the agreement (Sarmiento, No.
Basis reporting rules for debt instruments and options postponed for one year
In Notice 2012-34, the IRS postponed the basis and gain reporting rules under Secs. 6045(g), 6045(h), 6045A, and 6045B for debt instruments and options, so they will apply to those acquired on or after Jan. 1, 2014. The postponement was in response to the many comments the IRS received on
Small businesses in U.S., Canada aren’t using accountants’ complete skills, survey shows
Efforts to get accountants more fully engaged with clients have found limited success with small businesses in the United States and Canada, a new survey shows. Forty per cent of small businesses surveyed in the U.S. and Canada do not even use an outside accountant, according to a report by
COSO postpones release of internal control framework until 1Q 2013
After receiving extensive feedback, the Committee of Sponsoring Organizations of the Treadway Commission (COSO) announced Monday that it expects to delay the release of its updated internal control framework until the first quarter of 2013. That’s a slightly later debut than COSO predicted for the framework in December, when it
HSA inflation adjustments issued for 2013
On Friday, the IRS issued the inflation-adjusted figures for the annual contribution limitation for health savings accounts (HSAs) and the minimum deductible amounts and maximum out-of-pocket expense amounts for high-deductible health plans for calendar year 2013 (Rev. Proc. 2012-26). Under Sec. 223, individuals who participate in a health plan with
IRS proposes expanding tax return information it will disclose to HHS under health care acts
On Friday, the IRS issued proposed regulations relating to 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 (REG-119632-11). The proposed regulations describe certain items the IRS will disclose in addition to those required by
Congressional subcommittee hearing centers on expiring tax provisions
The term “winners and losers” sprang up several times on Thursday in a congressional subcommittee hearing on expired or soon-to-expire tax provisions. Congress should not pick them, witnesses contended. However, they also lined up to tell the House Ways and Means Select Revenue Subcommittee why a particular tax credit or
FASB makes decisions in project to define nonpublic entity
FASB made two important decisions Wednesday in its project to define a nonpublic entity. An entity that is required to file or furnish financial statements with the SEC to issue securities to be traded in a public market should not be included in the definition of a private company, FASB
Young Americans fail to frequently check bank balances, survey shows
Although technology has made it easier to track finances, many Americans aren’t taking advantage of the opportunity, according to a new survey. Seventeen percent of 18- to 34-year-olds check their bank accounts daily, according to a national telephone survey conducted for the AICPA by Harris Interactive in recognition of National
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