The Treasury Inspector General for Tax Administration (TIGTA) reported Monday on its study of the IRS’s monitoring of volunteer tax preparation services (TIGTA Report No. 2012-40-021 (2/23/12)). The IRS has developed a database, the Stakeholder Partnerships, Education and Communication Total Relationship Management System (SPECTRM), to monitor the performance of organizations
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Repurchase agreements added to FASB’s agenda
In response to concerns from stakeholders, FASB on Wednesday added repurchase agreements and similar transactions to its agenda. In repurchase agreements, an entity transfers financial assets with an agreement that entitles and obligates the transferor to repurchase the financial assets at a fixed price at a later date. If the
Roth IRAs cannot be S corporation shareholders, Ninth Circuit holds
The Ninth Circuit, affirming the Tax Court, held that a corporation whose sole shareholder was a Roth IRA was not a valid S corporation when it was created in 2003 (Taproot Administrative Services, Inc., No. 10-70892 (9th Cir. 3/21/12), aff’g 133 T.C. 202 (2009)). The taxpayer who established the Roth
PCAOB panelists say mandatory firm rotation could be harmful, helpful
Panelists voiced opposing views of mandatory audit firm rotation Wednesday during the first of two days of PCAOB hearings on the concept. Critics of mandatory rotation said it would be costly with questionable benefits, while proponents said rotation would increase auditors’ objectivity. Many panelists proposed strategies other than rotation that
Review of FIN 48 isn’t necessary, FASB decides
FASB has concluded that it is not necessary to review or reconsider FIN 48 as a result of a “post-implementation review” conducted by FASB’s parent organization, the Financial Accounting Foundation (FAF). The FAF review found that FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes (FIN 48), is resulting
Debate continues over auditor independence and audit firm rotation
On Wednesday and Thursday, what’s likely to be a robust discussion on audit firm rotation for public companies in the United States kicks off. Meanwhile, markets will get a glimpse of the U.S. housing situation, and FASB and the International Accounting Standards Board (IASB) will meet in London to discuss
GASB proposes M&A standards for government
GASB issued for public comment Friday a proposed statement that aims to improve accounting and financial reporting by providing standards for combinations and disposals by state and local governments. Under the proposal outlined in the exposure draft, Government Combinations and Disposals of Government Operations, state and local governments would be
IRS suspends repair/capitalization exams pending accounting method changes
On Thursday, the IRS issued a Large Business & Industry (LB&I) Directive for field examinations on the repair vs. capitalization issue that essentially suspended current examinations so as to permit taxpayers to file accounting method changes under just-issued revenue procedures (LB&I-4-0312-004). Taxpayers that are subject to the new temporary regulations
New online search tool makes it easier to find information about exempt organizations
On Thursday, the IRS announced that taxpayers can find information about tax-exempt organizations in a new online search tool called Exempt Organizations Select Check (IR-2012-34). The information that is searchable online includes whether the organization: Is eligible to receive tax-deductible contributions. Had its tax exemption automatically revoked for failing to
CPAs prioritize security, unsure how to best leverage new technologies
CPAs are confident that their organizations can secure their IT networks and manage data, but they doubt whether their employers will be able to generate revenue streams and other benefits from emerging technologies such as cloud computing and mobile devices, the AICPA reported Wednesday in releasing the results of its
Proposed regs. would require taxpayers that received EINs to update information
On Wednesday, the IRS issued proposed regulations that would require taxpayers that obtain employer identification numbers (EINs) to update their information with the IRS (REG-135491-10). The IRS issues EINs (which take the form 00-0000000) to employers, sole proprietors, corporations, partnerships, nonprofit associations, trusts, estates, government agencies, certain individuals, and other
FBAR and Foreign Financial Reporting Resources
TD F 90-22.1, Report of Foreign Bank and Financial Accounts (FBAR), must be filed by U.S. persons having a financial interest in or signature authority or other authority over any financial account in a foreign country if the aggregate value of these accounts exceeds $10,000 at any time during the
FinREC asks FASB, IASB to continue work on revenue proposal
The AICPA’s Financial Reporting Executive Committee (FinREC) is asking FASB and the International Accounting Standards Board (IASB) for further deliberation and consideration on their joint proposal on an accounting standard for revenue recognition from contracts with customers. FinREC, in a letter to FASB and the IASB, expresses concern that certain
Tax Court disallows cost segregation of apartment building components
In a case exploring the extent of allowable cost segregation in depreciable rental real estate, the Tax Court held that all but a small handful of items identified by the building’s owner had to be depreciated over the life of the building (AmeriSouth XXXII, Ltd., T.C. Memo. 2012-67). AmeriSouth, a
Private company reporting decision could come in May, FASB chairman says
The Financial Accounting Foundation (FAF) trustees hope to vote on a final structure and plan for private company financial reporting at their meeting in May, FASB Chairman Leslie Seidman said Monday. In her “2012 Chairman’s Outlook on the FASB” webcast, Seidman explained the various private company initiatives being undertaken by
IRS issues foreign-targeted bond guidance
The IRS issued interim guidance Thursday (Notice 2012-20) on registration of foreign-targeted bonds and provided transitional relief for withholding agents on the related portfolio interest exception. The IRS said it had received questions about these and other implications of the repeal of the foreign-targeted bond rules under Sec. 163(f)(2)(B) by
Finance executives’ outlook on U.S. economy improving, survey shows
CPA financial executives displayed a more positive but still wary view of the U.S. economy in the most recent quarterly Business and Industry Economic Outlook Survey, released Thursday by the AICPA. Those indicating optimism for the U.S. economy increased from 19% in the previous quarter to 43%. Optimists outnumbered pessimists
Accounting and finance hiring expected to be flat in Q2
Hiring in accounting and finance is likely to be flat in the second quarter of 2012 in the United States even though CFOs are confident in their business prospects for that period, a Robert Half survey shows. Ninety-one percent of CFOs said they don’t expect to change their accounting and
Much-anticipated guidance issued on accounting method changes for repair regs.
In December 2011, the IRS issued long-awaited temporary regulations on the treatment of tangible property repairs. On Wednesday, it issued two revenue procedures detailing how taxpayers may obtain IRS automatic consent to the accounting method changes required by the rules. Rev. Proc. 2012-19 addresses repair and maintenance, materials and supplies,
FASB adds project to define “nonpublic entity,” as FAF private company decision looms
As its parent foundation works to develop a plan on improving private company accounting standards, FASB is trying to determine which entities can call themselves nonpublic. FASB announced Wednesday that it will undertake a project to reexamine the definition of a “nonpublic entity.” The announcement is likely to be welcome
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