The AICPA’s Auditing Standards Board issued Statement on Auditing Standards (SAS) no. 125, Alert That Restricts the Use of the Auditor’s Written Communication. The SAS, which is part of its Clarity Project, supersedes SAS no. 87, Restricting the Use of an Auditor’s Report (AICPA, Professional Standards, AU sec. 532 and
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Annual update on adequate disclosure of return positions issued
The IRS released updated guidance identifying when a taxpayer’s disclosure of an item or position in an income tax return is adequate for purposes of reducing the understatement of tax penalty and the tax return preparer penalty for understatement due to unreasonable positions (Rev. Proc. 2012-15). The IRS regularly releases
IT budgets stagnant in 2012, according to survey
Worldwide IT budgets are expected to be flat in 2012, when IT budgets in North America and Europe are expected to decline, according to a global survey of chief information officers (CIOs) by Gartner Inc.’s Executive Programs. Conducted in the fourth quarter of 2011, the survey of 2,335 CIOs, covering
U.S. GAAP Financial Reporting Taxonomy available for 2012
The 2012 U.S. GAAP Financial Reporting Taxonomy, which is awaiting final acceptance by the SEC, has been made available, FASB announced today. The taxonomy contains updates for accounting standards and includes other changes to the 2011 taxonomy being used by SEC issuers. The taxonomy is a list of computer-readable tags
IRS issues regs on interest expense allocation and apportionment for partners
The IRS has issued temporary and identical proposed regulations that make four changes to the rules for allocating and apportioning interest expense for partners in partnerships (T.D. 9571; REG-113903-10). The first change is to the method for apportioning interest expense for corporate partners whose interest in the partnership is 10%
Tax season starts
Tuesday, Jan. 17, marks the start of tax season, as the IRS opens up its system to accept e-filed individual tax returns. It will also start accepting returns through its Free File program on Tuesday. Unlike last year, when the start of tax season was delayed for some taxpayers by
IRS gives transitional relief to Form 8937 filers
The IRS announced on Friday that, due to its late release of the required form, it will not impose penalties on issuers of stock who report incorrect 2011 information required under Sec. 6045B, as long as they make a good-faith effort to timely comply with the requirements (Notice 2012-11). The
FASB won’t require management to make going-concern assessments
FASB will not require management to assess whether there is substantial doubt about an entity’s ability to continue as a going concern. After its board meeting Thursday, FASB announced that a majority of board members determined that such a requirement would be difficult to apply. Board members decided that users
Form debuts for Jan. 17 stock basis change reporting deadline
The IRS released new Form 8937, Report of Organizational Actions Affecting Basis of Securities, and its instructions. The deadline for filing the form for 2011 is next Tuesday, Jan. 17. Issuers of specified securities must file the form by that deadline to report organizational actions during 2011 that affect those
Comment period on private company reporting draws to a close
A comment period on private company financial statements that already has produced more than 6,500 letters has left the Financial Accounting Foundation (FAF) trustees with a lot to consider, FAF President and CEO Terri Polley said Thursday. Speaking at a North Carolina Association of CPAs meeting that was simulcast on
FAF releases “post-implementation review” of FIN 48
The Financial Accounting Foundation’s first formal “post-implementation review” of a FASB standard is complete with this morning’s report that FASB Interpretation no. (FIN) 48, Accounting for Uncertainty in Income Taxes, generally achieves its purpose. According to a FAF announcement, the review concluded that FIN 48 increases relevance and comparability in
Taxpayer advocate cites underfunding as cause of IRS’ most serious problems
The national taxpayer advocate, Nina Olson, in her annual report to Congress for 2011, cited the IRS’ lack of adequate funding, expanding workload and overreliance on automation as the most serious problems facing taxpayers. She said that, as a result, the IRS cannot adequately meet the needs of taxpayers, cannot
IRS PTIN system continues to accept 2011 renewals
The IRS online system to apply for a new preparer tax identification number (PTIN) is back up and running after a two-week hiatus for maintenance. In addition, the system is continuing to accept 2011 PTIN renewals even though the Dec. 31, 2011, renewal deadline has passed. The IRS has also
IRS announces third offshore voluntary disclosure program
In a press release trumpeting the successful collection of more than $4.4 billion in its 2009 and 2011 voluntary disclosure programs, the IRS announced it is starting its third program designed to help people hiding offshore accounts get current with their taxes in the U.S. (IR-2012-5). The new program, unlike
More-generous rules proposed for equitable innocent spouse relief
In response to court decisions and the IRS’ claim that its experience applying equitable relief has given it new insight, the IRS issued a proposed revenue procedure changing the way it will treat requests for equitable innocent spouse relief under Secs. 66(c) and 6015(f) (Notice 2012-8). The three most significant
Guidance provided on electronic health record incentives
The federal government’s promotion of electronic health records has created financial incentives for medical professionals and hospitals that make meaningful use of certified electronic health record (EHR) technology. But medical providers must comply with standards for use of the technology and properly account for the incentive payments in an area
The 20 most popular stories of 2011
We tallied the traffic on journalofaccountancy.com to determine 2011’s most popular JofA articles and news. Use the lists below to catch up on important news and professional developments you may have missed in the past year. Here are the most popular feature articles of 2011 from the JofA’s monthly print
CPA exam prep innovator Newton D. Becker dies at 83
Newton D. Becker, whose preparatory course led to CPA exam success for hundreds of thousands of accountants, died Monday in Los Angeles after a lengthy illness. He was 83. Becker was the founder and driving force behind Becker CPA Review, which he started in his hometown of Cleveland and grew
IRS issues new guidance on W-2 reporting of health plan costs
The IRS released new guidance on the requirement that employers provide information to employees on the cost of employer-provided group health plan coverage (Notice 2012-9). The guidance comes in the form of 39 questions and answers. It supersedes Notice 2011-28 and makes changes to requirements that were issued in Notice
New tax provisions for 2012
With the ringing in of the new year, several new tax provisions took effect. While the list of new items does not compare with the number of tax provisions that expired at the end of 2011 (see “Many Tax Provisions Set to Expire at Year-End”), practitioners should be aware of
Features
FROM THIS MONTH'S ISSUE
Build reusable Skills in Anthropic’s Claude AI
Instead of rewriting prompts each time, CPAs can turn routine tasks into reusable AI Skills. This Technology Q&A walks through how to build Claude Skills that process files, ask setup questions, and export clean Excel outputs.
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Current developments in taxation of individuals: Part 2
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