The IRS issued proposed regulations Thursday (REG-140280-09) that would impose new requirements for tax return preparers and their firms for returns claiming the earned income tax credit (EITC), including submission of information regarding taxpayers’ eligibility to the IRS. The EITC provides a refundable credit to eligible taxpayers, and it has
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IFRS Resources
With FASB and the IASB fast approaching their June 2011 completion deadline for major convergence projects, the CPA profession is poised to assimilate—at unprecedented speed—an array of profound changes to GAAP. As public companies watch the SEC for guidance on IFRS adoption, private companies have begun to examine whether the
Sluggish Economy, Unemployment a Drag on Mortgage Performance
The performance of first-lien mortgages serviced by large national banks and federal savings associations declined slightly during the second quarter of 2011, according to a report by the Office of the Comptroller of the Currency (OCC). The report said much of the decline was caused by an increase in early-stage
Key Technology Issues for 2012
With 2012 just around the corner, the JofA gathered the three technology keynote speakers from the AICPA’s 2011 Practitioners Symposium/TECH+ Conference to talk about tech trends heading into the new year. The nearly 90-minute conversation covered a wide range of technical issues critical to all CPAs. Participating in the call
FAF Proposal Falls Short of Independent Board for Private Company Standards
The Financial Accounting Foundation, FASB’s parent organization, on Tuesday issued a proposal that would create a Private Company Standards Improvement Council (PCSIC) to determine whether exceptions or modifications to U.S. GAAP are required to address the needs of users of private company financial statements. FAF proposed that the 11- to
PCAOB: Be On the Lookout for Fraud in Emerging Markets
The PCAOB on Monday published a Staff Audit Practice Alert to increase auditors’ awareness of risks when performing audits of companies with operations in emerging markets. Specifically, the alert cited a number of reports originating from audits of companies based in the People’s Republic of China. Staff Audit Practice Alert
Featured Online Content for October 2011
FEATURED DOWNLOAD Top iPad Applications for CPAs Which are the best apps for CPAs using iPads? Which other tablets merit consideration? To access a chart with details on 50 iPad applications and information on browser-based applications from major accounting-software publishers, click here; and to read capsule profiles of selected tablets,
IRS Updates, Clarifies Travel Allowances, Reinstates High-Low Method
The IRS issued an update and new guidance Friday (Revenue Procedure 2011-47) for use of a federal per diem rate to substantiate the amount of ordinary and necessary expenses for lodging, meals and incidental costs paid or incurred for business-related travel away from home. The IRS stated that this revenue
Estates Must File Form 706 to Make Portability Election
The IRS on Thursday issued Notice 2011-82 to alert executors of the estates of decedents dying after Dec. 31, 2010, of the need to file a Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, within the time prescribed by law (including extensions). Form 706 must be filed to
Mortgage Defaults Drive 88% Jump in Suspected Fraud
The Treasury Department’s Financial Crimes Enforcement Network (FinCEN) said mortgage loan fraud suspicious activity reports (MLF SARs) almost doubled in the second quarter of 2011 compared with the second quarter of 2010 as 63% of all filings related to activities that occurred four or more years ago, coinciding with the
FASB Panel Recommends Areas of Improvement in Standards for Nonprofits
The NAC heard feedback from three working groups that formed recommendations for FASB to add to its standard-setting agenda. FASB has not yet considered the recommendations. The NAC created the working groups earlier this year (see previous JofA coverage, “FASB Not-for-Profit Panel’s Subgroups to Study Possible Improvements”). The NAC charged
IRS Issues Guidance on Fingerprinting, Other Registered Tax Return Preparer Details
The IRS provided more details Wednesday of its still-developing requirements for all paid tax return preparers to be registered and undergo a background check, to include fingerprinting. The IRS said CPAs are exempt from fingerprinting “at this time.” It also said it will not require individuals to be fingerprinted prior
FASB Standard Broadens Disclosures on Multiemployer Pensions
FASB issued Accounting Standards Update no. 2011-09, Compensation—Retirement Benefits—Multiemployer Plans (Subtopic 715-80): Disclosures about an Employer’s Participation in a Multiemployer Plan. The ASU requires employers to provide more information about their financial obligations to multiemployer pension plans. Multiemployer pension plans commonly are used by an employer to provide benefits to
IRS Offers Employee Reclassification Agreement
Employers may reclassify independent contractors as employees and limit the resulting federal payroll taxes for their most recent tax year, plus avoid related penalties and interest for prior years, under an IRS program announced Wednesday. In Announcement 2011-64, the IRS outlined its new Voluntary Classification Settlement Program (VCSP). Unlike an
President Signs Patent Reform Bill Banning New Tax Strategy Patents
On Friday morning, President Barack Obama signed into law the Leahy-Smith America Invents Act (HR 1249), which reforms the U.S. patent system and stops the granting of patents for tax strategies. The bill had been passed by the Senate earlier this month and by the House of Representatives in June.
FinCEN Proposes Mandatory E-Filing of BSA Reports
The Treasury Department’s Financial Crimes Enforcement Network (FinCEN) on Wednesday issued a proposal to mandate that almost all FinCEN reports required under the Bank Secrecy Act (BSA) be filed electronically as of June 30, 2012. Currently, about 85% of FinCEN reports are filed electronically through its free BSA E-Filing system.
FASB Issues Update to Simplify Goodwill Impairment Testing
FASB on Thursday issued Accounting Standards Update (ASU) no. 2011-08, Intangibles—Goodwill and Other (Topic 350): Testing Goodwill for Impairment, that the board said simplifies how public and nonpublic entities test goodwill for impairment. The amendments permit an entity to first assess qualitative factors to determine whether it is more likely
PCAOB, Norway Reach Accord on Auditor Inspections
The PCAOB on Wednesday said it entered into a cooperative agreement with the Financial Supervisory Authority (FSA) of Norway for the oversight of audit work performed by public accounting firms that practice in the two regulators’ respective jurisdictions. The PCAOB had been blocked from inspections in Norway since 2008, the
International Committee Releases Draft Framework for Integrated Reporting
The International Integrated Reporting Committee (IIRC) calls for a new approach to corporate reporting in a discussion paper released Monday. The paper, Towards Integrated Reporting: Communicating Value in the 21st Century, discusses the rationale for integrated reporting, offers initial proposals for the development of an international integrated reporting framework, and
Guidance Issued on Tax Treatment of Business Cell Phones
The IRS issued a notice on Wednesday providing guidance on the tax treatment of employer-provided cell phones now that they have been removed from the definition of listed property (Notice 2011-72). The notice discusses the treatment of employer-provided cell phones as an excludible fringe benefit. The IRS says it has
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FROM THIS MONTH'S ISSUE
New AICPA chair pitches a people-first profession
New AICPA Chair Jan Lewis shares why listening and service are central to her leadership approach. From advocating for small firms to navigating AI and strengthening the talent pipeline, Lewis outlines how she plans to steward a profession built on trust, relevance, and opportunity.
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