On Tuesday, the IRS issued proposed regulations (REG-154159-09) that provide rules regarding who is the “taxpayer” for purposes of applying the IRC § 108 discharge of indebtedness rules to a grantor trust or disregarded entity. IRC §§ 108(a)(1)(A) and (B) exclude discharged debt from a taxpayer’s income if the discharge
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IRS Issues Foreign Financial Account Reporting Guidance
The IRS issued a second notice giving guidance on various reporting requirements under the Foreign Account Tax Compliance Act (FATCA, part of PL 111-147) (Notice 2011-34). The notice responds to concerns raised by commenters following the issuance last August of Notice 2010-60, which contained preliminary guidance on implementation of the
FASB Challenged With Prioritization
In part five of this exclusive JofA interview, FASB Chairman Leslie Seidman shares her challenges of prioritizing projects. JofA: What’s been the greatest challenge so far as chairman, and what do you expect your greatest challenge to be over the course of the next year? Seidman: It became clear last
Federal Budget Deal Avoids Tax Season Disruptions
White House and congressional negotiators reached an agreement on funding the federal government ahead of a midnight Friday deadline and averted a shutdown of all nonessential government functions. Under the agreement, the federal government will be funded by a continuing resolution through next Friday. By Friday, Congress plans to pass
Clarified Auditing Standard Outlines Auditor Requirements Regarding SEC Filings
The AICPA’s Auditing Standards Board has finalized the clarified Statement on Auditing Standards, Filings With the U.S. Securities and Exchange Commission Under the Securities Act of 1933, to supersede AU section 711, Filings Under Federal Securities Statutes, in AICPA Professional Standards. The clarified SAS addresses the auditor’s responsibilities in connection
IFRS Foundation to Add Common-Practice Tags to IFRS Taxonomy
The IFRS Foundation said it will publish supplementary tags for the IFRS Taxonomy that reflect disclosures that are commonly reported by entities in their IFRS financial statements. The foundation, the International Accounting Standards Board’s parent organization, said the common-practice tags will enhance the comparability of information by enabling entities to
FASB Chairman: No Retreat on Leases
Editor’s note: On April 14, FASB and the IASB said the priority projects on revenue recognition, leases and financial instruments, scheduled to be completed in June, would require a few more months of work. No specific deadline was set for the projects. Read “FASB, IASB Announce Delay on Priority Projects”
IRS Prepared to Process Returns If Government Shuts Down
IRS Commissioner Doug Shulman addressed the National Press Club on Wednesday, and after his prepared remarks he answered questions regarding the IRS’ preparations for a possible shutdown of the federal government, which could happen Friday. The first question asked what people can expect if the government shuts down. Shulman said
FASB Updates Treatment of Troubled Debt Restructurings
FASB on Tuesday issued an Accounting Standards Update that the board said improves financial reporting by creating greater consistency in the way GAAP is applied for various types of debt restructurings, which FASB’s chairman said have become more common since the most recent recession. FASB said in a press release
New Rule Takes Aim at “Flawed Compensation Practices”
Several federal financial regulatory agencies proposed a new rule, pursuant to section 956 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, that would prohibit certain financial institutions from creating incentive compensation arrangements that could encourage inappropriate risks. The rule takes aim at preventing what the agencies called “flawed
Senate Approves 1099 Repeal, Sends Bill to President
The Senate on Tuesday passed legislation to repeal both the expanded Form 1099 information-reporting requirements mandated by last year’s health care legislation and also new 1099 reporting requirements imposed on taxpayers who receive rental income. The Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayments Act of 2011 (HR
Final Regulations Issued on Validity, Priority of Federal Tax Liens
On Monday, the IRS published final regulations (TD 9520) that govern the validity and priority of federal tax liens under IRC § 6323. Under IRC § 6321, the federal government has an automatic lien against any person who does not pay federal tax for which they are liable after the
ASB Issues Exposure Draft to Amend Various Clarified Auditing Standards
The AICPA’s Auditing Standards Board (ASB) issued Proposed Statement on Auditing Standards, Omnibus Statement on Auditing Standards—2011, resulting from its Clarity Project. The comment period ends May 15. The proposed SAS contains amendments to the following: SAS no. 117, Compliance Audits (AICPA, Professional Standards, AU sec. 801). The amendment conforms
Condorsement: FASB’s Potential New Role Under IFRS
In part three of this exclusive JofA interview, FASB Chairman Leslie Seidman shares her thoughts on how FASB might function in an IFRS world. JofA: Last fall at the AICPA National Conference on Current SEC and PCAOB Developments, Paul Beswick, one of the SEC’s deputy chief accountants, introduced the concept of
AICPA: Financial Instruments Compromise Potentially Flawed
The AICPA’s Financial Reporting Executive Committee (FinREC) on Thursday expressed a number of concerns on the supplementary document, Accounting for Financial Instruments and Revisions to the Accounting for Derivatives Instruments and Hedging Activities-Impairment published Jan. 31 by FASB and the IASB. “Although we recognize the need for convergence, the current
Mortgage Performance Improves; Scrutiny of Bank Procedures Slows Foreclosures
The nation’s home mortgage portfolio continued a trend of slight improvements as the share of “current and performing” first-lien mortgages serviced by large national banks and thrifts ticked up in the fourth quarter of 2010, according to a joint report from the Office of the Comptroller of the Currency and
IRS Delays Due Date for Choosing Basis Allocation for Decedents Dying in 2010
The IRS announced that it is delaying the due date for Form 8939, Allocation of Increase in Basis for Property Acquired From a Decedent, past its original April 18 due date, but did not announce what the new due date will be (IR-2011-33). Therefore, for decedents who died in 2010,
FASB Not-for-Profit Panel’s Subgroups to Study Possible Improvements
FASB’s Not-for-Profit Advisory Committee (NAC) has established three working groups to study ways for FASB or others to improve financial reporting for nonprofit entities and to develop recommendations and alternatives for consideration by the full committee. FASB established the NAC in 2009 to serve as a standing resource for the
AICPA Highlights Need for IASB Funding, Independence
The AICPA called on the SEC to contribute funds to support the International Financial Reporting Standards Foundation, the parent organization of the International Accounting Standards Board (IASB). In a comment letter to the IFRS Foundation Monitoring Board, the Institute wrote, “We believe any solution by the SEC would go a
Featured Online Content for April 2011
FEATURED VIDEO Three Key Steps for Managing Young CPAs To keep young CPAs engaged and polish their communication skills, start by setting expectations right out of the gate about the number of hours they will spend on soft skills training and client service, and ask them to account for
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Tax Court allows cattle ranch deductions
The Tax Court held that a Texas rancher operated with a profit motive, despite “troublingly large” losses more than 77 times his gross receipts from farming and ranching. Learn more in this Tax Matters article.
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