The IRS released new Form W-11 on Wednesday for certifying that employees are qualified employees for purposes of tax benefits under the Hiring Incentives to Restore Employment (HIRE) Act (PL 111-147). The HIRE Act, enacted on March 18, created a payroll tax credit for employers who hire workers who have
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FASAB Issues SFFAS 37 to Enhance Financial Reporting on Social Insurance
The Federal Accounting Standards Advisory Board (FASAB) issued Statement of Federal Financial Accounting Standards (SFFAS) no. 37, which requires additional discussion and analysis of social insurance programs, enhances the statement of social insurance, and creates a new financial statement presenting the causes of change in the net present value of
Director Sought for Fraud Center
The PCAOB has begun the search for a director to run the planned Financial Reporting Fraud Resource Center. The center is expected to maintain and develop information related to financial reporting fraud. It will publish public reports on financial reporting fraud risks. Its creation is in response to a recommendation
Tax Filing Season Resources—Tax Year 2009
This is the one-stop shop for all the updates you need to know for this year’s tax filing season. Find resources from the JofA and The Tax Adviser, plus tax return checklists and tax savings tips from the AICPA, categorized by tax topic. INDIVIDUAL TAX IRS Reports Average Refund Size Is
“Bundled” Fiduciary Fees Fully Deductible for 2009
The IRS in Notice 2010-32 extended to tax years beginning in 2009 its interim guidance on deductibility of a “bundled” investment advisory commission or fee paid to a trustee or executor on behalf of a nongrantor trust or estate. The interim guidance was issued in February 2008 in Notice 2008-32
IRS Publishes FAQs on Health Care Small Business Credit
On Thursday, the IRS published to its Web site 22 questions and answers about the new health care small business credit. The FAQs cover: Eligibility for the credit; Calculation of the credit; Determining full-time employees and wages for purposes of the credit; How to claim the credit; and Transition
SBA Warns Small Businesses of Scams to Help Obtain Government Loans
The U.S. Small Business Administration (SBA) warned that the agency has received several complaints from small businesses about abusive marketing practices, scams and exorbitant fees charged by companies offering to help businesses get a loan, grant or other federal funds from the SBA. Complaints received by the SBA’s Office of
U.S.-Switzerland Protocol Will Allow Handover of UBS Account Holder Information
The United States and Switzerland announced a new protocol, amending the income tax treaty between the two countries to allow the Swiss government to provide information to the IRS on U.S. account holders of Swiss bank UBS. The protocol has been approved by the Swiss Federal Council and was signed
IRS Updates FAQs on Proposed Return Preparer Registration Plan
The IRS updated its online frequently asked questions page about its proposal to require return preparers to register with the IRS and for unenrolled preparers to pass a test and take annual continuing professional education (CPE) courses. (For prior JofA coverage, see “IRS Proposes New Requirements for Return Preparers” (1/5/10).)
GASB Proposal Addresses Reporting on Component Units, Equity Interest Transactions
GASB issued an exposure draft of a proposed statement, The Financial Reporting Entity, an amendment of GASB Statements No. 14 and No. 34. The proposed statement is intended to improve guidance for including, presenting and disclosing information about component units and equity interest transactions of a financial reporting entity. Component
PCAOB Seeks Comment on Proposed Auditing Standard on Communications
The PCAOB on Monday proposed for comment an auditing standard, Communications with Audit Committees, and a series of related amendments to its interim standards. The proposal includes a requirement for the auditor to establish a mutual understanding of the terms of the audit engagement with the audit committee and to
Adoption Credit Increased, Made Refundable by Health Care Act
The Patient Protection and Affordable Care Act (PL 111-148) temporarily increased the adoption expense credit and fringe benefit exclusion limit for adoption assistance programs and made the credit refundable. The changes are effective for tax years beginning after Dec. 31, 2009. The act increased the statutory maximum credit and exclusion
Tax Provisions in the Health Reconciliation Act
Late Thursday, Congress passed the Health Care and Education Reconciliation Act of 2010 (HR 4872). The bill now goes to the president for his signature. The Reconciliation Act amends various provisions of the Patient Protection and Affordable Care Act (PL 111-148), the large health care reform act that was enacted
Fed Issues Final Rules on Gift Card Fees, Expiration Dates
The Federal Reserve Board on Tuesday released final rules that restrict the fees and expiration dates that apply to gift cards. The rules are intended to protect consumers from certain unexpected costs and require that gift card terms and conditions be clearly stated. The rules go into effect Aug. 22.
IRS Issues Prop Regs on Use of PTINs After 2010
The IRS issued proposed regulations (REG-134235-08) on Wednesday that would require paid return preparers to use a preparer tax identification number (PTIN) on all tax returns after Dec. 31, 2010. The proposed regulations are the first guidance issued by the IRS under its proposed plan to require registration of all
Refunds Up, Returns Down in 2010
The IRS reports that the size of the average refund is almost 10% bigger this tax season compared with last year. The average refund, through March 12, is $3,036, up from $2,770 at the same time last year. The IRS says this increase is due to various new credits and
Tax Provisions in the Health Care Act
The Patient Protection and Affordable Care Act (H.R. 3590), passed by Congress on Sunday, contains numerous tax provisions. The Reconciliation Act of 2010 (H.R. 4872), which also passed the House on Sunday, contains many other tax items, including extending the general exclusion for reimbursements for medical care expenses under an
Ninth Circuit Says Exempt Organization Late-Filing Penalty Amount Is Mandatory
The Ninth Circuit Court of Appeals held that courts and the IRS have no discretion to reduce the amount of the late-filing penalty for tax-exempt organizations under IRC § 6652(c)(1)(A), overruling a district court decision (Service Employees Int’l Union, docket no. 07-17256 (9th Cir. 3/17/10)). The Service Employees International Union
President Signs Hiring Incentives Act With Tax Provisions
President Barack Obama on Thursday signed the Hiring Incentives to Restore Employment Act (HR 2847). The bill passed the House on March 4 and the Senate on Wednesday. The bill contains several tax items, the biggest of which is a payroll tax credit for employers who hire workers who have
GASB Offers $5K Grant; Proposals Due May 28
GASB is soliciting proposals for the Gil Crain Memorial Research Grant. Applications for the $5,000 grant are due May 28. GASB will announce the recipient on June 15. The grant encourages the academic community to conduct applied research that is relevant to the board’s standard-setting activities. Applicants’ proposals may address
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FROM THIS MONTH'S ISSUE
Accountancy in America: Meeting the moment for 250 years
As the United States celebrates its semiquincentennial, explore the history of the accountancy profession’s essential role in the U.S. economy.
