IRS annual inflation adjustments, negotiating a job offer, and a quiz

Description:

Nine articles have been posted on journalofaccountancy.com since Oct. 13, which means there’s been a lot of recent news affecting the accounting profession. This episode focuses on several of those articles, which offer advice, a chance to test knowledge, and some key numbers when it comes to thinking about the 2023 tax year. Here is a list of article topics mentioned in the episode:

• IRS annual inflation adjustments.
• An AICPA letter seeking guidance on the corporate alternative minimum tax.
• A quiz on helping clients reduce cash-handling risks.
• Understanding the tax consequences of remote work.
• Advice for negotiating once you’ve received a job offer.
• Annual wage base and COLA announcement by the Social Security Administration.
• FASB moves toward standard for fair value accounting of cryptoassets.
• FASB seeks input on proposed new chapter for its Conceptual Framework.

What you’ll learn from this episode:

• An overview of increases to the standard deduction for taxpayers.
• The reasons, according to an AICPA letter, that guidance is needed for companies related to the corporate alternative minimum tax.
• Details about a quiz on helping clients reduce cash-handling risks.
• Other news and feature content of note on journalofaccountancy.com.

Play the episode below or read the edited transcript:

— To comment on this episode or to suggest an idea for another episode, contact Neil Amato at Neil.Amato@aicpa-cima.com.

Transcript:

Neil Amato: Welcome to the Journal of Accountancy podcast. This is your host, Neil Amato. We are chock full of news on the JofA site and this episode is going to highlight some of that coverage on multiple fronts. We’ve got IRS announcements, a quiz, advice, and more — all coming up after this sponsor message.

First up are two IRS-related articles from the JofA’s Martha Waggoner. First, the IRS has announced annual inflation adjustments for tax year 2023. Those changes include increases in the standard deduction for many taxpayers, along with new tax brackets and a higher maximum earned income tax credit amount. The link to this and other articles mentioned will be in the show notes for the episode, or you can visit journalofaccountancy.com.

The second IRS-related article details a letter the AICPA has sent to IRS and Treasury officials seeking guidance on the corporate alternative minimum tax, a provision of the Inflation Reduction Act that was passed by Congress in August.

The letter states that “immediate guidance” is needed because “companies will struggle with reporting the impact of the minimum tax in financial filings, given the number of significant issues delegated to the Department of the Treasury.” The letter, signed by CPA Jan Lewis, the chair of the AICPA Tax Executive Committee, goes on to say that companies will need the immediate guidance to “properly make estimated tax payments beginning in April 2023.”

Next, well, here’s a topic that should be of interest to CPAs. The headline reads in part, “Helping Clients Reduce Cash-Handling Risks.”

Two accountants from Indiana have collaborated on a six-question quiz, based on a hypothetical case, that gives you a chance to test your knowledge and learn more about the topic. Again: Link. Show notes. You know the drill. Check it out, and I hope you score a perfect six.

Also, the shift from the office building to the home office carries complicated tax consequences for firms and businesses that have yet to fully adapt to this new model of working. Covering that topic is content writer Hugh Johnson-Driscoll, whose article has a word of warning for employees and employers alike.

The article has the headline “Understand the Tax Consequences of Remote Work.” And it references a recent Supreme Court case pitting the states of New Hampshire and Massachusetts over state tax responsibilities for employees working outside of the state where their employer is headquartered.

The article discusses potential pitfalls like double taxation of employees and several tax-compliance issues that employers could face. The article also makes mention of an upcoming conference where there’s a session focused on these issues. The conference is the AICPA & CIMA National Tax & Sophisticated Tax Conference, Oct. 31–Nov. 1. It is in Washington, D.C., or live online.

Contributing writer Dawn Wotapka, who was mentioned last week for the article on asking good questions as a job interviewee, has another popular topic. She’s talking to experts on how to negotiate after you’ve received a job offer. The article features five tips, the first of which is all about timing. Following on that article related to questions in an interview: There’s no point talking salary with someone before you have a firm offer. More advice on timing and other aspects of negotiating a job offer can be found in the link in the show notes.

The Social Security Administration recently announced the maximum amount of wages subject to Social Security tax in 2023, along with a cost-of-living adjustment, or COLA, for Social Security benefits. That adjustment is even higher than last year’s. It was 5.9% for 2022, and for 2023, the adjustment is 8.7%. Those two most recent adjustments pale in comparison to the one that was announced two years ago for 2021, which was just 1.3%.

Staff writers Bryan Strickland and Kevin Brewer have coverage of recent news related to the Financial Accounting Standards Board, or FASB. First, FASB is moving toward a standard for fair value accounting of cryptoassets. Also, FASB is seeking input on a proposed new chapter of its Conceptual Framework. Our coverage of that article includes details on the deadline for comment on the proposal. And, of course, both links will be in the show notes for this episode or on journalofaccountancy.com.

We thank you, the listener, for coming back for our content, for visiting our pages, and reading the Journal of Accountancy. Related to the podcast, we invite you to subscribe, share, rate, and review the show. Those reviews mean a lot to us, and perhaps, let us know there what you might like to hear more of on future episodes. You can also reach me, Neil Amato, at Neil.Amato@aicpa-cima.com to suggest an idea or a guest for the show. Again, thanks for listening. We will talk next week on the Journal of Accountancy podcast.