Bankruptcy and reorganization

Line Items

Too Late to Transfer A married couple owned assets in excess of twice the unified credit “exemption equivalent.” The husband had a terminal illness. Through his will he wanted to establish a unified credit shelter trust, but he owned insufficient assets to fund the trust. However, he jointly owned with

IRS States Position on Hybrid Plan Arrangement

The IRS released a coordinated issue paper for all industries on the use of pension plan distributions to pay for certain benefits. The paper says the portion of pension plan distributions former employees use to purchase benefits in their employer’s cafeteria plan under a tax-free salary reduction does not reduce

Automatic Consent to Change Accounting Method Available

Under IRC section 446, taxpayers generally can choose any method of accounting to compute taxable income as long as that method clearly reflects income. However, many small business taxpayers who wish to use the cash method are prevented from doing so because of Treasury regulations section 1.446-1(c)(2)(i), which states a

Counseling Clients on Credit

EXECUTIVE SUMMARY WITH CONSUMER DEBT AT AN ALL-TIME HIGH, CPAs need to help clients focus more attention on debt management. The Federal Reserve says Americans owed $1.33 trillion, excluding mortgage debt, at the beginning of 1999. MOST LENDERS AND CREDIT COUNSELORS RECOMMEND that families limit debt payments to 36% of

When Your Customer Goes Belly-Up

EXECUTIVE SUMMARY BANKRUPTCY LAW HAS SOME UNPREDICTABLE consequences. If a customer has physical possession of its supplier's property, ownership may be debated. Conversely, a supplier may reclaim some goods it has already shipped. If a supplier files a formal proof of claim, it may waive other rights. THE COURT MAY

Tax Brief. Business/Industry: New pension plan self-correction programs.

BUSINESS/INDUSTRY New Pension Plan Self-Correction Programs The IRS consolidated four correction programs for tax qualified plans into a single Employee Plans Compliance Resolution System (EPCRS). Self-correction programs allow employers that sponsor tax-qualified pension plans to correct failures or defects that otherwise might threaten a plan's qualification. Revenue procedure 98-12 provides

Who Got Sued?

EXECUTIVE SUMMARY AUDITOR LITIGATION RESEARCH SHOWS that auditors encounter a significant level of weak claims and engage in costly activities to dispose of these weak claims. DEFENDING AGAINST WEAK LAWSUITS is a difficult, time-consuming and financially burdensome experience. The average weak claim costs $3.7 million to defend against and 3.7

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6 key areas of change for accountants and auditors

New accounting standards on revenue recognition, leases, and credit losses present implementation challenges. This independently-written report identifies the hurdles that accounting professionals face and provides tips for overcoming the challenges.

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How tax reform will impact individual taxpayers

Amy Wang, a CPA who is a senior technical manager for tax advocacy at the AICPA, answers to some of the most common questions on how the new tax reform law will impact individual taxpayers.