EXECUTIVE SUMMARY Employees of corporations with an employee stock purchase plan (ESPP) often fail to participate fully in the plan because they don’t understand why it can be a good deal. Many plans offer a purchase discount of as much as 15%. Effectively, the discount can
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Personal financial planning
Highlights
HIGHLIGHTS With FASB affirming its implementation date for FIN 48, several organizations, including the AICPA and FASB itself, are producing educational materials or additional guidance to help issuers comply with its new requirements for recognizing and measuring tax assets and liabilities. FASB Interpretation no. 48, Accounting for
The Choice-of-Entity Maze
EXECUTIVE SUMMARY When advising clients on the choice of business entity, CPAs should consider the advantages and disadvantages of each type. If more than one entity is involved, CPAs should also determine whether clients can deal with the complexity of the resulting structure. The many issues
Choose the Right Health Care Account
EXECUTIVE SUMMARY Health spending accounts offer opportunities for employees to save and pay for health care with pretax contributions. Three basic types are flexible spending arrangements (FSAs), health reimbursement arrangements (HRAs) and health savings accounts (HSAs). FSAs are typically funded by pretax payroll deduction and are
Highlights
The PCAOB proposed a standard, An Audit of Internal Control Over Financial Reporting That Is Integrated With an Audit of Financial Statements, to replace PCAOB Audit Standard no. 2 (AS2). The proposal is designed to focus audits on the matters most significant to internal control, eliminate unnecessary
To Roth or Not to Roth?
EXECUTIVE SUMMARY Companies took a wait-and-see attitude toward the Roth 401(k) in the plan’s first year, but researchers say 2007 is nearly certain to see rapid growth in participation by companies and enrollment by employees. CPAs can help workers decide between a traditional and a Roth
Highlights
HIGHLIGHTS The SEC enhanced the Internet-based search capability of its EDGAR database of company filings. Users now can search the contents of disclosure documents with a full-text search tool. The newly searchable information includes registration statements, annual and quarterly reports and other filings by companies and
Worries About Inflation
The United States has enjoyed a long period of relatively tame inflation and either steady or declining interest rates. This environment has lent itself well to investing in equities and predictable returns in debt securities for conservative or income-oriented investors. Recently, however, disturbing signs that more aggressive inflation may be
Home Free
EXECUTIVE SUMMARY Many home sellers have seen rapid appreciation of their home’s value in recent years, leaving them vulnerable to capital gains beyond the principal-residence exclusion under IRC section 121of $250,000 for an individual or $500,000 for joint filers. If sellers buy another home, however, they may be able to
A Glimpse of the Future
With their years of schooling behind them, most Americans between the ages of 25 and 34 spend their time thinking of their new careers, their first homes, their children on the way. But while this group of young people is among the richest in history, its overall
TIPS and CIPS
EXECUTIVE SUMMARY TIPS are a relatively new form of bond from the federal government that offer protection against the risk of inflation. They combine a high degree of safety of the principal with a hedge against inflation. Potential investors in TIPS may bid for them at auction in either
Rating 529 College Savings Plans
EXECUTIVE SUMMARY Section 529 college savings plans offer numerous advantages and have few disadvantages compared with other options. Their benefits include tax savings, estate planning benefits, high contribution limits and no income limitations. One of the few drawbacks to these plans is that investment products usually are chosen by
Protect Retirement Assets
EXECUTIVE SUMMARY THE NEW BANKRUPTCY LAW protects tax-qualified retirement plans—pensions, profit-sharing and 401(k) plans—from creditors in bankruptcy. SEP AND SIMPLE IRAs ARE excluded from bankruptcy estates under the new law, even if they qualify as ERISA pension plans. TRADITIONAL AND ROTH IRAs that are created and funded by an individual
How to Prevent Investment Adviser Fraud
EXECUTIVE SUMMARY SECTION 206 OF THE INVESTMENT ADVISERS ACT OF 1940 provides guidelines for investment advisers on what constitutes fraud. THE SUPREME COURT HAS HELD THAT THE ACT imposes a fiduciary duty on investment advisers to act in the best interest of their clients by fully disclosing all potential conflicts
Financial Aid 101
EXECUTIVE SUMMARY COLLEGES AWARD FINANCIAL AID IN THE FORM OF scholarships, grants, loans and work-study awards based on the financial need of a student. The formula used to determine financial need is: financial need 5 cost of attendance (COA) 2 expected family contribution (EFC). THE EFC IS DEPENDENT ON THE
Sell It or Rent It?
Should I sell it or rent it out? How will you respond when your clients ask you that question when they’re moving out of a home? CPAs can provide a valuable service by helping clients think through this issue in a structured way. To help, we’ve created an Excel spreadsheet
Sell It or Rent It?
PERSONAL FINANCIAL PLANNING hould I sell it or rent it out? How will you respond when your clients ask you that question when they’re moving out of a home? CPAs can provide a valuable service by helping clients think through this issue in a structured way. To help, we’ve created
Is Your Retirement Plan Really Safe?
EXECUTIVE SUMMARY BENEFITS IN TAX-QUALIFIED RETIREMENT PLANS generally are protected from the creditors of plan participants and insulated from claims in bankruptcy. PLANS NOT PROTECTED FROM CREDITORS are those that cover only the business owner and/or the owner’s spouse and section 403(b) tax-sheltered annuity plans whose assets are held in
Build Customized Bond Portfolios
EXECUTIVE SUMMARY FOR HIGH-NET-WORTH CLIENTS with fixed-income investable assets over $500,000, firms might consider designing customized bond portfolios that meet each client’s unique financial goals and risk tolerance. IN ADDITION TO SERVING THE BEST INTERESTS of clients, CPAs introducing such customized fixed-income portfolios also add value to their firm by
AICPA Creates Community Web Site for Personal Financial Planning Services
his year will mark the AICPA’s 20th anniversary in support of CPAs in the expanding field of personal financial planning (PFP). More than 23,000 AICPA members provide PFP services, while an estimated 10,000 members are registered investment advisers (RIAs) and another 60,000 CPAs provide limited financial planning services as an
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How to find the right CAS clients
The key to success with CAS is selecting the best clients. Tools like ideal client profiles (ICPs), buyer personas, and even artificial intelligence can help identify the businesses that best fit each CAS practice.
From The Tax Adviser
March 31, 2026
Current developments in taxation of individuals: Part 1
March 31, 2026
Current Developments in Taxation of Individuals: Part 1
March 6, 2026
