With the United States officially in a recession, state and federal funding sources on which charitable organizations rely are drying up. In addition to funding cuts, charities are struggling with across-the-board expense increases while trying to serve a broader charitable population. Colleges and universities are seeing a marked increase in
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Tax
IRS OKs Rolling Average
The IRS now considers a rolling-average method of inventory costing used for financial statements to be acceptable as well for income tax reporting, assuming the taxpayer satisfies one of two safe harbors. Additionally, the IRS furnishes automatic consent to change to a rolling-average method. Companies in various industries view the
IRS Issues Further Guidance on 50% First-Year Bonus Depreciation
The IRS issued Rev. Proc. 2009-16, which provides further guidance on how taxpayers can elect out of the bonus depreciation provision added by the Housing and Economic Recovery Act of 2008. The new revenue procedure supplements Rev. Proc. 2008-65. Sec. 168(k)(4) allows corporations to elect out of claiming the 50%
Amazon Loses Round in N.Y. Nexus Fight
A New York state trial court dismissed Amazon.com’s challenge to a law that establishes sales tax nexus through in-state “associates” whose Web sites feature links to the online retailer. Amazon and another Web seller, Overstock.com, separately sued the state’s Department of Taxation and state officials last spring after New York
Bookshelf Review
The Sex of a Hippopotamus: A Unique History of Taxes and Accounting by Jay Starkman Twinset Inc., 2008, 456 pp. The Sex of a Hippopotamus by Jay Starkman is a well-documented and interesting read for professionals in the accounting and tax fields. In particular, this book is appealing to instructors,
Automatic Penalty Assertions Begin for Delinquent Forms 5471
In December, the IRS posted to its Web site guidance encouraging taxpayers to submit delinquent Forms 5471, Information Return of U.S. Persons With Respect to Certain Foreign Corporations, before Jan. 1, 2009—the date on which the Service began to automatically assert appropriate penalties under IRC § 6038 on late-filed Forms
Accountant Workpaper Privilege Upheld by First Circuit
The U.S. Court of Appeals for the First Circuit on Wednesday upheld a U.S. District Court decision that the work-product privilege applies to certain accountant workpapers (Textron Inc., No. 07-2631 (1st Cir. 1/21/09)), affirming in part, vacating in part, and remanding 507 F. Supp. 2d 138 (D.R.I. 2007). Textron is
IRS Updates Maximum Values for Employee Automobile Use
The IRS has updated for 2009 the maximum allowable value of an employer-provided vehicle for which the cents-per-mile and fleet-average rules may be used in determining the value of an employee’s personal use of the vehicle as a taxable fringe benefit. Revenue Procedure 2009-12, issued by the Service on Wednesday,
New Regs Govern Overseas Disclosure and Use of Taxpayer Information
Editor’s note: This article appears in the February 2009 issue of The Tax Adviser, the AICPA’s monthly journal of tax planning, trends and techniques. Sec. 7216 and the regulations thereunder were promulgated to set guidelines and impose restrictions on the use and disclosure of taxpayer information by tax return
Proposed Regs Provide Model for Stock Basis Recovery and Identification
On Jan. 21, the Treasury Department issued proposed regulations (REG-143686-07) that provide shareholders with guidance on allocating and recovering stock basis in section 301 distributions. Their purpose is to present a single model for stock basis recovery when a shareholder receives a constructive or actual distribution to which section 301
Effects of Emergency Economic Stabilization Act Provisions on Individuals
Editor’s note: This article appears in the January 2009 issue of The Tax Adviser, the AICPA’s monthly journal of tax planning, trends and techniques. On October 3, 2008, President Bush signed into law the Emergency Economic Stabilization Act of 2008, P.L. 110-343. The act provides alternative minimum tax (AMT) relief,
IRS Issues Guidance on Electing Out of 50% Additional First-Year Depreciation
Editor’s note: This article appears in the January 2009 issue of The Tax Adviser, the AICPA’s monthly journal of tax planning, trends and techniques. The IRS has issued Rev. Proc. 2008-65, which provides guidance on new Sec. 168(k)(4), added by Section 3081 of the Housing and Economic Recovery Act of
IRS Explains How Unmarried Taxpayers Allocate First-Time Homebuyer Credit
The IRS has issued Notice 2009-12 to explain how the IRC § 36 first-time homebuyer credit should be allocated between unmarried taxpayers who buy a principal residence together. Section 36 was added to the Code last year by the Housing and Economic Recovery Act of 2008, PL 110-289. It gives
IRS Issues Final Preparer Penalty Regs
Editor’s note: This article appears in the February 2009 issue of The Tax Adviser, the AICPA’s monthly journal of tax planning, trends and techniques. The IRS issued final regulations (T.D. 9436) implementing the changes to the Sec. 6694 tax return preparer penalties made by the Small Business and Work
Private Companies and FIN 48
The good news is that on Oct. 15, 2008, FASB deferred the effective date of FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes (FIN 48), for all nonpublic companies for one year. The bad news is that the year is up already. Company and outside tax and financial
Tax Season Launches
The 2009 income tax filing season got under way Friday, Jan. 16, as the IRS began accepting electronic filing of returns due April 15 for calendar year 2008. E-filing, available through tax preparation software used by most return preparers and many self-filing taxpayers, is again being promoted by the IRS as
Comments Sought on Revised Statements on Standards for Tax Services
The AICPA released for comment an exposure draft of proposed revisions to Statements on Standards for Tax Services (SSTS). The revisions are intended to address changes in federal and state tax laws and new requirements for providing certain types of tax opinions. SSTS no. 1, Tax Return Positions, has been
Committee Raising Awareness About Tax Disclosure Requirement for Private Companies
Private companies may have scored a temporary reprieve on the implementation deadline for accounting standard FIN 48 regarding uncertain tax positions, but they nevertheless face an important disclosure requirement under the standard. FASB has twice deferred the effective date for certain private entities of FASB Interpretation no. 48, Accounting
IRS Webcast to Address Filing Season Updates, Issues
The IRS’s next Tax Talk Today webcast, “Getting Ready for Filing Season 2009,” which gives tax professionals and preparers the latest updates on tax forms, laws and IRS processing issues for the upcoming filing season, will air Tuesday, Jan. 13, at 2 p.m. EST. The program will offer tips on
Nine Lives for Ohio’s CAT?
The Ohio Supreme Court has been asked to rule on Ohio’s commercial activity tax (CAT) as applied to certain food sales, after the tax was found by a state appeals court to violate the state constitution in that regard. A gross receipts business tax, the CAT was enacted in 2005
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SPONSORED REPORT
Preparing clients for new provisions next tax season
As the 2025 filing season approaches, H.R. 1 introduces significant tax reforms that CPAs must be prepared to navigate. These legislative changes represent some of the most comprehensive tax updates in recent years, affecting both individual and corporate taxpayers. This report provides in-depth analysis and guidance on H.R. 1.
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