TAX MATTERS
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TOPICS
Tax
Interest on Overpayments by S Corporations
TAX CASE arwood Irrigation Co., a Texas company, acquired very valuable water rights in 1900. Garwood had operated for a time as a C corporation, then elected S status before selling its rights in January 1999. The sale triggered recognition of a built-in gains tax, which the company reported and
Financial Reporting
The SEC issued Staff Accounting Bulletin (SAB) no. 108, which provides guidance on quantifying financial statement misstatements, including the consideration of the effects of the carryover and reversal of prior-year misstatements ( www.sec.gov/interps/account/sab108.pdf ). Typically, entities have quantified such errors in one of two ways—as the amount by which the
Hired Help: Finding the Right Consultant
EXECUTIVE SUMMARY CPAs can help companies hire consultants to deal with a wide variety of employee benefits challenges including managing the rising cost of health insurance, maintaining competitive benefits offerings and dealing with the complexity of pension and other retirement plans. Before hiring a benefits consultant, companies should check
Auditing
For news from the AICPA and state societies, visit www.cpa2biz.com , which also offers online CPE, AICPA professional literature, practice management aids and links to state society Web sites.
FYI
The AICPA’s annual National Healthcare Industry Conference will take place November 2–3 in New Orleans. “This is another important part of our ongoing commitment, which includes organizing a Disaster Recovery Resource Center and an AICPA volunteer center to provide pro bono tax assistance to Katrina’s victims,” said AICPA President and
International
The International Federation of Accountants (IFAC) issued an exposure draft and several information papers on education in ethics, corporate sustainability and internal control. IFAC’s International Accounting Education Standards Board released an exposure draft of an International Education Practice Statement, Approaches to Developing and Maintaining Professional Values, Ethics and Attitudes (
Tax Software 2007
Data from more than 2,000 AICPA Tax Section members responding to the JofA annual tax software survey help you decide which product is best for you.
Understanding Closing Agreements
TAX CASE hen an IRS audit identifies deficiencies in a tax return, the taxpayer may be asked to sign a closing agreement. There are two types of closing agreements. The first—contained on Form 866, Agreement as to Final Determination of Tax Liability —establishes the final tax liability. The other, contained
Uncle Sam Hangs Up Phone Tax
Source: IRS, www.irs.gov .
Taxpayers Sound Off
Source: IRS, www.irs.gov .
Risk Management
On October 19 and November 16, 2006, the AICPA will offer free Infocasts presented by specialists who have authored titles in the Institute’s series of Management Accounting Guidelines (MAGs). Business Continuity Management will be the subject of the October 19 Infocast presented by author Eric Krell. The November 16 Infocast
Government Accounting
The Federal Accounting Standards Advisory Board issued an exposure draft of a proposed Interpretation, “Items Held for Remanufacture” ( www.fasab.gov/pdffiles/edinterpretation.pdf ), that would provide guidance for the classification, valuation and reporting of items held for remanufacture prior to sale or issuance, such as items being inspected, disassembled, evaluated, cleaned, rebuilt,
Home Builders Have New Tax Credit
.S. home builders have new motivation to build energy-efficient homes. The Energy Policy Act of 2005 included many provisions regarding coal, natural gas, renewable energy and energy efficiency and distribution. It also enacted a new tax credit under IRC section 45L—the energy-efficient home credit—available to eligible contractors. Depending on
Kicked Into the 21st Century
Source: IRS, www.irs.gov .
XBRL
AICPA President and CEO Barry C. Melancon and SEC Chairman Christopher Cox will be keynote speakers at the 14th International XBRL Conference & Exhibition in Philadelphia on December 4–6, 2006. “XBRL’s potency as a business tool is recognized worldwide,” Melancon said. “It facilitates the transmission and analysis of financial information
Family Limited Partnership Transfers Were Indirect Gifts of Stock
TAX CASE RC section 2501 imposes a tax on the transfer of property by gift during a taxable year. IRC section 2511 says this tax applies whether the gift is direct or indirect or the transfer is in trust or otherwise. The gifted property is valued as of the date
Accounting
For news from the AICPA and state societies, visit www.cpa2biz.com , which also offers online CPE, AICPA professional literature, practice management aids and links to state society Web sites. FASB posted on its Web site a compilation of all changes made through July 10, 2006, to the guidance in Accounting
Financial Reporting
The SEC granted relief from a Sarbanes-Oxley Act section 404(b) auditor attestation requirement to foreign private issuers that are accelerated filers (but not large accelerated filers) that file their annual reports on forms 20-F or 40-F ( www.sec.gov/news/press/2006/2006-136.htm ). They will not have to comply with the section 404(b) requirement
Auditing
The Public Company Accounting Oversight Board (PCAOB) issued Staff Audit Practice Alert no. 1, Matters Relating to Timing and Accounting for Options Grants, which advises auditors of emerging risks to consider during audits of financial statements or of internal controls over financial reporting ( www.pcaobus.org/news_and_events/ ). The alert was prompted
Features
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4 ways solo practitioners can stand out
Five years ago, a grieving Angel Zhen started his own CPA firm with no clients and no revenue. Today, he has 300 clients, $600,000 in revenue and 12 weeks of annual vacation. In this JofA article, he shares how he set up his firm and how you could do the same.
From The Tax Adviser
April 30, 2026
Current developments in taxation of individuals: Part 2
April 30, 2026
