The AICPA Tax and Personal Financial Planning membership sections, together with a number of prominent legal and financial services organizations, have established the Synergy Summit, a think tank that will advise national policymakers and others on financial planning and wealth preservation issues. The group’s other members are the National Academy
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Tax
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. The Institute submitted comments on IRS technical advice memo (TAM) 200603027, which holds that a taxpayer’s LIFO election must be extended
More Female E-Filers
Source: The Conference Board, www.conferenceboard.org , survey of 10,000 households.
Innocent Spouse Relief Reversed
TAX CASE ongress enacted the innocent spouse provisions to expand the relief available to certain taxpayers. The technical requirements for this relief, however, have resulted in numerous lawsuits. The Ninth Circuit Court of Appeals recently reversed the Tax Court, thus denying relief in certain situations. Gwendolyn Ewing and Richard Wiwi
Practice Management
Strategic planning and developing a marketing plan are critical topics to be covered in live, online forums the AICPA’s Private Company Practice Section (PCPS) is offering free to its members. The series, which began in June, includes events in August and September, with others to follow, and features presentations by
Government Accounting
The Federal Accounting Standards Advisory Board issued a concepts statement exposure draft titled Definition and Recognition of Elements of Accrual-Basis Financial Statements ( www.fasab.gov/pdffiles/ ). It seeks respondents’ views on proposed definitions of certain elements— assets, liabilities, net position, revenue and expense —in such financial statements and on the essential
Bridge the Tax Gap
Source: IRS, www.irs.gov .
XBRL
Strategic planning and developing a marketing plan are critical topics to be covered in live, online forums the AICPA’s Private Company Practice Section (PCPS) is offering free to its members. The series, which began in June, includes events in August and September, with others to follow, and features presentations by
Government Auditing
The U.S. Office of Management and Budget (OMB) issued the Circular A-133 2006 Compliance Supplement ( www.whitehouse.gov/OMB/circulars/a133_compliance/06/06toc.html ), which identifies important federal requirements to be considered as part of an audit in accordance with the Single Audit Act and OMB Circular A-133, Audits of States, Local Government, and Not-for-Profit Organizations.
Recovering Litigation Costs
TAX CASE f a taxpayer successfully challenges the IRS, can that taxpayer recover reasonable litigation costs? Recently, the Tax Court applied the substantial justification standard when it reviewed Images and Allemeier , two cases involving litigation costs. In Images , Denise Lopez owned and operated a dance studio. The IRS
Funding Retiree Health Benefits
TAX CASE s an employer responsible for fully funding its retirees’ lifetime health benefits? The Sixth Circuit Court of Appeals recently affirmed a district court’s decision that, indeed, an employer does have such a responsibility. The plaintiffs were retirees or surviving spouses of retirees of J.I. Case Co., which was
Taxing Ups and Downs
Source: IRS, www.irs.gov .
Pensions
The Pension Benefit Guaranty Corporation published a final rule requiring sponsors of insured defined benefit pension plans to submit their premium filings electronically. As of July 1, sponsors of plans with 500 or more participants must do so for plan years beginning on or after January 1, 2006; for all
Financial Reporting
As part of a broader initiative to improve financial reporting for insurance accounting, FASB issued an invitation to comment on whether bifurcating insurance and reinsurance contracts into insurance and financing components would improve the transparency of financial reporting for insurance accounting ( www.fasb.org/draft/ ). Current standards give insurers and reinsurers
Auditing
The AICPA Center for Public Company Audit Firms (CPCAF) issued a report on the Public Company Accounting Oversight Board’s findings from its inspections of eight PCAOB-registered firms that audit more than 100 public companies ( www.aicpa.org/cpcaf/download/PCAOB_inspection_deficiency_analysis_january2006.pdf ). An earlier analysis focused on PCAOB deficiency reports for firms with 100 or
FYI
The Financial Accounting Foundation, which funds and oversees the Financial Accounting Standards Board (FASB) and the Governmental Accounting Standards Board (GASB), appointed Thomas J. Linsmeier, CPA, to FASB for a five-year term that began July 1. A nationally respected accounting educator and researcher, he is chairman of the department of
International
The International Accounting Standards Board published an ED of proposed amendments to International Accounting Standard (IAS) 23, Borrowing Costs ( www.iasb.org ). The proposal requires entities to capitalize borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset as part of its cost, rather
Avoiding Penalties When Reporting Damage Awards and Settlements
any businesses and government agencies have paid out damage awards or settlements to third parties for various violations. Whenever an award or settlement must be paid, proper federal tax reporting is required to avoid potentially substantial tax penalties. CPAs should be familiar with the four steps of such reporting, to
Financial Literacy
American companies can no longer afford to offer their employees adequate pensions, nearly three of four respondents (74%) said in an AICPA survey of CPAs serving as senior corporate executives ( www.aicpa.org/news/index.htm ). “This is a wake-up call,” said AICPA business and industry vice-president John Morrow. “Employees will have to
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. The AICPA issued four technical practice aids (TPAs) containing questions and answers related to FASB Interpretation No. 46(R), Consolidation of
Features
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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
