Advertisement
TOPICS

Tax

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

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

Interest Owed to a Related Foreign Entity

TAX CASE hen a taxpayer owes interest to a related foreign entity that is exempt by treaty, Treasury regulations section 1.267(a)-3 requires that the taxpayer use the cash method. The Seventh Circuit Court of Appeals affirmed the validity of this regulation. Using an acquisition company, Schneider SA, a French corporation,

FYI

Kathleen L. Casey was sworn in as the 88th SEC commissioner by Chairman Christopher Cox in July. She is a 13-year veteran of Capitol Hill, having served as legislative director and chief of staff for Senator Richard Shelby (R-AL) and staff director of the Senate Banking Committee’s Subcommittee on Financial

International

As the direct result of December 2005 talks between SEC Chairman Christopher Cox and Committee of European Securities Regulators (CESR) Chairman Arthur Docters van Leeuwen, the two groups in August published and implemented a joint work plan on the application by international companies of international financial reporting standards (IFRSs) in

Medical Reimbursement Plan for Employee-Spouse

TAX CASE mployees can exclude reimbursement they receive from their employers for medical expenses—and employers can deduct payments made to employees—only under certain conditions. There must be a bona fide employer-employee relationship and a proper plan, even if unwritten, that conforms to IRS guidelines for medical reimbursement plans. And covered

FYI

The SEC selected Mark W. Olson to be chairman of the Public Company Accounting Oversight Board until 2010. At the time of his appointment, he was a governor of the Federal Reserve Board. Although not a CPA, Olson also was a partner of Ernst & Young and its predecessor, Arthur

International

The International Accounting Education Standards Board of the International Federation of Accountants (IFAC) released International Education Standard (IES) 8, Competence Requirements for Audit Professionals, which outlines the professional knowledge, skills, values and attitudes that auditors need to conduct financial statement audits. As of July 1, 2008, IFAC member bodies will

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 and the International Accounting Standards Board (IASB) published a draft version of the first two chapters of an enhanced conceptual

Cash Advances to a Corporation: Loan or Capital Contribution?

TAX CASE hen cash is transferred to a closely held corporation, is the transfer a loan or a capital contribution? The transfer is treated as a loan if there is an unconditional obligation to repay it. When there is a dispute, the courts look at factors such as the presence

SPONSORED REPORT

Get your clients ready for tax season

Help clients avoid surprises with year-end planning strategies for managing taxable income, maximizing deductions, and adjusting to OBBBA changes affecting individuals and businesses.

From The Tax Adviser

October 31, 2026

AI risks to the Sec. 7525 practitioner privilege

September 30, 2026

Navigating the QSBS rules in pass-through structures

September 30, 2026

Sec. 338(h)(10) elections in business acquisitions

August 31, 2026

2026 tax software survey