Source: Social Security Administration, www.ssa.gov .
Advertisement
TOPICS
Tax
Auditing
The AICPA Auditing Standards Board (ASB) issued Statement on Auditing Standards (SAS) no. 102, Defining Professional Requirements in Statements on Auditing Standards, and Statement on Standards for Attestation Engagements (SSAE) no. 13, Defining Professional Requirements in Statements on Attestation Engagements, which apply to audit and attestation engagements performed for nonissuers
Ethics
The AICPA Professional Ethics Executive Committee (PEEC) adopted two ethics rulings that provide guidance on how members’ offer or acceptance of gifts or entertainment to or from clients, customers or vendors of their employer affects the members’ independence and objectivity ( www.aicpa.org/download/ethics/ ). The ethics rulings under Rule 101, “Independence,”
International
The European Commission (EC) adopted a regulation endorsing the amended International Accounting Standard (IAS) no. 39, Financial Instruments: Recognition and Measurement, also known as the fair value option ( http://europa.eu.int/comm/internal_market/accounting/ias_en.htm ). The regulation endorses the fair value option, which previously had been carved out of the EC’s endorsement of IAS
Military Disability Payments
Most government pensions and retirement allowances are included in gross income. Section 104(a)(4), however, excludes amounts received as a pension, annuity or similar allowance for personal injuries or sickness resulting from active service in the armed forces. IRC section 104(b) further restricts this exclusion to amounts received by individuals who
A Taxing Task
Source: Survey of 1,001 U.S. taxpayers by the Associated Press, www.ap.org and Ipsos-Public Affairs, www.ipsos.com .
Offers in Compromise
The courts reviewed the position that taxpayers who are in bankruptcy and cannot afford to pay their tax bill can use the offer-in-compromise procedure to reduce the amount of the bill. Charles Peterson, who owed $102,000 in payroll taxes, filed for chapter 13 bankruptcy protection. He then filed an offer
FYI
Following the resignation of William J. McDonough, the SEC appointed William D. Gradison Jr. acting chair of the PCAOB and adopted new procedures for SEC Chairman Christopher Cox to use in filling the position. Gradison is a founding member of the PCAOB. The PCAOB selected Thomas Ray to succeed Douglas
Accounting
FASB issued Staff Position (FSP) FIN 45-3, Application of FASB Interpretation No. 45 to Minimum Revenue Guarantees Granted to a Business or Its Owners, which amends Interpretation no. 45, Guarantor’s Accounting and Disclosure Requirements for Guarantees, Including Indirect Guarantees of Indebtedness of Others ( www.fasb.org/fasb_staff_positions/fsp_fin45-3.pdf ). The FSP clarifies that
Smart Stops on the Web
SOX/B&I SITES Brush Up on Compliance http://cpcaf.aicpa.org/Resources/Sarbanes+Oxley/ The+Changing+Regulatory+Landscape.htm CPAs and compliance officers can find background documentation, guidance and tools for implementing the Sarbanes-Oxley Act of 2002 here. Looking for related CPE credit? Follow the link to the CPA2Biz.com store for a CD-ROM webcast. Or read the full text of the
Banking
The Federal Deposit Insurance Corporation (FDIC) issued advance notice of a proposed rule that would make it easier to ascertain whether FDIC insurance covered deposits in banks with more than 250,000 customer accounts and $2 billion in domestic deposits ( www.fdic.gov/news/news/press/2005/pr12205.html ). The last time the FDIC updated its deposit
Employee Benefits
The Treasury Department and the IRS released Notice 2005-86, which clarifies that an individual participating in a flexible spending arrangement (FSA) is ineligible to contribute to a health savings account (HSA) during an FSA grace period, which extends the covered expense eligibility time frame up to 2 months into the
Take the Money and Run
Source: Hewitt Associates, www.hewitt.com , survey of nearly 200,000 workers.
Tax Pros in Demand
Source: The Conference Board, www.conferenceboard.org , survey of 10,000 households.
Crowding on Millionaires Row
SURVEY SAVVY T he number of U.S. households with more than $1 million in net worth (excluding the primary residence) has increased for the third consecutive year. Surprisingly the rise was fueled neither by real estate investments nor stock market growth but, instead, by the householders’ long-term accumulation of wealth.
Key Issues in Global Reporting
ON THE RECORD Patricia McConnell, CPA, senior managing director, Bear Stearns & Co., New York, speaking at the AICPA Business & Industry Financial Executive Forum, October 27, 2005. “ Section 404 of Sarbanes-Oxley really has no teeth itself. The bite, if a company is noncompliant, is the market reaction caused
Improve Computer Training
Many prepackaged computer training programs fail to discriminate between what trainees already know and what they need to learn. Following are guidelines for making such technology training useful: Ask trainees whether they would rather attend group classes, have one-on-one sessions or do self-training with audio tapes or manuals. Most people
Golf Courses
Top Ten Golf Digest picks the country’s best links. 1. Pine Valley Pine Valley, N.J. 2. Augusta National Augusta, Ga. 3. Shinnecock Hills Southampton, N.Y. 4. Cypress Point Club Pebble Beach, Calif. 5. Oakmont Country Club Oakmont, Pa. 6. Pebble Beach Golf Links Pebble Beach, Calif. 7. Merion Ardmore, Pa.
Bill Gates Quote
As Quoted “ Your most unhappy customers are your greatest source of learning. ” —Bill Gates, in his book Business @ The Speed of Thought
Convergence: In Search of the Best
EXECUTIVE SUMMARY THE CONVERGENCE AGREEMENT BETWEEN FASB and the IASB is significantly affecting U.S. and international financial reporting. THERE IS NO SINGLE PATH TO CONVERGENCE , but an open-minded pursuit of the highest quality guidance should result in standards that foster superior financial reporting. CONVERGENCE WILL REQUIRE CHANGES
Features
FROM THIS MONTH'S ISSUE
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
