GOLDEN BUSINESS IDEAS After a company has invested in training them, many employees leave for better-paying jobs. In some respects, employers create the problem when they place more emphasis on hiring candidates based on their skills rather than on their history of loyalty. A history of frequent job-switching is likely
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Tax
International
The International Federation of Accountants (IFAC) issued an invitation to comment on a proposed revision of its constitution ( http://ifac.org/downloads/ifac_constitution_draft.pdf ). If approved, the proposal also would create bylaws and a policies and procedures manual. Comments are due February 1, 2006. IFAC’s International Auditing and Assurance Standards Board (IAASB) issued
Can Trusts Deduct Adviser Fees?
Many trust fiduciaries incur investment adviser fees while administering the trust. To reduce taxable income, the trustee wants to deduct these costs against trust income—but the courts are split on the issue. The Tax Court recently was asked to reconsider the question. Henry Rudkin established a testamentary trust with the
FYI
Taxpayers can request automatic six-month tax-filing extensions for the most common individual and business returns, under new regulations from the Treasury Department and IRS ( www.irs.gov/newsroom/article/0,,id=150456,00.html ). The service also issued guidance on how large corporations and tax-exempt organizations can seek waivers from electronic filing requirements ( www.irs.gov/newsroom/article/0,,id=150695,00.html ) and
Bookmarks
The Ultimate Accountants’ Reference: Including GAAP, IRS & SEC Regulations, Leases, and More By Steven M. Bragg 774 pages; hardcover John Wiley; Hoboken, N.J. 2004 I n this one-volume desk reference, CPAs can find concise answers to important issues that arise during a typical business day.
401(k) As a Given
Source: Hewitt Associates, www.hewitt.com , survey of 450 large companies, 2005.
Reasonable Shareholder-Employee Compensation
I RC section 162(a)(1) allows companies to deduct from income a reasonable allowance for salaries or other compensation for services actually rendered. Determining whether the compensation paid to a shareholder-employee is reasonable is a factual question. In some cases high compensation is used to distribute profits and is not really
What Workers Want
SURVEY SAVVY Source: Survey of 1,400 CFOs of companies with 20 or more employees, Accountemps, Menlo Park, Calif., www.accountemps.com , 2004.
Leaders on Tap
TOP TEN The most important factors in growing and retaining leaders over the next 10 years will be 1. A formal leadership development strategy. 2. The support of top management. 3. A formal succession planning process. 4. Recognizing that leaders must develop other leaders. 5. A big enough budget. 6.
To the Rescue
SIGN OF THE TIMES A s family members from New Orleans settled safely into his Houston home, CPA Richard Forrest was approached by a friend who wasn’t so lucky; he had lost touch with his 80-year-old parents as Hurricane Katrina battered the city. So like any good neighbor, Forrest fueled
Stop Identity Theft in Three Steps
NUMEROLOGY Your credit card bill arrives in the mail and you spot what might be a fraudulent charge—an item purchased in a place you’ve never been or something you know you didn’t buy. How do you correct the error? STEP 1. Call the credit card company immediately to inform them
Auditing
The AICPA governing council authorized the Institute’s board of directors to work with the public company auditing profession and others to implement a new approach to better address public policy issues affecting the public interest for U.S. audit firms registered with the PCAOB. The Institute will implement a framework for
Government Accounting
The Federal Accounting Standards Advisory Board issued an exposure draft (ED), Consolidated Financial Report of the United States Government Requirements: Implementing Statement of Federal Financial Accounting Concepts 4, Intended Audience and Qualitative Characteristics for the Consolidated Financial Report of the United States Government ( www.fasab.gov/pdffiles/consolfinancialreport.pdf ). The proposed standard would
Given Their Druthers
NUMEROLOGY When asked what they would do if money was no object and they had young children, 53% of executives said they would continue to work, but at a reduced load. 39% said they would devote themselves full-time to the family, opting to become stay-at-home parents. 9% said they’d continue
Remodeling Sanity Tips
HOME FRONT Redoing your home can be exciting, but it also takes careful planning. Here’s some advice to keep you on track. Organize. Keep copies of all contracts, change orders, invoices, receipts and permits in a three-ring binder or expandable file folder, so all your important documents and good ideas
Practice Management
An AICPA Private Companies Practice Section white paper, “Best Practices in Recruiting and Retaining Talented Staff,” shows smaller firms how to attract and keep valuable employees ( http://pcps.aicpa.org/resources/staffing/recruiting+and+retention ). In a recent Institute survey of 500 firms, few had programs to help achieve these goals—though some firms, PCPS said, have
Tom Jones Quote
ON THE RECORD On the difficulty of developing international standards: “ We are under enormous pressure from all sides. I rarely address an audience that isn’t at least 50% hostile. Whatever we do, half the world wants it and half the world hates it. ” —Tom Jones, vice-chairman, International Accounting
Taking Stock of Options
NUMEROLOGY FASB 123(R) is causing companies to move away from stock options. Incentives offered Companies under FASB 123(R) Companies not under FASB 123(R) Stock options 83% 93% Performance awards 71 55 Stock appreciation rights 10 1 Source: Survey of the 250 largest companies, Frederic W. Cook & Company Inc., New
IRS to Outsource Debt Collection
provision in the American Jobs Creation Act of 2004 (AJCA) allows private collection agencies (PCAs) to collect federal tax debts. The IRS recently announced it expects to award the first three contracts for private debt collection in February 2006 and begin implementation in June 2006. The service will enter into
Financial Literacy
The AICPA 360 Degrees of Financial Literacy program has provided additional resources to help CPAs and state societies educate the public on financial matters related to couples and marriage, home ownership, life crises and retirement. Eight previously issued resource kits addressed general financial literacy and life stages including career, childhood,
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
