Source: Transactional Records Access Clearinghouse, Syracuse, N.Y., www.trac.syr.edu .
Advertisement
TOPICS
Tax
Accounting
FASB requested comments on selected issues relating to assets and liabilities with uncertainties ( www.fasb.org/draft/itc_assets_liabilities_with_uncertainties.pdf ). The invitation is part of a joint project through which FASB and the International Accounting Standards Board are working to converge and improve their respective guidance frameworks, which FASB’s staff believes do not adequately
Taxing Workers Comp
In Anthony M. Flores and Sandra L. Flores v. Commissioner (TC Summary Opinion 2005-57), the court considered whether certain workers’ compensation benefits were taxable as if they were Social Security benefits. Usually a taxpayer can exclude workers’ compensation from his or her gross income but may be required to include
Unallocated Support Payments as Alimony
The requirements that determine whether payments between ex-spouses qualify as alimony were discussed in a tax case in the November issue of the JofA (“ What Makes It Alimony? ” page 95) If payments are to qualify as alimony, the payor spouse cannot be liable for payments after the payee
Government Accounting
The Governmental Accounting Standards Board (GASB) issued an exposure draft, Sales and Pledges of Receivables and Future Revenues, that would establish criteria for governments to determine whether the proceeds from certain transactions—such as the sale of delinquent taxes, specific mortgages, student loans or upcoming payments from tobacco liability settlements—should be
Pro Bono
The AICPA has established an online Disaster Recovery Resource Center that offers a wide range of practical tools members can use to assist their employers and clients ( www.aicpa.org/news/2005/disaster_recovery_resources.htm ). It also provides up-to-date information, useful links and practice management guidance for firms directly affected by Hurricanes Katrina and
Get Back on Track
EXECUTIVE SUMMARY QUALIFIED RETIREMENT PLANS THAT HAVE NOT BEEN properly updated or have not been operating according to plan provisions may be disqualified and, as a result, lose important tax benefits. THE IRS’s EMPLOYEE PLANS COMPLIANCE RESOLUTION System (EPCRS) can help plan sponsors correct qualification failures. THE EPCRS CONSISTS OF
Taxpayers: Welcome to the Web
Source: The Conference Board, www.conference-board.org .
Professional Issues
Gallup Poll results released in 2005 showed that accountants are steadily regaining the public’s confidence. The profession’s positive rating of 45% was 14 percentage points higher than in 2004—an improvement greater than that of any other business sector—and nearly equal to its 47% rating in 2001, just before the accounting
Creative Capital Gains
Because capital gains have so many benefits over ordinary income, taxpayers often invent creative methods to generate them. To recognize capital gains, however, the taxpayer must be able to prove the sale or exchange of a capital asset. Charles Trantina was an independent insurance agent employed by State Farm Insurance
Those Jailed Do Less Time
Source: IRS, www.irs.gov .
Financial Reporting
In response to an SEC request, XBRL International—of which the AICPA is a founding member—proposed three ways the commission could increase XBRL use in U.S. capital markets: announce it ultimately will require all registrants to file offerings in XBRL format, participate in taxonomy development and maintenance and upgrade the SEC
Personal Financial Planning
The SEC and the North American Securities Administrators Association waived—through October 31, 2006—various system fees certain investment advisers and their representatives pay for mandatory registration in the Investment Adviser Registration Depository (IARD). The IARD enables firms and their representatives to satisfy federal and state regulatory requirements with one electronic filing
Starting in 2006: Roth 401(k)s
he Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) (section 617) added a provision allowing IRC section 401(k) plan participants to designate part or all of their plan contributions as Roth 401(k) contributions. IRC section 402A—the new EGTRRA provision —is scheduled to become effective on January 1, 2006,
FYI
The SEC is seeking to fill up to four professional accounting positions in the Office of the Chief Accountant. During their two-year terms commencing June 2006, participants will study and develop rule proposals under federal securities laws, interact with accounting, auditing and other professional standard setters and advise registrants on
Uncle Sam Ups the Max
Source: IRS, www.irs.gov .
International
The International Auditing and Assurance Standards Board of the International Federation of Accountants (IFAC) approved International Standard on Auditing 230 (Revised), Audit Documentation. It requires auditors to prepare documentation sufficient for an experienced auditor previously uninvolved in a particular audit to understand the work performed, the evidence obtained, significant matters
Accounting
FASB issued Staff Position (FSP) FAS 123(R)-1, Classification and Measurement of Freestanding Financial Instruments Originally Issued in Exchange for Employee Services under FASB Statement No. 123(R) ( www.fasb.org/fasb_staff_positions/fsp_fas123r-1.pdf ). The board, which continues to believe freestanding financial instruments should be accounted for consistently, plans to consider broadly the distinction between
More Please
Source: Social Security Administration, www.ssa.gov .
Dyslexia Program Tuition Is a Valid Deduction
n letter ruling 200521003, the IRS held that tuition paid to a school program to help dyslexic children deal with their condition was an IRC section 213(a) deductible medical expense. The ruling broadens—albeit slightly—the definition of the kinds of payments that qualify as deductible medical costs. CPAs, however, should be
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
