The Institute invited CPAs with fewer than seven years’ experience or who are under 40 years of age to participate in an online poll ( http://websurveyor.net/wsb.dll/12391/memberneedspoll.htm ) designed to gather information useful in developing services, products and programs that best meet the needs of new and/or younger CPAs.
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Tax
Banking
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 Federal Financial Institutions Examination Council (FFIEC) proposed guidance to help insured depository institutions improve their disclosure to customers with overdraft
Government Auditing
The AICPA released Auditing Governmental Financial Statements: Programs and Other Practice Aids, which contains programs and tools to help practitioners conduct government audits in keeping with GASB Statement no. 34’s new financial reporting model. Copies (product no. 006602JA) are available from the Institute at 888-777-7077 or www.cpa2biz.com .
Uncle Sam Can’t Touch It.
Source: Comparison of the Reported Tax Liabilities of Foreign- and U.S.-Controlled Corporations, 1996-2000, Government Accounting Office, www.gao.gov , 2004.
Social Security Number Not Enough for EIC
The Internal Revenue Service often includes worksheets along with form 1040 instructions. However, these worksheets and instructions often are ambiguous, leaving the potential for taxpayer error. Such is the case with Schedule EIC, Earned Income Credit. IRC section 32 generally provides that a taxpayer who has a “qualifying child” is
Medical and LTC Breaks for Small Biz
Source: IRS, www.irs.gov .
Personal Financial Planning
The National Association of Securities Dealers (NASD) proposed a rule ( www.nasdr.com/news/pr2004/ ) designed to address inappropriate practices discussed in Joint SEC/NASD Staff Report on Examination Findings Regarding Broker-Dealer Sales of Variable Insurance Products ( www.sec.gov/news/studies/secnasdvip.pdf ), which it released in conjunction with the SEC in June 2004. The report
International
The International Federation of Accountants (IFAC) revised its code of ethics ( www.ifac.org/Guidance/EXD-Details.php?EDID=0027 ) to ensure that an individual who has served as lead partner of an audit engagement at an exchange-listed entity for a predefined period not longer than seven years may not participate in the engagement for another
Time Makes All the Difference
Source: Vertex, www.vertexinc.com .
Longer Terms, Fewer Jailed
Source: U.S. Treasury, www.ustreas.gov .
Private Annuities Can Aid Medicaid Eligibility
lients sometimes ask CPAs how they can qualify for Medicaid. With monthly nursing home costs between $5,000 and $7,500, for many older adults Medicaid is the only way to pay for long-term care. Each state sets income and asset limits to qualify for Medicaid; such limits may require many people
Good News for Honda Buyers
Source: IRS, www.irs.gov .
Offers in Compromise
Taxpayers unable to pay their income tax liability may make an offer in compromise under IRC section 7122 to settle the tax bill. Such an offer can, however, have a negative impact on other rights available to taxpayers, as the Tax Court recently demonstrated. On September 3, 1999, Joseph Dutton
Banking
The Securities and Exchange Commission (SEC) published for comment two rules, one of which would grant thrift institutions a limited exception from Investment Advisers Act requirements governing the manner and extent to which such entities may hold themselves out to the public as providers of investment advisory services ( www.sec.gov/news/press/2004-58.htm
Tax Notes
TAX NOTES The Treasury Department and the IRS in May issued a revenue procedure providing guidance on using statistical sampling to assess the deductibility of business meal and entertainment (M&E) expenses ( www.irs.gov/pub/irs-drop/rp-04-29.pdf ). Although generally no more than 50% of each such expense can be deducted, certain
Pensions
The Pension Benefit Guaranty Corp. (PBGC) proposed a statement of policy that would revise the structure of penalties assessed against pension plan administrators who fail to notify participants of underfunding and of the extent to which the PBGC would compensate for such deficiencies ( www.pbgc.gov/regs ). Under the suggested statement,
Auditing
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 of Internal Auditors’ (IIA) Research Foundation issued a pair of reports on recent changes in audit committee practices
Insurance
The Treasury Department proposed a rule that would defer until December 31, 2005, the expiration of provisions of the Terrorism Risk Assurance Act of 2002 requiring property and casualty insurers to offer coverage for terrorism-related losses described in the act ( www.treas.gov/press/releases/reports/ ). Currently the law mandates that insurers make
FYI
The AICPA requests nominations for two awards recognizing the pro bono achievements of individual CPAs and firms. Beginning this year a Public Service Award for Firms joins its preexisting counterpart, the Public Service Award, which acknowledges individual contributions. Institute members, state societies and CPA firm associations can nominate candidates for
International
The International Accounting Standards Board (IASB) published three exposure drafts (EDs) in April ( www.iasb.org/current/ed.asp ). Amendments to IAS 39 Financial Instruments: Recognition and Measurement—The Fair Value Option proposes restricting that valuation to financial assets and liabilities in any of five specific categories and with a verifiable fair value; comments
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
