The AICPA has developed comprehensive guidelines to assist colleges and universities in designing, implementing and administering meaningful internship programs and other forms of experiential learning ( www.aicpa.org/members/div/career/edu/internships.htm ). The guidance classifies various programs, provides examples of program administration and evaluation forms and refers to the AICPA core competency framework (
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Tax
International
The International Accounting Standards Board (IASB) publishes 13 revised international accounting standards (IASs) to address concerns, questions and criticisms raised by securities regulators and other interested parties about the existing set of IASs ( www.iasb.org.uk ). The revised standards are IAS 1, Presentation of Financial Statements; IAS 2, Inventories; IAS
Choose the Right Tools for Internal Control Reporting
EXECUTIVE SUMMARY CPAs CAN PROVIDE A VALUABLE service to their employers or clients by helping them plan their strategic approach to compliance with section 404 of the Sarbanes-Oxley Act of 2002. NEW SOFTWARE PRODUCTS CAN IMPROVE corporate governance and external communications about financial performance. They also can enhance the efficiency
Departing Partner’s Debt Service Payment Income to Partnership
TAX CASE IRC section 721(a) says a partnership or any of its partners will not have to recognize gain or loss for contributing property to the entity in exchange for a partnership interest. Such a capital contribution increases a partner’s basis. IRC section 752(a) says “any increase in a partner’s
Few Deduct Health-Related Costs
Source: IRS, www.irs.gov , 2003.
Time to Play But Not to Pay
Source: IRS, www.irs.gov , and the Tax Policy Center, www.taxpolicycenter.org , 2003.
Economic Performance
TAX CASE A business expenditure is deductible if it is ordinary and necessary as defined in IRC section 162. The “all-events test” generally determines the timing of the deduction. The Tax Court recently addressed the timing issue for services performed between related parties. Jimmy Weaver owned 80% of the stock
The Costs of Household Employees
hile most CPAs are aware of the need to file payroll reports for household employees, clients may not fully understand the risks of not reporting wages paid to household workers. OVERVIEW Despite the publicity about the “nanny tax” (which includes Social Security, Medicare (collectively, FICA) and federal unemployment tax
Unclaimed Property
EXECUTIVE SUMMARY WITH MORE STATES CONDUCTING AUDITS, CPAs need to encourage companies to pay greater attention to their unclaimed property liability. This includes both reporting unclaimed assets to the right state and making sure the company properly reflects the liability on its balance sheet. UNCLAIMED PROPERTY HOLDERS MUST exhaust all
Make Money With Basic Accounting Software
EXECUTIVE SUMMARY SMALL BUSINESS ACCOUNTING SOFTWARE is providing new client-service opportunities for CPA firms because clients need just as much help as ever, with basic installation and weekly bookkeeping to higher-value accounting, financial reporting and management consulting. THE MARKET FOE ENTRY-LEVEL ACCOUNTING software is large because there are so many
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 issues four staff positions (FSPs) addressing FASB Statement no. 150, Accounting for Certain Financial Instruments with Characteristics of Both
Questions and Answers on “In the Money?”
CLARIFICATION The November 2003 Journal of Accountancy included a detailed account of how companies may benefit from a recent U.S. Court of Federal Claims decision in CSX Corp. by filing protective claims to recover Social Security and Medicare taxes on severance payments to former employees (see “ In the Money
Excluding Over-the-Counter Drug Reimbursements
evenue ruling 2003-102 held that an employee’s receipt of a reimbursement from an employer-sponsored health flexible spending arrangement (health FSA) under a cafeteria plan, health reimbursement arrangement or other employer health plan for over-the-counter (OTC) drugs is excludible from gross income under IRC section 105(b); however, amounts an employee pays
No Annual Gift Tax Exclusion for Gift of LLC Membership Units
TAX CASE Generally speaking, IRC section 2503(b) allows donors an annual gift tax exclusion on the first $11,000 (the statutory $10,000 adjusted for inflation for 2003) of gifts made to each person during the year. The code specifies that gifts of future interests in property do not qualify for the
Uncle Sam Generous to a Fault—Literally
TAX MATTERS Source: IRS, www.irs.gov .
Drive and Save
TAX MATTERS Source: TaxLoopholes.com, www.taxloopholes.com .
Sorry State of Affairs
TAX MATTERS Source: Tax Policy Center, www.taxpolicycenter.org , 2003.
New Alternative Minimum Tax Trap
TAX CASE The alternative minimum tax was designed to make sure taxpayers who took advantage of loopholes and shelters paid at least some federal income tax. As regular tax rates decline, more and more Americans are finding themselves subject to the AMT. Therefore it is important for CPAs to help
Government Accounting
The Governmental Accounting Standards Board releases a publication, Reporting Performance Information: Suggested Criteria for Effective Communication, which offers 16 criteria state and local governments can use when preparing reports on the nature and results of services they’ve rendered. The report can be downloaded free online ( www.seagov.org/sea_gasb_project/suggested_criteria_report.pdf ) or ordered
Compliance
The SEC proposes two rules that would allow it to supervise broker-dealers and their affiliates on a consolidated basis ( www.sec.gov/news/press/2003-134.htm ). One proposal would create an alternative method for computing certain net capital charges for broker-dealers that are part of a holding company that manages risks—and consents to SEC
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
