A new Federal Trade Commission publication, Financial Institutions and Customer Data: Complying with the Safeguard Rule ( www.ftc.gov/bcp/conline/pubs/buspubs/safeguards.htm ), explains important aspects of the regulation ( www.ftc.gov/privacy/glbact ), which applies to businesses “significantly engaged” in providing financial products or services to consumers. The report includes a section called “How to
Advertisement
TOPICS
Tax
Ethics More Than Rules Compliance
The quiz, Test Your Knowledge of Professional Ethics ( JofA, Oct.02, page 110), gave the technically correct answer to question no. 4: Is the engagement partner independent if his mother-in-law is the controller of the client? But it would have been better if the answer reminded readers that professional ethics
Auditors Should Work Together
A New Accounting Culture ( JofA, Oct.02, page 27) was an important call to action for CPAs overall. In my more than two decades of experience as an internal auditor, I have witnessed too many times when CPAs took the expedient route over the proper one because of fees, friendships
U.S. Government Plays Favorites
Source: Tax Foundation, www.taxfoundation.org .
More Bang! Bang! for Our Bucks
Source: Tax Foundation, www.taxfoundation.org .
Retirement
The IRS releases 2003 cost-of-living adjustments related to benefit and contribution limits for qualified retirement plans ( www.irs.gov/pub/irs-news/ir02-111.pdf ). Many such savings caps are not changing this year because the increase in the cost-of-living index fell below the statutory thresholds that otherwise would trigger their adjustment. However, several will increase
Watch Your Appearance
In Test Your Knowledge of Professional Ethics ( JofA, Oct.02, page 110), the answer to question no. 4 indicated that the CPA firm would be independent because the engagement partners mother-in-law (also the clients controller) is not considered a close relative or immediate family under the new independence rules. The
Tax Notes
TAX NOTES The Treasury Department and the IRS select 102 people to serve in a new group—the Taxpayer Advocacy Panel—which will identify taxpayers’ concerns, along with suggestions for improving customer satisfaction, and convey them to the service ( www.irs.gov/pub/irs-news/ir02-107.pdf ). Previously, the body was known as the Citizen Advocacy Panel
In Favor of Regulation
The reprint of Mr. Melancons speech at Yale University was impressive A New Accounting Culture ( JofA, Oct.02, page 27). However, it failed to address the real reason we are in this situation: Partners at the largest firms need to make the payments on their million-dollar houses and $80,000 Porsches.
Letters To The Editor
Letters to the Editor The JofA encourages readers to write letters on important professional issues in addition to comments on published articles. Because space is limited, letters submitted for publication should be no longer than 500 words. Please include telephone and fax numbers.
Auditing
The ASB issues Statement on Auditing Standards no. 100, Interim Financial Information, replacing SAS no. 71, with the same title. The new standard provides additional guidance on performing reviews of interim financial information and incorporates the SEC’s requirement for timely filing of interim data. It also includes recommendations from the
An IRA Distribution or Not?
W hen a taxpayer takes a cash distribution from a regular individual retirement account (IRA), the entire amount is gross income unless part of the distribution represents a return of his or her nondeductible contributions. Suppose the IRA custodian sends a taxpayer a check payable to a third party, the
FYI
Four practitioners replace departing members of the ASB. The appointees are Kenneth Macias, William F. Messier Jr., Steven L. Schenbeck and Michael T. Umscheid.
When Are ERP Costs Deductible?
TAX BRIEF T he IRS normally takes the position that businesses must capitalize the cost of enterprise-resource-planning software (ERP) and amortize it over 36 months. ERP software incorporates financial accounting, inventory control, production, sales and distribution and human resources modules. In a recent letter ruling, the IRS explained the
Timely Refund Claims
TAX CASES P roper tax practice requires CPAs and clients to file necessary forms within prescribed deadlines. One such deadline is the one in IRC section 6511 for filing refund claims. The Ninth Circuit Court of Appeals recently reversed its own 1994 decision concerning the applicable deadline for filing such
International
The International Accounting Standards Board (IASB) issues an exposure draft, Share-based Payment ( www.iasb.org.uk ), which proposes companies, on their financial statements, report as expenses any shares or options they grant to employees as compensation. The IASB concluded that such transactions are not different from those in which an entity
Uncle Sam Wants (to Get) You
Source: Department of the Treasury, www.ustreas.gov .
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 Statement no. 147, Acquisitions of Certain Financial Institutions ( www.fasb.org/news/nr100102.shtml ). It provides guidance on accounting for all such
Securities
The SEC proposes two rules governing mutual funds’ and investment advisers’ proxy voting on behalf of their investors and clients, respectively. The first proposal ( www.sec.gov/rules/proposed/33-8131.htm ) would require mutual funds to disclose the policies and procedures they use to determine how to vote proxies relating to their shareholders’ securities.
Features
FROM THIS MONTH'S ISSUE
Making the right choice when no one is watching
The true test of one’s character is the decision made when no one is looking over your shoulder. Learn how CPAs can uphold ethical standards and take actions that help limit liability risk.
From The Tax Adviser
April 30, 2026
Current developments in taxation of individuals: Part 2
April 30, 2026
