The IRS named Nina E. Olson as National Taxpayer Advocate to succeed W. Val Oveson, who left last fall to return to the private sector. The advocate’s office, now the Taxpayer Advocate Service (TAS), acts as a voice for taxpayers who, after having used all normal channels, still have matters
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Tax
Banking
For news from the AICPA and state societies, visit www.cpaweb.org , which also offers online CPE, AICPA professional literature, practice management aids and links to state society Web sites. Panel critiques Basel Committee’s proposed international capital standards for banks ( www.aei.org/shdw/shdw169.htm ). Draft IFAC standard focuses on roles of
Acting Director Named to Head ETA
The IRS selected acting director Terence H. Lutes as the new director of the Electronic Tax Administration. The ETA oversees policy and security for electronic transactions, as well as the development of electronic services throughout the IRS. The ETA’s focus on minimizing paper transactions is a cornerstone of the IRS’s
Financial Reporting
FASB report recommends measures to lessen redundancies in GAAP, SEC disclosure requirements ( accounting.rutgers.edu/raw/fasb/news/nr030601.html ; accounting.rutgers.edu/raw/fasb/brrp/brrp3.html ). FASB offers guidance on accounting for transfers, servicing of financial assets ( accounting.rutgers.edu/raw/fasb/news/nr021501.html ). Corporate annual reports, disclosures to receive more SEC scrutiny ( www.sec.gov/news/speech/spch464.htm ). SEC to propose rule on electronic reporting
Smart Stops on the Web
For the Benefits Specialist www.iscebs.org The International Society of Certified Employee Benefit Specialists conducts annual surveys of its membership on various employee benefits and compiles and publishes the results on this site. Topics range from employer-sponsored prescription drug programs to retirement issues. Pension Plans Discussed Here www.dol.gov/dol/pwba The Department of
Limited Partnership and LLC Can Be Shareholders of S Corp
A corporation electing under IRC section 1362 to be taxed as an S corporation is subject to various ownership restrictions, including the requirement that shareholders must be individuals (section 1361(b)(1)(B)). Although very limited exceptions to this rule exist for entities such as estates and trusts, they do not address whether
Legal
BDO Seidman not liable under state law for its bankrupt audit client’s fraud, says New York Court of Appeals ( www.courts.state.ny.us/ctapps/decisions/11opn.pdf ).
FYI
SEC upgrades its Web site to include segment designed specifically for accountants ( www.sec.gov/news/press/2001-22.txt ). California state controller offers amnesty from interest due for unclaimed property ( www.sco.ca.gov/col/ucp/amnesty/index.htm ). Institute of Internal Auditors revises red book of standards, practice advisories ( www.theiia.org/ecm/guide-stand.cfm?doc_id=119 ). IFAC publishes acclaimed management accounting articles. Journal
Sale and Leaseback of Real Property
he IRS carefully scrutinizes transactions between closely held corporations and their controlling shareholders to make sure such transactions benefit the corporations, not simply the shareholders. One strategy that could provide tax and financial advantages to both a corporation and its controlling shareholder is a sale and leaseback of real property
International
IFAC issues public sector exposure draft on events that occur after the reporting date. Comments are due by May 31 ( www.ifac.org/Guidance/EXD-Download.tmpl?PubID=98044113798449 ). IFAC exposure draft addresses segment reporting for public entities. Comments are due by May 31 ( www.ifac.org/Guidance/EXD-Download.tmpl?PubID=980441403101013 ). Public sector disclosure of financial instruments is the subject
Earned Income Still No. 1
Source: IRS, www.irs.gov .
Family Limited Partnerships Funded With Personal Use Property
Historically, CPAs have dissuaded estate planning clients from funding family limited partnerships with personal use property, such as a primary or secondary residence. In the past the IRS has attacked the transfer of such property to a family limited partnership on the grounds that the entity lacked a valid or
Government
Treasury to garnish delinquent borrowers’ SSA benefits ( www.ssa.gov/enews/debtpayment.htm ). Bush plan to invest SSA funds gives SEC commissioner pause ( www.sec.gov/news/speech/spch459.htm ).
Line Items
Tax Matters LINE ITEMS Some Plane Overhauls Can Be Expensed A commercial airline, in order to conform to strict government safety standards, adopted a maintenance policy that required each of its airplanes to undergo a complete overhaul every eight years. Typically, each plane was out of commission
Mergers And Acquisitions
FASB decides to end pooling-of-interests accounting method ( www.rutgers.edu/accounting/raw/fasb/news/nr012401.html ).
IRS Weighs in on Day Traders
I am the technical reviewer for many of the forms and instructions issued by the IRS, including schedules C, D and SE (form 1040) and form 4797. There appear to be many inconsistencies and incorrect statements [ in the January JofA article on page 80 ] regarding traders (including day
Technology
Privacy advocates petition legislators for their support on tough standards ( www.epic.org/privacycoalition/coalition_press_release.html ).
Tax Court Has Low Tolerance for Frivolous Arguments
A family trust the IRS determined was a sham received a deficiency notice that disallowed charitable deductions, attorney and fiduciary fees, an S corporation loss and various other expenses, thereby increasing its gross income by nearly $500,000. The taxpayer responded by raising only frivolous arguments, which lacked merit and seemed
Fraud
Money launderers duping banks, says Senate report ( www.senate.gov/~gov_affairs/020501_psi_minority_report.htm ).
Doing Business Internationally
As the business world goes global, CPAs are advising clients more frequently on how to take advantage of opportunities to market their products and services abroad. Here are some steps a company should take before entering the international market. CONDUCT PRELIMINARY MARKET RESEARCH Obtain information about foreign markets from the
Features
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Build reusable Skills in Anthropic’s Claude AI
Instead of rewriting prompts each time, CPAs can turn routine tasks into reusable AI Skills. This Technology Q&A walks through how to build Claude Skills that process files, ask setup questions, and export clean Excel outputs.
From The Tax Adviser
April 30, 2026
Current developments in taxation of individuals: Part 2
April 30, 2026
