New Way to Split Your IRA An owner of a large IRA with multiple beneficiaries usually receives distributions over his or her life and the life expectancy of the oldest beneficiary using the term-certain method. When the owner dies, payments continue over the remaining portion of the original term. Instead,
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Tax
Tax Practice Reviews
ll businesses (including CPA practices) need to ensure that the quality of their work meets certain standards and they can document what they do and how they do it. Generally, this process is called “quality control.” For accounting firms involved in tax practice, this has taken on new significance with
Deduction for Religious Education Disallowed
TAX BRIEF INDIVIDUAL Taxpayers who itemize are allowed a deduction for donations to qualifying religious organizations. Often the organization uses part of the money for religious education and indoctrination of its members. When a tax-exempt school offers both religious and secular education, one might assume that a portion of the
When Giving Advice, Experience is Key
TAX CASE IRC section 6662 imposes a penalty on taxpayers who underpay their tax as a result of negligence. Before 1989 section 6653 imposed a similar penalty. Taxpayers can usually avoid negligence penalties by showing they relied on professional advice. A recent decision in a case that began nearly 20
IRS Offers Help on Mutual Fund Expenses
TAX NEWS Mutual fund distributors can benefit from the new IRS guidance on how to account for commissions paid on sales of mutual fund B shares. Revenue procedure 2000-38, which became effective October 2, outlines three methods—the distribution fee period, the five-year and the useful life. All three allow the
ERISA Liability for CPAs
EXECUTIVE SUMMARY CPAs WHO PROVIDE PROFESSIONAL SERVICES TO employee benefit plans face potential liability exposure under ERISA. A June U.S. Supreme Court case made it clear that CPAs and other service providers are at risk even though in many instances their actions may seem innocuous. ERISA IMPOSES CERTAIN DUTIES
Depreciation of Lear Jet is Not a Business Expense
TAX BRIEF INDIVIDUAL In 1984 Stanley Kurzet sold his business and invested the proceeds in a Lear jet and a timber farm in Oregon. He also owned other business and investment properties and a residence in California. On their joint return, the Kurzets deducted expenses for business travel from California
Some Small Biz Markets Underserved by CPAs
When small business owners need payroll services to whom do they turn? More often than not it’s their CPA—the profession has helped fill that gap for years. But a recent survey of nearly 700 small businesses in the manufacturing, professional services, government, nonprofit and other sectors revealed they generally
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Black Tie Not An Option: Appeals Are Informal The 1998 IRS Restructuring and Reform Act contained a taxpayers bill of rights. one provision expanded taxpayers’ due-process protections when dealing with collection matters: IRC section 6330 gives taxpayers the right to a “collection due-process” hearing in the IRS appeals office before
Tip Compliance Programs Widened
TAX NEWS The IRS expanded its voluntary tip compliance programs from the food and beverage, gaming and hairstyling industries to all those in which tipping is customary (announcements 2000-19 and 2000-23; notice 2000-21). In exchange for an employer’s or employee’s participation, the IRS agrees to refrain from tip examination. Employers
IFAC Issues Standard on Assurance Engagements
The International Federation of Accountants (IFAC) released in July its first international standard on assurance engagements. Developed by IFAC’s international auditing practices committee, its objective is to help accountants worldwide provide assurance on an increasing range of information, including data, systems and processes and behavior. Wherever specific standards do not
Is a Contingent Attorney’s Fee Includible in Plaintiff’s Income?
gnes, a 64-year-old resident of California, successfully sued her ex-employer in 2000 for wrongful termination; a jury awarded her $2 million. Agnes paid her attorney $800,000, 40% of the award, in accordance with their contingent fee agreement; thus, her net proceeds from the suit were $1.2 million. In March
IFAC Provides Guidance on External Confirmations
The International Federation of Accountants recently issued an international standard on auditing that provides guidance on the use by auditors of external confirmations as a means of obtaining audit evidence. Confirmation is the process by which auditors obtain and evaluate direct communications from a third party in response to requests
Expensing Corporate Activities
TAX CASE One of the most difficult questions a company faces is whether it must capitalize an expenditure or whether it can deduct it. Minor variations in the facts can greatly affect the answer to the question. American Stores Co., a corporation that filed consolidated tax returns, owned and operated
EFTPS Hits New High
TAX MATTERS
Federal Spending On States: Feast or Famine In 1999
TAX MATTERS Source: Tax Foundation, www.taxfoundation.org.
Last Known Address Program Delayed
TAX NEWS Last year the IRS announced that, effective May 1, 2000, a new program would allow it to update taxpayers’ addresses using the U.S. Postal Service’s national change of address (NCOA) database. Previously a taxpayer’s “last known address,” although not defined by statute or regulation, had been determined by
401(K) Distributions and Portability
he modern workplace differs greatly from that of even a few years ago. Companies merge (or are gobbled up and taken over) with much more frequency. Employees tend to move around—they’re no longer wedded to one company for the duration of their careers. Another difference in the work enviro nment
Help Keep the World Green
EXECUTIVE SUMMARY IN 1996, THE INTERNATIONAL ORGANIZATION for Standardization developed ISO 14000 as the first globally recognized guidelines for voluntary environmental management. The ISO 14000 standards can help businesses around the world manage their environmental responsibilities. The standards also can provide CPAs with a new practice niche of certifying
Donating Excess Inventory to Charity
TAX NEWS CPAs may want to remind clients with excess inventory that they can earn a federal tax deduction when the product is donated to charity. Corporations with a fiscal year ending December 31 should be urged to check their inventory levels now. Clients that have difficulty finding an organization
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FROM THIS MONTH'S ISSUE
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
