Journal of Accountancy

A monthly publication of the American Institute of Certified Public Accountants focusing on the latest news and developments related to the field of accounting, and written for CPAs and other accounting professionals.

Articles from Vol. 211, No. 1, January

Congress Enacts Tax Cut Extensions
Congress in December sent to President Barack Obama for his signature the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, HR 4853, which postpones the sunset of the 2001 and 2003 tax cuts, temporarily reduces the estate...
Divorce Settlement Issues
How can you assist your client and the client's attorney in realizing a fair and equitable divorce settlement? Here are several critical tax and financial planning issues: [check] Consider the benefits of a qualified domestic relations order (QDRO)....
Don't Neglect to Elect
In the hustle and bustle of tax season, practitioners may overlook some of the elective tax benefits available to clients, Although many elections can be made under extension or on amended returns, a little forethought can go a long way. Here's a follow-up...
FASB Issued an Exposure Draft That Contains Clarifying Guidance Intended to Improve Consistency and Transparency in Financial Reporting about Troubled Debt Restructurings
FASB issued an exposure draft that contains clarifying guidance intended to improve consistency and transparency in financial reporting about troubled debt restructurings. "Investors, regulators and practitioners asked the board to clarify what...
How to Stand out in Today's Marketplace
[ILLUSTRATION OMITTED] The Institute has developed a multiyear marketing campaign to differentiate CPAs from other tax preparers. The initiative includes a set of tools to help members promote the value of CPA providers of tax services and to distinguish...
Maximizing Tax Season Efficiency: Put Procedures in Place Now to Ensure Smooth Work Flow
Run your firm's tax season as if you were advising a client on a business. Whether you are a two-person operation or a giant national firm, you need procedures to facilitate the tax preparation part of your practice. The following best practices for...
New Investment Adviser Requirements of the Dodd-Frank Act: What CPAs Should Know: More Changes and Clarifications to Come as Rulemaking Commences
EXECUTIVE SUMMARY * Among the changes the Dodd-Frank Wall Street Reform and Consumer Protection Act, PL 111-203, (Reform Act) brings are laws affecting CPA financial advisers. These laws will be implemented by various regulations that the SEC will...
Sale of Business Generates Ordinary Income
The Tax Court held that payments to a taxpayer from the sale of his consulting business that he reported as long-term capital gain from his goodwill should instead be taxed as ordinary income. It held that the sales agreement that allocated amounts...
SEC Guidance on Disclosure Related to Climate Change: Overview, Analysis and Consequences for Public Companies
EXECUTIVE SUMMARY * The SEC in February 2010 issued an interpretive release, Commission Guidance Regarding Disclosure Related to Climate Change. While the release contained guidance rather than new disclosure obligations or rule amendments, it is...
Shulman: CPA Firm Nonsigning Preparer Relief Likely
In late October, IRS Commissioner Doug Shulman said the Service would probably provide relief from proposed testing and continuing education requirements for nonsigning tax preparers working under the supervision of a CPA or other federally authorized...
Taking the "Sting" out of S Corporations' Earnings and Profits: Taxpayers Can Elect Several Methods to Avoid a Sizable Tax Bite
EXECUTIVE SUMMARY * An S corporation may have accumulated earnings and profits (E&P) from an earlier period in which it was a C corporation, or it may inherit E&P from a C corporation as a result of a reorganization. If the S corporation...
Tax Court Again Takes Dim View of Benistar Plan
In McGehee Family Clinic the Tax Court ruled that a clinic and shareholder's investment in an employee benefit plan marketed under the name "Benistar" was a listed transaction substantially similar to the transaction described in Notice 95-34 (1995-1...
Tax Season Brings New Twists: Preparer Tax Identification Number Requirement Tops List of Changes
While 2010 featured an ample number of new tax breaks and revenue-raising measures, the filing season that starts this month (with an April 18 deadline for individual returns) is notable for tax practitioners also because of its new return preparer...
The FDIC Board Proposed a Rule (Tinyurl.com/2bbd3r6) Clarifying How the Agency Would Treat Certain Creditor Claims under the New Orderly Liquidation Authority Established under the Dodd-Frank Wall Street Reform and Consumer Protection Act
The FDIC board proposed a rule (tinyurl.com/2bbd3r6) clarifying how the agency would treat certain creditor claims under the new orderly liquidation authority established under the Dodd-Frank Wall Street Reform and Consumer Protection Act. The proposal...
The IASB Issued Requirements on the Accounting for Financial Liabilities That Address the Problem of Volatility in Profit and Loss (P&L) Arising When an Issuer Measures Its Own Debt at Fair Value - Often Referred to as the "Own Credit" Problem
The IASB issued requirements on the accounting for financial liabilities that address the problem of volatility in profit and loss (P&L) arising when an issuer measures its own debt at fair value--often referred to as the "own credit" problem....
Two New Competitions Bring Attention to Accounting Careers
The Institute recently launched the "Clearly Pretty Awesome Competition" for high school students to help introduce them to the CPA profession. The competition called for students to devise a job (other than certified public accountant) using the...
Using Refund Splitting to Fund IRAs
Individual taxpayers have the option to split direct deposit federal tax refunds among up to three (open) accounts with up to three U.S. financial institutions that accept direct de, posits. Refunds can fund several kinds of accounts, including checking,...