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. 212, No. 3, September

2011 Tax Software Survey: Ease of Use, Price Top Lists of Likes, Dislikes
[ILLUSTRATION OMITTED] This year's tax preparation software survey by The Tax Adviser and the JofA yielded more than 10,000 responses from readers, showing what tax professionals like and dislike about the tax preparation software they used this...
Advising Financially Stressed Clients: When Debts Surpass Their Means, Be Ready with Wise Counsel
EXECUTIVE SUMMARY * CPA advisers can help clients In financial straits avoid bankruptcy or avoid missteps that could further cloud already bleak finances. * Debt settlement negotiations with credit card companies should be done with caution,...
Deduction for Cat Expenses Gets Second Life
The Tax Court permitted a deduction for a taxpayer's unreimbursed volunteer expenses incurred while caring for foster cats in her home, since they were incurred "incident to the rendition of services" to a qualified organization. The court also held...
FATCA Reporting Suspended for Some: Pre-2010 FBAR Filing Extended
The IRS suspended FATCA (Foreign Account Tax Compliance Act) information reporting requirements for certain individuals with foreign assets and shareholders of passive foreign investment companies (PFICs) under IRC [section][section] 6038D and 1298(f)...
Fund Advisers: Face New Registration Reporting Regs: SEC Rules, Implementing Dodd-Frank Requirements, Include" Family Office" Exclusions from Investment Advisers Act of 1940
[ILLUSTRATION OMITTED] The passage of the Dodd-Frank Wall Street Reform and Consumer Protection Act in July 2010 marked the onset of major changes for financial advisers. The SEC in June followed through with rulemaking responsibilities under the...
Golfer Bogies Endorsement Income
Professional golfer Retief Goosen split a decision with the IRS in the Tax Court that partly redetermined the character and source of his income from product endorsements. Goosen is a native of South Africa and a nondomiciliary United Kingdom resident....
Highlights of Corporate Governance Research: Studies Examine Post-SOX Issues, CEO Pay, Whistleblowing
Several corporate governance developments have occurred in the wake of the high-profile scandals of the past decade. Some of these developments are motivated by legislation such as the SarbanesOxley Act of 2002 (SOX). Others are best practices enhancements...
IRS Finalizes Automatic Five-Month Extension for Partnership, Trust and Estate Returns
Final regulations set the time for automatic extensions of partnership, trust and estate income tax returns at five months (TD 9531). Under this rule, the extended returns and Schedule K-is for partners and beneficiaries will generally be due Sept....
New IASB Leader Embraces Challenges: An Interview with Chairman Hans Hoogervorst
[ILLUSTRATION OMITTED] With more than 100 countries already using IFRS, a full standard-setting agenda and the SEC poised to decide in the coming months whether U.S. public companies will report under international standards, Hans Hoogervorst knows...
No Reasonable Cause Defense for Preparer's Omission
The Tax Court upheld an accuracy-related penalty, rejecting the husband-and-wife taxpayers' argument that they had reasonable cause for a tax understatement caused by their return preparer's apparently accidental omission of an item of income. The...
Pivotal Advance Boosts Excel's Power: Expand Your Analytical Skills with This Step-by-Step Guide
[ILLUSTRATION OMITTED] In today's accounting world, financial and operational data typically is stored in a variety of programs and formats. When accountants need to prepare a report based on data from various systems, the first step is to export...
Real Estate Transfer Taxes: Practical Considerations
Approximately two-thirds of U.S. states, as well as a number of municipalities, counties and other units of local government, impose a tax on taxpayers when they transfer real property to another party. As a practical matter, a real property transfer...
Retreat to Move Forward
With the slow economy still making times--and dollars--tight, it might seem counterintuitive for a CPA firm to take its staff to the beach for an annual retreat. But handled correctly such off-site activities can be effective investments of time and...
The Last Word
A lot of people look back on their lives and think, "If I could only do it over again:' That's not possible, but sometimes you get the chance to make up a little for your omissions. I'd like to believe I have been able to do that for my friend Lee...
Third Circuit Upholds $473 Million Subpart F Deficiency
The Third Circuit Court of Appeals affirmed a deficiency of nearly $473 million against pharmaceutical company Merck & Co. Inc. as successor to Schering-Plough, saying an interest rate swap Schering-Plough engaged in with two foreign subsidiaries...
Upward Stock Option Repricing: Companies Often Reduce the Exercise Price of Employees' Outstanding Stock Options to the Current Stock Price to Restore the Options' Incentive Effect and Retain Talented Employees. However, in Some Cases Companies Raise the Exercise Price to Provide Tax Benefits for Option Holders under Certain Circumstances
[ILLUSTRATION OMITTED] If a stock option qualifies as an incentive stock option (ISO) under IRC [section][section] 422 and 409A, the employee receiving the option recognizes no taxable income at the time the employer grants the option or when the...