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. 1, July

A Sea Change for Gift and Estate Planning: PFP Practitioner, Writer and Lecturer Martin Shenkman Outlines Opportunities and Caveats
Martin Shenkman, Esq., CPA/PFS, is the author of numerous books and articles on tax and financial planning, including the AICPA-published Estate and Related Planning During Economic Turmoil, and with Steve R. Akers, Estate Planning After the Tax Relief...
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"Associated-Property" Regs Survive "Strong" Challenge
The U.S. Court of Federal Claims upheld regulations requiring imputed interest on the basis of business property temporarily removed from service to be included in capitalized costs of property improvements. Virginia electric and natural gas utility...
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Common Reporting Errors on Form 990
The redesigned Form 990, Return of Organization Exempt From Income Tax, has been the subject of much discussion since the IRS released it in 2007. As the exempt sector and practitioners have been adjusting to the new filing requirements, areas of confusion...
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Estate Tax or Carryover Basis? Practitioners Must Weigh the Better Option for Estates of Decedents Who Died in 2010
EXECUTIVE SUMMARY * With enactment of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, Congress reinstituted the estate tax, but with a $5 million exclusion. * Because it did so late in 2010, Congress gave...
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Expanding Service Organization Controls Reporting: SOC 2 Reports Offer CPAs New Opportunities to Address Clients' Needs
EXECUTIVE SUMMARY * CPAs have an opportunity to expand their attestation services through a new SOC report. * SOC 2 engagements are designed to meet the needs of service organization users and other stakeholders. They provide organizations that...
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GAPP Targets Privacy Risks: Principles Provide a Comprehensive, Scalable Framework for Managing Compliance and Reputation Threats
EXECUTIVE SUMMARY * State, federal and foreign governments are expanding privacy compliance regulations. * Businesses need to regularly assess privacy risks and deploy effective controls. Good security practices do not by themselves represent...
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Government Contractor Withholding Delayed to 2013
The IRS issued final regulations (TD 9524) further postponing implementation of mandatory 3% withholding on payments from government entities to contractors and providing interim guidance. The final regulations also adopt a $10,000 withholding threshold...
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IRS Addresses Accounting Software Audit Concerns
In a March 29 letter from Patricia Thompson, chair of the AICPA's Tax Executive Committee, to Chris Wagner, commissioner of the IRS' Small Business/Self-Employed Division, the AICPA communicated its concerns regarding the Service's program to request...
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Loan Loss Held Not Personal
The Tax Court ruled that a taxpayer's loan to a business associate was made in connection with the taxpayer's trade or business, and therefore, the forgiveness of that loan was a bad-debt loss under IRC [section] 166(a). The IRS had argued that the...
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PCAOB Set to Expand under New Mandates: An Interview with Chairman James R. Doty
[ILLUSTRATION OMITTED] PCAOB Chairman James R. Doty sees the audit profession as being at a, turning point, not just in the U.S., but globally One of the fundamental advantages of our society has always been the audit. We believed we could believe...
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PFP Services Guidelines
CPAs providing personal financial planning services to individual clients in estate, retirement, tax, investment and/or insurance planning need to ensure they are meeting their professional responsibilities. The AICPA Statement on Responsibilities...
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Revitalize Your Firm's Marketing Strategy: Avoid Two Common Pitfalls and Boost ROI
[ILLUSTRATION OMITTED] EXECUTIVE SUMMARY * CPA firms often make two common mistakes when approaching their marketing strategy: They become bogged down in a flurry of marketing activities without stopping to evaluate the tangible benefits of those...
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Section 179 Expensing for Noncorporate Lessors
Section 179 Expensing for Noncorporate Lessors While 100% bonus depreciation may be the "flavor of the month" when it comes to accelerated depreciation, it is limited to original-use property and is currently scheduled to sunset for most property...
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State Income Tax Credit Is a Capital Asset
The Tax Court held that a taxpayer's sale of a state income tax credit resulted in a capital gain, not ordinary income, since the payments received from the sale were not a substitute for ordinary income. Capital assets consist of all assets except...
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Statement on Auditing Standards - Consistency of Financial Statements
Statement on Auditing Standards (SAS) Consistency of Financial Statements supersedes SAS No. 1, section 420, Consistency of Application of Generally Accepted Accounting Principles, as amended (AICPA, Professional Standards, vol. 1, AU sec. 420), and...
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Statement on Auditing Standards - Filings with the Securities and Exchange Commission under the Securities Act of 1933
(Supersedes Statement on Auditing Standards No. 37, Filings Under Federal Securities Statutes [AICPA, Professional Standards, AU sec. 711]). CONTENTS Introduction Scope of This Statement on Auditing Standards/ Effective Date/ Objective/ Definitions/...
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Statement on Auditing Standards - Revised Applicability of Statement on Auditing Standards No. 100, Interim Financial Information
(To revise paragraph .05 of AU section 722, Interim Financial Information [AICPA, Professional Standards, vol. 1]) 1. The purpose of this amendment is to revise paragraph. 05 of Statement on Auditing Standards (SAS) No. 100, Interim Financial Information,...
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Statement on Standards for Accounting and Review Services - Revised Applicability of Statements on Standards for Accounting and Review Services
(To revise paragraph .01 of AR section 90, Review of Financial Statements [AICPA, Professional Standards, vol. 2]) The Applicability of Statements on Standards for Accounting and Review Services 1. The purpose of this amendment is to revise paragraph...
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The Last Word
As an immigrant to the United States, I have learned to love this country. Yet, it's important to me to remain connected to my homeland. Being involved in the Indian community in the Los Angeles area is one way to do that. When I was given the opportunity...
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W-2 Health Insurance Reporting Detailed
The IRS released guidance (Notice 201128) in question-and-answer format on the new requirement that employers include the "aggregate reportable cost" of employer-sponsored group health insurance on Form W-2, Wage and Tax Statement. The requirement...
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