The CPA Journal

The CPA Journal is a monthly refereed accounting journal. It has been published by the New York State Society of CPAs since 1930.Subjects for The CPA Journal inlcude accountants and accounting. Carolyn Morrisroe is the managing editor and Anthony H. Sarmiento is a contributing editor.

Articles from Vol. 64, No. 1, January

A Precocious Kid Named 'EDGAR' Reaches Adolescence
EDGAR is the acronym given to the Securities and Exchange Commission's (SEC) Electronic Data Gathering, Analysis, and Retrieval System. It refers to a computer system for the receipt, acceptance, and dissemination of documents submitted in an electronic...
Careers in Taxation on the 'Hot' Track
U.S. News World & Report, in a special career guide edition, cited tax accounting as one of the top 20 careers with plenty of future growth potential. The conclusion was based in part on the Bureau of Labor Statistics which says the number of job...
Congress, Regulators, RAP, and the Savings and Loan Debacle
Legislative and regulatory policies prolonged and eventually heightened the problems of the savings and loan industry. The "Alice in Wonderland" regulatory accounting principles (RAP) used by the regulators contributed to the disaster.It is estimated...
Estate Tax Deferral and S Corporation Stock
Stock of an S corporation frequently comprises the bulk of an estate. With such closely held stock, the executor may elect special provisions of IRC Sec. 6166 to defer the payment of estate tax. The rationale of this privilege: a forced sale may be requested...
GASB Issues Three Final Pronouncements
In September 1993, the GASB issued final pronouncements on three diverse topics. The issuance of these statements, as well as those to be issued in the near future, represents the outcome of an approach by GASB to "fast-track" statements on finite, less...
Internal Control and SEC Enforcement Actions
The assessment of control risk and the information provided by obtaining an understanding of the internal-control structure assist the auditor in determining the nature, timing, and extent of substantive tests (SAS 55). Because the assessment of control...
'In the Public Interest' - Is It Enough?
Representing the views of financial-statements users, Knutson feels the recommendations of the Public Oversight Board (POB) do not address the profession's inherent problems. Speaking at The CPA Journal Symposium in July 1993, he proposed a standard...
Manage Your Distributions Wisely at 70 1/2
Trillions of dollars have been accumulated in IRAs and qualified pension plans. Some individuals start taking distributions from their pension plans immediately upon retirement. Others, not needing the money, defer payment for as long as possible. They...
New Jersey Enacts S Corporation Legislation
Effective for tax years beginning after July 7, 1993, legislation in New Jersey recognizes the status of the S corporation. The following is a summary of the legislation's major provisions.To qualify as a New Jersey S corporation, a timely election must...
NYC Business Apportionment Calculations for Corporations and Nonresident Individuals
New York State allows businesses with activities carried on within and outside the state to apportion business income in arriving at the amount of income that is subject to New York State taxation. Business income, for this purpose, includes gross income...
NYC Provides Taxpayers Less Formal Appeals Process
For those tax practitioners unable to resolve tax disputes through the available remedies within the New York City Department of Finance and before an Administrative Law Judge, relief is available through New York City's Tax Appeals Tribunal ("Tribunal")....
NYS Business Apportionment Calculations for Corporations And
New York State allows businesses with activities carried on within and outside the state to apportion business income in arriving at the amount of income that is subject to New York State taxation. Business income, for this purpose, includes gross income...
NYS Transfer Tax Affects Real Estate Workouts
New York imposes a Real Property Transfer Gains Tax (Gains Tax) on the transfer of real property located in New York. Facing many owners of troubled property is minimizing this tax where the property is transferred or the loans are restructured with...
Planning for Costs Associated with Environmental Clean Up
The greater awareness of the damage done to the environment through the careless disposal of waste spawned Federal, state, and local laws dictating waste-disposal methods. The laws identify the parties potentially responsible for the disposal, and where...
Potential Tax Problems When Selling Mutual Fund Shares
Investors must be conscious of potential tax problems when mutual fund shares are sold. Four common problems are determination of cost basis, loss on sale of shares held six months or less, exchanges of shares within families of funds, and unintended...
Resident or Nonresident? New Regulations
Final regulations defining a resident alien have now been issued. They are retroactive and could impact tax returns already filed. In addition, there are proposed regulations regarding dual residency and the S corporation election.The IRS issued final...
Revised Procedures for Changing Accounting Methods
What is a change in accounting method? What approvals are necessary? How are the adjustments resulting from the charge treated? When should a taxpayer change a method of accounting? These and other questions are discussed as a result of new IRS rules.The...
Serving the Profession's Assurance Function
Editors of The CPA Journal had conversations with the Chairman and four other members of the Auditing Standards Board seeking to learn how the Board operates, how it decides what guidance is needed, and the nature of projects likely to impact the profession...
Small Business Opposition to Government-Run Health Care Alive and Well
"Reports of my death are greatly exaggerated."Shortly after President Clinton made his Capitol Hill health care address, I began to understand how Mark Twain felt when he issued that statement.Some in the media and the general pubic--even some business...
Tax Expert Systems and Future Development
During the last decade accounting expert systems have been developed in the auditing and taxation areas. Auditing expert systems have been constructed to determine materiality limits during the planning stage of an audit, aid in the evaluation of internal...
Transferred Residence Is Included in Gross Estate
In Estate of Maxwell v. Commissioner, 93-2 USTC Para. 60, 145 (August 26, 1393), the Second Circuit Court of Appeals ruled, by a 2-1 vote, that the value of a residence was includable in the gross estate of a taxpayer. The taxpayer had sold the residence...
U.S. Citizens Abroad and Social Security
The collapse of the communist system in Eastern Europe has encouraged many professionals to open offices in the former eastern bloc. Issues arise about the obligation of U.S. citizens abroad for Self-Employment tax (SECA) and Social Security tax (FICA).Who...
Use Target Costing to Improve Your Bottom-Line
In today's fast-changing business world, one cost system is not sufficient for companies to accomplish various objectives, such as product costing, financial reporting, process control and improvement, performance measurement, and so forth.CHANGING PRODUCT...