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. 61, No. 9, September

A Defensive Practice Checklist
The following checklist provides specific areas that the accountant should concentrate on to take a defensive stance against liability claims. The list has been assembled based upon elements that have led to actual claims against insureds in the AICPA...
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Allocation and Apportionment of State Income Taxes to Foreign Source Income: Final Regulations under Sec. 861
On March 11, 1991, Treasury issued final income tax regulations with varying effective dates relating to the allocation and apportionment of deductions for state income taxes. The new regulations adopt the general principles of the temporary regulations...
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Asset Valuation: A Practical Approach for Decision Making
As steward of the business firm's financial information, the accountant often extends his or her responsibility beyond the requirements of traditional financial reporting. With increasing frequency, both public and private accountants are required to...
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Charitable Contributions of Tangible Personal Property - New Developments
OBRA 90 eliminated for tax year 1991 the alternative minimum tax (AMT) preference item for charitable contributions of appreciated tangible personal property.Question: Due to the one-year nature of this provision, will a contribution carryover of such...
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Creative Problem Solving
One thing you can count on when it comes to problems: they never come at a convenient time. Tough issues tend to crop up when you can least afford to take time out to tackle them. However, proactive partners are turning problems into payoffs. By implementing...
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Deductibility of Losses in Leveraged S Corporations
Repeatedly, the IRS and the courts have denied claims of S corporation shareholders that third-party loans that they guarantee are part of their basis in an S corporation. The authors set forth the extensive history of this matter and suggest that it...
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How Arbitration Can Reduce the Cost of Disputes
The growing backlog in our nations court system often causes substantial litigation costs and lengthy delays before a case is heard. In some jurisdictions waiting periods are as long as five years and trial costs end up equaling or exceeding the disputed...
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Integration of Blacks in the Accounting Profession: A Framework for the '90S
During the past decade the percentage of blacks in major accounting firms has declined significantly even though their actual number in the profession has increased. The author examines these developments in relation to other happenings and offers some...
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Job Hunting and the CPA
Here is some crisp and down-to-earth advice for getting a job. Persistence and hard work are major ingredients of the advice offered. What works best--networking want ads, headhunters, or recruiters?Looking for new employment is a time consuming task....
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Multistate S Corporation Taxation - Plan Ahead
The prevailing lack of conformity between the federal and state rules governing S corporations, as well as the non-uniformity among and inconsistency within the states in the treatment of S corporations and their shareholders must be considered in determining...
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New York Is Different When It Comes to Accumulated Distributions
There are instances when a trust accumulates its income instead of distributing it currently. When it distributes previously accumulated income in a later year it is called an accumulation distribution. In the year that the trust distributes this accumulated...
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Planning Retirement Distributions from IRAs and Similar Accounts to Adjust for Cost of Living
A sophisticated society claims to deplore the fate of retirees living on fixed incomes subject to the vicissitudes of inflation, but that same society continues to retire more and more people on fixed pensions, which will never change or change very...
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Proposed SAS on Meaning of Present Fairly Is Not Just a Technical Correction
Responses are coming in to the ASB's exposure draft SAS on "The Meaning of Present Fairly in Conformity with Generally Accepted Accounting Principles in the Independent Auditor's Report." The proposed SAS was developed principally to establish separate...
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Selecting Corporate Financial Planning Software
Business has a need for both short-range and long-range planning. Some companies have resorted to producing their own software to meet their planning needs. This is a field in which software development within companies has far exceeded that of software...
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Self-Charged Interest Regulations
On April 2, 1991, the IRS issued proposed regulations under Secs. 1.469-7 and 1.469-11 relating to the treatment of self-charged items. This article analyzes the regulations and suggests areas that require further clarification and improvement.IRC Sec....
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September 16, 1991: Filing Deadline for Non-Citizen Beneficiaries
More than two years after the original Qualified Domestic Trust (QDT) rules were enacted (IRC Sec. 2056A), the IRS issued Form QDT-706 and announced a September 16, 1991 initial deadline for filing.Any QDT that distributed corpus or ceased to qualify...
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Structuring of Life Insurance Trusts: Impact of Recent Cases
This is an important element of any estate planning! The authors review the tax law concerning exclusion of insurance proceeds from a decedent's gross estate; analyze recent tax cases and the positions of the parties' and the courts' findings; deal with...
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Tax Planning for Distributions in Kind
Under the provisions of Subchapter J of the IRC, beneficiaries of an estate or trust are taxed on amounts distributed to them to the extent of the trust's or estate's distributable net income (DNI). In return, the trust or estate is entitled to a deduction...
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The CPA's Role as Bankruptcy Examiner
The bankruptcy epidemic of the past few years has given rise to new opportunities for CPAs. The author talks about what CPAs can bring to the role of bankruptcy examiner. Examiners are appointed by the Bankruptcy Court and have the task of sorting out...
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The Road to Quality
(Editors Note: The benefits of quality in an accounting and audit practice and how to enhance the quality of your firm by compliance with professional standards is the subject of this article and will be the subject of future articles in this column....
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U.S. Taxation of Foreign Currency Transactions: A View From
Over the past several years, new tax laws and regulations have provided guidance that has significantly clarified the taxation of foreign currency transactions. Prior to this, U.S. taxation of many of these transactions was, at best, unclear. While the...
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U.S. Taxation of Foreign Currency Transactions: A View from Traders' and Hedgers' Perspectives
Over the past several years, new tax laws and regulations have provided guidance that has significantly clarified the taxation of foreign currency transactions. Prior to this, U.S. taxation of many of these transactions was, at best, unclear. While the...
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Victory for Peripatetic Taxpayers
The First Circuit Court of Appeals has ruled that the Tax Court erred in concluding that a taxpayer who divided his year between two businesses located in two states had two tax homes. (Andrews v. Commissioner, No. 90-2165, First Circuit 4/24/91.) The...
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Voluntary Contributions to Unemployment Insurance Trust Funds; New Jersey and Other States
Employers can save payroll tax dollars by making voluntary contributions to state unemployment insurance trusts. An employer's unemployment tax rate is dependent upon its experience rating. The experience rating is determined by reference to the employer's...
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