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. 12, December

Alternative Fee Agreements with Counsel
A client and his attorney should begin each assignment with the question of how an alternative form. of dispute resolution may be used to settle a dispute. Since many of the underlying tasks will fall upon counsel, the client and his attorney should...
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Analytical Procedures
SAS No. 56, Analytical Procedures, made the use of analytical procedures mandatory during the planning and final review stages of the audit. In addition, it emphasized the benefits of using analytical procedures as a substantive test.One thing not covered...
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A Pragmatic Approach to Amortization of Intangibles
The tax treatment of intangible assets has been controversial for many years. Taxpayers and the IRS have engaged in intangible asset disputes since 1925. Prior to enacting IRC Sec. 197 as part of the Revenue Reconciliation Act of 1993 (RRA '93), intangible...
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Avoiding Probate
A good estate plan should distribute a testator's property to whom the testator wishes, when the testator wishes, with a minimum amount of income, estate, and inheritance taxes and the lowest possible attorneys' fees and other administrative costs. Avoiding...
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Bad Results If You're in Bad Form!
The taxpayer wanted to make a "split election," that is, elect to forego the three-year carryback period for his net operating loss (NOL), but actually carryback his alternative minimum tax (AMT) net operating loss. He filed an application for a Tentative...
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Book Review: Money and Freedom, the New American Game
This book outlines a series of realistic steps that an individual can implement to improve his or her financial situation. The authors' philosophy is that financial planning, however complicated it may appear, is actually reducible to certain basic concepts...
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Book Review: The Audit Committee Handbook
Louis Braiotta has written a timely and comprehensive book, which should be required reading for all audit committee members. Readers of this handbook will be able to meet their responsibilities and gain a greater understanding of their duties and relationships...
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Cafeteria Plans: Some Relief from the High Costs of Benefits
With medical insurance premiums skyrocketing in recent years, the cost of providing medical benefits for our employees has become prohibitive. Almost the only way many employers can provide appropriate coverage is by having the employees share the load...
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Can a Tax Deduction Help Pay for Taxes, Interest, and Penalt
What happens when one's hand gets caught in the cookie jar, leading to the payment of additional taxes, interest, and penalties to the government? Why not try some interesting tax accounting theories to cut your losses. One taxpayer did just that, but...
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Can a Tax Deduction Help Pay for Taxes, Interest, and Penalty Due?
What happens when one's hand gets caught in the cookie jar, leading to the payment of additional taxes, interest, and penalties to the government? Why not try some interesting tax accounting theories to cut your losses. One taxpayer did just that, but...
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Interest Deductions on IRC Sec. 6161
An estate that pays its estate taxes in installments under the hardship provisions of IRC Sec. 6161 can take annual deductions for the accrued interest, allowing it to recompute and reduce both the total liability and the annual installments. This is...
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IRS Employment Tax Adjustments Caused by NJ Department of La
Under New Jersey Unemployment Compensation Law, three narrow tests are applied in determining whether services rendered by an individual were performed as an independent contractor or as an employee. The second test is a difficult test for many taxpayers...
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IRS Employment Tax Adjustments Caused by NJ Department of Labor Examinations
Under New Jersey Unemployment Compensation Law, three narrow tests are applied in determining whether services rendered by an individual were performed as an independent contractor or as an employee. The second test is a difficult test for many taxpayers...
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Is an Individual or Corporate Fiduciary Best?
Corporate fiduciaries (banks and trust companies), have many advantages over individuals as executors and trustees. The are more secure, are automatically bonded, can avoid conflicts of interest where children or other close relatives would otherwise...
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Israeloff Installed as AICPA Chairman
Robert Israeloff, chairman of the board of New York-based Israeloff Trattner and CO, P.C., was installed as Chairman of the AICPA its annual luncheon meeting held in Boston on October 25, 1994. Israeloff has been the champion and often spokesperson of...
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Liability of Accountants under the Federal Securities Laws
"I never get involved in stock offerings in my practice--why do I have to worry about the securities laws?""I used to do some work with real estate developers, helping to obtain financing, working on setting up units for ownership of commercial office...
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Locating Missing Pension Plan Participants
Locating former participants entitled to benefits can become a problem. It may be that an administrator wants to make sure its records, including mailing addresses, are up to date, or to make small payments to save on expenses, or begin payments to a...
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Microsoft Gives Access to Corporate Data
"Access, when used as a common noun, suggests someone who can navigate among the well-connected, someone who is privy to all that is closely held. Access, when used as a proper noun, means the equally well-connected Windows database from Microsoft. With...
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New Consolidation Return Election Offers Planning Opportunit
As a result of recent Arizona legislation that took effect July 17, 1994, an affiliated group of corporations filing a Federal consolidated return may elect to file consolidated Arizona income tax returns for tax years beginning on or after December...
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New Consolidation Return Election Offers Planning Opportunities in Arizona
As a result of recent Arizona legislation that took effect July 17, 1994, an affiliated group of corporations filing a Federal consolidated return may elect to file consolidated Arizona income tax returns for tax years beginning on or after December...
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Power to Replace Trustee Does Not Increase Taxable Estate
IRC Sec. 2036(a) requires the inclusion in the gross estate of property transferred by the decedent if the decedent has retained 1) possession or enjoyment of, or the right to the income from, the property or 2) the right (alone or in conjunction with...
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Public Accounting: The Times They Are a Changin'
After a newspaper jumped the gun and published his obituary, Mark Twain responded that "(t)he report of my death was an exaggeration." So it may also be said of public accounting that the reports of its demise as a distinguished profession are also vastly...
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Reconsidering CPA Experience Requirements
Non-uniform, sometimes outmoded, experience requirements for CPAs among the 50 states and four other jurisdictions often impose a burden on the CPA candidate and tend to restrict entry into the profession. This may be justified if the requirements serve...
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Solving the Documentation Dilemma
Our story opens in the offices of the accounting firm Thomas & Company. Gale Thomas, the partner-in-charge of the Smith audit, is sitting in her corner office struggling with what to do about her client's current liquidity problem. Smith's collections...
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Stock-Based Compensation: Estimating Option Values
The FASB created controversy last year when it released its exposure draft entitled Accounting for Stock-Based Compensation. The new accounting standard would affect employers that use stock options and similar devices. Under current rules, contained...
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The Editors Look Back at a Busy and Active Year
In almost every sector of, or sphere of influence on, the profession, there was activity in 1994, some of which was very significant and of utmost importance.Accountants' LiabilityLimited Liability Entities Come of Age. Perhaps the most visible area...
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The New IRS Approach to Nonfilers and Nonpayers
As part of its ongoing efforts to improve tax compliance, the IRS recently adopted a carrot-and-stick approach toward unfiled tax returns and unpaid taxes. Individuals who fail to file returns or pay taxes face an aggressive campaign of investigation...
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There Is No Such Thing as a Perfect Merger or Acquisition
There are many articles and publications that talk about a merger or acquisition's tangible considerations, such as insurance coverage, engagement letters, office procedures, personnel, compatibility of fringe benefits, etc. Although these are important,...
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Understanding Banking in the '90S
With interest rates relatively low, a growing economy, and many problem loans now behind them, bankers are again aggressively marketing loans to small and medium-sized businesses. Banking, like most industries, has undergone tremendous changes in its...
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