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. 62, No. 11, November

Alternative Minimum Tax Net Operating Losses and Individual Taxpayers
Unfortunately, in the current economic climate many individual taxpayer's have net operating losses (NOLs) on their individual income tax returns. Fortunately, Sec. 172(b) allows for the carrying back and/or forward of these losses to create refund claims...
Analytical Procedures That Work
Many CPAs use computers to improve the speed of their tasks. However, using computers to change approaches or methods of performing audits is less widespread. The analytical approach presented here is a unique use of computer power that goes beyond...
Auditing: Should the Client Be Accepted?
The decision to accept a new audit engagement, and the procedures a firm performs in investigating prospective clients are important in the management of a CPA firm's practice. Of course, some prospective clients are of such high repute there is line...
Computers in Accounting: For the Brave, a New World
The advent of the microcomputer in the early 1980s stands as a major turning point in how accountants perform their jobs. To a remarkable degree, green eyeshades have been replaced by green screens, and yellow number two pencils have given way to amber-colored...
Computer Technology and the CPA
The CPA Journal's computer editor Mark A. Plostock traveled to Atlanta, Georgia for the AICPA Eleventh Annual Microcomputer conference to interview some leaders n the field of microcomputer usage in accounting firms and departments industry. The panel...
Decision Support Tools for Choosing Accounting Software
Whether you are choosing an accounting software package for a client's business or selecting software for use in your own company, there are many reasons why this decision is important. One reason is the large number of choices available to small or...
Delay on Sale of Residence Does Not Foreclose Rollover
A taxpayer who purchased a home with her boyfriend in 1975 moved out of that home in 1979 due to the deterioration of the relationship. She left her furniture and other belongings in the house and moved to Baltimore, renting an apartment there. Meanwhile,...
Developments in Technology: Accounting
The architecture of the next generation of accounting software is being designed to operate on multiple platforms. These platforms include different operating environments, network configurations, client-server databases, interfaces, and applications.ACCPAC...
Developments in Technology: Taxation
Ease-of-data entry and rapid calculations are features of contemporary tax preparation products. TurboTax's ProSeries/1040 and MicroVision's Tax Relief both facilitate data entry by providing input screens that match the IRS forms. Tax calculations are...
DOS: Disaster or Security?
Why do you format disks? Are you trying to eliminate data that is no longer needed? Do you care if anyone else sees this data? If the answer is "yes" and you are using DOS 5.0, we have something to tell you!Beware! Under the standard format with DOS...
Early Distributions and the 10% 'Penalty'
Under IRC Sec. 72(t), taxpayers are penalized for receiving early distributions from qualified retirement plans before age 59-1/2. The penalty is 10% of the amount received and included in gross income by a participant (employee) from a qualified retirement...
Electronic Filing, a Midterm Report
Despite the rapid growth in electronic filing, many CPA firms are reluctant to take part in the program. The authors give a report card on the program and its participants to date and provide advice to those who haven't joined yet.In 1985 an IRS research...
Information Technology: The Third Wave
Information technology (IT) is changing everything. It represents a new, post-industrial model of wealth creation that is replacing the industrial model and is profoundly changing the way business is done. Because of these changes in business, the decisions...
Landmark Casts Doubt on IRS Position
The IRS' continuing campaign to apply IRC Sec. 277 to the commercial rent and investment income of cooperative housing corporations may have run into a snag as a result of the Court of Claims decision in Landmark, Inc. and its Subsidiaries v. The U.S....
New York Clarifies Law as to Insurable Interests of Charities
Life insurance can be an interesting tool in charitable gift plans. For instance, a term-life policy might be used to satisfy a significant charitable pledge.In PLR 3110016, the IRS considered the question of whether a past contributor to a charity could...
New York Treatment of Dividends from Subsidiaries
Taxpayers and practitioners who are unaware of the changes made by recent legislation concerning corporate acquisitions might mistakenly conclude that a parent company can exclude from entire net income all current and prior dividends received from a...
Recent U.S. Supreme Court Decisions on State and Local Tax Issues
The March 1992 issue of The CPA Journal addressed three cases that were to be reviewed by the U.S. Supreme Court during the term ending May 1992. Decisions have now been handed down on these and other cases relating to state and local tax issues. They...
SAS 70: Reports on the Processing of Transactions by Service Organizations
The "expectation gap" SASs significantly changed auditing standards, but none more so than did SAS 55. It has led to an extensive rewrite of SAS 44 Special-Purpose Reports on Internal Accounting Control at Service Organizations. After three years work,...
Stock Restrictions Disqualify Marital Deduction
A common feature of a family-owned, or closely-held corporation is restrictions on the transferability of stock. These restrictions may be in the form of a right of first refusal, an option held by other shareholders to buy at a reduced price, or a prohibition...
Taxation of Sale of Real Property by S Corporation
S corporations that sell appreciated real estate in New York City are subject to an array of tax considerations.There are three special taxes on gains and transfers:NY State Gain Tax on Real Property Transfers (1441, Art 31-B Tax Law), popularly known...
The CPA Manager: How to Have Happy Clients
There are three key aspects to managing your client relationships: 1) manage the clients; 2) manage the tangibles; and 3) manage your people.MANAGE THE CLIENTSAn important factor in increasing your chances for a client-relations win is to help the client...
The Jeopardy of Leaving Your IRA to a Trust
An owner of an Individual Retirement Account may provide that, in the event of his or her death, the balance in the account is to be distributed to a trust. The question then arises as to what method of distribution is to be utilized when the trust makes...
Withdrawals from IRA without 10% Penalty
When planning for a period that will span many years, it is essential to project the financial effect so that risk, commitment, and the desired results can be evaluated. This is particularly true for an individual who needs cash, is under the age of...