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. 73, No. 9, September

Benefits of Forming a Voluntary Employees Beneficiary Association
Although they have been in existence since 1928, Voluntary Employees Beneficiary Associations (VEBA) are not well known or understood. VEBAs allow an employer that joins to receive a current tax deduction while putting away funds that are not currently...
Cash Flow: The Artistry of Accounting
Cash flow is essential to a business' health and is often a reliable indicator of the business' income opportunities. Cash flow can reveal how a proprietor has allocated available funding. Has it been used carefully, wisely, and to good business advantage?...
Comprehensive Financial Advice from a Team of Trusted Professionals
A recent survey found that 68% of affluent investors (investable assets of more than $100,000 or net worth of more than $500,000) use financial planning advice, but only 5% of these sought such advice from their CPAs. According to the 2002 SEI Research...
E-Filing: The Ups and Downs
Electronic tax filing for individuals was used first in 1986. In that year, only five preparers participated in the program and approximately 25,000 returns were filed electronically. By 1993, the number of returns filed electronically had grown to more...
Ensuring Smooth Succession and Retirement
New directions for business ownersAccording to the Wilshire Associates 2003 Corporate Funding Survey on Pensions, defined benefit pension plan assets for the 320 S&P 500 companies that have them dropped by $106 billion to $892 billion, while liabilities...
Estate Planning for Business Owners
Foresighted valuations help maintain wealthThe complexity of estate planning increases markedly when the subject of the plan is a business owner. The taxpayer's business interests can complicate the usual planning considerations in designing a strategy...
Exotic Embezzling: Investigating Off-Book Fraud Schemes
For obvious reasons, cash is the asset most often stolen by dishonest employees. Fraudsters typically target cash as it enters or leaves the business. Thoroughly understanding the controls and procedures in place for processing cash flowing through a...
Gatekeepers and Transition
The New York State Senate unanimously passed legislation that would change the categories of services rendered by CPA firms. The Senate vote will carry over to the 2004 session, and if the Assembly also passes the bill, we will have the first significant...
In Defense of Defined Contribution Plans
The number of defined benefit plans has steadily decreased over the last several years. According to Department of Labor data collected from Form 5500s, 31% of all active plan participants were covered under a defined benefit plan in 1998, down from...
Investment Advice Fees of Estates and Trusts Subject to 2% Floor
In Scott v. U.S. [2003 U.S. App. LEXIS 8293, aff'g. 186 F.Supp.2d 664 (2002)], the Fourth Circuit ruled that investment advice fees paid by a trust or estate are a miscellaneous itemized deduction subject to the 2% of adjusted gross income (AGI) floor...
Long-Term Care Insurance
Protective strategies for the futureThe need to consider long-term care plans and long-term care insurance (LTCI) long before retirement is increasingly evident. The growing number of seniors in the United States face sobering threats to their financial...
Looking into the Future with Institute of Management Accountants Chair Kim R. Wallin, CMA, CFM, CPA
The CPA Journal ProfileWith 67,000 members and 265 chapters, the Institute of Management Accountants (IMA) is the world's largest organization dedicated to advancing management accounting and financial management serving individual professionals and...
Minimizing Social Security Taxes in Spousal Businesses
Both spouses will usually work in a small, family-owned business and participate toward its success. Most spouses simply divide up the work without questioning how federal tax law will characterize their relationship with the business.The tax issues...
Opening the Door of Equal Opportunity
Publisher's ColumnWhen the book A White-Collar Profession: African-American Certified Public Accountants since 1991 was reviewed in the March 2003 CPA Journal, I picked up a copy because, as a U.S. history aficionado with a strong interest in race relations,...
Pension Accounting and Personal Saving
According to the U.S. Department of Commerce, the personal saving rate in the United States has declined dramatically, from 10.6% of disposable personal income in 1984 to a low of 2.3% in 2001, before climbing to 3.9% in 2002. Debate rages over the reasons...
Sarbanes-Oxley: Is Reconsideration Warranted?
Personal ViewpointOur federal government has a tradition of reconsidering laws; for example, Prohibition in the 1930s. Many may believe that the Sarbanes-Oxley Act was a brilliant strategy that responded to a serious problem, but is it wise or appropriate...
Shorter Cycles, Increased Demands Influence How CFOs Meet New Objectives
According to a recent survey of financial executives conducted by CFO Research Services and Comshare, Inc., 89% of finance executives surveyed said their CEO wants the finance function to provide analysis of business unit performance on demand, yet only...
Single Audits
SINGLE AUDITS By Rhett D. Harrell Aspen Publishers, Inc.; 620 pages; $225 paperback; ISBN: 0735532788Single Audits is one of several books published by Aspen Publishers' Law & Business Division in its ongoing Miller Series. The book includes a CD-ROM...
Split-Dollar Life Insurance
A plan that will bear fruitIn January 2002, the IRS published Notice 2002-8 (which replaced Notice 2001-10) to clarify the taxation of equity split-dollar arrangements and to outline the conditions for providing a safe harbor for life insurance plans...
Tax Decisions Affecting Rent-Stabilized and Rent-Controlled Tenants
Tax decisions could directly affect the rights of New York City tenants to keep their rent-stabilized or rent-controlled apartments. Often, an apartment has become a vital center of life, where the family has lived for years and raised children. For...
Tell the Truth, Unless It Hurts
Personal ViewpointTell the truth, unless it hurts-or unless it's politically dangerous. "We can't stand by and let accountants wearing green eyeshades decide who is going to get the American dream," said Senator Barbara Boxer (D-Calif.) before a Silicon...
The Bacon-Marlborough Dispute: A Case Study in Mediation
The recent dispute between the Estate of Francis Bacon, one of England's most important 20th-century painters, and the prestigious London gallery Marlborough Fine Art-described in the British press as "one of the most bitter art wrangles in decades"...
The Successful Investor Today: 14 Simple Truths You Must Know When You Invest
Book Reviews THE SUCCESSFUL INVESTOR TODAY: 14 SIMPLE TRUTHS YOU MUST KNOW WHEN YOU INVEST By Larry E. Swedroe St. Martin's Press, Truman Talley Books; 352 pages; $25.95; ISBN: 0312309791When Larry Swedroe spoke at the NYSSCPA's recent Personal Financial...
Toward Research and Development Costs Harmonization
Research and development (R&D) activities have become an increasingly important share of an enterprise's expenditures and worth. The accounting for R&D costs varies considerably by jurisdiction around the world. The different approaches can distort...
Website of the Month: Ihatefinancialplanning.com
What to BookmarkDon't be fooled by the name: www.ihatefinancialplanning.com (IHFP) is a fun, resource-packed website that provides effective financial planning information and tools. The website is designed for nonexperts, but practitioners will find...