The National Public Accountant

The monthly journal of the National Society of Public Accountants. Articles cover industry trends, regulations, legislation, and current issues affecting the practice of public accountancy.

Articles from Vol. 38, No. 10, October

Anatomy of a Compromise: The Revenue Reconciliation Act of 1993
Before you invest a lot of time in planning strategies to educate your clients regarding the impact of the Revenue Reconciliation Act of 1993 and possible ways to reduce that impact, it is worth a few minutes to take a look back and see exactly how...
Award of Litigation Costs to Taxpayer
Under IRC Section 7430, a tax payer who prevails against the Service in a court proceeding may recover costs of litigation. In order to qualify for this relief, a taxpayer must prove, among other things, that the Service's position was not "substantially...
Beware! Revised Tax Preparer Penalties Come into Full Swing
Tax preparers who have traditionally taken aggressive positions concerning tax liability for their clients may want to rethink their position as recent changes in regulations concerning preparer penalties come into full swing. The Tax Reform Act...
Damages after Burke: Tax-Free Claims
The exclusion of damages provided for in Internal Revenue Code (I.R.C.) Section 104 constitutes f the most significant exclusions from gross e contained in the I.R.C. Controversy has arisen in recent years over the application of I.R.C. Section 104(a)(2)....
Liquidation of Partnerships
Last month we discussed the formation of partnerships, how to distribute income among partners and what happens when a new partner enters or an old partner leaves the business. Now we'll turn our attention to the liquidation of a partnership. We...
One Time Only!! Excluding Capital Gains on Home Sales
With the passage of the Tax Reform Act of 1986, several commonly used and popular tax deductions were either eliminated or substantially modified. One source of tax benefits that for the most part survived tax reform are those related to home ownership....
Some Relief for Flood Victims
When a taxpayer's property is destroyed as a result of fire, earthquake, flood, hurricane, vandalism or similar event, the loss can give rise to a tax deduction. To be deductible as a casualty loss, the property must be damaged, lost or destroyed by...
State Taxation of Federal Civilian and Military Retirees
In 1989 the U.S. Supreme Court ruled that states may not discriminate against Federal retirees by taxing Federal retirement income differently than the retirement income of state employers (Davis v. Michigan Department of the Treasury 489 U.S. 803)....
State Taxation of Former Residents' Pension - the Source Tax
Concerns over the source tax have been with us for several years. In the October, 1991, Washington Comment column, we discussed at some length the source tax. That column was subsequently reproduced in the February 3, 1992, Congressional Record. Although...
The New GAAP Hierarchy
In an unqualified opinion, the auditor states that a client's financial statements "present fairly ... in conformity with generally accepted accounting principles." The phrase "generally accepted accounting principles" (GAAP) is defined in SAS 69,...