California CPA articles from January 2006

California CPA archives from January 2006

Who are you? New member ID cards.(CalCPA News)
January 1, 2006... CalCPA and the California CPA Education Foundation have merged their member ID numbers and soon you'll receive a new member ID card. Please note that while some member ID numbers changed, others did not. [ILLUSTRATION OMITTED] If you...

2006 Business and Industry Conference.(Education Foundation News)(Brief article)
January 1, 2006... Tune into emerging trends in financial management; changes in compliance and reporting; and human resource issues at the 2006 Business and Industry Conference. Specific topics to be discussed include salary and benefit trends; recruiting,...

Independence in Compilation Engagements.(AICPA News)
January 1, 2006... The AICPA's Accounting and Review Services Committee has issued a survey, The Need for Independence in Compilation Engagements, to collect input from CPAs and their clients on the need for independence when performing compilation engagements....

I'm going to begin a practice.(News & Trends)
January 1, 2006... "I'm going to begin a practice to not make specific recommendations on tax cuts or spending proposals." Ben Bernanke, incoming Federal Reserve Chair

More audits in 2005.(Brief article)
January 1, 2006... The IRS' beefed-up enforcement efforts have led to record revenues in 2005. Look for the trend of more audits of individual taxpayers, high-income taxpayers and businesses to continue in 2006. FY04 FY05 ...

Automatic six-month extension.(automatic six-month tax-filing extension without a reason )(Brief article)
January 1, 2006... Individual and business taxpayers can request an automatic six-month tax-filing extension without a reason or a signature under new IRS regulations effective Jan. 1, 2006. [ILLUSTRATION OMITTED] The regulations streamline extension...

Estate Planning Institute Newport Beach, Jan. 19-20.(EDUCATION FOUNDATION FOCUS)
January 1, 2006... Retirement benefits, property tax, charitable planning and FLP/LLC strategies are just some of the topics to be discussed at the California CPA Education Foundation's 2006 Advanced Estate Planning Institute Jan. 19-20 in Newport Beach. ...

New election for S corp shareholders.(Brief article)
January 1, 2006... The 2004 American Jobs Creation Act increased the maximum number of eligible shareholders that an S corporation may have from 75 to 100 and allows any member of a family to elect to treat all members of that family as one shareholder in...

E-filing waiver guidance.(News & Trends)
January 1, 2006... IRS Notice 2005-88 establishes the basis under which corporations and tax-exempt organizations can seek waivers from e-filing requirements and outlines steps taxpayers should follow when making the request. For more information, visit...

2006 standard mileage rates.(News & Trends)(Brief article)
January 1, 2006... Beginning Jan. 1, 2006, the standard mileage rates used by the IRS to calculate the deductible costs of operating an automobile is 44.5 cents per mile for business miles driven; 18 cents per mile driven for medical or moving purposes; and 14...

AB 115 conformity bill explained.(FTB News)(Brief article)
January 1, 2006... The FTB has released Legislative Change Notice 05-26, which explains the impact of AB 115 to California income tax law. AB 115, passed in October 2005, conforms California personal income and corporate tax laws with many of the federal tax...

FASB rethinks Pensions, other Postretirement Benefits.(FASB News)
January 1, 2006... FASB will address concerns about measurement of assets and liabilities; consolidation; and reporting of financial performance in Statement No. 87, Employers' Accounting for Pensions, and Statement No. 106, Employers' Accounting for...

Playing it safe: mitigate the risks of tax season.(News & Trends)
January 1, 2006... CPAs wading into tax season should be aware of heightened exposure to liability, according to CAMICO Mutual Insurance Company. However, CPAs can take the following steps to mitigate the risks associated with tax work: * Re-evaluate all...

FTB's top five e-filing errors.(News & Trends)
January 1, 2006... The top five reject reasons for e-filed practitioner returns, according to the FTB: Reject Code: 902 The Declaration Control Number has been used on a previously accepted return. Reject Tip: Most likely a duplicate return issue. If...

Report: Auditing Standard No. 2.(PCAOB News)
January 1, 2006... The PCAOB has issued a report on Auditing Standard No. 2, An Audit of Internal Control Over Financial Reporting Performed in Conjunction with an Audit of Financial Statements, noting that firms and issuers faced "enormous challenges," including...

Ohio offers Tax Amnesty.(Ohio Department of Taxation's 2006 Tax Amnesty Program)(Brief article)
January 1, 2006... The Ohio Department of Taxation will offer a six-week 2006 Tax Amnesty Program for individuals and businesses Jan. 1-Feb. 15, 2006. The program enables delinquent taxpayers to pay back taxes during this time without penalty. Additionally,...

California limits faxing as of Jan. 1.(California Law)(Brief article)
January 1, 2006... A new California law (SB 833) regarding commercial fax communications took effect Jan. 1, 2006, and prohibits any person or organization from sending unsolicited faxes without the prior consent of the recipient, if either the sender or...

DOL targets employee benefit plans.(Benefit Plans)
January 1, 2006... The Department of Labor's Employee Benefits Security Administration (EBSA) has begun a new enforcement initiative to monitor the quality of audits of employee benefit plans subject to the Employee Retirement Income Security Act. EBSA's...

New Roth 401(k) plan.(News & Trends)
January 1, 2006... Starting Jan. 1, 2006, employers can offer Roth 401(k) plans, which combine features of the traditional 401(k) with those of the Roth IRA. Like traditional 401(k) plans, Roth 401(k) contributions are taken out of a participant's paycheck...

Campbell heads to Congress.(Member News)
January 1, 2006... CalCPA member John Campbell, CPA, has been elected to the U.S. Congress representing the 48th District in Orange County. Campbell will serve a one-year term in the office vacated by Christopher Cox, who was appointed chairman of the SEC...

William "Bill" McGinnis, CPA.(IN MEMORIAM)
January 1, 2006... William "Bill" McGinnis, CPA, a former San Joaquin Chapter president, died Oct. 10, 2005. He was 64. McGinnis, a 24-year CPA, served as the San Joaquin Chapter president in 1994. Born in Clinton, Ohio, McGinnis graduated from CSU-Stanislaus...

Clifford H. Asay, CPA.(IN MEMORIAM)
January 1, 2006... Former San Diego Chapter president Clifford H Asay, CPA, died in November. He was 80. Asay was president of the San Diego Chapter in 1974-75, and served on the CalCPA Board (now CalCPA Council). He continued his practice, La Mesa-based...

Announcements.(appointments)(Brief article)
January 1, 2006... San Diego-based James Iaco was appointed executive vice president of Mirant... Sacramento-based Kevin Riley has joined Rossmann MacDonald & Benetti, Inc. as a shareholder... Jennifer Canova was promoted to audit manager at Lindquist LLP in...

Accomplishments.(Kip Dellinger presents at Annual Meeting of the California Bar Tax Section )(Brief article)
January 1, 2006... San Francisco-based Diane Rubin became chair of the National Association of State Boards of Accountancy Nov. 1... Los Angeles-based Kip Dellinger gave a presentation at the Annual Meeting of the California Bar Tax Section and the UCLA Tax...

Awards.(member milestones)
January 1, 2006... Modesto-based Michael Pimentel was honored as the Outstanding Business Alumni for the College of Business Administration at CSU-Stanislaus... Irvine-based Haskell & White received a Distinguished Achievement Award from the Orange County...

Firm news.(member milestones)
January 1, 2006... Lincoln-based David Masche sold his practice in Jackson... El Centro-based Jeffery Nunn & Associates has sold its practice to Glendale-based Hutchinson and Bloodgood LLP. Send Member Milestones to: felicia.rodriguez@calcpa.org. If...

Members in the news.
January 1, 2006... Agoura Hills-based David Gittelson, Los Angeles-based Mark Bagaason, Tarzana-based Mike Landau, Encino-based Tony Rose, North Hollywood-based Mannon Kaplan and Woodland Hills-based Greg Lippe were quoted in the Oct. 24 San Fernando Valley...

Keeping up: meeting SOX challenges.(Q & A)(Company Profile)(Cover Story)
January 1, 2006... The shift in accounting brought on by the Sarbanes-Oxley Act and its key provision, Sec. 404, that requires public companies to thoroughly survey and vouch for the adequacy of their internal controls, continues to reverberate throughout...

Teach them well: mentoring programs go a long way toward staff retention, development.
January 1, 2006... Any accounting firm wooing young accountants in the past few years knows that competition is fierce. The profession's growth, coupled with a finite pool of candidates, has accounting firms dangling higher starting salaries, beefed-up...

Do it right: terminating employees means paying careful attention to employment law.(EMPLOYMENT LAW)
January 1, 2006... The general rule in California is that employment is "at will," meaning that employees may be terminated for any reason with or without prior notice. But if that is the case, then why are there so many wrongful termination lawsuits? This...

Plugs in a row: coordination between accounting, IT key to planning, recording projects.
January 1, 2006... For years, accounting and information technology have operated in two different worlds. Chief information officers generally have left the accounting issues to accountants, while accountants have left IT managers to attend to their managerial...

The IRS speaks: bankruptcy, OICs, e-filing highlight Liaison meeting.(Offers-in-Compromise)
January 1, 2006... Bankruptcy law, examinations, offers-in-compromise, e-filing and practitioner enforcement were among the issues discussed at CalCPA's 2005 IRS Liaison meeting. Bankruptcy Abuse Prevention Act Pat Montero, an attorney in the Small...

Extraordinary: CalCPA salutes its financial literacy and student outreach volunteers.(CalCPA VOLUNTEERS)
January 1, 2006... In recognition of their extraordinary work to improve the financial knowledge of Californians and to build awareness of CPA careers, CalCPA salutes and extends its gratitude to our devoted financial literacy and student outreach volunteers. You...

Thank you CPA-PAC contributors!(Brief article)
January 1, 2006... Political action plays a crucial role in CalCPA's ongoing efforts to protect and enhance our profession. Our success depends heavily on a Legislature that understands the importance of CPAs and our profession--which is why CPA-PAC works so...

Alarmed: has the IRS ventured into fee setting?(Internal Revenue Service)
January 1, 2006... Before they get barraged by questions from clients, tax practitioners may want to review the 2005 1040 instructions with taxpayers this year--especially those that appear on Page 79 of the booklet, www.irs.gov/pub/irs-pdf/i1040gi.pdf. On...

Interest suspension: plus: employment law and partnership agreements.
January 1, 2006... The FTB has announced it will follow the federal rule for interest suspension on amended returns. The IRS released Rev. Rul. 2005-4 Jan. 7, 2005, which held that the interest suspension period of Sec. 6404(g) applies to deficiency notices...