California CPA articles from October 2004

California CPA archives from October 2004

First year of membership free for candidates.(CalCPA News)(Brief Article)
October 1, 2004... Do you know a CPA candidate who is not a CalCPA member? If so, let them in on this great opportunity: CalCPA is offering all CPA candidates their first year of membership free. New candidate members also receive $300 of free CPE. Other...

Become a CalCPA officer or AICPA Council member.(CalCPA News)
October 1, 2004... CalCPA's Nominations Committee is accepting nominations and biographies until Dec. 1 for 2005-06 officers and directors at large. Officer positions include chair, first vice chair, treasurer and vice chair. There are also council...

What's growing on? California's financial illiteracy.(News & Trends)(Brief Article)
October 1, 2004... 30% of Californians spend what they make each month or are accumulating debt. 47% of Californians have no pension or 401(k) plan. 63% of Californians with children are not saving anything or less than $100/month toward their children's...

Emerging third-tier firms challenge national firms.(Moving on Up)(Brief Article)
October 1, 2004... An emerging third-tier of CPA firms--offering middle-market companies alternatives to the Big Four and national firms--is becoming an increasingly competitive force according to Inside Public Accounting's 14th Annual Analysis of Firms. The...

Providing nonattest services to attest clients.(AICPA News)(Brief Article)
October 1, 2004... The AICPA's Professional Ethics Executive Committee adopted an additional revision to Interpretation 101-3, which provides that the general requirement to document in writing the understanding established with the client will not apply until...

FAQs.(News & Trends)
October 1, 2004... For FAQs on the general provisions of the rules, visit www.aicpa.org/download/ethics/nonattest_q_a.pdf. For FAQs on the performance of Information Technology Services, visit www.aicpa.org/download/ethics/QA_IT.pdf.

E-filing penalty relief passes.(Legislative News)(Brief Article)
October 1, 2004... Current law required most tax preparers to electronically file state tax forms beginning this year. Failure to comply could subject the tax preparer to a fine of $50 per return not electronically filed. CalCPA-sponsored legislation, AB 2480...

Interest rates increase for the fourth quarter.(IRS Update)(Brief Article)
October 1, 2004... There will be a one-percentage point increase in the interest rates for the calendar quarter beginning Oct. 1, the IRS reports. The interest rates are as follows: * 5 percent for overpayments (4 percent in the case of corporations);...

Federaltax update.(News & Trends)(Brief Article)
October 1, 2004... Stuart R. Josephs, CPA, of the San Diego-based Tax Assistance Practice, reports the following: NON-MANUAL PREPARER SIGNATURES NOW ALLOWED IRS Notice 2004-54 (IRB 2004-33, 8/16/04) authorizes income tax return preparers [as defined in...

New IRS e-services.(IRS Update)
October 1, 2004... The IRS is launching a new service to make technical guidance available in real time via e-mail. For more, visit www.irs.gov/newsroom/article/0,,id=127982,00.html. Also, taxpayer representatives now can view the core message of sample IRS...

IRS, Treasury issue depreciation guidance.(IRS Update)(Internal Revenue Service)(Brief Article)
October 1, 2004... The Treasury Department and IRS have issued guidance relating to the election to deduct the cost of certain tangible property and computer software. The regulations reflect changes made to the law by the 2003 Tax Act. For more, visit...

Withholding at source information return penalties.(FTB News)
October 1, 2004... The FTB has mailed notices charging penalties for failure to file correct or timely information returns and statements regarding withholding at source. The notices are a follow up to letters sent in November 2002 to all identified Form...

2005 tax amnesty program Q&A.(FTB News)
October 1, 2004... The FTB and Board of Equalization will administer a tax amnesty program for individuals and businesses beginning in early 2005. [ILLUSTRATION OMITTED] For preliminary information about the program, who is eligible to participate and...

Electronic signatures accepted next tax season.(FTB News)(Brief Article)
October 1, 2004... The FTB is adding electronic signature options to its e-file procedures, mirroring IRS procedures by allowing taxpayers and tax practitioners to sign using a personal identification number. Beginning January, the FTB will accept electronic...

Free e-file workshops from the FTB & IRS.(E-filing Events)(Franchise Tax Board)(Internal Revenue Service)(Brief Article)(Calendar)
October 1, 2004... The FTB and IRS are sponsoring free e-filing workshops across the state in October to familiarize tax preparers with the medium. The workshop dates include: * Oct. 18; 9 a.m.-3 p.m.; Double Tree; 2001 Point West Way; Sacramento * Oct....

Web focus: CalCPA.org.(News & Trends)(Brief Article)
October 1, 2004... CalCPA.org: The Next Generation CalCPA's website recently has undergone a major transformation that makes the site more flexible and user-friendly. Members soon will be able to sign up--and pay--for CPE and chapter events with a simple...

PCAOB releases audit report on the Big Four.(PCAOB Update)(Public Company Accounting Oversight Board )(Brief Article)
October 1, 2004... The PCAOB issued a report on preliminary inspections of the Big Four firms. They found that the Big Four often failed to find or didn't address misapplications of generally accepted accounting principles by audit clients. Specifically, the...

SEC approves no. 3.(PCAOB Update)(Brief Article)
October 1, 2004... The SEC has approved PCAOB Auditing Standard No. 3, Audit Documentation. The standard establishes general requirements for documentation an auditor should prepare and retain in connection with engagements conducted pursuant to PCAOB...

New whistleblower contact info.(PCAOB Update)(Public Company Accounting Oversight Board )(Brief Article)
October 1, 2004... The PCAOB has set up a new online form and toll-free number for the reporting of enforcement tips and complaints. The PCAOB is looking for tips on potential violations by a registered public accounting firm (or associated persons) of the...

Non-interactive self-study courses not CE for long.(CBA Update)(Brief Article)
October 1, 2004... Non-interactive self-study courses will not qualify as CE if they are completed after Dec. 31, 2004, according to the California Board of Accountancy. In addition, all paper-text courses will be required to be in an interactive format to...

CBA sunset extension includes major changes.(CBA Update)(California Board of Accountancy )(Brief Article)
October 1, 2004... The California Board of Accountancy made some major gains during the 2004 legislative session. Highlights of bills considered likely to be signed by the Governor included: AB 2150 (Levine), Cost Recovery, expands the CBA's authority to...

Firms with a CFP get a boost.(Survey Says)(Brief Article)
October 1, 2004... Firms with a CFP on staff had more than $300,000 more in revenue than firms with no CFP, according to the 2004 FPA Financial Performance Study, a study of 638 financial advisory firms sponsored by SEI Investments and produced by Moss Adams LLP....

Census: gender pay gap widens.(Survey Says)(Brief Article)
October 1, 2004... The gap in full-time pay widened between women and men last year, according to figures released by the U.S. Census Bureau. Women made 75.5 cents for every dollar a man made last year, a drop of 1.1 cents over 2002 figures. The median income...

Self-reporting guidelines issued.(NASBA News)(Brief Article)
October 1, 2004... CPA firms should self-report on their internal quality control procedures, as well as those of audit clients, according to proposed rules issued by the National Association of State Boards of Accountancy. NASBA is calling on all states to...

Tax Boot Camp.(Don't Miss this Year's)(Brief Article)
October 1, 2004... Tax Boot Camp is designed to prepare new staff of CalCPA members for tax season by providing hands-on training in return preparation, work paper technique, tax research and basic tax law. Students also practice computerized tax research,...

Spotlight members who have made a difference.(News & Trends)(CalCPA's Public Service Award )
October 1, 2004... Each year, CalCPA's Public Service Award recognizes a member for notable works done outside of the office--often for the betterment of the community or the assistance of the less fortunate, nearly always as a volunteer. And CalCPA's annual...

Announcements.(Member Mile Stones)(Smith, Lange & Phillips LLP)(Brief Article)
October 1, 2004... Tara Mros has joined the tax department of San Diego-based Lavine, Lofgren, Morris & Engelberg, LLP... Larisa Rapoport and Ryan Svoboda have been promoted to supervisor by San Francisco-based Smith, Lange & Phillips LLP... Mark Adler has...

Accomplishments.(Member Mile Stones)(Reish Luftman Reicher & Cohen)(Nightingale Financial Advisory)(Brief Article)
October 1, 2004... Jon Karp of Los Angeles-based Reish Luftman Reicher & Cohen, was honored with the Conference Volunteer of the Year Award by the California CPA Education Foundation... Ilene Eisen was chosen as one of Intuit's Spotlight Advisors... Glenn...

Awards.(Member Mile Stones)(Brief Article)
October 1, 2004... The Golden Gate University's School of Taxation is attempting to raise funds to institute a scholarship named in honor of Thomas G. Manolakas. Those interested in contributing to this tribute should send donations to: Thomas G. Manolakas...

Firm news.(Member Mile Stones)(Brief Article)
October 1, 2004... Lautze and Lautze CPAs and Financial Advisors of San Francisco announced the completion of its merger with San Jose-based Stephen P. Carter, CPA... Ramon Machado has establishment Orange-based accounting and financial services firm Machado &...

Members in the news.(Member Mile Stones)
October 1, 2004... Sheryl Rowling had an article published in The San Diego Business Journal July 26... Karen Goodfriend was quoted in an Associated Press story July 28... Howard Gordon wrote columns that appeared in the July 28 and Aug. 11 editions of The...

Session ends: many bills signed and thwarted that impact CPAs.
October 1, 2004... Another legislative session has ended in Sacramento. Updates on e-filing relief and the California Board of Accountancy can be found on pages 6 and 10, respectively. Other highlights include: Taxpayer Privilege AB 1416 (Bermudez)...

Acquisition mission: (a brief journey from theory to reality).
October 1, 2004... Has a client ever invited you to meet and discuss an acquisition? Usually, the meeting would include you, your client and the client's attorney discussing the acquisition target. You listen while the attorney describes the steps in the process,...

HSA to the rescue.(Health Insurance)
October 1, 2004... You have seen the headlines: "Health Insurance for Workers Now Most Expensive Benefit for Employers, Study Finds," "New Way to Curb Medical Costs: Make Employees Feel the Sting," or "Health Insurance Costs Increase for Smaller Firms, Says...

Document, document, document.(Loud & Clear)
October 1, 2004... With the passage of recent legislation, California Business & Professions Code Sec. 5097-8, that was effective Jan. 1, 2003, the California Board of Accountancy adopted corresponding regulations that became effective Jan. 23, 2004. All...

Seven deadly habits: CPAs serving as fiduciaries must avoid common investment pitfalls.(Estate Planning)
October 1, 2004... Many CPAs have clients who serve as fiduciaries, and recently we, as CPAs, have started serving as fiduciaries ourselves. Given the growing reliance on CPAs--as financial complexity and personal liability increases--that trend is likely to...

Resources at your fingertips: our annual look at the best online resources for CPAs.(Fab 50 Hot Internet Resources for CPAs)
October 1, 2004... ACCOUNTING & AUDITING www.fasb.org FASB's site provides quick access to authoritative statements, publications and exposure drafts. www.pcaobus.org The Public Company Accounting Oversight Board's website features information on rules...

Tips for avoiding common NOL errors.(Federal Tax Tips)(net operating losses)
October 1, 2004... TAX PRACTITIONERS CAN SPEED UP the processing of net operating losses by avoiding some common errors. Individuals, estates and trusts may have an NOL if deductions exceed income for the year. Taxpayers can use an NOL by deducting it from...

Defective grantor trusts: new IRS ruling enhances estate planning.(Federal Tax Tips)( Internal Revenue Service)
October 1, 2004... Rev. Rul. 2004-64 (IRB 2004-27, July 6, 2004) favorably answered the question of whether a trust's grantor would not be making gifts to the trust's beneficiaries if the grantor pays the income tax on the trust's income in the right...