Journal of Accountancy articles from January 2008

Journal of Accountancy archives from January 2008

Prudent investment practices: CPAs who provide investment advice to their clients will be held to a fiduciary's civil standard of conduct. Thus, it is prudent to know and understand best practices for fiduciaries.(certified public accountants)
January 1, 2008... * Organize your practice to provide competent, objective advice to the client's satisfaction, starting with a complete understanding and awareness of the duties of a fiduciary adviser (including loyalty, due care and full disclosure). *...

Donor-advised funds: preparing for closer scrutiny: more restrictions may await this popular way to give.
January 1, 2008... [ILLUSTRATION OMITTED] EXECUTIVE SUMMARY * Donor-advised funds (DAFs), as an alternative to private foundations, have been a popular means of charitable giving, but fund managers, donors and their advisers must reckon with new laws and...

Life insurance: what's it worth? And who says? Pension Protection Act forces appraisers of donated policies to reassess methods, qualifications.
January 1, 2008... [ILLUSTRATION OMITTED] EXECUTIVE SUMMARY * Gifts of life insurance policies to not-for-profit organizations can benefit both the organization and the donor, the latter in the form of an often sizeable income tax deduction. However,...

Driving change: a voice for private companies.(Private Company Financial Reporting Committee chair Judith O'Dell)(Interview)
January 1, 2008... [ILLUSTRATION OMITTED] Judith O'Dell is the chair of the Private Company Financial Reporting Committee, which advises FASB and advocates for private companies on matters of existing and prospective accounting standards. The permanent...

Risk assessment standards in action.
January 1, 2008... [ILLUSTRATION OMITTED] Eight standards rolled out in 2006 by the Auditing Standards Board are sparking a cultural shift for auditors. The standards--Statement on Auditing Standards nos. 104-111--are designed to enhance auditors'...

Mastering the payment card industry standard: private framework seeks to shield credit and debit card account information.
January 1, 2008... [ILLUSTRATION OMITTED] EXECUTIVE SUMMARY * Becoming familiar with the Payment Card Industry Data Security Standard is a prerequisite to understanding the regulatory environment in which many businesses that accept credit and debit...

Letting go: evaluating and firing clients: spend quality time on your "A" list clients.
January 1, 2008... [ILLUSTRATION OMITTED] EXECUTIVE SUMMARY * When a firm hits the critical point of needing talented employees but can't afford to pay the market rate to hire them, it is time to look at reducing the client load. * Evaluating the...

A united profession: a force for prosperity and the public good.(Speech)
January 1, 2008... [ILLUSTRATION OMITTED] I have occasionally awakened at night worrying how on earth I can represent the interests of more than 340,000 CPAs who work in business and industry, government, nonprofits, education, private practice, and public...

Make tax research less taxing: information to help you choose from among several Web-based premium and economy tax research services.
January 1, 2008... [ILLUSTRATION OMITTED] Selecting a Web-based tax research service is not a simple task. Commercial publishers offer a variety of premium and economy plans that can be bundled and priced in many ways. The variations make the selection...

The intersection of FIN 48 and tax opinions.(Financial Accounting Standards Board interpretation #48 on accounting for uncertainty in income taxes)
January 1, 2008... [ILLUSTRATION OMITTED] FASB's Interpretation no. 48, Accounting for Uncertainty in Income Taxes, has changed how enterprises recognize and measure tax benefits associated with tax positions and disclose in their financial statements...

Privilege claims under fire.
January 1, 2008... Despite some legal setbacks, the IRS has signaled it will continue to press for a strict reading of the work product privilege that protects taxpayer documents from discovery. With Action on Decision 2007-004, the IRS said it will not acquiesce...

Pension is not alimony.(Commissioner v. Dunkin)
January 1, 2008... In a split decision, the Ninth Circuit Court of Appeals reversed the Tax Court to hold that a taxpayer could not deduct as alimony the half-interest in his vested pension benefits he paid his ex-wife under a California divorce decree. The...

Pension is alimony.(Proctor v. Commissioner)
January 1, 2008... The Tax Court recently ruled that a taxpayer's payments to an ex-spouse under the Uniform Services Former Spouse Protection Act (USFSPA) representing her share of his military retirement pay were deductible alimony payments. The court...

FICA for medical residents splits circuits.(Federal Insurance Contributions Act)(United States v. Mount Sinai Medical Center)
January 1, 2008... Medical residents in a teaching hospital might be eligible for a student exemption from FICA taxes, a circuit court ruled recently, adding to a split among circuits on the issue. The Eleventh Circuit vacated and remanded the decision of a...

IRS simplifies late filing relief.
January 1, 2008... In Rev. Proc. 2007-62 (released Oct. 9, 2007), the IRS has provided a new simplified method for taxpayers to request relief for late S corporation elections. A small business corporation may make an election to be an S corporation at any...

AICPA ... where to turn. (American Institute of Certified Public Accountants) (Directory)
January 1, 2008... Member Service Center 1-88-777-7077 * Option #1 Order/CPE/Conference Inquiries * Option #2 AICPA Membership Inquiries Including Dues * Option #3 Webcast/AICPA.org Web Site/CPA2Biz Including Log In & Access Inquiries * Option...

The last word. (accountant managing business, life, and political involvement)
January 1, 2008... Performing the duties of mayor of Fair Lawn, N.J., and managing a busy CPA practice in neighboring Teaneck is time-consuming. I usually stop at Borough Hall first thing in the morning to take care of correspondence, telephone calls and e-mails,...