Journal of Accountancy articles from July 2005

Journal of Accountancy archives from July 2005

A firm vindicated; a profession enhanced.(President's Page)
July 1, 2005... The unanimous U.S. Supreme Court decision to overturn the criminal conviction of Arthur Andersen must represent a bittersweet victory for the approximately 28,000 employees who lost their jobs and, in many cases, their pensions when the...

EBSA-enhanced programs to assess plan audit quality: AICPA issues new alert and guide to address issues.(Employee Benefits Security Administration)
July 1, 2005... The Employee Benefits Security Administration (EBSA) is enhancing its programs aimed at assessing and improving the quality of employee benefit plan audits. According to the EBSA, 37 public accounting firms audit more than 100 plans that...

A vision fulfilled: the computerized exam after one year: there is much to celebrate, and work still to be done.
July 1, 2005... EXECUTIVE SUMMARY * THE NEW EXAM REPRESENTS STATE-OF-THE-ART technology and provides a platform on which the content can be continuously improved. * PASS RATES FOR FIRST YEAR OF THE CBT have overtaken pass rates for the paper-based...

Promises to keep.(social security reform)
July 1, 2005... A fair agreement makes all parties to it grumble equally, people say--so get ready to grumble. Proposals on how best to modify Social Security to ensure its long-term viability but not betray soon-to-retire baby boomers or overburden the...

Play by the rules: IRC section 409A imposes new requirements on nonqualified deferred compensation.
July 1, 2005... EXECUTIVE SUMMARY * THE AMERICAN JOBS CREATION ACT ADDED IRC section 409A and significantly changed the rules for nonqualified deferred compensation plans. For a deferral to escape current taxation, it must be subject to a substantial risk...

CPAs building financial services practices: firms of all sizes are successfully balancing client interests and pressure for new revenue.(certified public accountants)
July 1, 2005... As record numbers of Americans approach retirement age amid uncertainty about their social security and pension benefits, CPAs increasingly are offering financial planning services to their clients to cement relationships and uncover new...

Executive profile: Yank Heisler: CEO, McDonald Financial Group and chairman of KeyBank, N.A.(chief executive officer)(Interview)
July 1, 2005... Yank, why is now such an important time for investors, particularly those who are high-net worth (HNW) individuals and small business owners? This generation is on the verge of one of the largest intergenerational transfers of wealth in...

Top estate planning mistakes for practitioners to avoid.
July 1, 2005... Because the adviser is held to a high standard, the consequences of a mistake can be as severe to the accountant as those visited on the client, particularly when the client becomes aware of the lost opportunity. Common Errors 1....

Nothing succeeds like succession: the basis of a firm's value is its vigor as a going concern.
July 1, 2005... EXECUTIVE SUMMARY * SENIOR PARTNERS AT CPA FIRMS NEED TO PLAN how they will cash out of their practices. A firm's revenues greatly depend on clients' repeat business, so however partners choose to exit, maximizing value when they leave...

E-mail express: an easy way to send many customized messages.
July 1, 2005... How would you like to set up a mass mailing of custom e-mail blasts? Such a process can save you lots of time when you need to get out a very fast tax-deadline alert or some other time-sensitive communication. In April the JofA...

Financial aid 101: planning opportunities for CPAs.(certified public accountants)
July 1, 2005... EXECUTIVE SUMMARY * COLLEGES AWARD FINANCIAL AID IN THE FORM OF scholarships, grants, loans and work-study awards based on the financial need of a student. The formula used to determine financial need is: financial need = cost of...

Related parties and NOLs.(net operating losses)
July 1, 2005... IRC section 382 limits the use of NOL carryforwards following an ownership change. Recently the Tax Court, in a case of first impression, had to decide how the family attribution rules applied in a section 382 context. When they formed...

Guarding marital deductions.
July 1, 2005... Property passing from a decedent to the surviving spouse generally qualifies for the marital deduction under IRC section 2056. But a terminable interest, such as a life estate in a trust created by someone other than the person receiving it,...

Not legally enforceable? It's still alimony!
July 1, 2005... In order for payments to qualify as alimony, certain requirements must be met. The payments must be in cash, and pursuant to a divorce, separation or written agreement between the spouses; they must terminate at the death of the recipient; and...

Joint patent owners and LLCs: retaining capital gain treatment for a patent held in an LLC.(limited liability companies)(from The Tax Adviser)
July 1, 2005... Three IRS letter rulings offer joint inventors reassurance they will not lose IRC section 1235's benefits (allowing long-term capital gain treatment on a subsequent transfer, rather than ordinary income treatment) if they transfer their patent...

The last word: in this new monthly column, the JofA takes a closer look at some of the intriguing, inspiring and imaginative folks who are the heart of the AICPA.(Journal of Accountancy)
July 1, 2005... The public doesn't think of CPAs as being exciting, motivational people, but the best part of my job has been working with inspiring leaders. Being a good manager isn't working 80 hours a week; it's developing the people under you as the next...