Journal of Accountancy articles from July 2008

Journal of Accountancy archives from July 2008

Investing dos and don'ts for this (and every) market cycle.
July 1, 2008... Mark Twain wrote, "History doesn't repeat itself, but it does rhyme." With the recent extraordinary events that have rattled the markets and investors, it pays to heed historical precedent and apply (often forgotten) lessons to the current...

Wealth harvesting: more than just retirement or succession planning.
July 1, 2008... EXECUTIVE SUMMARY * The first step in developing a wealth harvesting plan is to identify the client's departure objectives, focusing on four categories: providing for the client and the people and causes they care about; ensuring a smooth...

Watch out for private annuities: favorable income tax treatment would be curtailed under proposed regulations.
July 1, 2008... EXECUTIVE SUMMARY * With the release of Prop. Treas. Reg. [section][section] 1.72-6(e) and 1.1001-1 (j) in October 2006, the Treasury and IRS have signaled their intent to recognize gain or loss at the time of exchange of property other...

Currency translation adjustments: use excel to understand how multinational companies manage currency translation risks.
July 1, 2008... EXECUTIVE SUMMARY * Accounting for currency translation risks can be very complex. This article addresses only the basics and provides some tools to help the reader understand the issues and find resources. * Globalization has changed...

Test your information security IQ.
July 1, 2008... [ILLUSTRATION OMITTED] Information security is a dynamic field and, although accounting professionals have become much savvier on the subject, keeping track of the latest best practices can be a daunting task. How current are you? Take...

Capital with a conscience: private foundations must distinguish carefully their investments' purpose, character and strategy.
July 1, 2008... EXECUTIVE SUMMARY * Private foundations must distinguish between what are sometimes called mission-related investments and program-related investments (PRIs). PRIs enable private foundations to make venture capital-type investments that...

Unleash the power of lean accounting.
July 1, 2008... EXECUTIVE SUMMARY * Lean accounting concepts are designed to better reflect the financial performance of a company that has implemented lean manufacturing processes. These may include organizing costs by value stream, changing inventory...

Successor readies to take the lead. (Clifton Gunderson's new chief executive officer Krista McMasters) (Interview)
July 1, 2008... [ILLUSTRATION OMITTED] Thirty years ago, Krista McMasters applied for a job at Clifton Gunderson's office in Danville, Ill. She was fresh out of the University of Illinois undergraduate accounting program. Despite good grades, she heard...

Vacation home swaps get safe harbor.
July 1, 2008... [ILLUSTRATION OMITTED] Your clients might own a getaway home in the country, a cozy cottage on a lakeshore, a condo on the oceanfront or a rustic cabin in the mountains. When they sell it, they may recognize gain without the benefit of the...

Check-the-box regulations are valid.
July 1, 2008... The U.S. Supreme Court declined to review a case in which a business owner argued that "check-the-box" entity classification rules represent an invalid exercise of the IRS'S authority to issue interpretive regulations under IRC [section]...

Levels of certainty.(partnership items)
July 1, 2008... Two rulings in separate cases by the Court of Federal Claims helped clarify how penalties involving partnerships are imposed and defended against at the partnership and partner levels. Because partnerships are flow-through entities,...

The Code trumps Tucker.
July 1, 2008... The U.S. Supreme Court recently held that an unconstitutionally assessed excise tax could not be recovered under the Tucker Act--the general provision for non-tort claims against the United States--for tax years outside the normal three-year...

Unitary business principle clarified.
July 1, 2008... A recent addition to the Lexis database of Supreme Court decisions could spare the electronic legal research service's former owner from a $4 million tax bill. In MeadWestvaco v. Illinois, the nation's top court said an Illinois appellate court...

Debt forgiveness taxed.
July 1, 2008... Two exceptions to the general provision of IRC [section] 61(a)(12) recognizing income from the discharge of indebtedness were tested recently in separate cases, but the taxpayers were not successful in either. Argued before the U.S....

IRS enforcement activities: kinder, gentler IRS turns to liens, levies.(from The Tax Adviser)
July 1, 2008... In the early 1990s, IRS enforcement activities were fairly aggressive. In several well-publicized cases, individual taxpayers lost their homes and livelihoods to the IRS because of unpaid taxes. As a result, public sentiment turned against the...

AICPA ... where to turn. (American Institute of Certified Public Accountants) (Directory)
July 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.(free tax preparation assistance for low-income family)
July 1, 2008... I direct the Tax Assistance Program of the Accounting Aid Society of Detroit. We partner with the IRS VITA (Volunteer Income Tax Assistance) Program and are one of the oldest free tax preparation programs in the nation. We return millions of...