Journal of Accountancy articles from October 2003

Journal of Accountancy archives from October 2003

An insider's view of the new, computerized CPA exam.
October 1, 2003... Last month, the JofA began a series of articles exploring different aspects of the new CPA exam. This month, a corporate practitioner and member of the AICPA committee that developed the test's content offers insights into what this version is...

Do you know the ABC's of engagement letters?
October 1, 2003... Good engagement letters can be an essential ingredient in maintaining smooth client relations, insuring solid project planning, and, when all else fails, as effective tools in resolving differences and winning disputes. The most important...

Plan an effective retreat.
October 1, 2003... Perhaps your CPA firm or client is plagued with a problem, such as high employee turnover or a reduction in billable hours, that needs a creative solution. Or you want input on how best to proceed with the launch of a new service. Whatever your...

Users rank tax software: products and vendors get lower satisfaction grades.
October 1, 2003... This year practitioners generally were less happy with their tax-preparation-software products and services than last year. That's the conclusion of an informal survey that the National Association of Tax Professionals (NATP) took this summer...

Tax relief - chapter 2003: what CPAs need to know about the new tax act.
October 1, 2003... EXECUTIVE SUMMARY * CONGRESS PASSED THE JOBS AND GROWTH TAX RELIEF Reconciliation Act of 2003 to boost consumer spending and increase business capital expenditures. The act accelerates previously passed rate reductions, lowers long-term...

Starting over: CPAs can use well-honed skills to help divorcing individuals begin a new chapter on sound financial terms.
October 1, 2003... EXECUTIVE SUMMARY * CPAs' SPECIALIZED SKILLS put them in a unique position to help divorcing individuals and their attorneys organize financial issues related to property settlements and support awards. Some practitioners are developing a...

A paperless success story: a firm's use of IT to organize the office led to a digital makeover and new business.(information technology)
October 1, 2003... EXECUTIVE SUMMARY * DURING THE 1997 TAX SEASON, Atlanta firm Habif, Arogeti & Wynne LLP (HA&W) suffered so many technical problems that afterward about one-third of its professionals left. The firm decided to revamp its tax function and...

OCBOA financial statements: here's some practical guidance on a popular accounting option.(other comprehensive basis of accounting)
October 1, 2003... EXECUTIVE SUMMARY * IN CERTAIN INSTANCES CPAs SHOULD CONSIDER preparing and reporting on financial statements using an "other comprehensive basis of accounting" (OCBOA). Tax-basis and cash-basis, including modified-cash-basis, financial...

The fraud examiners: sleuthing careers bring CPAs personal and professional satisfaction.
October 1, 2003... Becoming a fraud examiner--a.k.a. a financial detective--is not for everyone. Detectives either in law enforcement or in the private sector--typically have distinct personality traits (see "America's Original Private Eye," page 77): They're as...

Trust investment fees revisited.(Scott v. United States)
October 1, 2003... There currently is a split in the courts of appeal concerning the deductibility by trusts of expenses they pay for investment advice. The Fourth Circuit Court of Appeals has now joined the debate. In 1944 John Stewart Bryan's will...

Reasonable inquiry required to avoid tax-preparer penalties.
October 1, 2003... In a recent case, the court held that the owner and president of an accounting firm who signed a client's tax return was the preparer of that return. As such he was liable for preparer penalties for failing to make a reasonable inquiry. IRC...

Step transaction doctrine thwarts attempt to exclude gift taxes.
October 1, 2003... IRC section 2035(c) presumes gifts an individual makes within three years of death are tax-avoidance transactions and eliminates the advantage of such "deathbed transfers" by increasing the gross estate to include gift taxes a decedent paid in...

Principal residence - which home is it?(Guinan v. United States)
October 1, 2003... Taxpayers generally can exclude up to $250,000 ($500,000 on a joint return) of gain on the sale of their principal residence. To qualify, a taxpayer must have used the property as his or her principal residence for at least two years during the...

Pass-through entities' tax payments for nonresident owners: ensuring that nonresidents pay their share.(from The Tax Adviser)
October 1, 2003... Many states, in order to collect revenue without having to pursue nonresidents for it, have begun requiring flow-through entities (for example, S corporations, partnerships and limited liability companies (LLCs)) to either withhold taxes or pay...