Journal of Accountancy articles from October 2004

Journal of Accountancy archives from October 2004

So you want to be an expert witness: hone your skills to increase your success on the witness stand.
October 1, 2004... Being able to deal with the unexpected is a key part of performing well as an expert witness and a challenge that some CPAs find exhilarating. Increasingly, forensic accountants are being called as expert witnesses to help sort out the...

Basis legal concepts: beware insufficient knowledge of the law.
October 1, 2004... ACPA was hired to be an expert witness in a civil fraud case. On cross-examination the opposing attorney asked the expert a seemingly simple question: "Would you please define 'fraud' for the jury?" The CPA replied, "Do you want to know the...

Make the most of buy-sell agreements: these complex contracts solve many problems.
October 1, 2004... EXECUTIVE SUMMARY * BUY-SELL AGREEMENTS LET OWNERS, or shareholders and a corporation, agree to the terms and conditions of a future sale to smooth the transfer of an ownership stake under certain triggering events. They also provide a...

Section 404 compliance in the annual report: assessing control deficiencies now is a documented process required of management.
October 1, 2004... EXECUTIVE SUMMARY * BEGINNING IN 2004, MANY PUBLICLY traded companies must comply with SEC rules by reporting on the effectiveness of their internal controls in the annual report. The content should contain * A statement of...

Get the raise you deserve: a step-by-step guide to negotiating the right pay package.
October 1, 2004... Are you being paid what you're worth? Many CPAs begin working for a company with one set of responsibilities but as time passes their duties gradually grow or change. As a result they end up assuming the responsibilities of a higher-level job...

Work like an insurance company to save money: the subrogation process can help businesses improve their bottom line.
October 1, 2004... In these days of corporate belt-tightening, companies are understandably concerned with dollars that drop to the bottom line. Yet, there is one largely unnoticed area of operations that could deliver hundreds of thousands of dollars each year:...

Tax planning for servants of God: unique tax rules apply to members of the clergy.
October 1, 2004... With today's complex and ever-changing rules, annual tax planning is increasingly important for all taxpayers. However, it's especially important for members of the clergy because of three unique rules that apply to the income and Social...

Users size up tax software: product ratings gain, but vendor support slips.
October 1, 2004... Although AICPA tax practitioners rated this year's crop of tax-preparation software superior to the products they used last year, they gave lower grades to vendors' technical support. But for many tax practitioners, the bigger story was that...

Capturing the potential: how CPA firms are building successful financial services practices.
October 1, 2004... Executive Summary As they seek to grow their profitability and better meet the needs of their clients, many CPA firms today have expanded beyond their established accounting and tax practices into financial services. To understand how...

Substantial compliance no substitute for filing election.
October 1, 2004... A taxpayer's sale or exchange of investment securities generally does not qualify for nonrecognition of gain as a like-kind exchange. However, when taxpayers (other than C corporations) sell securities that they have held for at least three...

Collecting attorney fees from the IRS.
October 1, 2004... Recently a district court in New Jersey reviewed the rules and requirements in the tax code under which taxpayers can collect a reasonable reimbursement for attorney fees they pay to litigate tax cases they win. Daniel Scheingold, John...

What constitutes a responsible person?(for tax penalty imposition under IRC section 6672)
October 1, 2004... IRC section 6672 imposes a penalty equal to the total amount of any federal payroll (trust fund) tax any person willfully evades, fails to collect or does not account for and pays over. In view of the section's scope, the courts broadly...

Deemed substantiation of business travel expenses.
October 1, 2004... IRC section 162(a)(2) permits taxpayers a deduction for business travel expenses such as lodging, meals and other incidental costs while away from home. IRC section 274(n) limits the deduction for meal and beverage expenses to 50% of the amount...

Valid transfers excluded from gross estate.
October 1, 2004... Under IRC section 2036(a) and Treasury regulations section 20.2036-1(a) there are two exceptions that prevent transfers from being included in a decedent's gross estate. First, if a transfer is a bona fide sale for adequate and full...

How to apply joint estimated tax payments when filing separately: a straightforward answer to a thorny question.(from The Tax Adviser)
October 1, 2004... A married couple who has filed jointly in the past and made joint estimated income tax payments for the current tax year may decide to file separately for that year. This could arise, for example, with a couple who was separated by the end of...