Smaller, non-public entities now have that option. Through AICPA’s Financial Reporting Framework for Small and Medium Sized Entities (FRF for SMEs), small entities have a cost beneficial alternative. This special purpose framework will help dodge the ever-changing rules and regulations set by the GAAP. The FRF for SMEs became available in 2013 so the acceptance […]
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What CPAs Can Learn from Arabian Horses
Written by Guy Schmitz J.D., LL.M. Code §183(a) generally disallows any deduction attributable to an activity “not engaged in for profit.” The section prevents those indulging in a hobby from offsetting their hobby losses against taxable income from other sources. See a recent case, Henry J. Metz, et ux. v. Commissioner, TC Memo 2015-54, which […]
Intuit Brews Accountant-Only Beer for Rhode Island CPAs
Intuit, a company that makes finance software such as QuickBooks and TurboTax, made tax season a little more fun for accountants in Rhode Island. On March 30, Intuit announced a new product for the hard-working Rhode Island accountants: beer. However, this isn’t just any beer; it’s beer specifically for accountants! Intuit wanted to take out […]
Staffing Cutbacks Lead to Unpaid Taxes by Millionaires
With tax season coming to a close, millions of dollars are going unpaid in Texas. Taxpayers owing $100,000-$999,000 in unpaid taxes are going unnoticed due to the short-staffing in revenue agents, revenue officers and criminal investigators. Five thousand fewer positions that go after the millionaire tax cheats have been dissolved in the state, leaving 1,000 […]
Why Going Concern Disclosures Matter Now
Even though the new FASB rule ASU 2014-15 isn’t effective until December 15, 2016, some types of going concern disclosures are relevant now. Even if financial statements are not audited, the basic fair presentation principles require complete and informative disclosures–including any significant uncertainties. Providing useful information to enable financial statement users to make informed economic […]
Catch Up On Estate Tax Changes
Under the proposed budget for 2015, President Obama would implement changes that would significantly affect estate taxes. The key estate tax-related proposals include: A new $3.5 million state tax exemption and a one million dollar gift exemption Non-taxable annual gifts would be limited to $50,000 per donor Step-ups would not be allowed on intangible […]
Jack Surgent Explains Changes to IRAs in the Proposed Budget for 2015
Catch up on all of President Obama’s proposed changes to IRAs in the proposed budget for 2015 from Surgent Chairman Jack Surgent. These proposed changes include: Limiting the ability of taking stretch payments to anyone other than a non-spouse. Currently, individuals are able to leave money in their IRA to children or grandchildren. Limiting […]
AICPA Issues Four Auditing Interpretations Addressing SAS No.126
On January 24, 2015, the AICPA Auditing Standards Board (ASB) issued four auditing interpretations to address issues related to the SAS No. 126, The Auditor’s Consideration of an Entity’s Ability to Continue as a Going Concern (Redrafted) (AICPA, Professional Standards, AU-C Section 570). In 2014, the FASB released Accounting Standards Update (ASU) No. 2014-15, Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure […]
More Than an Extender Act
Written by Guy Schmitz J.D., LL.M. Commentators have wisely emphasized the extender provisions of the recently passed federal tax legislation because the extender provisions are the bread and butter of any tax practice. There are, however, other provisions that merit attention, including a new savings provision designed to meet the financial needs of disabled persons […]
T’was the End of the Year and All Through the Firm
T’was the end of the year and all through the firm, Not a staff person was stressing, not even an intern. The staff they were celebrating today without a care, Knowing that next tax season soon would be there. The partners had nestled in to plan the year ahead. While visions of bonuses danced […]