CPA Success
CPA Success
http://www.macpa.org/blog/category/13/legislative--regulatory/files/mobility_background.doc?i=50&watch=rss
en-US
2016
blog@macpa.org (CPA Success)
Sun, 06 Mar 2016 05:08:02 GMT
Sun, 06 Mar 2016 05:08:02 GMT
BryceWebGroup.Blast
10
Congress revisiting 1099, tax preparer regulations
<DIV style="FLOAT: left; MARGIN-RIGHT: 10px" class=tweetmeme_button> <script
type="text/javascript"> tweetmeme_url = 'http://www.cpasuccess.com/2010/08/congress-leaves-1099red-tape-firmly-in-place.html'; </script> <script type="text/javascript"
src="http://tweetmeme.com/i/scripts/button.js"></script></DIV> <p><a style="float: right;"
href="http://cpasuccess.typepad.com/.a/6a00d834520c5769e20133f303a147970b-pi"><img
class="asset asset-image at-xid-6a00d834520c5769e20133f303a147970b" style="margin: 0px 0px
5px 5px;" title="Congress" src="http://www.macpa.org/blog/resources/assets/1142568473.jpg"
border="0" alt="Congress" /></a> Don't look now, but Congress is showing signs of -- gasp! -rationality.</p> <p>The first sign comes from the Senate, which has offered amendments to the Small
Business Jobs Act that would <a href="http://www.webcpa.com/news/Senate-Eases-1099-WoesSmall-Business-Bill-551951.html?ET=webcpa:e968:8851a:&amp;st=email&amp;utm_source=editorial&amp;utm_medium=emai
l&amp;utm_campaign=WebCPA_Daily_080910" target="_blank">roll back the onerous 1099
reporting requirements</a> for businesses. Those <a
href="http://www.cpasuccess.com/2010/08/congress-leaves-1099-red-tape-firmly-in-place.html"
target="_blank">requirements</a>, part of the health care reform law, would force businesses to report
to the IRS any purchase of $600 or more from a vendor of goods or services beginning in 2012.</p>
<p>The revised bill should come up for a vote sometime in mid-September.</p> <p>Even so, the New
York Times' Robb Mandelbaum <a href="http://boss.blogs.nytimes.com/2010/08/09/will-congressease-1099-requirements-in-health-care-bill/?partner=rss&amp;emc=rss" target="_blank">says</a>
"the prospects for repealing, or softening, the new law are uncertain at best."</p> <p>That's because
the Senate's amendment actually comes in two parts. According to Mandelbaum, senators will vote
either for a Republican provision to repeal the requirement, or a Democratic provision to raise the
reporting threshold from $600 to $5,000 and exempt businesses with 25 or fewer employees.</p>
<p>"Both amendments, however, come with a poison pill that will be tough for members on the other
side to swallow," <a href="http://boss.blogs.nytimes.com/2010/08/09/will-congress-ease-1099requirements-in-health-care-bill/?partner=rss&amp;emc=rss" target="_blank">Mandelbaum
writes</a>. "The Johanns amendment is paid for with money from health care programs created by the
reform law, while the Democratic proposal is offset by eliminating an income deduction for the five
largest oil companies. With each side making offers the other cannot accept, it is difficult to predict
where repeal will end up."</p> <p>Maybe it's not so rational after all.</p> <p>Somewhat better news
is emerging from the House. The <a href="http://www.aicpa.org" target="_blank">AICPA</a> reports
that 31 House members from both parties have sent a letter to Treasury Secretary Timothy Geithner
urging him to <a href="http://www.macpa.org/Content/25755.aspx" target="_blank">support changes
to the IRS's plan to regulate paid income tax preparers</a>.</p> <p>"The House lawmakers are asking
Treasury and the IRS to exempt non-signing tax preparers -- employees of CPA firms who prepare
returns but do not sign them –- from onerous registration requirements," the AICPA reports.
"Lawmakers are further asking for a delay and more study of an IRS proposal to create a poorly
defined nationwide examination of tax preparers."</p> <p><a
href="http://www.macpa.org/content/Public/Documents/PDF/Geithner.pdf" target="_blank">Read the
letter in its entirety.</a></p> <p>Election-year politics are as entertaining as ever, aren't they?</p>
<p>Tell us what <em>you</em> think, then check out these related resources:</p> <ul> <li>Related
CPE, Nov. 30: <a
href="http://www.macpa.org/Public/Catalog/CourseDetails.aspx?courseID=10111098A"
target="_blank">Troublesome Tax Issues for Federal Payroll Taxes, Benefits and Form
1099s</a></li> <li>Related book: <a
href="http://www.macpa.org/public/products/ProductDetails.aspx?ProductID=PMCCHTL2010H"
target="_blank">Tax Legislation 2010 Highlights: Health Care</a></li> <li>Related book: <a
href="http://www.macpa.org/public/products/ProductDetails.aspx?ProductID=PMCCHTL2010P"
target="_blank">Tax Legislation 2010: Patient Protection and Affordable Care, Health Care
Reconciliation, HIRE and Other Recent Tax Acts: Law, Explanation, and Analysis</a></li>
<li>Related self-study: <a
href="http://www.macpa.org/public/products/ProductDetails.aspx?ProductID=PSA745810T"
target="_blank">2010 Health Care Reform Act: Critical Tax and Insurance Ramifications for You,
Your Business, and Your Clients</a></li> <li><a href="http://www.cpasuccess.com/2009/06/taxpreparers-fall-under-the-irs-microscope.html" target="_blank">Should tax preparers be licensed? IRS
considering it</a> (from CPA Success)</li> <li><a
href="http://www.cpasuccess.com/2009/07/regulate-tax-preparers-make-sure-you-do-it-right.html"
target="_blank">Regulate tax preparers? Make sure you do it right</a> (from CPA Success)</li>
</ul><!-- Imported Assets -->
http://www.macpa.org/blog/1973/congress-revisiting-1099-tax-preparer-regulations
bill@macpa.org(Bill Sheridan)
Wed, 11 Aug 2010 12:00:00 GMT
http://www.macpa.org/blog/1973/congress-revisiting-1099-tax-preparer-regulations
Budget surplus in Maryland? Believe it.
<DIV style="FLOAT: left; MARGIN-RIGHT: 10px" class=tweetmeme_button> <script
type="text/javascript"> tweetmeme_url = 'http://www.cpasuccess.com/2010/08/congress-leaves-1099red-tape-firmly-in-place.html'; </script> <script type="text/javascript"
src="http://tweetmeme.com/i/scripts/button.js"></script></DIV> <p><a style="float: right;"
href="http://www.macpa.org" target="_blank"><img class="asset asset-image at-xid6a00d834520c5769e2013486270f39970c" style="margin: 0px 0px 5px 5px;" title="Moneey"
src="http://www.macpa.org/blog/resources/assets/76487233.jpg" border="0" alt="Moneey" /></a>
MACPA member Skip Coale shared an interesting nugget with his friends on Facebook recently.</p>
<p>It was a Baltimore Business Journal report that claimed <a
href="http://www.bizjournals.com/baltimore/stories/2010/08/02/daily39.html"
target="_blank">Maryland could end fiscal 2010 with a $300 million budget surplus</a>, thanks to tax
revenue that exceeded expectations.</p> <p>"It’s not clear yet which state taxes contributed to the
revenue growth," the BBJ's Scott Dance writes. "Joseph Shapiro, spokesman for Comptroller Peter
Franchot, confirmed there is an expected surplus 'in the ballpark' of $300 million. But more detailed
budget numbers won’t be available until state accountants close the books on fiscal 2010."</p>
<p>Still, in posting the BBJ link on Facebook, Skip asks wisely, "Now how will this play in the
election?"</p> <p>The election he refers to, of course, is Maryland's 2010 gubernatorial election, and
it didn't take long for Skip to get his answer. Consider <a
href="http://www.wbaltv.com/r/24536316/detail.html" target="_blank">this passage</a> from a recent
WBAL online article:</p> <p style="padding-left: 30px;"><em>A (Gov. Martin O'Malley) spokesman
said, "(The surplus is) a sign the economy and jobs are going in the right direction."</em></p> <p
style="padding-left: 30px;"><em>The Robert Ehrlich campaign told 11 News, "It's odd and almost
funny that this comes out now after analysts have agreed we're looking at a $2 billion deficit next year.
Political timing makes strange math."</em></p> <p>Let the political games begin.</p>
<p>Regardless of who wins the election, the surplus likely won't change Maryland's immediate fiscal
landscape much. There's still a pretty hefty gap to fill, and everyone is wondering where the money is
going to come from. In his fiscal 2011 budget, O'Malley is trying to do so mainly through spending
cuts, but anxiety about tax increases -- particularly sales taxes on accounting, tax and consulting
services -- is running high amount CPAs and other professionals.</p> <p>All the more reason to <a
href="http://www.macpa.org/Public/Catalog/CourseDetails.aspx?courseID=11181000"
target="_blank">register now for CPA Day in Annapolis</a> on Jan. 19. More than ever, we're going
to need your help to protect the profession and the folks that CPAs serve.</p> <p>On a side note,
happy <a href="http://www.baltimoresun.com/news/maryland/bs-md-tax-free-week-2010080814,0,6785747.story" target="_blank">Shop Maryland Week</a>! From Aug. 8-15, there are no state
sales taxes on purchases of $100 or less on clothing or shoes. No definitive word on what impact this
will have on Maryland's finances, but heck, I could use a new pair of jeans.</p> <p>Go treat yourself
to something nice, then tell us: How would <em>you</em> fix Maryland's budget?</p><!-- Imported
Assets -->
http://www.macpa.org/blog/1975/budget-surplus-in-maryland-believe-it
bill@macpa.org(Bill Sheridan)
Mon, 09 Aug 2010 12:00:00 GMT
http://www.macpa.org/blog/1975/budget-surplus-in-maryland-believe-it
Business is riskier than ever. Ask the regulators.
<DIV style="FLOAT: left; MARGIN-RIGHT: 10px" class=tweetmeme_button> <script
type="text/javascript"> tweetmeme_url = 'http://www.cpasuccess.com/2010/08/business-is-riskierthan-ever-ask-the-regulators.html'; </script> <script type="text/javascript"
src="http://tweetmeme.com/i/scripts/button.js"></script></DIV> <p><a style="float: right;"
href="http://cpasuccess.typepad.com/.a/6a00d834520c5769e201348604a528970c-pi"><img
class="asset asset-image at-xid-6a00d834520c5769e201348604a528970c" style="margin: 0px 0px
5px 5px;" title="Crossed" src="http://www.macpa.org/blog/resources/assets/-650657770.jpg"
border="0" alt="Crossed" /></a> It's a world full of risks -- more risks than ever, in fact.</p>
<p><em><strong>The PCAOB knows it.</strong></em> The <a
href="http://www.cpasuccess.com/2010/06/supreme-court-pcaob-appointments-unconstitutional.html"
target="_blank">embattled</a> oversight board has <a
href="http://www.macpa.org/Content/25751.aspx" target="_blank">adopted eight new auditing
standards</a> that outline how an auditor should assess and respond to risk that occurs during an
audit.</p> <p>“These new standards are a significant step in promoting sophisticated risk assessment
in audits and minimizing the risk that the auditor will fail to detect material misstatements,” said acting
PCAOB Chairman Daniel L. Goelzer. “Identifying risks, and properly planning and performing the
audit to address those risks, is essential to promoting investor confidence in audited financial
statements.”</p> <p>Assuming the SEC gives them the green light, the standards will become
effective for audits of fiscal periods beginning on or after Dec. 15, 2010.</p> <p><strong><em>Ernst
&amp; Young knows it.</em></strong> The firm has released a new report that claims <a
href="http://www.webcpa.com/news/Regulatory-Risk-Tops-Business-Concerns-55147-1.html"
target="_blank">"regulation and compliance" is the top risk to businesses today</a>.</p> <p>"Many
of these threats are related to the aftermath of the global financial crisis," <a
href="http://www.ey.com/GL/en/Services/Advisory/Business-Risk-Report-2010---Business-risksacross-sectors" target="_blank">the E&amp;Y report reads</a>. "Asset management, banking and, to
a lesser extent, insurance are facing a political backlash and regulatory overhaul following the global
financial crisis. Oil and gas, real estate and mining and metals are contending with efforts by cashstrapped governments to gain revenues. And public sector organizations must cope with knee-jerk
decisions made by political leaders under pressure. We hope the list will trigger a debate, which we
would like to explore further."</p> <p>Rounding out E&amp;Y's risk top 10 are access to credit; a
slow recovery or double-dip recession; managing talent; emerging markets; cost-cutting; nontraditional entrants; radical greening; social acceptance risk and corporate social responsibility; and
executing alliances and transactions.</p> <p><em><strong>The SEC knows it.</strong></em>
CFO.com's Sarah Johnson reports that the Commission is pressuring companies to <a
href="http://www.cfo.com/article.cfm/14513695/" target="_blank">provide more information about
the risks they face</a>.</p> <p>"In annual and quarterly financial statements, as well as proxies, the
regulator wants companies to give more details about potential problems, including risks tied to credit
and liquidity, goodwill impairments, and compensation," Johnson writes. "These topics became hotbutton issues during the financial crisis, so it makes sense that the SEC has focused on them in the
comment letters that are just now trickling into the commission's electronic filing system."</p> <p>Of
course, you take a risk just rolling out of bed each morning.</p> <p>If only we had a regulator who
was focused on <em>that</em>.</p> <p>Want to learn more? Check out these related resources:</p>
<ul> <li>Sept. 2 program: <a
href="http://www.macpa.org/Public/Catalog/CourseDetails.aspx?courseID=10111027A"
target="_blank">Applying the Risk Assessment Standards Using a Case Study Approach</a></li>
<li>Sept. 3 program: <a
href="http://www.macpa.org/Public/Catalog/CourseDetails.aspx?courseID=10111029A"
target="_blank">Detecting Misstatements: Integrating SAS 99 and the Risk Assessment
Standards</a></li> <li>Sept. 20 program: <a
href="http://www.macpa.org/Public/Catalog/CourseDetails.aspx?courseID=10111037"
target="_blank">Accounting &amp; Auditing Current Developments</a></li> <li>Oct. 18 program:
<a href="http://www.macpa.org/Public/Catalog/CourseDetails.aspx?courseID=10111052"
target="_blank">Accounting &amp; Auditing Current Developments</a></li> <li>Oct. 19 program:
<a href="http://www.macpa.org/Public/Catalog/CourseDetails.aspx?courseID=10111056A"
target="_blank">Auditor's Risk Assessment Process: Tackling the Risk Assessment SASs</a></li>
<li>Nov. 11 program: <a
href="http://www.macpa.org/Public/Catalog/CourseDetails.aspx?courseID=10111085A"
target="_blank">Risk Assessment and Audit Sampling: Applying the New Audit Sampling Guide
Requirements</a></li> <li>Nov. 15 program: <a
href="http://www.macpa.org/Public/Catalog/CourseDetails.aspx?courseID=10111088"
target="_blank">Accounting &amp; Auditing Current Developments</a></li> <li>Dec. 6 program: <a
href="http://www.macpa.org/Public/Catalog/CourseDetails.aspx?courseID=10111088"
target="_blank">Accounting &amp; Auditing Current Developments</a></li> </ul><!-- Imported
Assets -->
http://www.macpa.org/blog/1976/business-is-riskier-than-ever-ask-the-regulators
bill@macpa.org(Bill Sheridan)
Fri, 06 Aug 2010 12:00:00 GMT
http://www.macpa.org/blog/1976/business-is-riskier-than-ever-ask-the-regulators
Have you learned how to surf yet?
<DIV style="FLOAT: left; MARGIN-RIGHT: 10px" class=tweetmeme_button> <script
type="text/javascript"> tweetmeme_url = 'http://www.cpasuccess.com/2010/08/have-you-learnedhow-to-surf-yet.html'; </script> <script type="text/javascript"
src="http://tweetmeme.com/i/scripts/button.js"></script></DIV> <p><a style="float: right;"
href="http://cpasuccess.typepad.com/.a/6a00d834520c5769e20133f2e24264970b-pi"></a>Think of
this as a surf report of sorts.<a style="float: right;"
href="http://cpasuccess.typepad.com/.a/6a00d834520c5769e20133f2e24264970b-pi"></a></p> <p>In
our professional issues updates, I often talk about the "tidal waves" of change facing the CPA
profession. The waves are bigger and more frequent, requiring us to gain more skills in order to ride
these "waves of change." </p> <p>This surf report is about financial reporting standards and how you
can have an impact.</p> <p>There are three major waves coming at us (n the United States right
now:</p> <ol> <li><a href="http://www.sec.gov/news/press/2010/2010-27.htm"
target="_blank">IFRS for public companies</a> (SEC)</li> <li><a
href="http://www.ifrs.com/updates/FASB-IASB_Projects.html" target="_blank">IASB-FASB
convergence project</a></li> <li>Private company standards (the <a
href="http://www.fasb.org/jsp/FASB/Page/SectionPage&amp;cid=1176156684820"
target="_blank">FAF Blue Ribbon Committee</a>)</li> </ol> <p>These three initiatives will be
shaping the face of accounting significantly over the next few years.</p> <p>Today I want to focus on
<a
href="http://www.fasb.org/cs/ContentServer?c=Page&amp;pagename=FASB%2FPage%2FSectionPag
e&amp;cid=1176157170731" target="_blank">private company standards</a>. Written comments are
now being accepted about the proposed standards. All of you CPAs in business and industry
(preparers) and those of you in practice (auditors) have an opportunity to influence the work of this
important group.</p> <p>What are your biggest challenges with GAAP for private companies? What
would you like to see in GAAP? Should it be compatible with international standards (IFRS)?</p>
<p><a
href="http://www.fasb.org/cs/ContentServer?c=Page&amp;pagename=FASB%2FPage%2FSectionPag
e&amp;cid=1176157170731" target="_blank">Click on this link</a> and let them know what you are
thinking.</p> <p>By the way, <a href="http://www.macpa.org" target="_blank">Maryland CPAs</a>
overwhelmingly are asking for separate (less complex) standards for private companies and a majority
of those want the standards to be compatible with international standards (IFRS or IFRS-SME). We
will be providing the latest updates on this in our upcoming fall series of professional issues updates
for our members.</p> <p>We'd love to hear your thoughts below.</p> <p>Surf's up, dude!<br /><br
/><strong>Some more resources:</strong></p> <ul> <li>Major news: FAF/FASB/GASB is now on
Twitter! Follow them at <a
href="http://www.twitter.com/FAFNorwalk">www.twitter.com/FAFNorwalk</a>.</li> <li>The
AICPA has some excellent resources on the web (<a
href="http://www.ifrs.com">www.ifrs.com</a>) and Twitter <a
href="http://www.twitter.com/ifrscom">(www.twitter.com/ifrscom</a>).</li> <li>Edith Orenstein
covers this on her FEI Financial Reporting Blog. See her post, <a
href="http://financialexecutives.blogspot.com/2010/06/world-according-to-gaap-or-ifrs.html"
target="_blank">The World According to GAAP (or IFRS)</a>.</li> <li>See my earlier post, <a
href="http://www.cpasuccess.com/2010/03/lessons-from-a-worldclass-surfer-3.html"
target="_blank">Lessons from a World-Class Surfer</a>.</li> </ul>
http://www.macpa.org/blog/1977/have-you-learned-how-to-surf-yet
tom@macpa.org(Tom Hood)
Thu, 05 Aug 2010 10:30:00 GMT
http://www.macpa.org/blog/1977/have-you-learned-how-to-surf-yet
Congress leaves 1099 red tape firmly in place
<DIV style="FLOAT: left; MARGIN-RIGHT: 10px" class=tweetmeme_button> <script
type="text/javascript"> tweetmeme_url = 'http://www.cpasuccess.com/2010/08/congress-leaves-1099red-tape-firmly-in-place.html'; </script> <script type="text/javascript"
src="http://tweetmeme.com/i/scripts/button.js"></script></DIV> <p><a style="float: right;"
href="http://cpasuccess.typepad.com/.a/6a00d834520c5769e20133f2d2b113970b-pi"><img
class="asset asset-image at-xid-6a00d834520c5769e20133f2d2b113970b" style="margin: 0px 0px
5px 5px;" title="Paperwork" src="http://www.macpa.org/blog/resources/assets/1437797615.jpg"
border="0" alt="Paperwork" /></a> The profession gave it a shot, but there'll be no repeal of an
expanded Form 1099 reporting requirement for businesses.</p> <p>The U.S. House of
Representatives <a href="http://www.webcpa.com/news/Small-Business-Tax-Relief-Act-Fails-PassHouse-55105-1.html" target="_blank">has failed to pass a bill</a> that would have repealed a new
rule that requires businesses to report to the IRS any purchase of $600 or more from a vendor of goods
or services. The requirement is part of the health care reform law passed earlier this year and will be
effective for purchases made in 2012.</p> <p><a href="http://www.macpa.org/Content/25727.aspx"
target="_blank">The AICPA urged Congress to repeal the requirement</a>, saying it "may prove to
be so burdensome to small businesses that we believe it will significantly contribute to the hurdles to
growth and formation that businesses face."</p> <p>"The business implementation costs associated
with the likely generation and receipt of millions of forms, the difficulty of establishing that Forms
1099-MISC were actually received, and the potentially mind numbing reconciliation processes for
businesses should be weighed against the uncertainty of the benefit to be derived by the government,"
AICPA Tax Executive Committee Chair Alan Einhorn wrote in <a
href="http://www.macpa.org/Content/25727.aspx" target="_blank">a letter</a> to both the House and
the Senate.</p> <p>Those arguments fell on deaf ears in Congress.</p> <p>That leaves businesses
with the same dilemma -- how to comply with a provision that, in the words of David Lifson, "could
fundamentally change the way we do business and keep records in the United States."</p> <p>In an
exhaustive <a href="http://www.journalofaccountancy.com/Issues/2010/Aug/20102954.htm"
target="_blank">Journal of Accountancy summary</a> of the requirement, Lifson outlines what has
changed and how it impacts both small and large businesses. One passage in particular offers some
interesting details:</p> <p>"Implementing this change will require collaboration among businesses
and software vendors and likely the help of CPAs to correctly identify, characterize and report these
transactions," Lifson writes. "Purchases affected could range from inventory to payments for
advertising services to the electricity bill. IRS Commissioner Doug Shulman, however, said in a
speech in May that the (IRS) plans to administratively exempt business transactions conducted using
payment cards such as credit and debit cards, because those transactions would already be reported by
the payment processors."</p> <p>Thanks to regulators, the world just keeps getting more complex,
doesn't it? More than ever, CPAs need to be part of the solution.</p> <p><a
href="http://www.bizjournals.com/baltimore/stories/2010/08/02/story9.html?b=1280721600%5E3725
571&amp;s=industry&amp;i=accounting_consulting" target="_blank">There's certainly no shortage
of work</a> for them to do.</p> <p>Share your thoughts about the new reporting requirements, then
check out these resources:</p> <ul> <li>Related CPE, Nov. 30: <a
href="http://www.macpa.org/Public/Catalog/CourseDetails.aspx?courseID=10111098A"
target="_blank">Troublesome Tax Issues for Federal Payroll Taxes, Benefits and Form
1099s</a></li> <li>Related book: <a
href="http://www.macpa.org/public/products/ProductDetails.aspx?ProductID=PMCCHTL2010H"
target="_blank">Tax Legislation 2010 Highlights: Health Care</a></li> <li>Related book: <a
href="http://www.macpa.org/public/products/ProductDetails.aspx?ProductID=PMCCHTL2010P"
target="_blank">Tax Legislation 2010: Patient Protection and Affordable Care, Health Care
Reconciliation, HIRE and Other Recent Tax Acts: Law, Explanation, and Analysis</a></li>
<li>Related self-study: <a
href="http://www.macpa.org/public/products/ProductDetails.aspx?ProductID=PSA745810T"
target="_blank">2010 Health Care Reform Act: Critical Tax and Insurance Ramifications for You,
Your Business, and Your Clients</a></li> </ul><!-- Imported Assets -->
http://www.macpa.org/blog/1978/congress-leaves-1099-red-tape-firmly-in-place
bill@macpa.org(Bill Sheridan)
Tue, 03 Aug 2010 17:15:55 GMT
http://www.macpa.org/blog/1978/congress-leaves-1099-red-tape-firmly-in-place