CPA Success
CPA Success
http://www.macpa.org/blog/category/13/legislative--regulatory/files/mobility_background.doc?i=44&watch=rss
en-US
2016
blog@macpa.org (CPA Success)
Mon, 07 Mar 2016 08:53:27 GMT
Mon, 07 Mar 2016 08:53:27 GMT
BryceWebGroup.Blast
10
Online resources offer details on e-file rule
<p><a href="http://cpasuccess.typepad.com/.a/6a00d834520c5769e20148c67260dc970c-pi"
style="float: right;"><img alt="Efiling" border="0" class="asset asset-image at-xid6a00d834520c5769e20148c67260dc970c" src="http://www.macpa.org/blog/resources/assets/265723556.jpg" style="margin: 0px 0px 5px 5px;" title="Efiling" /></a> Amid all of the other <a
href="http://www.cpasuccess.com/2010/12/whats-keeping-cpas-up-at-night.html"
target="_blank">regulatory chaos</a> out there, this one might have been easy to miss. That
doesn&#39;t make it less important, though -- or change the fact that you&#39;ll have to comply in
less than a month.</p> <p>Beginning on Jan. 1, 2011, paid tax return preparers who expect to file 100
or more income tax returns for individuals, trusts and estates (as well as preparers who work for CPA
firms that, in the aggregate, expect to file 100 or more such returns) will be required to file those
returns electronically.</p> <p>The 100-return threshold will drop to 11 in 2012.</p> <p>&quot;To
comply with the new law,&quot; <a href="http://www.macpa.org/Content/25909.aspx"
target="_blank">the IRS explains</a>, &quot;a tax return preparer who is subject to the electronic
filing requirement and does not already provide e-file for clients must become an authorized IRS e-file
provider, which means he, she, or the firm, if the preparer is a member of a firm, must obtain an
electronic filing identification number (EFIN). It takes up to 45 days to obtain an EFIN so return
preparers who have not started the process should start immediately.&quot;</p> <p>Additional
guidance and resources are available in these <a
href="http://www.irs.gov/taxpros/article/0,,id=231871,00.html" target="_blank">frequently asked
questions</a>&#0160;and in this IRS <a href="http://www.youtube.com/watch?v=MnZgjpVGZDw"
target="_blank">video</a>:</p> <p> <object
data="http://www.youtube.com/v/MnZgjpVGZDw?fs=1&amp;hl=en_US" height="362"
style="display: block; margin-left: auto; margin-right: auto;" type="application/x-shockwave-flash"
width="450"> <param name="data"
value="http://www.youtube.com/v/MnZgjpVGZDw?fs=1&amp;hl=en_US" /> <param
name="allowFullScreen" value="true" /> <param name="allowscriptaccess" value="always" />
<param name="src" value="http://www.youtube.com/v/MnZgjpVGZDw?fs=1&amp;hl=en_US" />
<param name="allowfullscreen" value="true" /> </object> </p><!-- Imported Assets -->
http://www.macpa.org/blog/1897/online-resources-live-event-offer-details-on-e-file-rule
bill@macpa.org(Bill Sheridan)
Mon, 06 Dec 2010 13:00:00 GMT
http://www.macpa.org/blog/1897/online-resources-live-event-offer-details-on-e-file-rule
What's keeping CPAs up at night?
<p><a href="http://cpasuccess.typepad.com/.a/6a00d834520c5769e20147e0509276970b-popup"
onclick="window.open( this.href, &#39;_blank&#39;,
&#39;width=640,height=480,scrollbars=no,resizable=no,toolbar=no,directories=no,location=no,menu
bar=no,status=no,left=0,top=0&#39; ); return false" style="float: right;"><img alt="MACPA PIU
2010" class="asset asset-image at-xid-6a00d834520c5769e20147e0509276970b"
src="http://www.macpa.org/blog/resources/assets/700648756.jpg" style="margin: 0px 0px 5px 5px;"
title="MACPA PIU 2010" /></a>The tsunami of taxes, regulations and standards changes coming at
them, their businesses and clients!</p> <p>They also do not feel the recession is over and are worried
about the state of the fragile economy.</p> <p>That is the feedback from more than 1,000 CPAs as I
wind down the fall series of our town hall / profesisonal issues updates (worth four&#0160;hours of
free CPE for <a href="http://www.macpa.org" target="_blank">MACPA</a> members) and several
keynotes across the country. You can see my presentation on SlideShare.net by <a
href="http://www.slideshare.net/thoodcpa/macpa-fall-profession" target="_blank" title="MACPA Fall
PIU - 2010">clicking here</a>.</p> <p>What is amazing to me is this: As&#0160;if the changes are
not enough, there are already changes to the changes to report --&#0160;thus the purpose of this
post.</p> <p><span style="text-decoration: underline;"><strong>The top 5 federal tax&#0160;
and&#0160;regulatory issues</strong></span> are as follows:</p> <ol> <li>The FTC red flags rule
goes into effect on Dec. 31, 2010 ($3,500 penalty).</li> <li>Tax preparer regulation and the new <a
href="http://www.irs.gov/taxpros/" target="_blank">IRS PTIN requirements</a>.</li> <li>1099
reporting pequirements.</li> <li>Small Business Jobs&#0160;and Credit Act&#0160;of 2010 (and
1099 provision for rental property).</li> <li>Expiration of the Bush tax cuts ... or not?</li> </ol>
<p>Here is the latest updates on these (good news / bad news):</p> <p><span style="font-size:
10pt;"><strong>FTC Red Flags:</strong> The U.S. Senate <a
href="http://www.cpasuccess.com/2010/12/senate-votes-to-exempt-cpas-from-red-flags-rule.html"
target="_blank">has voted</a> to exempt CPAs in CPA firms with the passage of <a
href="http://thomas.loc.gov/cgi-bin/bdquery/z?d111:SN03987:|/bss/|" target="_blank">S 3987 Red
Flag Program Clarification Act</a> on the evening of Nov. 30. Small businesses and non-profits will
still have to comply by Dec. 31. Here are <a
href="http://www.aicpa.org/InterestAreas/InformationTechnology/Resources/Privacy/FederalStateand
OtherProfessionalRegulations/FairandAccurateCreditTransactionsActof2003/Pages/Red%20Flags%20
Rule%20Guidance.aspx" target="_blank" title="FTC Red Flag Resouces from
AICPA">resources</a>&#0160;to help small businesses comply and the sample written policy (ITPP)
<a href="http://cpasuccess.typepad.com/files/final_red_flags_template.doc">sample written
policy</a>.</span></p> <p><span style="font-size: 10pt;"><strong>1099s from the health care
act:</strong> Efforts to repeal this (<a href="http://www.marylandreporter.com/Paperwork-nightmarein-health-care-reform.aspx" target="_blank" title="Article from Maryland Reporter">including our
own Sen. Cardin</a>) failed in the Senate for the second time this year. (<a
href="http://www.cpasuccess.com/2010/11/par-for-the-political-course-1099-repeal-fails-insenate.html?cid=6a00d834520c5769e20147e0436b9d970b" target="_blank">See our post on CPA
Success</a>.) We will have to try again next year before it takes effect in 2012.</span></p>
<p><strong>Bush tax cuts </strong>expire on Dec. 31, 2010. This is still being discussed. I find it
interesting that the word &quot;millionaire&quot; now means $250,000 and up. Must be some sort of
new math?</p> <p><span style="text-decoration: underline;"><strong>And the top 6 accounting
standards</strong></span> issues all involve convergence. As I like to say, there may be 50 ways to
leave your lover but only six ways to converge global accounting standards with the U.S.!</p> <ol>
<li><a href="http://www.sec.gov/spotlight/ifrsroadmap.htm" target="_blank">SEC -- mandated switch
to IFRS</a> for public companies&#0160;(decision in 2011)</li> <li><a
href="http://www.aicpa.org/InterestAreas/AccountingAndAuditing/Resources/AcctgFinRptg/Pages/Co
nvergenceCorner.aspx" target="_blank">FASB-IASB convergence workplan</a>&#0160;(from the
2002 Norwalk agreement)</li> <li><a
href="http://www.accountingfoundation.org/jsp/Foundation/Page/FAFSectionPage&amp;cid=1176157
771083&amp;pid=1175804985611" target="_blank">FAF Blue Ribbon Committee on Private
Company Standards</a></li> <li>Auditing Standards Board <a
href="http://www.aicpa.org/InterestAreas/AccountingAndAuditing/Resources/AudAttest/AudAttestSt
ndrds/ASBClarity/Pages/ImprovingClarityASBStandards.aspx" target="_blank">&quot;clarity
project&quot;</a>&#0160;with IAASB</li> <li>Professional ethics -- <a
href="http://www.ifrs.com/overview/Accounting_Firms/Global_Standard.html"
target="_blank">PEEC -- IFAC convergence of ethics</a></li> <li>Global sustainability standards -<a href="http://www.integratedreporting.org/" target="_blank" title="International Integrated
Reporting Committee">IIRC</a> (<a href="http://financialexecutives.blogspot.com/2010/08/are-you-
ready-for-global-sustainability.html" target="_blank">see my post at FEI</a>)</li> </ol>
<p><strong>FASB-IASB convergence update: </strong>Just received from <a
href="http://www.fasb.org" target="_blank">FASB</a>, this <a
href="http://www.fasb.org/cs/ContentServer?site=FASB&amp;c=Document_C&amp;pagename=FAS
B%2FDocument_C%2FDocumentPage&amp;cid=1176157940250" target="_blank">special edition
for private companies</a>&#0160;covers the latest&#0160;fast-moving developments&#0160;in
upcoming standards. It starts with this: &quot;Three Far-Reaching Exposure Drafts -- A Call for
INPUT.&quot; This is just the first round, so stay tuned and pay attention.</p> <p>You&#39;ll
find&#0160;more great coverage on all of the FASB developments by <a
href="http://financialexecutives.blogspot.com/2010/12/priorities-listed-and-feedback-counts.html"
target="_blank">Edith Orenstein over at the FEI Reporting Blog</a>.</p> <p>So what are we doing
about all of this?</p> <ul> <li>The MACPA has been advocating on your behalf and working with the
AICPA (which has done a remarkable job) for the past year on all of these issues (red flags, PTIN,
1099s, etc).</li> <li>The MACPA is forming two special task forces to deal with these rapidly
changing issues -- one for federal taxes&#0160;and regulations and another for accounting
standards.</li> <li>And we have not even covered the state issues! Make sure our voice is heard by
attending CPA Day in Annapolis on Jan. 19. <a
href="http://www.macpa.org/Public/Catalog/CourseDetails.aspx?courseID=11181000"
target="_blank">Register here</a> (and get&#0160;two more hours&#0160;of free CPE).</li>
<li>Let us know if you want to be involved or have suggestions for us to help you deal with the
tsunami.</li> </ul> <p><span class="asset asset-generic at-xid6a00d834520c5769e2013489acd4d9970c">We finish up our town hall meetings with a quote from Jon
Kabat-Zinn:<em><strong> &quot;You can&#39;t stop the waves, but you can learn how to
surf.&quot; </strong></em></span></p> <p><span class="asset asset-generic at-xid6a00d834520c5769e2013489acd4d9970c">Hang ten, fellow CPAs. We are with you!</span></p><!-Imported Assets -->
http://www.macpa.org/blog/1899/whats-keeping-cpas-up-at-night
tom@macpa.org(Tom Hood)
Thu, 02 Dec 2010 13:46:11 GMT
http://www.macpa.org/blog/1899/whats-keeping-cpas-up-at-night
Senate votes to exempt CPAs from 'red flags rule'
<p><a href="http://cpasuccess.typepad.com/.a/6a00d834520c5769e20147e04e68e3970b-pi"
style="float: right;"><img alt="Redflags" border="0" class="asset asset-image at-xid6a00d834520c5769e20147e04e68e3970b"
src="http://www.macpa.org/blog/resources/assets/1179340835.jpg" style="margin: 0px 0px 5px 5px;"
title="Redflags" /></a> Just when I thought <a href="http://www.cpasuccess.com/2010/11/par-for-thepolitical-course-1099-repeal-fails-in-senate.html" target="_blank">Congress had completely lost its
collective mind</a>, a bit of sanity has crawled out from under Capitol Hill.</p> <p>The AICPA <a
href="http://www.aicpa.org/Press/PressReleases/2010/Pages/StatementFromBarryMelancononFTCsRe
dFlagsRule.aspx" target="_blank">reports</a> that the Senate has passed the &quot;Red Flag Program
Clarification Act of 2010,&quot; a measure that narrows the definition of &quot;creditor&quot; in the
Fair Credit Reporting Act and thus likely excludes CPAs and CPA firms from having to comply with
the Federal Trade Commission&#39;s <a href="http://www.cpasuccess.com/2010/06/another-redflags-extension-this-time-to-dec-31.html" target="_blank">&quot;red flags rule,&quot;</a> which
requires certain business entities to &quot;develop and implement written identity theft prevention
programs&quot; that could detect the red flags that signal identity theft.</p> <p>The American Bar
Association Journal <a
href="http://www.abajournal.com/news/article/u.s._senate_votes_to_exempt_lawyers_from_red_flags
_rule/" target="_blank">explains</a>:</p> <p style="padding-left: 30px;"><em>The legislation at
issue, which seeks to curb identity theft among credit and financial regulatory agencies through
prevention and detection programs, &quot;makes clear&quot; that lawyers, doctors, dentists,
accountants and other heath care and service providers “will no longer be classified as
&#39;creditors&#39; for the purposes of the red flags rule just because they do not receive payment in
full from their clients at the time they provide their services, when they don&#39;t offer or maintain
accounts that pose a reasonably foreseeable risk of identify theft,&quot; Sen. Chris Dodd (D-Conn.)
said in a colloquy inserted in the record after the vote.</em></p> <p>The Senate&#39;s vote comes in
the nick of time. The FTC had established <a href="http://www.cpasuccess.com/2010/06/another-redflags-extension-this-time-to-dec-31.html" target="_blank">a Dec. 31, 2010 deadline</a> to comply
with the red flags rule. As Tom Hood <a href="http://www.cpasuccess.com/2010/12/whats-keepingcpas-up-at-night.html" target="_blank">reports</a>, small businesses and non-profits will still have to
comply by Dec. 31.</p> <p>&quot;The bill brings common sense to the Federal Trade Commission’s
proposed red flags rule by clarifying that CPAs and CPA firms are not classified as creditors because
they do not offer or maintain accounts that pose a risk of identity theft,&quot; AICPA President and
CEO <a
href="http://www.aicpa.org/Press/PressReleases/2010/Pages/StatementFromBarryMelancononFTCsRe
dFlagsRule.aspx" target="_blank">Barry Melancon said in a statement</a>. &quot;The AICPA and
state CPA societies fought tirelessly for this clarification over the past year. This change will relieve
CPAs and CPA firms, already subject to confidentiality requirements, of the unwarranted burden of
developing and implementing identity theft prevention and detection programs under the FTC
rule.&quot;</p> <p>The measure now moves to the House, where, according to the ABA, &quot;it
currently faces no opposition.&quot;</p><!-- Imported Assets -->
http://www.macpa.org/blog/1900/senate-votes-to-exempt-cpas-from-red-flags-rule
bill@macpa.org(Bill Sheridan)
Thu, 02 Dec 2010 04:17:42 GMT
http://www.macpa.org/blog/1900/senate-votes-to-exempt-cpas-from-red-flags-rule
Par for the political course: 1099 repeal fails in Senate
<p><a href="http://cpasuccess.typepad.com/.a/6a00d834520c5769e20147e040dee5970b-pi"
style="float: right;"><img alt="Question" border="0" class="asset asset-image at-xid6a00d834520c5769e20147e040dee5970b" src="http://www.macpa.org/blog/resources/assets/1368943865.jpg" style="margin: 0px 0px 5px 5px;" title="Question" /></a> Businesses from coast to
coast are <a href="http://www.sba.gov/idc/groups/public/documents/sba_homepage/news_release_1067.pdf" target="_blank">enraged</a> by the 1099 reporting requirements. Pro-business groups and <a
href="http://www.journalofaccountancy.com/Web/20103559.htm" target="_blank">the CPA
profession</a>&#0160;are demanding that Congress repeal them. Pretty much every lawmaker in
Washington admits <a href="http://www.macpa.org/Content/25893.aspx" target="_blank">the rules
are ill-advised</a> and should probably be repealed.</p> <p>So when it comes time to vote on
repealing the measure, what does the Senate do?</p> <p>That&#39;s right -- <a
href="http://www.accountingtoday.com/news/Senate-Again-Fails-Repeal-1099-Requirements-564751.html" target="_blank">nothing</a>.</p> <p>At issue, of course, is a provision in the health care
reform package that requires businesses to report to the IRS every purchase of $600 or more from a
vendor of goods or services, beginning with purchases made in 2012.</p> <p>Recognizing the burden
such a rule would place on businesses, the Senate took up the 1099 issue on Nov. 29 with <a
href="http://www.cpasuccess.com/2010/11/are-lawmakers-poised-to-repeal-1099-reporting-rule.html"
target="_blank">every intention</a>&#0160;of repealing the provision. As usual, though, politics got
in the way.</p> <p>According to the New York Times, <a
href="http://www.nytimes.com/2010/11/30/us/politics/30cong.html" target="_blank">lawmakers
couldn&#39;t agree on how to replace the revenue</a> that would be lost by repealing the rule.
Democrats put forward a plan that would have repealed the rule but largely failed to address the
revenue shortfall. It was soundly defeated. Republicans countered with a plan to repeal the rule and cut
a number of other programs to offset the lost revenue. It, too, was defeated.</p> <p>Once again,
nothing gets accomplished because our elected officials are too busy scoring political points.</p>
<p>In other words, what else is new?</p> <p>&quot;Despite the inability to overturn the
provision,&quot; writes <a href="http://www.nytimes.com/2010/11/30/us/politics/30cong.html"
target="_blank">Carl Hulse</a> of the New York Times, &quot;Senate officials said they expected
that another vote on repeal would come soon, given the support the idea has in both parties.&quot;</p>
<p>The only question is, what will get in the way of progress <em>then</em>?</p>
<p><strong>UPDATE: </strong>The American Society of Association Executives adds the following:
???&quot;From what we&#39;ve heard, this will be the last vote on the 1099 issue this year, leaving
only one calendar year before the new 1099 reporting goes into effect.&quot;</p><!-- Imported Assets
-->
http://www.macpa.org/blog/1902/par-for-the-political-course-1099-repeal-fails-in-senate
bill@macpa.org(Bill Sheridan)
Tue, 30 Nov 2010 04:31:59 GMT
http://www.macpa.org/blog/1902/par-for-the-political-course-1099-repeal-fails-in-senate
Are lawmakers poised to repeal 1099 reporting rule?
<p><a href="http://cpasuccess.typepad.com/.a/6a00d834520c5769e20133f5d0fd3d970b-pi"
style="float: right;"><img alt="Capitol" border="0" class="asset asset-image at-xid6a00d834520c5769e20133f5d0fd3d970b"
src="http://www.macpa.org/blog/resources/assets/1266017526.jpg" style="margin: 0px 0px 5px 5px;"
title="Capitol" /></a> Has reason prevailed on Capitol Hill, or are certain folks merely reading the
political writing on the wall?</p> <p>Given that it&#39;s Washington we&#39;re talking about,
I&#39;m not putting my money on reason.</p> <p>Regardless, there&#39;s some good news
surfacing in D.C. lately about those onerous <a href="http://www.cpasuccess.com/2010/08/congressleaves-1099-red-tape-firmly-in-place.html" target="_blank">1099 reporting requirements</a>.</p>
<p>Remember them? As part of the health care reform package, they require businesses to report to
the IRS any purchase -- that&#39;s <strong><em>any</em></strong> purchase -- of $600 or more
from a vendor of goods or services, beginning with purchases made in 2012.</p> <p>Apparently, the
government wants businesses to stop doing business altogether and focus solely on filing tax
forms.</p> <p>For most of the past year, CPAs and business folks have been appealing to
politicians&#39; sanity and pleading with them to repeal the rule, <a
href="http://www.cpasuccess.com/2010/09/bid-to-remove-1099-reporting-rule-falls-short.html"
target="_blank">to no avail</a>.</p> <p>Now -- surprise, surprise! --&#0160;less than two weeks
after the mid-term elections, Democrats are joining Republicans&#0160;in lining up to condemn the
requirement and play nice with businesses.</p> <p>First came President Obama. A day after the midterms, Obama said he would <a
href="http://money.cnn.com/2010/11/03/news/economy/Obama_business/index.htm"
target="_blank">support efforts to repeal</a> the 1099 rule.</p> <p>Next, outgoing House Speaker
Nancy Pelosi told NPR that&#0160;<a href="http://www.npr.org/2010/11/12/131263322/pelosieconomy-key-in-democrats-election-losses" target="_blank">repealing the rule would be a good
starting point</a> as the parties look for opportunities to compromise on health care reform.
&quot;One item that I think we all agree on ... is 1099, which affects small businesses and small
contractors and how they report their transactions,&quot; Pelosi told NPR&#39;s Steve Inskeep.
&quot;They know what it means, and they know they&#39;d like to see it go. I think that&#39;s
probably the first place we could go in together.&quot;</p> <p>Now comes&#0160;Senate Finance
Committee Chairman Max Baucus, who has said <a
href="http://money.cnn.com/2010/11/12/smallbusiness/baucus_1099_repeal/index.htm"
target="_blank">he will introduce legislation to repeal the rule</a>. &quot;I have heard small
businesses loud and clear and I am responding to their concerns,&quot; Baucus said. &quot;Small
businesses are the backbone of our economy in my home state of Montana and across the country, and
they need to focus their efforts on creating good-paying jobs -- not filing paperwork.&quot;</p>
<p>Look, I don&#39;t care <em>why</em> they&#39;re doing it. Let&#39;s just fix this mistake and
move on from there.</p><!-- Imported Assets -->
http://www.macpa.org/blog/1909/are-lawmakers-poised-to-repeal-1099-reporting-rule
bill@macpa.org(Bill Sheridan)
Sat, 13 Nov 2010 03:10:00 GMT
http://www.macpa.org/blog/1909/are-lawmakers-poised-to-repeal-1099-reporting-rule