Tag: CPE

New Definition of a Business

ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business revised the definition of a business, which will reduce the number of transactions that are accounted for as “business combinations” versus “asset acquisitions”. The following are two very important...


Decoding the Alphabet Soup of Tax Reform

Did you know the TCJA imposes a GILTI tax, allows a FDII deduction, and has introduced a new BEAT? If you are practicing in the post-tax reform era, you’ve probably heard the new lingo, but may still be trying to understand what it all means. The TCJA (Tax Cuts and Jobs Act) has introduced the...


Court Ruling Gives Surprise Twist to Meaning of Tax Home

If a new Tax Court ruling is correct, it means that a tax return I recently prepared is not correct. The issue for the taxpayer in this case, and for my client, is whether or not they are allowed to deduct “away from home“ expenses under code section 162 (a)(2). Those expenses must be incurred...


SSARS No. 24 – New Requirements for Compilations and Reviews

The purpose of this new omnibus statement is to amend Statement on Standards for Accounting and Review Services (SSARS) in various ways, as briefly highlighted below. Adds AR-C section 100, Special Considerations – International Reporting, which addresses when an accountant is engaged to perform a...


Understanding the New BEAT

The Tax Cuts and Jobs Act added a new provision to the Internal Revenue Code called the “Base Erosion and Anti-abuse Tax” (BEAT). The BEAT acts as a minimum tax and applies to large corporations with at least $500 million in gross receipts. The new tax is effective for taxable years beginning...


Proposed Ethics Interpretation - Knowing Misrepresentations in the Preparation and Presentation of Information

AICPA Members in business may be involved in the preparation and presentation of information for use both internally and externally to an employing organization. This includes financial and non-financial information, such as performance reports, budgets, forecasts, tax returns, and more. Members who...


Closing the Tax Gap after Tax Reform

Administering and enforcing the tax code is no small task. In 2017, the IRS processed 245 million tax returns, collected $3.4 trillion in taxes, and issued refunds to over 120 million households.  So, how will the Tax Cuts and Jobs Act impact the IRS’s tax administrative duties,...


Tax Trends and Federal Receipts for 2018

A recent report by the Joint Committee on Taxation (JCT) highlights some interesting tax trends over the last 75 years and makes important projections about federal tax receipts for 2018.[i] For starters, the individual income tax is expected to account for 50.0% of Federal receipts in 2018.  This...


The AICPA Releases Interpretation on Dual-Audit Reporting

The Auditing Standards Board (ASB), who promulgates generally accepted auditing standards (GAAS), recently released an interpretation to help any auditor of a “nonissuer” comply with reporting requirements under both AU-C Section 700, Forming an Opinion and Reporting on Financial Statements, and...


Tax Provisions Included in the Consolidated Appropriations Act

On March 23, 2018 President Trump signed into law the Consolidated Appropriations Act of 2018. The $1.3 trillion spending bill funds the federal government through September 30. This article explores the tax-related provisions included in this new law. Low-income Housing Credit  The low-income...


The Latest Independence Impairment Concern – Hosting Your Client’s Data

The AICPA Code of Professional Conduct “Independence Rule” Section 1.295.143 relates to Hosting Services.  Under this newest rule, a CPA’s independence is impaired when taking responsibility for hosting an attest client’s data or records (whether hard copy or electronic).  This action is...


How Tax Reform Has Impacted Foreign Operations

Most U.S. corporations conduct their foreign business operations through foreign subsidiaries. When a foreign subsidiary is owned more than 50 percent by U.S. shareholders, it’s considered a controlled foreign corporation (CFC). If a U.S. corporation controls a foreign corporation in a low-tax...


Tax Reform-A Mixed Bag for Multinationals

When the Times Square Ball dropped on New Year’s Eve and the lights at the bottom of the poll illuminated ‘2018,’ it marked the beginning of a whole new tax system for U.S. multinationals. Our worldwide tax system was instantly replaced with a territorial system. Capital export neutrality was...


Private Entities Should Explore Using a GAAP Alternative to Prepare Financial Statements

The Financial Reporting Framework for Small- and Medium-Sized EntitiesTM (FRF for SME’s) was created by the AICPA in 2013.  The intent was to give owner-managed, privately-held businesses a GAAP alternative that would cost-effectively produce relevant, yet simplified, financial statements for the...


NASBA Announces New Gateway System & National Candidate Database

NASBA announced that starting at 12:00 am CST on Monday, March 5, 2018, they will launch a new version of their Gateway System and National Candidate Database. According to NASBA, “These new systems will greatly improve your overall experience with additional user-friendly functionality and...


Tax Reform and the New International Provisions

The Tax Cuts and Jobs Act made significant changes to the rules governing international taxation. Most provisions are focused on making U.S. companies more competitive abroad and bringing more investment to the United States, but the new legislation also attempts to crack down on base erosion and...


The New Deduction for “Pass –Through” Businesses

The Tax Cuts and Jobs Act enacted Code Section 199A which provides a   20% deduction for businesses. However the deduction is not always 20%, and not every business qualifies. This article explores the key elements of this new provision. Overview The deduction for years beginning after 2017 is...


Tax Reform and the OECD BEPS Project

OECD BEPS project is a global tax reform initiative that’s revising the fundamentals of the international tax rules. The goal is to reduce base erosion and profit shifting (BEPS) across the world. Over 100 countries are participating in the project, making it the biggest global tax reform...


Results of PCAOB’s Latest Staff Inspection Brief on Audits of Issuers

The PCAOB prepares Staff Inspection Briefs to assist auditors, audit committees, investors, and preparers in understanding the results of inspections of issuer audits.  The following highlight some of the more significant findings from the 2016 inspection cycle, which were the result of examining...


Tax Reform and Policy Objectives

The Thanksgiving season is upon us, and many Americans are hopeful they’ll soon be giving thanks for a “simpler and fairer” tax code. But is that an achievable goal? Generally speaking, tax systems are evaluated against three leading concepts—efficiency, fairness, and simplicity. Efficiency...