A more perfect union: state CPA societies have created a virtual network.

Interstate networks on the World Wide Web can provide CPAs with information on practice management issues, regulations, and CPA societies. Products and services and other relevant business information is accessible from state society Web sites. Reference to site addresses and content for five different states may be useful.

A talk with Barry Melancon.

AICPA president AICPA President Barry Melancon believes that AICPA accreditation in specialized fields should increase the business of small and large CPA firms. The AICPA is committed to its WebTrust project and is proud of its Vision Project. Enactment of the Uniform Accountancy Act in at least 40 states continues to be a goal. The 150-hour requirement has been adopted in 43 states.

Corporate chairman honored.

AICPA award winner Robert R. Woodson - Brief Article

Credit union bill wins committee approval.

Senate Banking Committee - Brief Article

Deductibility of deficiency interest.

The US District Court of Eastern North Carolina in Allen v. United States held invalid IRS temporary regulation section 1.163-9T(b)(2)(i)(A) which disallows deductions for interest assessed on tax deficiencies. The court found that interest is deductible to the extent related to the ordinary and necessary course of business. The reach of this opinion is ambiguous because three US Courts of Appeals have held the regulation valid.

International rules streamlined.

FDIC banking rules - Brief Article

Learning for the future.

CPAs The future viability of the CPA profession can be strengthened by improvements to continuing education programs. Emphasis should be placed on long-term competency and on skills which increase the professions' expanded business future. Such educational improvements are important components of goals and issues which the AICPA Vision Process is meant to address.

Move to Windows 98 - or skip to NT?

CPAs Various considerations may contribute to decisions of changing to the Windows 98 operating system or waiting for the Windows NT system. Many factors favor upgrading to Windows 98 including speed, crash protection, start-up safety, and notebook friendliness. Negative factors which favor upgrading directly to Windows NT include limited security and future technological change.

New guide clarifies investments accounting.

Accounting standard implementation - Brief Article

New hierarchy for federal government audits.

Brief Article

New independent contractor bill.

Brief Article

Nullifying IRS access to tax preparation software.

The IRS's attempts to gain access to businesses' taxation software programs through civil process should not be enforced by the U.S. District Court of Northern Texas according to a US magistrate in United States v. Caltex Petroleum. The magistrate recommended that the district court quash three IRS-issued summons on abuse of process grounds. The businesses were in the process of IRS audits of foreign tax credits. The magistrate found that source codes were not necessary to those audits.

Postmortem estate planning for small business owners.

CPAs can help small business owners with postmortem estate planning where effective early planning was not accomplished. Federal estate taxes can be minimized in cases where tax benefits contained in several IRC provisions are available. Benefits may result from use of alternate valuation dates, special-use valuations, disclaimers, and the family-owned business exclusion. Other considerations may include administration expenses, stock redemptions, and deferrals of estate taxes.

Resolved: start-up costs are not assets.

AICPA accounting standard SOP 98-5, Reporting on the Costs of Start-up Activities, requires start-up costs to be expensed when they are incurred. The standard applies to private entities and its broad definition of what constitutes start-up activities has led to some confusion. Reference to standards regarding fixed assets and accounting policy should help to clarify what may be capitalized.

Revamped SSAEs.

Accounting auditing standards - Brief Article

Seven steps to judging life insurance.

CPAs can provide unique services to businesses purchasing life insurance because of CPAs' analytical expertise and their knowledge of clients' finances. Such purchases should be viewed as business decisions needing careful research and planning. Evaluating agents, ratings, carriers, and policy structures are important matters requiring careful attention.

SSAE no. 8: the marketing issues.

Accounting standard - Brief Article

Take a load off.

Low-load life insurance CPAs may save their clients the expense of insurance agents' commissions by considering the use of low-load life insurance. Reduced costs and avoidance of policy surrender fees are benefits which may make such insurance attractive business alternatives. Additional benefits may arise in the future by the ability to change carriers if investment performance falls below expectations. Such policies should be assessed as any policy and for costs which may differ from tradi...

Taxing employer securities.

Brief Article

The IRS problem resolution program.

From The Tax Adviser The IRS Problem Resolution Program which was instituted in 1977 has only become an effective means of conflict resolution after the passage of the Taxpayer Bill of Rights legislation. The goals of the program are to increase IRS management's awareness of problems and to increase the speed and efficiency of decision-making procedures. Taxpayers must refer to specific criteria determining availability of the program. Taxpayer assistance orders and IRS problem-solving days ...

The office that isn't.

Virtual offices - Checklist - Brief Article

The problems of transfer pricing: when you have facilities in more than one jurisdiction.

Transfer pricing taxation, accounting, and profit-margin issues affect businesses which have divisions in various domestic or international jurisdictions. Taxing authorities may treat goods and services provided between divisions as taxable buy-sell transactions. Reference to a detailed example incorporating transfer pricing issues may be useful.

The virtual multioffice firm.

Virginia CPA firm Brown & Brown Brown & Brown is a two partner Virginia CPA firm which has a thriving practice in part made possible by the creation of a virtual multioffice practice. The firm's clients include those from various industry types such as wholesalers, construction firms, and nonprofit entities. Remote technology is the next technological improvement the firm plans to institute. The operation of virtual offices from their base home office has proved to be time and cost efficient.

Time is short for spin-offs.

Foreign subsidiaries, IRS regulations IRS proposed regulations may eliminate the ability of multinational corporations to gain favorable tax treatment by spinning off foreign subsidiaries. The operation of proposed regulation 1.367(b)-5 would result in gain recognition by domestic distributing corporations in transactions involving IRC section 355 distributions to individual shareholders. Elimination of the corporate level nonrecognition of appreciation in distributed stock would eliminate t...

Two new statements.

International accounting standards - Brief Article