March 2011 Newsletter
John Rodgers, President
Mark Your Calendar
Annual Meeting and Alaska Ethics for CPAs
May 12-13,2011
Alyeska Resort
Watch for registration information later this month!
PCAOB Addresses Emerging Audit Issues
In the 2011 Forum on Auditing in the Small Business Environment
Washington, D.C., February 28, 2011 – The Public Company Accounting Oversight Board today announced the 2011 schedule for its Forum on Auditing in the Small Business Environment. The first of seven events will be held in Boston, Mass., on Thursday, April 28.
The forums, which are updated annually, are designed to share important information about PCAOB activities with registered public accounting firms operating in the small business community. They also provide a unique opportunity for PCAOB Board Members and staff to hear the comments and concerns of auditors working with small businesses.
“We see the PCAOB Small Business Forum as an excellent opportunity to engage directly with auditors involved in the small business community,” said James R. Doty, PCAOB Chairman. “The PCAOB uses the forums both to educate auditors about the PCAOB’s programs and highlight important practice issues as well as to gain insights from participants about current issues and challenges facing the small business community.”
The 2011 forum agenda features several case studies and the following discussion topics that address issues that affect audits of small businesses. These include:
Economic outlook and audit risk update
Risk assessment standards and audit practice alerts
Future standard-setting priorities
Internal control and IT control issues
Enforcement and inspection update
A synopsis of PCAOB regulatory oversight of auditors of brokers and dealers also will be included in the forums.
In addition, staff from the U.S. Securities and Exchange Commission Division of Corporation Finance will provide an update on recent SEC activities and observations about common financial reporting issues facing smaller public companies.
“The goal of these forums, now in their eighth year, is to open an avenue for discussion and dialogue with accounting firms that serve the small business community,” said Daniel L. Goelzer, who will be hosting the Boston forum. “The 2011 program will target some of the special challenges that the Board’s inspection program has highlighted in smaller company audits.”
Each forum is hosted by a member of the PCAOB Board and is open to PCAOB-registered firms. There is no fee charged to participate in these events but pre-registration is required. Attendees also have the opportunity to earn continuing professional education credits.
The PCAOB held its first Small Business Forum in 2004 and has continued to hold forums since then in cities across the country, meeting with more than 4,000 representatives of smaller registered accounting firms.
Feedback received from these forums assists the PCAOB to understand and consider the unique needs and challenges of the small business community in its inspection and standard-setting processes.
The 2011 schedule is as follows:
Boston, Mass., April 28, 2011
Las Vegas, Nev., May 19, 2011
New York, N.Y., July 28, 2011
Chicago, Ill. Sept. 23, 2011
Seattle, Wash., Oct. 5, 2011
Dallas, Texas, Nov. 3, 2011
St. Petersburg, Fla., Dec. 1, 2011
In addition to these seven meetings, the PCAOB will hold two other forums prepared specifically for auditors of brokers and dealers. Information will be posted regarding these forums in late spring. These forums will be held in:
Jersey City, N.J., Oct. 28, 2011
Huntington Beach, Calif., Nov. 17, 2011
For more information, including a detailed agenda of the Small Business Forum, please visit the Forum on Auditing in the Small Business Environment on the PCAOB Web site at www.pcaobus.org. If you have further registration questions, please contact Margaret Hopkins at forum@pcaobus.org or (202) 207-9081.
IRS Updates -
Announcements & Upcoming Events:
IRS Holds Saturday Open Houses on March 26 to Help Taxpayers
The Internal Revenue Service announced today that nearly 100 IRS offices will be open on Saturday, March 26, to help taxpayers. The location of participating offices is listed on IRS.gov. personnel will be available to provide services such as tax return preparation, assist with account questions and help with a variety of other issues.
Requirements for Federal Tax Return Preparers, March 30, 2011 (archived* for later viewing)
A webcast presented by the new Return Preparer Office.
Requirements for Federal Tax Return Preparers
Presented by the Return Preparer Office
Date: March 30, 2011 (archived* for later viewing)
Time: 2 p.m. Eastern
This FREE broadcast is for:
- All Paid Tax Return Preparers
Since Jan. 1, 2011, a new registration requirement has been in place for federal tax return preparers. View this broadcast to hear about:
- Early program accomplishments
- Preparer Tax Identification Number (PTIN) guidelines
- Upcoming competency testing and continuing education plans
- Upcoming background check plans
- Electronic filing requirements
Earn Continuing Professional Education credit:
- Enrolled agents receive one CPE credit for participating for a minimum of 50 minutes from the start of the broadcast.
- Other tax professionals may receive credit if the broadcast meets their organization’s or state’s CPE requirements.
- To receive credit, you must attend the broadcast on March 30. Register for the broadcast using your e-mail address and use the same e-mail address to log in to attend. This will confirm your attendance and generate your Certificate of Completion. Groups can not register with one e-mail address and then receive separate Certificates. If certificates are needed, each person must register separately.
- Only March 30, 2011 participants will receive credit. If you do not need a certificate to obtain CPE credit, you may choose to view the archived version of the broadcast.
- Look for your Certificate of Completion by e-mail approximately one week after the broadcast. If you have met all requirements, you will receive your certificate automatically.
How to register for the session:
- Click on the link to register:
http://www.visualwebcaster.com/event.asp?id=76788
General information:
- Visit www.irs.gov and search Webinars for information on other programs available.
- If you experience difficulty viewing the event, please use the e-mail option on the event page or call 866-956-4770.
- The event will be archived for later viewing, approximately two weeks after the date of the event.
Got Tax Questions? Watch Videos & Get Answers on the IRS Video Portal
http://www.irsvideos.gov/
IRS Video Portal is a Web page featuring video and audio. Use it to get up-to-date information on many tax topics. It’s free! And you can view or listen to anytime that’s convenient for you. Click on the Small Business tab, where you’ll find the Small Business Workshop, archived webinars, video and audio clips, and archived versions of live panel discussions and national phone forums. See what you can learn today -- or if today’s not good for you, then tomorrow -- take advantage of the IRS Video Portal.
IRS Updates & News Releases:
Relief for Tax Return Preparers Who Have Pending PTIN Applications
http://www.irs.gov/pub/irs-drop/n-11-11.pdf
Notice 2011-11 provides relief by allowing tax return preparers who have made a good faith effort to obtain a PTIN to prepare tax returns for compensation even though they have not received a PTIN. Notice 2011-11 will appear in IRB 2011-7 dated Feb. 14.
IRS Begins Processing Tax Forms Affected by Late Tax Changes; Taxpayers can e-File Immediately
http://www.irs.gov/newsroom/article/0,,id=236037,00.html
The Internal Revenue Service has started processing individual tax returns affected by legislation enacted in December and reminded taxpayers that they can begin filing electronically immediately. IRS systems began to accept and process both e-file and paper tax returns claiming itemized deductions on Form 1040, Schedule A, as well as deductions for state and local sales tax, higher education tuition and fees and educator expenses.
“The IRS is now accepting all the 1040 forms,” IRS Commissioner Doug Shulman said. “We worked hard to update our systems and get the changes in place as quickly as possible. We appreciate the patience of those impacted by the delay. We urge taxpayers to use e-file with direct deposit, and they can get their refunds within days.”
Why Employees and Retirees May See Changes in 2011 Payments and Withholding
http://www.irs.gov/newsroom/article/0,,id=235813,00.html
The Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010, enacted on December 17, 2010, included several changes impacting workers’ take-home pay and retirees’ net pension checks for 2011. The Tax Relief Act extended for two years the income tax rates that were scheduled to expire at the end of 2010; that extension prevented a large increase in federal income tax withholding. However, the new law did not extend the Making Work Pay (MWP) credit that had been available for tax years 2009 and 2010. While most workers qualified for the maximum MWP credit, pension recipients did not qualify for any MWP credit unless they also had wages or other earned income.
In December 2010, the IRS published new federal income tax withholding information to reflect the impact of the Tax Relief Act. The fact that the MWP credit expired, by itself, would have resulted in increased withholding for most taxpayers. However, under the Tax Relief Act, withholding for social security tax for all wage earners was reduced from 6.2% to 4.2% (withholding for Medicare, at 1.45%, did not change). For most employees, the net effect of these two changes will result in less total tax being withheld from their checks. The social security tax reduction does not affect pension payments.
Due to the late enactment of these tax law changes, the IRS asked employers and plan administrators to adjust their systems as soon as possible but not later than January 31, 2011. This means employees and pension recipients may not have seen the full impact of these changes until their first paycheck in February, 2011.
Once employers implement the changes, there will be a net increase in take-home pay for most employees (excluding the impact of any other withholding amounts, such as withholding for health insurance, state income taxes, etc.). Once pension plan administrators implement the 2011 changes, the retirement check payments for some pensioners may be lower depending upon the method that their plan administrators used to calculate withholding in 2010.
Second Special Voluntary Disclosure Initiative Opens; Those Hiding Assets Offshore Face Aug. 31 deadline
http://www.irs.gov/newsroom/article/0,,id=235695,00.html
The Internal Revenue Service announced today a special voluntary disclosure initiative designed to bring offshore money back into the U.S. tax system and help people with undisclosed income from hidden offshore accounts get current with their taxes. The new voluntary disclosure initiative will be available through Aug. 31, 2011. The IRS decision to open a second special disclosure initiative follows continuing interest from taxpayers with foreign accounts. The first special voluntary disclosure program closed with 15,000 voluntary disclosures on Oct. 15, 2009. Since that time, more than 3,000 taxpayers have come forward to the IRS with bank accounts from around the world. These taxpayers will also be eligible to take advantage of the special provisions of the new initiative.
ACS Large Dollar Unit Information
Here is a checklist of the items that practitioners should have at hand when contacting the ACS Large Dollar unit: http://www.irs.gov/businesses/small/article/0,,id=171984,00.html .
IRS Launches the IRS2Go App for iPhone, Android; Taxpayers Can Check Refunds, Get Tax Information
http://www.irs.gov/newsroom/article/0,,id=234882,00.html?portlet=7
The Internal Revenue Service has unveiled IRS2Go, its first smartphone application that lets taxpayers check on their status of their tax refund and obtain helpful tax information.
"This new smart phone app reflects our commitment to modernizing the agency and engaging taxpayers where they want when they want it," said IRS Commissioner Doug Shulman. "As technology evolves and younger taxpayers get their information in new ways, we will keep innovating to make it easy for all taxpayers to access helpful information."
The IRS2Go phone app gives people a convenient way of checking on their federal refund. It also gives people a quick way of obtaining easy-to-understand tax tips. Apple users can download the free IRS2Go application by visiting the Apple App Store. Android users can visit the Android Marketplace to download the free IRS2Go app.
IRS FY 2012 Budget Proposal Summary
http://www.irs.gov/newsroom/article/0,,id=235959,00.html
The Administration’s FY 2012 budget request for the Internal Revenue Service is nearly $13.3 billion, a $1.1 billion increase from the FY 2010 budget. Because of the IRS’s unique function as the revenue center of government, this budget increase actually reduces the deficit through increased tax enforcement revenues. In FY 2010, the IRS collected $2.345 trillion in taxes, representing 93 percent of federal government receipts. The IRS processed 141 million individual tax returns in 2010 and issued 109.5 million in refunds worth $366 billion. The IRS 2012 funding request reflects a continued commitment to balance taxpayer service with fair enforcement of the tax laws. The IRS will also continue to invest in its service program, with particular emphasis on online services. At the same time, the IRS continues to run a disciplined operation, identifying more than $188 million in cost-savings in 2012, coming on top of similar efficiency savings in 2010 and 2011.
Download the Tax Calendar for Small Businesses and Self-Employed
The 2011 Tax Calendar for Small Businesses and Self-Employed is filled with useful information on general business taxes, IRS and SSA customer assistance, electronic filing and paying options, retirement plans, business publications and forms, and common tax filing dates. Paper copies are already out of stock, but you can download a PDF version of the calendar to print or download the calendar information to your Outlook Calendar or ICAL (for the MAC) from the IRS website at http://www.irs.gov/businesses/small/article/0,,id=176080,00.html
Four Facts about Bartering
http://www.irs.gov/newsroom/article/0,,id=205581,00.html
In today’s economy, small business owners sometimes look to the oldest form of commerce – the exchange of goods and services, or bartering. The IRS wants to remind small business owners that the fair market value of property or services received through barter is taxable income. Bartering is the trading of one product or service for another. Usually there is no exchange of cash. However, the fair market value of the goods and services exchanged must be reported as income by both parties. See the full article for four facts about bartering that the IRS wants small business owners to be aware of, and be sure to visit the Bartering Tax Center at http://www.irs.gov/businesses/small/article/0,,id=187920,00.html.
Order tax transcripts online
Taxpayers can use the new online tool, http://www.irs.gov/individuals/article/0,,id=232168,00.htmlOrder A Transcript, to request a current year transcript as well as transcripts for the past three years.
Related link: http://www.irs.gov/faqs/faq/0,,id=199557,00.htmlCopies & Transcripts
IRS.gov has new research tool
Research tax law by topic with the new http://www.irs.gov/formspubs/article/0,,id=213705,00.htmlIRS Tax Map.
Outstanding Internal and External Exposure Drafts –
FASB
Issue date -- 12/17/10 Proposed Accounting Standards Update, Other Expenses (Topic 720): Fees Paid to the Federal
Government by Health Insurers (a consensus of the FASB Emerging Issues Task Force)
Comment deadline -- 4/18/11
Issue date -- 12/17/10 Proposed Accounting Standards Update, Health Care Entities (Topic 954): Presentation and Disclosure
Of Net Revenue, Provision for Bad Debts, and the Allowance for Doubtful Accounts (a consensus of the FASB Emerging
Issues Task Force)
Comment deadline -- 2/15/11
ASB (AICPA)
Issue date -- 12/21/10 Proposed Statement on Auditing Standards, Alert as to the Intended Use of the Auditor’s Written
Communication
Comment deadline -- 4/29/11
IFAC
Issue date -- 12/15/10 Conceptual Framework for General Purpose Financial Reporting by Public Sector Entities
Comment deadline -- 6/15/11
FASAB
Issue date -- 1/5/11 Deferral of the Effective Date of SFFAS 38, Accounting for Federal Oil and Gas Resources
Comment deadline -- 2/7/11
Issue date -- 1/5/11 Technical Bulletin 2011-1, Accounting for Federal Natural Resources Other Than Oil and Gas
Comment deadline -- 1/31/11
PCAOB to Discuss Auditor's Reporting Model
Washington, D.C., March 8, 2011 – The Public Company Accounting Oversight Board has scheduled an Open Meeting for Tuesday, March 22, at 9:30 a.m., for a presentation from the Office of the Chief Auditor on its outreach efforts to investors and others about potential changes to the auditor's reporting model.
The staff also will discuss with the Board how the input received may enhance the development and publication of a concept release, which would provide all members of the public an opportunity to comment on the issues.
The auditor's report is the primary means by which the auditor communicates to investors and other users of audited financial statements regarding its opinion on those statements. Several groups have recommended that the reporting model be re-examined and made more meaningful for investors.
For example, the PCAOB Standing Advisory Group and Investor Advisory Group have discussed areas for possible change in the auditor's report. Similarly, the U.S. Treasury's Advisory Committee on the Auditing Profession recommended in its report that the PCAOB should undertake a standard-setting initiative to consider improvements to the auditor's reporting model and, among other things, to clarify in the auditor's report the auditor's role in detecting fraud.
To further inform the Board about possible changes to the auditor's report, the staff reached out to investors, auditors, issuers, audit committee members, and other interested parties, to seek their views on potential changes on the auditor's report.
The meeting is open to the public and will take place in the PCAOB meeting room at 1666 K St. N.W., Washington, D.C. It will be Webcast via a link on the PCAOB Web site, and available via podcast later in the day.
CPA Crossings, in partnership with Federal Tax Workshops, is offering a unique 2-hour webinar geared towards the industry member: Key Tax Issues Facing Members in Industry
This webinar will focus on key tax issues from the internal accountant's point of view, with a focus on recently enacted legislation and how they will affect businesses.
Learning Objectives:
Explore the latest legislation and developments affecting corporate tax returns.
Major Subjects:
- The two year extension of the Bush-era tax cuts in the December "Tax Relief, Unemployment Insurance Reauthorization"
- Jobs Creation Act of 2010
- Bonus Depreciation and Section 179 Expense
- Healthcare Act of 2010 tax provisions
- Travel expenses, including IRS definition of temporary workplace
- Latest legislative, judicial and IRS developments
Who Should Attend:
CPAs and financial personnel working for closely-held, for profit entities and members in industry seeking an update on significant tax developments affecting businesses.
Format: 2-hour, group study live webinar
Dates:
3/15/2011 @ 2:00 pm EST
4/26/2011 @ 2:00 pm EST
