Digital Security: Apple, Taxes, and Terrorism The FBI has attempted to compel Apple, Inc. to defeat its own encryption. Because Apple has thus far refused, a federal court in California will hear arguments. The case is certain to have far-reaching implications for the nature of digital security. Adam Junkroski, lead manager Tax Communications for AICPA, explains how the unbreakable encryption at the center of the Apple case affects tax practitioners? To read the full article in AICPA Insights, click: Update on Taxes and Terrorism: Why Client’s Data Could Become Vulnerable.
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The Many Tax Benefits of Making Charitable Contributions With IRA Distributions Now that the provision permitting these contributions is permanent, taxpayers can take maximum advantage of this rule, even using life insurance to increase the gift to charity. David K. Smucker, CPA, Advanced Consulting Group director with Nationwide Insurance, explains that the recent legislation making the $100,000 charitable IRA contribution permanent allows taxpayers to take full advantage of the numerous tax benefits of these contributions. To read the full article in The Tax Adviser Tax Insider, click: Charitable IRA Distributions: A Great Opportunity.
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The presence of an unrecognized device attempting to access your Google account could be a serious threat. J. Carlton Collins, JofA contributing editor, recommends you remove the unknown device and change your password immediately. To read the full article in the Journal of Accountancy, click: Cybersecurity: Unknown Google Device.
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The FASB announced sweeping changes to the accounting for leases earlier this year that will affect nearly all financial statement issuers. Travis W Harms, Mercer Capital’s Financial Reporting Valuation Group lead, discusses each topic. To read the full article in Mercer Capital’s Financial Reporting Blog, click: 7 Things to Know About the New Lease Accounting Rules. This article is republished from Mercer Capital’s Financial Reporting Blog. It is reprinted with permission. To subscribe to the blog, visit: http://mercercapital.com/category/financialreportingblog/.
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A Taxpayer Loss—Assets Included in the Estate We find ourselves in a familiar place once again—that is, analyzing a case in which the IRS attacked an FLP under I.R.C. § 2036. Just two months ago, I wrote an overview of Estate of Purdue v. Commissioner, (T.C. Memo 2015-249), in which the IRS attacked a closely-held asset holding company, in that case it was an LLC, under I.R.C. §2036. While both holding companies were attacked under Section 2036, the cases could not have ended up more differently for the taxpayers. Purdue was a taxpayer win; Holliday was not.
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Nuances Valuing and Normalizing an Auto Dealership There are many reasons an auto dealership may require a business valuation; buy-sell agreements, shareholder disputes, employee stock ownership plans (ESOPs), and estate planning and gifting strategies. In many instances, there will be an opposing party that questions the validity of the final value, whether it be a dissenting stockholder or the Internal Revenue Service. It is imperative the dealer be aware of the basic characteristics of a valuation so the dealer is able to make sure the valuation analyst is using sound judgments and that, if challenged, the value will be defensible.
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When it Comes to Messaging, You Can Have too Much of a Good Thing Real-time messaging can be a lifeline—and a huge distraction. Barb Darrow discusses how many companies are embracing internal communication platforms, but the result can be employees using several simultaneously, according to a survey. To read the full article in Fortune, click: When Good Communication Goes Bad.
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Following FASB’s issuance of its new leases standard, the first step in compliance for many companies is an evaluation of whether they possess all the data they need to report under the new rules. Ken Tysiac, editorial director of JofA, explores four key considerations recommended for companies as they work to comply with the new leases standard. To read the full article in the Journal of Accountancy, click: How to Comply with the New Leases Standard.
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When to Report COD Income Because Form 1099-C, Cancellation of Debt, is often issued either before or after the debt was discharged for tax purposes, practitioners need to understand the recognition rules to be able to advise clients when and if to report the COD income. Victoria R. Bartlett, shareholder with Gregory, Sharer & Stuart CPAs, explains that issuance of Form 1099-C does not necessarily require income inclusion in the same year. To read the full article in the Journal of Accountancy, click: Form 1099-C and COD Income: Key Timing Issues.
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For management teams working through a bankruptcy, there are a number of valuation-related considerations. Samantha L. Albert, senior financial analyst with Mercer Capital, explains five key concepts for management teams and their advisors to be familiar with when embarking upon a Chapter 11 reorganization. To read the full article in Mercer Capital’s Financial Reporting Blog, click: 5 Things to Know About Chapter 11 Bankruptcy and Valuation. This article is republished from Mercer Capital’s Financial Reporting Blog. It is reprinted with permission. To subscribe to the blog, visit: http://mercercapital.com/category/financialreportingblog/.
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The Danger of Not Considering Other Potential Sources of Harm To recover lost profits in commercial damages litigation, three standards must be met: proximate cause, foreseeability, reasonable certainty. While all three are important, proximate cause does not always receive a great deal of consideration among experts. Although the question of causation is generally left to the trier-of-fact, financial experts not addressing other potential factors for declines in sales or profitability as a part of their analysis can find themselves excluding from testifying. This is because courts have found the failure to consider causation to be a flaw in the expert’s…
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Are We Heading Towards the Next Financial Crisis? (Part II of II) In this second part of the two-part article, the author, a valuation professional and trained economist, shares his thoughts on whether we are headed towards another financial crisis. Here, he shares his views on the size of the U.S. debt, low interest rates and whether the low interest environment is sustainable, and what he sees are solutions to the U.S. economic problems. (The views expressed in this article are solely those of the author; QuickRead invites its readers to respond or submit an article of their own on…
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Retirement Savings Require Prioritization of Financial Goals Saving for retirement requires balancing several different objectives such as paying down debt, setting aside enough money to handle emergencies, and making contributions to retirement accounts. Brian Preston and Bo Hanson discuss that how you prioritize these goals will depend on your personal financial situation. To read the full article in U.S. News & World Report, click: How to Prioritize Saving for Retirement.
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Here are the IRS’s Top “Dirty Dozen” Tax Scams for 2016 The Internal Revenue Service released its annual list of the “dirty dozen” worst tax scams, starting with identity theft and winding up with frivolous tax arguments. Sally P. Schreiber, senior editor of JofA, lists what taxpayers and practitioners need to watch out for. To read the full article in the Journal of Accountancy, click: 2016’s Dirty Dozen Tax Scams.
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How Delaying Retirement One Year Provides Financial Advantages Working just one additional year before retirement can increase your Social Security benefits and provide other financial advantages. Emily Brandon, senior editor for Retirement at U.S. News, discusses this and that an additional year also means continuing to receive company benefits instead of paying for them yourself. To read the full article in U.S. News & World Report, click: How Working an Extra Year Improves Your Retirement Finances.
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With the rise of technology and professional service firms, the U.S. marketplace is shifting from one which supplies goods to one which supplies ideas. Taryn E. Burgess, financial analyst with Mercer Capital, explains there is a growing gap in the balance sheet reflecting this shift from physical assets to intangible ideas. To read the full article in Mercer Capital’s Financial Reporting Blog, click: Our Economy Has Changed. Should Our Accounting Standards? This article is republished from Mercer Capital’s Financial Reporting Blog. It is reprinted with permission. To subscribe to the blog, visit: http://mercercapital.com/category/financialreportingblog/.
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Are We Heading Towards the Next Financial Crisis? (Part I of II) In this two-part article, the author, a valuation professional and trained economist, shares his thoughts on whether we are headed towards another financial crisis. (The views expressed in this article are solely those of the author, QuickRead invites its readers to respond or submit an article of their own on this important topic.)
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FLPs Remain a Viable Intra-Family Transfer Option, But Act Now The Internal Revenue Service has floated the idea of making regulatory changes to the implementation of section 2704, in this article the author gives us an update on the subject and underscores the need to facilitate intra-family transfers of businesses.
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What Firms Look at When Reviewing Resumes Average accounting and finance firms will look through 21 CVs before making a job offer, according to research from Robert Half. Julia Irvine looks at how the research, conducted in the UK, shows firms will often focus on factors such as candidates’ previous roles and how long they spent with their employers. To read the full article in Economia, click: Making Your CV Work for You.
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Regulations Finalize Reporting Rules for Debt Instruments The Internal Revenue Service on Wednesday issued final regulations on the rules for brokers to report transactions involving debt instruments and options, including original issue discount. The rules finalize temporary and proposed rules issued last year, with a few changes in response to comments. Sally P. Schreiber senior editor for The Tax Adviser, explains. To read the full article in The Tax Adviser, click: Final Regulations Govern Sec. 6045 Reporting of Debt Instruments by Brokers.