Three in five affluent Americans (63%) said they are very or somewhat likely to change their personal financial plans based on the new federal tax law, according to a poll conducted on behalf of the AICPA. To read the full article in the Journal of Accountancy, click: How the New Tax Law Will Change Wealthy Americans’ Financial Plans. ...

No financial technology innovation has saved advisors more time than when custodians began transmitting data files to firms.  Prior to this change, client data was updated by taking statements and keying them into the portfolio accounting system.  At the end of each quarter, statements were stacked thick and the data entry sprint began so that client reporting and billing could be completed. To read the ful ...

The key to implementing this suggested strategy is establishing auto-IRA plans to workers who lack a 401(k) option with a preset percentage of wages to be contributed to the plan.  This would create a retirement nest egg that would not be linked to any one employer, but rather would stay with the worker throughout a career. To read the full article in FinancialPlanning, click: Could this Simple Social Secur ...

Fair Value Not Based on the Merger Price, Part I of II This is a two-part article that focuses on the SWS Group Inc. case and the interplay between merger price and fair value. In earlier cases the Delaware Court of Chancery rejected a merger price indication in favor of its own discounted cash flow analysis. Yet, in the SWS Group, Inc., appraisal decision, instead of a decision supporting a higher fair val ...

For Accounting and Financial Services Firms In this article, Hinge presents its newest study of how professional services firms go to market—and for accounting and financial services firms, there is good news…and some not-so-good news. ...

Taxpayers with income that flows to or from a country that has a tax treaty with the United States should understand how that treaty's provisions can affect their U.S. taxes. To read the full article in The Tax Adviser, click: Tax Treaty Benefits for U.S. Citizens and Residents. ...

Offering constructive criticism is an essential part of being a manager.  Thoughtful feedback improves communication with staff members while encouraging them to grow.  Show how small changes can be part of the big picture. To read the full article in the Journal of Accountancy, click: How to Give Constructive Criticism That Gets Results. ...

In a tighter labor market for advisors, compensation is rising, as are firms’ efforts to make work more enjoyable. To read the full article in FinancialPlanning, click: Pay Day—Breakdown of Financial Advisor Salaries and Perks. ...

A Discount for Controlling Interests This article examines studies and judicial decisions addressing the use of DLOMs where there are controlling, 100% ownership interests, followed by review of a recent client assignment that illustrates the importance of being well versed with the valuation theory in this area. ...

Revenge Porn, Ugg, VirnetX, and Apple This case law highlights a number of patent, copyright, and business valuation cases litigated in the first quarter of 2018. The revenge porn case highlights a distressing but potential opportunity for litigation support professionals. The VirnetX v. Apple and Deckers Outdoor Corporation v. Romeo & Juliette, Inc. cases highlight the perils of patent litigation and f ...

As a risk management professional at CNA, professional liability insurance carrier for nearly 25,000 CPA firms, I am often asked if engagement letters are worth all the effort.  The answer, based on my personal and CNA’s claim experience, is a resounding YES!  I’ve experienced firsthand the value these letters bring to the table. To read the full article in AICPA, click: Engagement Letter Stories—When They ...

Soon after President Trump signed the bill, some wealthy clients who owned businesses needed to know if they could save on taxes by buying manufacturing equipment in 2017.  Others needed advice on whether to pay state income tax by Dec. 31 if they were not subject to the alternative minimum tax. To read the full article in FinancialPlanning, click: New Tax Law, More Business for Financial Advisors. ...

Under the new FASB rules, financial statement preparers are provided an option to reclassify stranded tax effects within accumulated other comprehensive income in each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act (or portion thereof) is recorded. To read the full article in the Journal of Accountancy, click: FASB Addresses Stranded Incom ...

On Patent Damages and Apportionment In two recent cases, the U.S. Court of Appeals for the Federal Circuit provided important guidance when applying apportionment principles to calculate reasonable royalty damages.  See Finjan, Inc. v. Blue Coat Systems, Inc., 879 F.3d 1299 (Fed. Cir. 2018); Exmark Mfg. Co. v. Briggs & Stratton Power Products Group, LLC, 879 F.3d 1332 (Fed. Cir. 2018).  The Federal Circ ...

What is Your Case Worth Today? What is the value of a contested estate? In this article, the author shares her insight and discusses two leading U.S. Tax Court cases in this area, Estate of Lennon and Estate of Foster. ...

The accounting profession sits on the cusp of unprecedented change.  Transformative technologies will reshape virtually every corner of the accounting world.  For CPAs to survive and thrive, they will need to learn—and unlearn—on a scale and at a pace that can seem overwhelming.  To help CPAs prepare, the JofA gathered three of the profession’s top technology experts for its annual accounting technology rou ...

This article highlights a broad, industrywide study of the impact and implications of sexual harassment across professional communities, including banking, payments, mortgages, financial advisory, accounting, health care, employee benefits and capital markets (including municipal finance and M&A advising). To read the full article in FinancialPlanning, click: Ten Key Findings: Sexual Harassment in the P ...

Congressional Republicans created a juicy new tax break for clients when they rewrote the U.S. tax code late last year.  Three months later, hundreds of thousands of them still do not know if they qualify.  The IRS has said it will provide guidance detailing exactly who is allowed to take the so-called pass-through deduction.  With billions of dollars at stake, business groups are lobbying for the agency to ...

Underlying Policy Identified The pass-through entity, that legal entity structure that has given valuators consternation over the years, is back in the news thanks to the Tax Cut and Jobs Acts (TCJA) signed into law at the end of 2017. According to the Joint Commission on Taxation, business owners filed 35.3 million pass-through returns in 2015. Another 1.6 million returns were file by C corporations. The T ...

Behavior Detection in Forensics The United States Marine Corps (USMC) has deployed behavior detection techniques for years, most recently in counterterrorism actions. Marines are taught the techniques during their Combat Hunter Course so that bad guys can be detected before they can do bad things. “Left of bang” means before the bad things happen; “right of bang” means that bad things have already happened, ...