CPA Observation Post

Report: More controls are needed to ensure e-filing compliance

Improvements are necessary to make sure that that tax preparers filing their clients' returns electronically follow new e-file requirements, says a new report by the Treasury inspector general for tax administration. For example, the report said that 6% of professionally prepared returns lacked valid preparer tax identification numbers. Read More>>

IRS to issue guidance on payroll tax cut extension, recapture provision (via @AccountingToday)

The Internal Revenue Service will issue guidance on the two-month extension of the payroll-tax cut. This guidance will include directions on how to implement a "recapture" provision for high-income employees, or those who earn more than $18,350 during the two-month period. Read More>>

ParenteBeard Welcomes New Hires in NJ

ParenteBeard announced yesterday that the following professionals have joined the firm’s Clark, NJ office.

Vincent Capodanno has joined ParenteBeard as a senior manager in the Tax Services practice. Capodanno graduated from Rutgers University where he earned a BA degree in accounting. He resides in Monroe, NJ.

David Lentz has joined ParenteBeard as a senior in the Audit and Accounting Services practice. Lentz graduated from Georgia Tech where he earned a MBA. He resides in Westfield, NJ.

Stacey Varano has joined ParenteBeard as a senior in the Audit and Accounting Services practice. Varano graduated from Monmouth University with a degree in business administration. She resides in Manchester, NJ.

Poll: Americans lack understanding of U.S. financial problems

Many Americans lack a full understanding of the nation's financial problems, according to the National Fiscal IQ poll by the Comeback America Initiative. For example, 68% of respondents believe that most people pay more in payroll taxes and Medicare premiums than they end up receiving, which is not true. Also, 49% think U.S. tax rates are higher than those in other industrialized nations, which is also not true. Read More>>

Large number of tax provisions will expire Dec. 31 (via @AICPA_JofA)

While Congress has focused on trying to extend the reduced payroll-tax rate, a large number of other expiring provisions have been ignored. Among the changes scheduled to take effect Jan. 1 are elimination of 100% bonus depreciation and increased Sec. 179 expensing amounts, reduction of the AMT exemptions to their statutory levels, and expiration of the research and development credit.Read More>>

States prepare to expand supervision of financial advisers

State securities regulators are getting ready to take over supervision of most financial advisers with $25 million to $100 million under management, as mandated by the Dodd-Frank Act. Some in the industry wonder whether recent aggressive enforcement action in Massachusetts against three financial advisers is a sign of things to come under state regulation. Read More>>

IRS Updates Tax Guide for Next Tax Season (via @AccountingToday)

The Internal Revenue Service has published a revised tax guide to help taxpayers get the most out of various tax breaks. The 303-page downloadable guide offers more than 5,000 interactive links to help taxpayers get answers to their questions. Read More>>

PCAOB Revamps Audit Committee Communication Proposals (via @AccountingToday)

The Public Company Accounting Oversight Board voted Tuesday to re-propose for public comment its proposed standards for how auditors should communicate with audit committees. Read More>>

State tax changes on the way in 2012 (via @CNN)

While the fate of the payroll tax extension is still uncertain on Capitol Hill this week, at least some Americans can look forward to tax breaks at the state level when 2012 rolls around. Read More>>

IRS End to Tax Form Mailings Burdened Millions of Taxpayers (via @AccountingToday)

The Internal Revenue Service saved about $14.19 million by not mailing out tax form packages this year, but the elimination of the mailings increased the burden on approximately 6 million taxpayers who needed to obtain the forms themselves, according to a new government report. Read More>>