CPA Observation Post

Online brokerages' delay in sending out tax forms strains system (via @USAToday)

Several popular online brokerages, including Charles Schwab, Raymond James, ShareBuilder, TradeKing, Wells Fargo Advisors and Zecco, asked for 30-day extensions of the Feb. 15 deadline to send out tax forms. So some investors might have to wait a full extra month.

To heighten focus on risk, PCAOB proposes "related parties" standard (via @AICPA_JofA)

The Public Company Accounting Oversight Board is seeking public comment on a proposed standard on related parties and proposed amendments on significant unusual transactions. The moves are designed to improve focus on certain areas of risk. The board also proposed amendments to its rules and forms to apply them to auditors of Securities and Exchange Commission-registered brokers and dealers in accordance with the Dodd-Frank Act. Read More>>

AICPA Urges Improvements in IRS Examinations (via @AccountingToday)

The American Institute of CPAs told the Internal Revenue Service Oversight Board at a hearing Tuesday that the IRS needs to improve its correspondence audit program to lessen the burden on taxpayers. Read More>>

Internet sales continue to eat away at state revenues (via @USAToday)

Sales taxes last year took the smallest percentage of consumers' dollars since 1967 as tax-free Internet sales and untaxed services continued to erode state and local governments' top source of revenue, a USA TODAY analysis finds. Read More>>

Some observers say corporate tax reform could get done this year

Some Washington observers think a deal to overhaul the corporate tax code could be completed this year. These people, who represent the minority opinion, point to the open congressional calendar for the rest of year. Also, if Congress were to pass a comprehensive tax code reform, it would bolster its image to voters. Read More>>

IRS Restricts Tax Return Drop-offs at Assistance Centers (via @AccountingToday)

The Internal Revenue Service is taking steps to discourage tax preparers and other taxpayer representatives from dropping off completed tax returns at its local Taxpayer Assistance Centers instead of mailing or electronically filing them. Read More>>

Ballezzi & Associates merges with Bartolomei Pucciarelli

Lawrenceville-based Bartolomei Pucciarelli announced today that Ballezzi & Associates has merged into their firm. According to a press release, the move consolidates two accounting practices that share entrepreneurial business cultures, as well as a great deal of mutual respect for one another.

Ballezzi & Associates has provided accounting and business advisory services in the tri-state region, as well as to international accounts, for 40 years. With a majority of their customer base being commercial businesses, Ballezzi developed expertise in several key markets while honing a specialty within the information technology sector. Many of these clients are software development companies that require a wide platform of services, such as outsourced CFO, business consulting, performance analysis and capital procurement.

The relationship between Mr. Bartolomei and Mr. Ballezzi goes back 15 years. Throughout this period of time, the two firms have collaborated on many projects giving both a very solid understanding of each other's capabilities and approach to client services.

The full press release may be viewed at http://www.bp-cpas.com/press.htm.

(From left to right) Enrico J. Ballezzi, Florence H. Lau, James E. Bartolomei and Michael S. Pucciarelli gather in the Bartolomei Pucciarelli lobby in Lawrenceville.

Eighth Circuit affirms S corporation shareholder’s compensation was not reasonable (via @AICPA_JofA)

The 8th U.S. Circuit Court of Appeals held that an S corporation owner's salary was unreasonably low, and that he therefore owed FICA tax on a portion of amounts taken as distributions. The 8th Circuit upheld a lower court decision that had looked at the owner's experience and duties and at salaries of comparable professionals to conclude that the owner's services were worth more than the small salary he had taken in the years at issue. Read More>>

SEC chairman says U.S. won't be rushed into IASB rules

Mary Schapiro, chairman of the Securities and Exchange Commission, said the U.S. won't be rushed or forced into adopting international accounting standards. "I don't feel any pressure at all to go along with anybody," Schapiro said. "I feel pressure to do the right thing for U.S. markets and U.S. investors." More than 100 nations use the International Accounting Standards Board's accounting rules. Read More>>

EisnerAmper Merges in Harb, Levy & Weiland

EisnerAmper is merging in Harb, Levy & Weiland, expanding the New York-based firm’s presence to California, Illinois and India. Read More>>