CPA Observation Post

AICPA Presses for Passage of Mobile Workforce Bill (via @AccountingToday)

The American Institute of CPAs is urging the House to pass legislation this week to establish a uniform national standard governing the withholding of state income taxes for nonresident employees. Read More>>

Amazon Law Held Unconstitutional (via @AccountingToday)

In a decision that could have far-reaching impact, an Illinois state court judge has ruled that the state’s Amazon law, passed to tax online sales of in-state affiliates, is unconstitutional. Read More>>

Draft bill gives IRS greater fire power against fraudulent tax preparers

A draft bill giving the Internal Revenue Service expanded collections authority and the ability to levy a new preparer fraud penalty would help rein in unscrupulous tax preparers who falsely increase a client's expected return and pocket the difference. The bill would allow the IRS to bypass the Department of Justice in getting authorization to file a suit against the preparer for smaller amounts. If the amount the preparer has stolen is egregious, the IRS would still use the DOJ to pursue criminal charges. Read More>>

JOBS Act might put investors in the dark about faulty accounting

The Jumpstart Our Business Startups Act, which President Barack Obama signed Thursday, exempts small, new companies from mandatory outside audit of internal financial controls, a change that might deprive investors of information about problems that could become serious over time. For example, since the Sarbanes-Oxley requirement for internal-control inspections took effect in 2004, 104 companies that had issues with their anti-fraud, anti-error procedures would have been exempt from auditor scrutiny of the procedures under the JOBS Act. The provision is one of many measures in the law that relax securities regulations in an effort to cut costs for small businesses and help them raise capital. Read More>>

Measure would kill PCAOB auditor-rotation proposal

U.S. Rep. Mike Fitzpatrick, R-Pa., has proposed a change to the Sarbanes-Oxley Act that would prevent the Public Company Accounting Oversight Board from requiring companies to rotate auditors. The amendment also would prevent the PCAOB from mandating the use of specific auditors. Read More>>

U.S. House passes bill that would expand SOX 404(b) exemptions

The U.S. House approved the JOBS Act Thursday by a vote of 390-23. The JOBS Act contains a number of provisions meant to encourage small business growth and more IPOs. The AICPA and the Center for Audit Quality, which is affiliated with the AICPA, have expressed concerns about relaxing investor protections through expansion of SOX 404(b) exemptions contained in the bill and companion legislation in the Senate. Read More>>

Sen. Levin Calls For Congress To Close ‘Facebook’ Tax Loophole

Sen. Carl Levin, D-Mich., is calling for Congress to pass a bill he introduced that would eliminate a tax deduction for shares sold to early investors and founders when a company goes public. He pointed to Facebook as the poster child for such practices. The company is positioned to receive a $3 billion deduction once it begins trading, Levin says. 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>>

Congress Releases Details on Payroll Tax Cut and Unemployment Extension (via @AccountingToday)

House and Senate negotiators have released a conference committee report spelling out several of the provisions of the payroll tax cut extension legislation, which also extends unemployment benefits and the “doc fix” for Medicare reimbursements for physicians. Read More>>

President’s budget proposes AMT elimination, tax reform (via @AICPA_JofA)

President Barack Obama unveiled his proposed FY 2013 budget on Monday. It is full of specific tax proposals, and five principles for tax reform. The budget proposes that a "Buffett Rule" replace the current alternative minimum tax and that certain 2001 and 2003 tax cuts be allowed to expire. The budget would also repeal the LIFO method of accounting for inventories. Read More>>