CPA Observation Post

AICPA to IRS: Capitalization Rules ‘Too Complex’ For Taxpayers

Many taxpayers will lack the resources to comply with the overly complex Internal Revenue Service (IRS) capitalization rules that govern the deduction and capitalization of tangible property expenditures are too complex and many taxpayers, especially small businesses, will not have the resources to comply, Carol Conjura, chair of the American Institute of CPAs Tax Methods & Periods Technical Resource Panel, said at an IRS hearing. Read More>>

IRS Delays Reporting for Debt Instruments and Options (via @AccountingToday)

The Internal Revenue Service and the Treasury Department have decided to delay for a year the proposed effective date for cost basis reporting by brokers for debt instruments and options. Read More>>

SEC's rule-writing pace slows for Dodd-Frank Act

The five members of the Securities and Exchange Commission have not met in the past four months to propose or approve rules mandated by the Dodd-Frank Act. Chairman Mary Schapiro called the slowdown a "natural lull" after an initial wave of proposals. "It's easier to propose rules than it is to adopt them," Schapiro said. Read More>>

IRS expands tax-exempt organization disclosures (via @AICPA_JofA)

The Internal Revenue Service issued final regulations changing its rules for disclosing information relating to the denial or revocation of tax-exempt status. Documents containing this information will now be made available for public inspection. The move follows a D.C. Circuit Court of Appeals decision, which had held that the IRS could not withhold such documents under Sec. 6104. Read More>>

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>>

U.S. Official "Optimistic" on Global Accounting Move (via @AccountingToday)

A senior U.S. regulator was "optimistic" on Monday about finding a framework for the world's top economy to use global book keeping rules for investors to compare cross-border companies. Read More>>

IRS Finalizes Whistleblower Regulations (via @AccountingToday)

The Internal Revenue Service has finalized its regulations on paying rewards to whistleblowers for up to 30 percent of the proceeds collected for helping the IRS detect underpayments and violations of the tax laws. Read More>>

Pace of standards, regulation top issue for small and medium-size accounting practices, international poll shows (via @AICPA_JofA)

Forty-one percent of respondents in an international poll of small and medium-size practitioners and businesses said keeping up with new regulations and standards is the most important issue they face. Meanwhile, the burden of regulation was rated the top concern for their small and medium-size clients, while economic uncertainty ranked a close second. Read More>>

IRS releases rules for nonprofit health insurance providers in CO-OP (via @AccountingToday)

The Internal Revenue Service has released procedures for issuing determination letters and rulings on the tax-exempt status of nonprofit health insurance providers that want to participate in the CO-OP program included in the health care reform law. Read More>>

IRS Proposes Regulations on Taxable Medical Devices (via @AccountingToday)

The Internal Revenue Service has issued proposed regulations to provide guidance on the excise taxes imposed on the sale of medical devices under the health care reform law. Read More>>