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Gramm Leach
Bliley Act Exemption for CPAs
The MACPA has learned of some
confusion regarding the effect of the recent exemption for CPAs from the
provisions of the
Gramm Leach Bliley Act. While the exemption does not
specifically account for documents prepared by non-CPA staff within public
accounting firms, as work product is approved and signed by a CPA or a CPA
firm, this exemption will spread throughout the firm. However, any work
approved and signed by a non-CPA principal would not be exempt, and those
clients must still receive the privacy policy notice as required by Gramm
Leach Bliley. Please contact the MACPA Government Relations Department with
any questions.
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2006 Tax
Season Resources Available on MACPA Web Site
Numerous 2006 tax season resources are now available to members on the
MACPA web site. They include a
brochure,
speech and PowerPoint presentation
designed to help CPAs promote their practices/services while assisting
clients in preparing for tax season.
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IRS Implements
Extenders Legislation
In late December, the IRS posted new guidance to help tax filers in 2007
claim the
extended deductions and other tax advantages in the
Tax Relief and
Health Care Act of 2006. The IRS indicated the start of the 2007 filing
season would begin on time. However, the recent law changes mean the IRS
will not be able to process a small percentage of individual tax returns
until early February, primarily involving three tax deductions – the state
and local sales tax, higher education tuition and fees, and educator
expenses.
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Federal
Identity Theft Task Force Seeks Public Comment
The President's Identity Theft Task Force seeks public comment on various
recommendations to improve the effectiveness and efficiency of the federal
government's efforts to reduce identity theft. Task Force considerations
include various ways to improve the coordination and effectiveness of
criminal prosecution of identity theft, to enhance data protection for
sensitive consumer information maintained by the public sector, private
sector, and the consumer himself or herself, and to provide more
comprehensive and effective guidance for consumers and the business
community. The Task Force also is considering ways to improve recovery and
assistance for consumers following a breach or misuse of their information.
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SEC
Amends Executive Pay Disclosure to More Closely Align with FASB
On December 22, 2006 the SEC released an
amendment to its executive and
director compensation disclosure rules to more closely conform the reporting
of stock and option awards to Financial Accounting Standards Board (FASB)
Statement of Financial Accounting Standards No. 123 (revised 2004)
Share-Based Payment (FAS 123R).
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Treasury,
IRS Issue Final S-Corporation ESOP Regulations
Treasury and the IRS issued
final regulations under section 409(p) of the
Internal Revenue Code with respect to an employee stock ownership plan
(ESOP) that holds stock of a Subchapter S Corporation. The final regulations
are the culmination of a process that began when the Economic Growth and Tax
Relief Reconciliation Act of 2001 enacted section 409(p), which ensures tht
the special tax benefits afforded to ESOPs that hold Subchapter S
Corporation stock do not extend to cases in which the ownership is
concentrated among a small number of owners. The regulations, effective for
plan years that begin on or after January 1, 2006, replace existing
temporary regulations with various modifications to reflect comments
received.
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New Law Makes
Health Care More Affordable, Accessible
On December 20, 2006, President George Bush signed the
Health Opportunity Patient Empowerment Act of 2006, enhancing Americans' access to
tax-advantaged health care savings. The law, part of the Tax Relief and
Health Care Act of 2006, provides new opportunities for health savings
account (HSA) participants' to build their funds. Among other provisions
designed to make HSAs more flexible and easier to use, the Act increases the
maximum contributions and allows rollovers from health Flexible Spending
Arrangements or Health Reimbursement Arrangements to an HSA for employees
switching to coverage under an HSA-compatible health plan.
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GASB Proposal
Would Establish Guidance for Intangible Assets
On December 27, 2006, the Governmental Accounting Standards Board issued a
proposal to establish accounting and financial reporting guidance for
intangible assets. The proposal describes an
intangible asset as an asset
that lacks physical substance, is non-financial in nature, and has an
initial useful life extending beyond a single reporting period. Examples of
intangible assets include easements, computer software, water rights, timber
rights, patents and trademarks. Questions have arisen about whether and when
certain intangible assets should be considered capital assets for financial
reporting purposes.
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Michigan
Treasury Launches New Web Site
The Michigan Department of Treasury has unveiled its new redesigned web
site. In order to offer a more user-friendly, easier to navigate web site,
information contained on the former Treasury site has been split into two
sites, with all tax information available by clicking the taxes link on the
left.
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How to Find the Right Data Protection Platform
There are a number of things small businesses should consider when choosing
a data protection solution. Whatever solution they choose should be easily
implemented and maintained, and it should safeguard data in transit as well
as in storage. To read this article in its
entirety and much more about developments in technology, access
Technology and
Productivity Weekly, the MACPA's electronic technology newsletter for
industry professionals, sponsored by Information, Inc.
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