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Treasury, IRS Release
Report on Improving Voluntary Compliance
Last Thursday, the Treasury Department and the IRS released an
IRS report addressing the agency’s implementation of the 2006 strategy
to improve voluntary compliance with federal tax laws. Download a copy of
the full report, “Reducing
the Federal Tax Gap: A Report on Improving Voluntary Compliance.” It
details steps currently being taken by the IRS, as well as those under
development, to address key elements of the “tax gap.” The report builds on
the seven components of the “Comprehensive
Strategy for Reducing the Tax Gap,” which the Treasury Department
released in September 2006. Those components include:
- Reducing Opportunities for Evasion
- Making a Multi-Year Commitment to
Research
- Continuing Improvements in Information
Technology
- Improving Compliance Activities
- Enhancing Taxpayer Service
- Reforming and Simplifying the Tax Law
- Coordinating with Partners and
Stakeholders
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Member Comments Sought
on Proposed Changes to Form 990
In response to proposed revisions to Form 990
released by the IRS in mid-June, the MACPA has formed an ad-hoc task force
to review the revisions and submit comments on behalf of the Association’s
membership. This form is filed annually by tax-exempt organizations. Due to
the significance of the proposed changes, the Form 990 Ad-Hoc Task Force is
soliciting member comments and questions on the proposed form changes
by no later than Friday, August 17. Please send comments/questions
to legislation@michcpa.org or
contact the MACPA Government Relations and Regulatory Affairs Department at
248.267.3700. The IRS is anticipating an implementation of the revised form
for the 2008 tax year. Additional information on proposed Form 990 changes
is available by visiting the
official IRS web site.
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IRS Seeks Comments on
Updates to Corporate and Partnership Tax Forms
The IRS has released for comment and discussion
draft revisions to Form 1065, U.S. Return of Partnership Income, and
Form 1120, U.S. Corporation Income Tax Return. The IRS plans to have the
forms and related schedules ready for use for taxable years ending on or
after Dec. 31, 2008. Comments are due from the public by Sept. 14, 2007.
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Employee Benefit
Plans Can Expect Increased Transparency in the Quality of Financial
Reporting Controls, AICPA Says
Employee benefit plans can expect
increased transparency in the quality of their internal controls over
financial reporting as a result of new CPA audit requirements, according to
the AICPA. Beginning with this year’s audits, CPA firms that audit employee
benefit plan financial statements are required to communicate in writing any
significant deficiencies or material weaknesses in internal controls over
the plan’s financial reporting noted during the annual independent audit.
The new professional standard,
Statement on Auditing Standards (SAS) No. 112, Communicating Internal
Control Related Matters Identified in an Audit, issued by the Auditing Standards Board, requires CPA firms to
make these written communications to plan management and others charged with
plan governance.
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Treasury, IRS Issue New
Proposed Cafeteria Plan Regulations
On August 3, the Treasury Department and the
IRS issued new
proposed regulations for employee benefit plans under Section 125 of the
Internal Revenue Code. They generally preserve the rules of the existing
proposed regulations for “cafeteria plans,” while adding clarifications
relating to statutory changes and administrative guidance changes since the
previous regulations were published. The new regulations also address many
issues on which the IRS has previously provided informal guidance. The
proposed regulations will assist employers, employees, and plan
administrators in utilizing cafeteria plans.
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FASB Issues Invitation to
Comment on Proposal for Insurance Accounting
The Financial Accounting Standards Board (FASB)
seeks
comments on A FASB Agenda Proposal: Accounting for Insurance
Contracts by Insurers and Policyholders, including the IASB Discussion Paper,
Preliminary Views on Insurance Contracts. FASB wants to gather information
to help decide whether there is a need for a project on accounting for
insurance contracts.
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Cast Your Vote: Feed the
Pig Nominated for Podcast Award
Support the profession’s financial literacy efforts by sharing these
podcasts with
others and by voting
for them (see Business category) in a national competition. Each podcast
features a CPA providing advice on a specific financial topic to a Career
Builder, the campaign's target audience. Recent topics include "Managing
Your 401(k)" and "Setting Up an Emergency Fund."
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Granholm Launches No
Worker Left Behind Program; Goal to Train 100,000 for High Demand Careers
Governor Jennifer Granholm launched her
No Worker Left Behind (NWLB) job training program, which allows workers
from across the state to find job openings and training programs to take
advantage of free tuition - up to $10,000 over two years. The program
redirects federal funds for job training to provide two years of free
tuition at any Michigan community college, university or other approved
training program for qualifying participants. Participants must earn a
certification or degree needed in a high-demand occupation (varies from
region to region but includes advanced manufacturing, health care,
biotechnology and more) or gain the entrepreneurial skills needed to start
their own businesses. Eligible participants include the unemployed, or those
who have received a notice or termination or layoff from employment, or
whose family income is $40,000 or less. Visit the
NWLB web site.
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Did You Renew Your MACPA
Membership?
It's that time of year - time to pay your dues. This is a friendly reminder
to all of our valued members, membership dues invoices were mailed out at
the beginning of July. If you have been meaning to pay your dues, but just
have not had the opportunity to do so, then take five minutes out of your
day today to get it out of the way. You can mail in your payment to the
Michigan Association of Certified Public Accountants or give us a call at
248.267.3700. If you need special accommodations, we will be more than
willing to work with you. Please disregard this notice if you have already
taken care of your dues.
Mailing Address:
5480 Corporate Drive, Suite 200
PO Box 5068
Troy, MI 48007-5068
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Web 2.0 Productivity Tools
Several Web 2.0 tools are now available that foster productivity in the
workplace. These include project management applications that require only
an Internet browser and a monthly subscription, like eProject and Basecamp.
To read this article in its entirety and learn 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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