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Non-Public
Companies Get More Time to Implement FIN 48
Acting on the recommendation of the Private
Company Financial Reporting Committee (PCFRC), the FASB has deferred
implementation of FIN 48, titled "Accounting for Uncertainty in Income
Taxes," for all non-public companies to periods beginning after Dec. 15,
2007. According to the
AICPA, the FASB has instructed its staff to develop a FASB Staff
Position, which will have a 30-day comment period once it is released. The
move reverses an earlier FASB decision to reject a delay in FIN 48
implementation. The PCFRC was concerned that many nonpublic entities and
their CPA practitioners were not fully aware of the implications of FIN 48
and that they did not have the necessary time to understand and apply the
guidance required by FIN 48 before its effective date. In addition, many
nonpublic entities and their CPA practitioners learned late in the process
that FIN 48 does apply to pass-though entities.
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GAO Criticizes IRS
Internal Controls
In an
annual review of IRS financial statements, the Government Accountability
Office sharply criticized the agency’s internal control and financial
management systems. The GAO acknowledged that the IRS has made significant
strides in addressing its financial management challenges. However, the
IRS's ability to fully address its remaining financial management issues
largely depends on addressing the limitations of its automated systems used
to process tax-related activities, noted the GAO.
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Electronic Filing
Breaks Records in 2007
The IRS this year received nearly 80 million tax returns through e-file,
breaking the record set last year. The 2007 level is up about 9 percent
from the 73 million returns filed for the same period last year. Of the
139.3 million returns filed in 2007, 79.98 million or about 57.4 percent
were filed electronically. Since 2001, the number of e-filed returns has
almost doubled and over the past decade the number of e-filers has increased
four-fold. More than 22.6 million returns have been e-filed by taxpayers
doing their own returns, up from 20.3 million from the same period last
year. More than 57.4 million returns were e-filed by tax professionals, up
from nearly 52.9 million last year.
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Saver’s Tax Credit Helps Low- and
Moderate-Income Workers Save for Retirement
Low- and moderate-income workers can take steps now to save for retirement
and earn a special tax credit in 2007 and the years ahead, according to the
IRS. The saver’s credit helps offset part of the first $2,000 workers
voluntarily contribute to IRAs and to 401(k) plans and similar workplace
retirement programs. Formally known as the retirement savings contributions
credit, the
saver’s credit is available in addition to any other tax savings that
apply. Eligible workers still have time to make qualifying retirement
contributions and get the saver’s credit on their 2007 tax return.
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Treasury, IRS Issue
Additional Pension Protection Act Guidance
New guidance issued by the Treasury Department and the IRS on the
Pension Protection Act will allow employers to use new automatic enrollment
features next year. The new rules that facilitate the adoption of automatic
contributions arrangements in 401(k) plans and other similar plans under
sections 403(b) and 457 of the Internal Revenue Code. Employers may rely on
these proposed rules pending the issuance of final regulations.
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SEC Offers Staff Guidance
on Written Loan Commitments
The SEC released
Staff Accounting Bulletin No. 109, "Written Loan Commitments Recorded at
Fair Value Through Earnings." The SAB provides the staff's views on the
accounting for written loan commitments recorded at fair value under
generally accepted accounting principles. To make the staff's views
consistent with current authoritative accounting guidance, the SAB revises
and rescinds portions of SAB No. 105, "Application of Accounting Principles
to Loan Commitments."
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IRS and Michigan Will
Share Employment Tax Examination Results
Michigan is among more than two dozen states entering into an
agreement with the IRS to share the results of employment tax
examinations. The information-sharing agreement provides, for the first
time, a centralized and uniform mechanism for exchanging employment tax data
between IRS and state workforce agencies, such as
Michigan's UIA. Keith Cooley, director, Michigan Department of Labor &
Economic Growth noted that the agreement will help improve compliance with
state and federal regulations governing employment and unemployment tax
activities and reduce fraudulent filings and plans and the misclassification
of workers.
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MAF Scholarship
Applications Now Available Online
Do you know any top-notch accounting students currently in their senior
year? Be sure to tell them about the
scholarships available from the Michigan Accountancy Foundation. The
scholarships are intended for students who plan on taking the CPA exam.
Scholarships totaling more than $345,000 have been presented to 91 students
over the past five years The MAF Scholarship application is available
online. The deadline for submissions is January 31, 2008. If you have
any questions please contact David
Johnson at 248.267.3700.
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Implementing
Accounting Software On Time, On Task and On Budget
Successful implementation of new enterprise software requires solid
planning, the cooperation of the whole organization, and a lot of research.
To begin, organizations should always evaluate essential business targets
and long range organizational objectives. New business software should also
be able to promote growth and future direction of the organization, and
sustain existing user requirements.
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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