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AICPA Comments to
IRS on Rulings on Trust Distribution Committees
The AICPA has told the IRS in a
comment letter
regarding
trust distribution committee rulings that it does not believe it is
necessary to reconcile several Private Letter Rulings with two particular
revenue rulings in order to accomplish sound tax policy. The AICPA submitted
its comments to the IRS in response to IR-2007-127, an information release which
questions whether the conclusions reached in a series of Private Letter
Rulings (PLRs) regarding the application of Internal Revenue Code section
2514 are consistent with two revenue rulings. The AICPA said it sees no
contradiction between the conclusions in the specific PLRs and the revenue
rulings because they deal with different fact patterns and applicable
Internal Revenue Code sections and regulations. However, the AICPA suggested
that if the IRS determines that additional guidance is needed in this area to
remove any possible doubts, the IRS should clarify what it is trying to say in
the PLRs by providing a new revenue ruling on this subject with examples,
demonstrating that modifying the PLRs’ trust structures as detailed in the
AICPA comments would achieve the intended result.
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Renew Your CPA License
Online Before Dec. 31 Deadline
CPAs who take advantage of online renewal can expect to receive their
renewed license or registration within five business days. The renewal cycle
for CPAs ends December 31, 2007, when all licenses and registrations expire.
Individuals who wish to make a name change, or change from licensed to
registered, or from registered to licensed, should renew by mail. Mailed
renewal process applications take two to four weeks to process. For more
information, read this
article published in the November/December issue of Leaders’ Edge,
or visit the Department of Labor and Economic Growth's
web site.
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PCAOB Issues Staff
Audit Practice Alert on Fair Value
The Public Company Accounting Oversight Board (PCAOB) last week published a
Staff Audit Practice Alert on the audit of fair value measurements in
financial statements. The alert provides auditors with additional
information related to auditing fair value measurements and disclosures, as
well as the use of specialists in this area. The release,
Matters Related to Auditing Fair Value Measurements of Financial Instruments
and the Use of Specialists, highlights certain matters in four areas:
auditing fair value measurements; classification of fair value measurements
within the fair value hierarchy established by SFAS 157; the use of
specialists in fair value measurements; and the use of pricing services in
fair value measurements.
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IRS Fast Track Settlement
Program Expands
The IRS is expanding the number of test areas for the
Fast Track Settlement program for taxpayers under examination by the
Small Business/Self-Employed Division. The Fast Track program began, and is
continuing, in Chicago, Houston and St. Paul. The settlement program is now
available for small businesses and self-employed taxpayers until Sept. 5,
2008, in five new areas, including Philadelphia, central New Jersey, San
Diego, Laguna Nigel (Calif.), and Riverside (Calif.). The program is a
jointly administered process designed to expedite case resolution.
Examination and Appeals officials will re-evaluate the Fast Track program
after this test phase is completed on Sept. 5, 2008. This phase will help
determine whether Fast Track is adjusted, expanded to more areas or made
available nationwide.
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U.S. Government
Releases FY 2007 Financial Report
The Treasury Department and the Office of Management and Budget released the
Fiscal Year 2007 Financial Report of the U.S. Government. The report
details the government's short-term and long-term financial outlook,
including the government's biggest fiscal challenge – the unsustainable
growth in entitlement programs. The report can be found at
http://www.fms.treas.gov/fr/index.html.
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FASB Launches Series of
Webcasts on Global Reporting System
The first in a series of webcasts planned by The Financial Accounting
Standards Board (FASB) will address
international accounting standards. “Towards a Global Reporting System:
Where Are We and Where Are We Going?” is scheduled for Tuesday, January 8,
2008, from 10:30 a.m. to 11:30 a.m. (EST), and will feature a panel of
experts discussing international convergence of accounting standards.
Moderated by Wall Street Journal reporter David Reilly, the panel
will cover topics that include steps necessary to ensure a successful
transition to IFRS; how this transition will provide better information to
investors; and progress made by the FASB and the International Accounting
Standards Board (IASB) to create a common set of high-quality global
accounting standards.
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Changes Expand Federal
Tax Credit Program for Employers
The federal program that helps employers by giving them tax credits for
hiring workers who face barriers to employment has been reauthorized and
expanded to include more workers. The federal
Work Opportunity Tax Credit (WOTC) has recently eased some of the
requirements for the program, expanding the categories of workers it can
help to find employment. WOTC offers a range of tax credits from $2,400 to
$9,000 for each worker an employer hires from the nine categories of workers
covered by the program.
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The
Technology-Productivity Equation
The mobile workplace has allowed employees to boost their productivity by
over 13 percent weekly, according to a Cisco Systems and OMNI Consulting
Group study. Bluetooth technology, smartphones, and an array of wireless
broadband services have facilitated workforce operations, producing a more
flexible environment for wireless employees. 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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