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Treasury
Updates Online MBT Frequently Asked Questions
On March 6, the Michigan Department of Treasury updated the
extensive online Frequently Asked Questions (FAQs) about the new Michigan
Business Tax (MBT). The new responses are available on the Department’s
web site. Members are also encouraged to submit their own questions via
the MACPA's online
MBT Q&A
Forum, as well as track
MBT
legislation that could affect the implementation of the tax.
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IRS Automates Installment
Agreement User Fees
The IRS now automatically determines a taxpayer’s eligibility for
reduced user fees when entering into an installment agreement. An
installment agreement allows taxpayers to pay their full tax debt in
smaller, more manageable amounts, though penalties and interest continue to
accrue on the unpaid portion of that debt. Taxpayers are charged a one-time
fee to set up an installment agreement with the IRS. A reduced fee is
available for qualifying taxpayers.
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Free File Available for
Nonfilers Who Must File a Return to Receive Economic Stimulus Payment
Individuals who normally do not file a tax return but must do so this year
in order to receive their 2008 economic stimulus payment can now use the
IRS Free File program to help them file returns for 2007.
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Proposed Regulations
Issued for Capitalization of Tangible Assets
On March 7, the Treasury Department and the IRS issued
proposed regulations to clarify the treatment of expenditures incurred
in selling, acquiring, producing or improving tangible assets. Specifically,
these proposed regulations require capitalization of expenditures that
result in a betterment or restoration of the property, and they describe the
factors to be used in determining whether an expenditure results in a
betterment or restoration. The proposed regulations also provide guidance
concerning the appropriate unit of property to which the betterment and
restoration rules should be applied. All of these rules have been revised
from the 2006 proposed regulations in response to the concerns raised by
commentators.
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IRS Guidance on LIFO
Pooling for Resellers of Cars, Light-Duty Trucks
Using the Industry Issue Resolution (IIR) program, the IRS issued guidance
regarding the proper
pooling treatment of automobiles, light-duty trucks, and crossover
vehicles which have characteristics of trucks and cars under the
dollar-value, last-in, first out (LIFO) inventory method. The distinctions
between cars and light-duty trucks have diminished significantly since the
issue was last addressed in IRS guidance and by the Courts. To address these
distinctions and in response to an IIR request submitted by Miller Chevalier
Chartered and the National Auto Dealership Association (NADA), the Treasury
Department and the Internal Revenue Service issued Revenue Procedure
2008-23.
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SEC Warns Public Pension
Funds About Inadequate Compliance Procedures
The SEC reminded
public pension funds of their responsibilities under the federal
securities laws, and warned them that they assume a greater risk of running
afoul of anti-fraud and other provisions if they do not have adequate
compliance policies and procedures in place to prevent wrongdoing in their
money management functions. "While public pension funds are exempt from most
of the federal securities laws governing other money managers, they are not
exempt from important anti-fraud provisions that prohibit insider trading
and other manipulative and dishonest behavior that threatens the integrity
of our markets. It is vitally important, therefore, that they have
appropriate policies and procedures," said SEC Chairman Christopher Cox.
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Federal Court Upholds
OFIS Rules Barring Discretionary Clauses in Insurance Policies
Recently, the U.S District Court in West Michigan decided in favor of the
Office of Financial and Insurance Services (OFIS), the defendant, in a case
brought by plaintiffs American Council of Life Insurers, America’s Health
Insurance Plans and Life Insurance Association of Michigan. The court ruling
upheld OFIS rules that prevent insurance companies from issuing insurance
policies that contain “discretionary
clauses.” A discretionary clause gives an insurance company the full and
exclusive authority to determine and interpret a consumer’s eligibility and
their entitlement to benefits and amount of benefits. Under the clauses,
insurance company determinations would have the effect of binding courts
reviewing insurer contract interpretations, effectively tying the hands of
the judiciary by forcing a judge to give the insurer’s decision deferential
treatment.
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New Accounting Curriculum
Rule Effective March 1, 2008
Beginning March 1, 2008, Michigan accounting students are no longer required
to take specific communications and computer classes. Up until now, the
students were required to complete a minimum of three semester hours each in
business communications and computer technology. The requirement was removed
because in today’s academic world these topic areas are intertwined in other
classes so that there is no longer a need to have the specific class
requirement. Please click
here for a quick explanation of the current rule, the change, the
background and the implications.
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A Tale of Two Passwords
There are two types of passwords that when used incorrectly on the broadband
router can put a network at risk. The router administration password is
sometimes left at its manufacturer default value, which is typically that
company's name, password, or a series of basic numbers. A router's
administration network offers access to crucial settings that oversee both
the online link and personal wired and/or wireless network, and not changing
it can make a user vulnerable to a certain type of attack called drive-by
pharming.
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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