Check out the 8/11/23 article in the Journal of Accountancy titled “Location of millions of tax records uncertain, TIGTA says in IRS critique”.

This comes at a time when the IRS and the AICPA is pushing all tax preparers to have their Written Information Security Plan (WISP) in place!

New tax ethics rules

The International Ethics Standards Board (IESBA) issued an exposure draft on a new ethics rule that would make CPA’s responsible for the work done for a client by someone the CPA referred the client to. The effect is the CPA could be held responsible for the work of an estate attorney he refers his clients to. There is no statute of limitations in this draft.

The AICPA is bound by agreement to make these rules part of their Code of Conduct when finalized. Since most state boards of public accountancy adopt the AICPA Code of Conduct this will impact you even if you are not an AICPA member.

This draft is currently inder review after receipt of many comment letters opposing it.

Stay tuned!

New 529 Rollover

The Secure Act 2.0 made it possible to roll over unused 529 plan assets to a Roth IRA.
Effective 2024
529 plan must be at least 15 years old
Lifetime rollover limit $35,000
Roth must be in name of plan beneficiary
last five year contributions not eligible
Contribution limits are aggregated
Trustee to trustee transfer required
Beneficiary income limitations do not apply

Have fun with this tax planning opportunity!