This is a link to a Journal of Accountancy article.
Check it out!
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!
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.
The Secure Act 2.0 made it possible to roll over unused 529 plan assets to a Roth IRA.
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!
The Financial Crimes Enforcement Network has come out with proposed rules regarding the reporting of beneficial ownership information (BOI) in response to the Anti-Money Laundering Act of 2020 . These rules apply to domestic reporting companies which are defined as entities created under the laws of the United States or an Indian Tribe, as well as foreign reporting companies. (Reporting Companies).
There are 23 entities exempt from the Reporting Companies classification. These include banks, money transmitting businesses, RIA’s, investment companies, and large corporations. Large corporations are defined as corporations that employee more than 20 full time employees in the US, filed a tax return reporting more that $5 million in gross receipts in the previous year and have a physical office in the US.
Change in beneficial ownership must be reported within 30 days of the change. Beneficial owners include anyone who exercises substantial control over a Reporting Company or owns or controls at least 25% of such company. Failure to report is subject to a $10,000 fine and 2 years jail time.
As you can see this will impact most small businesses and will be a significant reporting burden which will ultimately fall to the CPA. The AICPA, NCCPAP, TACPA and many other organizations are working to minimize the impact of these proposed changes. The AICPA sent a letter to FinCEN on 2/4/22 with recommendations.
The final effective date has not been set. Presumably, the database FinCEN will use to capture the reports is not yet fully operational. It is not known if there will be data sharing between FinCEN and the IRS.
Rev. Proc. 2021-15 was just issued. It expands the definition of what expenses qualify under IRC Sec.62(a)(2)(D) (ii) for the maximum $250 above line deduction for teachers. Protective items that are, or will be, used by the teacher to aid in preventing the spread of Covid-19 are now qualified expenses. This includes but is not limited to: face masks, disinfectant, soap, gloves, tape, chalk, barriers, air purifiers, etc. The expenses must paid paid or incurred after 3/12/20.
Wednesday night 6/3/20, the Senate passed House bill HR 7010 which provides relief for PPP loan payback. The 8 week period is extended to 24 weeks. The payroll cost percentage is now 60% as opposed to 75%. Payback period for loan is now 5 years instead of 2. Business may now delay payroll tax payments.
The bill now goes to the President for signature. More to come!