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EXECUTIVE SUMMARY * Since FASB Statement no. 123(R) began requiring companies to recognize an expense equal to the grant-date fair value of options awarded as compensation, there has been a [...]

EXECUTIVE SUMMARY * THE WORKING FAMILIES TAX RELIEF ACT OF 2004 extends the alternative minimum tax exemption of $58,000 (married filing jointly) and $40,250 (single) through 2005. * THE WFTRA [...]

EXECUTIVE SUMMARY * CPAs MUST EXERCISE CAUTION TO CAPTURE CORRECT income in respect of the decedent (IRD) deductions on clients' returns. Since clients typically don't understand the issue well enough [...]

Many people argue that benchmarking is inapplicable to the accounting profession because it is impossible to quantify the quality of accounting services. They find daunting the thought of comparing their [...]

In the current global economy, a working knowledge of issues in the fields of accounting, taxation, economics, and finance is a necessity. Generally, the form of business organization is a [...]

Each year, the Texas Society of CPAs sponsors a survey examining the management policies and performance of accounting practices from the previous year. The 1998 Management of an Accounting Practice [...]

Changes in laws governing real estate-related passive losses have created additional audit issues which must be considered. A threshold of material participation must be met to qualify for active loss deductions. Other changes affect portfolio passive loss deductibility. Special rules governing rental property are also discussed.

Benchmarking is a process used by companies to target key areas for improvement within their operations so they can increase their productivity, competitiveness, and quality. It involves comparing their financial [...]

Every year the Texas Society of CPAs performs a nationwide management of an accounting practice survey of local and regional (nonnational) firms. Its main purposes are to help small firms [...]

The increased documentation required for charitable contribution deductions dictates that tax and accounting professionals be aware of the standards to be applied to fair market valuations in all contexts. Heightened compliance requirements enacted in 1993 for charitable contributions demand that contributions above certain amounts be properly documented. For contributions of property valued at $5,000 or more, a qualified appraisal is required. Tax professionals should be aware of industry and accounting standards for appraisers.

Fortune 500 companies were surveyed to determine the impact of the Family and Medical Leave Act of 1993 (FMLA) on companies. Results showed that the act has had minimal impact, countering fears prior to its passage. Most of the respondents already had family-friendly leave policies in place before the act was implemented. In addition, employees seldom used the benefits espoused by the act since FMLA-related leaves are basically unpaid.

Tax practitioners and estate planners need a working knowledge of the effect of passive income and losses on trust taxable income, the effects of IRC Section 469 on distributable net income, trust throwback rules, and the treatment of loss carryforwards on a decedent's final income tax return. Tax advisors similarly must evaluate the effects of gifting or distribution of passive activities. Since decedents' estates and trusts are subject to high income tax rates, careful planning is needed to minimize tax liability while avoiding trust throwbacks or other unintended effects.

Companies that properly keep their records find it easier to claim deductions and contest IRS challenges than those that do not. Entities interested in developing a record-maintenance policy may use recordkeeping requirements included in Sec. 6001 and IRS publications as guide. These provisions require contemporaneous documentation and retention of documentation for future inspection by IRS representatives. IRS Publication 552, entitled 'Recordkeeping for Individuals,' lists sales slips, Forms W-2 and W-2P, Forms 1099, invoices, cancelled checks, tax return copies, receipts and stock brokerage forms as general records that should be kept. For specialized situations, companies may consult the different Regulations or 'The Guide to Record Retention Requirements,' which discusses which records must be kept, how long they must be kept, and who must keep them. Provisions related to recordkeeping are discussed.

Using the best possible industry practices to establish targets or goals is a critical cal component in the success of every business. For CPA firms, one of the most difficult [...]

The taxability of awards and agreed judgments under the Age Discrimination in Employment Act remains a contested issue and the US Supreme Court has agreed to address it. Taxpayers prevailing in suits claiming they were unlawfully discharged or penalized because of their age have long contended that the award is excludable under Section 104(a)(2), defining them as compensation for personal injury. The Service claims otherwise, and circuit courts have split. Taxpayers should consider special strategies.

The Family and Medical Leave Act of 1993 (FMLA) grants 12 weeks of unpaid leave for employees who work for firms with 50 or more workers. This bill took eight years in the making and effectively translates family values rhetoric into policy. With it, employers hope to save millions of dollars in employee absenteeism, turnover, hiring and training costs due to family emergencies and needs. However, the Act remains controversial due to its negative effects on small business owners and low paid workers. It provides 12 weeks of unpaid leave for employees who have worked a minimum of one year for their employer in the event of a birth, adoption, or serious health condition within the family. Employers should be ready with a consistent and well documented policy in complying with FMLA as well as to implement programs that can reduce leave-taking such as flexible work hours and child and elder care programs.

Each year in the United States vast amounts of income are not reported to the Internal Revenue Service. Estimates indicate unreported payments for child care alone total $11 billion annually. [...]

An Illinois Supreme Court case may help change the long-standing interpretation of the 1971 case, 1136 Tenants' Corp. v. Max Rothenberg & Co. The result of 1136 Tenants' was that [...]

The 1992 management of accounting practice survey administered by the Texas Society of CPAs aims to help CPA firms examine their own performances over the past year and to compare [...]

How outdated rules could deny tax deductions to nuclear plant owners. IT JUST ABOUT EVERY STATE LOOKING at options (pro and con) for deregulating electric utilities, and for setting power [...]

The annual Management of an Accounting Practice Survey sponsored by the Texas Society of CPAs examines the management policies and performance of accounting practices. The survey, which is limited to [...]

On Oct. 22, 1994 the Social Security Domestic Employment Act of 1994 was signed into law. The main objective of the law was to simplify employment tax issues as they apply to employers of domestic employees such as housekeepers, gardners and babysitters. This article addresses some of the key points of the Act. (Reprinted by permission of the publisher.), On Oct. 22, 1994, President Clinton signed into law The Social Security Domestic Employment Act of 1994. The main purpose of this Act was to simplify the 'Nanny Tax' employment [...]

The article discusses valuation requirements of U.S. Financial Accounting Standards Board (FASB) Statement no. 123(R). The statement concerns share-based compensation payments to employees. Share-based payments can be classified as equity instruments, in which the company issues equity shares or stock options, or as liability instruments, which settles payment plans with cash or noncash assets such as cash-settled stock units. The grant-date value of equity shares, stock options and cash-settled stock units is calculated from different models and prices depending on whether the company is a private or public entity. The article suggests accountants should consider valuation costs and compliance to the Sarbanes-Oxley Act of 2002 when advising companies on compensation plans.

The article presents the results of the 1992 management of accounting practice survey administered by the Texas Society of Certified Public Accountants that examined the performance of accountants in the U.S. The survey presented the financial characteristics that exceeded the results in the previous year, sources of net fees based on the net fees collected, different types of marketing activities, administrative policies regarding the use of computers and the status of fringe benefits.