• Targeted Teaching Key to “Flipping” the Classroom

     One of the hottest trends in education has been the advent of the flipped classroom. In a traditional classroom, the professor presents the material, demonstrates it, and asks for any lingering questions. A flipped classroom jumps directly to the questions stage.
  • Health Care Valuations Present Unique Challenges

    Health care expenditures in the United States will top $3.5 trillion this year, which is about 18% of the gross domestic product. The provider sector is undergoing dramatic change in the form of mergers, consolidation, and new partnerships. All of these actions require business valuation services.
  • Client Board Meetings Offer Opportunity to Shine, but Don’t Trip Over Legal Line

    The board of directors of a corporation should meet annually, if not more frequently. Partnership agreements, too, commonly require an annual meeting (at minimum). Agenda items for these meetings may include election of officers and directors, decisions concerning distributions, officer compensation, retirement plan contributions, review and approval of loans to shareholders, and ratification of key management decisions made during the year.
  • Practice Integration Imperatives

    Negotiating the terms for a CPA practice transfer or merger is the most important step in setting the stage for a successful transaction. Nearly as important, but often overlooked, is having a well-designed integration plan.
  • Consider Section 962 to Mitigate GILTI Inclusions

    Individuals from the United States who are shareholders (including estates and trusts) of controlled foreign corporations (CFCs) face a difficult path in how to structure these investments in a tax-effective manner. The Tax Cuts and Jobs Act of 2017 (TCJA) treats U.S. corporate shareholders more favorably than U.S. individuals with regard to investments in CFCs. The TCJA has a new global intangible low-taxed income (GILTI) inclusion as part of the U.S. Subpart F anti-deferral rules that expands inclusions from CFCs to individual shareholders who are federally taxed at up to 37%. It also creates a double taxation event because individuals are not entitled to a credit for underlying foreign taxes paid in the income included.
  • Emerging Technologies Will Impact More than Office Duties

    Emerging CPAs must educate themselves on the impact innovative technological advancements will have beyond their day-to-day office work, particularly in the areas of licensure requirements, certification examinations, and the future of the profession.
  • Tax Notice Management Is Critical

    Part of the tax function is to address and resolve state and local tax notices from departments of revenue. Notices may be issued for various reasons, such as nonfiling, late filing, underreported tax, late payment, nexus inquiries, or various state updates. All should be reviewed and addressed immediately.
  • Penalty Abatement Opportunities after Chai v. Commissioner

    In 2017, the U.S. Court of Appeals for the Second Circuit issued a decision that significantly affected IRS procedures for the assessment of penalties against individuals and other taxpayers. The IRS is now required to possess contemporaneous evidence that a revenue agent’s supervisor approved a penalty before it was assessed. The Tax Court has expanded this rule over the past two years, so it now has significant teeth.
  • With Financial Reporting, It’s All about Disclosure

    Whenever I hear the expression, “the only easy day was yesterday,” I know that person was either in the military or a CPA in public practice. OK, perhaps that’s an exaggeration … but not by much. To practice in financial reporting requires extraordinary knowledge of disclosures. After all, disclosure is to financial reporting what location is to real estate – everything!
  • Unexpectedly Displaced: Calculating Economic Losses for a Boss Is No Simple Task

    When calculating income losses for individuals due to catastrophic loss, personal injury, wrongful death, or discrimination claim, a forensic accounting expert needs to consider numerous components, including the concept of earning capacity, applicable case law, worklife probabilities, and expert opinions, among others. Earning capacity is arguably the most important component for an income loss calculation, and it can be very challenging when it comes to business owners.
  • Career Crossroads: Understanding Nonprofits before You Switch Jobs

    Professionals in nearly every industry will sometimes reach a point where they begin looking for deeper meaning in their work. For many, including CPAs, a transition to the not-for-profit sector, to a mission-focused organization, provides a sense of purpose and an opportunity to give back.
  • Risk Assessments: From Paper to Practice

    Successful risk awareness cultures are those in which employees at all levels of the organization recognize the crucial nature of managing risk. Too often, risk assessment and risk management initiatives die prematurely because there is a lack of ownership or committed responsibility over the process. Interestingly, this absence of commitment to the process exists because “What do we do with it?” goes unanswered by leadership. This article highlights how risk assessments can be more than a concept and become a critical component of an organization’s success strategy.
  • Embrace the Technology Revolution

    The recliner in my living room is my place of comfort – where I sit and relax to read or watch television. It is where I can feel safe, secure, and at ease. This article is about some other place: the future of work for CPAs. Technologies are merging, redefining, or erasing the lines between the digital and biological spheres. This type of change will affect our profession. The question is, how?
  • Clarifying the TCJA, and Section 263A Regs Finally Official

    The Office of Information and Regulatory Affairs operated with reduced staff during the partial government shutdown, but special funding last year ensured that reviews and other activities stemming from the Tax Cuts and Jobs Act would continue. Other tax updates issued in the latter part of 2018 include the recent release of the Joint Committee on Taxation’s General Explanation of Public Law 115-97, commonly referred to as the bluebook, and the long-awaited guidance on Section 263A negative additional costs.
  • Pennsylvania CPA Foundation’s Brilliant First Year

    The Pennsylvania CPA Foundation had an outstanding first year of operations, culminating with the publication of its Annual Futures Report this past summer. The Foundation was created in April 2017 to inspire students to pursue careers in accounting and to provide educational, motivational, and financial support to those working to attain the CPA credential. PICPA leadership created this new entity to direct strategic resources toward the growing issue of recruiting and retaining talent within the profession – a top concern for our members for the foreseeable future, even outpacing technology and regulatory concerns.
  • Determining the Right Policy Limit for Your Firm

    Regardless of your level of expertise in CPA professional liability, risk management, and insurance, the answer to “What should our policy limit be?” requires the careful consideration of a variety of factors.
  • Turn to Statistics to Unveil Value

    The wise CPA expands beyond compliance and adds value by using tools such as net present value, marginal analysis, and cost and revenue analysis. In a data-driven environment, the CPA will grow his or her worth by updating their analytical skill set with tools from the school of probability and statistics.
  • Philadelphia Property Tax Reassessment: What It Means and How to Respond

    In March 2018, Philadelphia Mayor Jim Kenney announced that he intended to request a 6 percent increase in the real estate tax rate. Later that same month, the mayor revised the request downward to 4.1 percent because the Philadelphia Office of Property Assessment (OPA) had reassessed all properties across the city for tax year 2019, and those revised values increased property values by 11 percent. However, while the “average” assessment increased by 11 percent, some individual property owners saw increases between 30 percent and 300 percent.
  • PCC Moves on Private Company Reporting Standards

    The “Big GAAP vs. Little GAAP” debate is decades old, but it reached a much higher pitch following the recent issuance of standards on variable interest entities, fair value, goodwill, and uncertain tax positions.
  • CPA Firm Corporate Structure Choices

    Since the CPA Law has undergone several revisions, and since both the PICPA staff and I regularly receive questions about what legal entities are appropriate for CPA firms in Pennsylvania, now is a good time to familiarize yourself with your options. If you are forming a new firm, though, please consult an attorney, and if you do not handle taxes then you should also consult with a CPA to find out which structure works best for you from a tax perspective.
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