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 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.

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.

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.

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!

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.

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.

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.

Answer from the free Ask a CPA service on how foreign exchange gains are taxed in Pennsylvania.

Answer from the free Ask a CPA service on the taxability of settlements from inverse condemnation lawsuits.

Answer from the free Ask a CPA service on how to classify a balance one has with a company they sell goods from, if they don't currently possess any goods.

Answer from the free Ask a CPA service on whether reinvesting money obtained from sold land exempt the seller from income tax liability and qualify as a 1031 exchange.

Answer from the free Ask a CPA service on the tax implications of a college student placing financial aid funds into a high-interest savings account.

Answer from the free Ask a CPA service on the year in which Social Security benefits from December would be taxable.

Answer from the free Ask a CPA service on any restrictions that would prevent a U.S. resident alien from joining an S corporation.

Answer from the free Ask a CPA service on whether or not gambling losses can be used as a business expense.

Answer from the free Ask a CPA service on whether or not taking out a personal loan for the down payment of a business would be considered a business expense.

Answer from the free Ask a CPA service on what the tax cost would be for a home that's purchased and then renovated so that it can be rented.

Answer from the free Ask a CPA service on whether you can list a purchase for a business as a business expense if the business has no bank account or employer identification number yet.

Answer from the free Ask a CPA service on how adding a spouse a dependent would affect the amount of taxes withheld from one's paycheck.