CPA Now Blog Archive

The IRS is keen to institute greater tax compliance among cryptocurrencies. In the absence of a de minimis tax exemption, even the smallest transaction could have tax implications, so CPAs could be in greater demand when it comes to filing tax returns for holders of virtual currency.

The IRS, Department of Labor (DOL), and Pension Benefit Guarantee Corporation all closely inspect retirement plan Form 5500 submissions. Both the IRS and DOL identify which plans to audit, in no small part, through data collected from information reported on Form 5500.

In these days of crisis and uncertainty, CPAs are taking on roles unfamiliar to them – crisis response coordinator, building manager, unemployment specialist, loan officer, and therapist, to name a few – while also mastering new legislation and adjusting to new tax and A&A guidance and deadlines. You are doing this with poise, resilience, and determination, further elevating public trust in your profession.

The federal CARES Act contains a lot of economic relief, including provisions related to financial and retirement planning. In particular, it waives the 10% early withdrawal penalty for distributions from qualified retirement accounts for coronavirus-related purposes.

At this time of year, the PICPA government relations team usually is humming along preparing for PICPA’s annual Day on the Hill event. We had been contemplating changes to this annual gathering, but with the COVID-19 pandemic it seems our hand has been forced. It’s time to pursue new paths forward in advocacy.

Normal business routines have been disrupted by the COVID-19 outbreak, and much of the workforce has been working from home. Cybercriminals view this as prime time to exploit security vulnerabilities, especially as it relates to accounts payable departments.

The federal Further Consolidated Appropriations Act of 2020 retroactively repealed IRC Section 512(a)(7), also known as the parking tax. The retroactive parking tax repeal is universally agreed to be a great win for nonprofits, but just because the tax was taken off the books does not mean your work is done.

To combat the economic fallout from the COVID-19 pandemic, the federal government is attempting to push out about $350 billion in loans to eligible businesses. This unprecedented opportunity has CPAs scrambling to help their clients fill out the application and provide the supporting information. Caution is needed, however. You must make sure that you do not cross the independence line.

For the 50 states and thousands of local taxing jurisdictions, “Tax Day” this year will include varying due dates for different tax types. Taxpayers need to carefully navigate rapidly changing tax filing and payment rules for state and local tax relief.

Despite the ever-present concerns and distractions of the far-reaching COVID-19 health and economic emergency, professional risk must remain top of mind. Certain important accounting and tax due dates may have been relaxed, but the standards of due care most certainly have not.

Recently, Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act in an effort to respond to the crisis of COVID-19 pandemic. This expensive piece of legislation is being viewed as a necessary measure to help assure that our economy can survive the shock of being shut down during the crisis.

The IRS has been closely examining the accurate and timely reporting of foreign gifts and distributions to and from foreign trusts. As part of this effort, its Large Business and International division announced an enforcement campaign on this issue regarding the filing of Forms 3520 and 3520-A.

Among all the difficulties the COVID-19 outbreak has thrust on businesses, CPAs must understand they too will be facing numerous challenges when performing financial statement audits.

The Financial Accounting Standards Board recently released the first draft of a proposed Accounting Standards Update (ASU) for not-for-profit entities focused on nonfinancial contributions. The board has asked for feedback on eight questions.

Many businesses are responding to the COVID-19 pandemic by encouraging team members to work from home. The intent is solid and socially responsible, but not everyone has thoughtfully considered the security ramifications of shifting their entire workforce to remote access.

The Pennsylvania General Assembly passed House Bill 1232, which amends the Fiscal Code and temporarily authorizes the Department of Revenue to extend tax filing and payment deadlines. The PICPA has spoken with state legislators about the need for consistency across taxing bodies and levels, and this legislation provides much needed clarification.

Congress is working to provide financial relief to individuals, businesses, and tax-exempt organizations crippled by the COVID-19 pandemic. However, several tax provisions already have been announced by the Treasury Department, the IRS, and Pennsylvania government.

As blockchain implementation increases within organizations and economic sectors, it is only matter of time until audits and other attestation engagements will be affected. There is no need for every auditor to become a coding or programming expert, but being able to understand the technology and its applications is a sensible starting point.

These recommendations are provided to help small businesses adjust to remote working circumstances. Please note, this advice should be taken into consideration with the restrictions and health warnings of the World Health Organization, Centers for Disease Control, and federal, state, and local governments.

Most public policy issues get addressed in some form or fashion, while others never seem to get resolved. Pennsylvania school property tax reform is one of those issues that hangs around year after year. Believe it or not, progress is being made on this front.