In the News: Big Tax Changes to Come in 2012
The Wall Street Journal recently spoke to Melissa Labant of the AICPA’s tax team about tips for taxpayers as they wait to see if Washington addresses major tax questions in 2012; a number of major tax cuts are set to expire at year's end. Labant noted that several changes for this tax year could pose traps for those who are unaware. Among the changes is the elimination of the charitable IRA donation, which expired at the end of 2011. IRA owners 70½ or older were previously able to donate up to $100,000 of assets per year to a tax-exempt charity. Individuals were able to use this donation as part of their required IRA payout, if they hadn't taken one. Adding to the confusion, many experts expect Congress to reinstate the law at some point in 2012. "If you want an IRA donation to be all or part of your required withdrawal, wait for Congress to act," advised Labant.
Each year the AICPA honors many deserving CPAs with a wide variety of awards for their contribution to the accounting profession. I wanted to take a moment and call attention to the recipients of two recent awards.
Danielle Lee of Accounting Tomorrow reported that the AICPA and the Management Accounting Section of the AAA awarded Robert Chenall with the 2012 Lifetime Contribution Award. Sponsored by the AICPA and bestowed to individuals who have made an impression in management accounting education, research and practice, Chenall, was recognized for his teachings as a professor of accounting and finance at Monash University in Clayton Victoria, Australia.
Two winners of the Greatest Potential Impact on Management Accounting Practice Award were recently announced by the AICPA and inAudit wrote an article detailing the winners. Sponsored by the AICPA, CIMA and the CMA Canada, the award recognizes academic papers that are considered to most likely have a significant impact on management accounting practice. Alexander Bruggen, Ranjani Krishhnan and Karen Sedatole won the award for their paper, “Drivers and Consequences of Short-Term Production Decisions: Evidence from the Auto Industry.” The second award was bestowed upon Scott Jackson for his paper, “The Effect of Firms’ Depreciation Method Choice on Managers’ Capital Investment Decisions.” On January 31, the AICPA will launch a new designation for management accountants called the CGMA, Chartered Global Management Accountant, through a joint venture with CIMA.
I came across a recent post on the MACPA blog CPA Success about their plan to debut their newly created ‘Idea Store’ at their upcoming CPA Day event. The concept behind the idea store is that it will generate some suggestions and encourage conversation from their members about some of the pressing issues facing Maryland and the country at large. The physical ‘store’ itself is actually a piece of art deigned by Athena Robles and Anna Stein, who will be on site at CPA Day to explain the process. The idea reflects some great outside-of-the-box thinking. I like it.