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12 posts from July 2015

Making the Next Tax Season a Better One

Tax lessonsReflections on Tax Season

As we head into the second part of the 2015 filing season (with the 2016 season not far behind), some thoughts come to mind. Many practitioners felt as though recent tax law changes and related guidance was vague, late and not well supported. As a result, the 2015 filing season was more demanding than previous seasons, with uncertainty surrounding the final “repair regulations,” complex financial products and late receipt of client 1099s and brokerage statements.

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5 Financial Tips for Newly-Employed Young People

PitbullSummer. A time for barbeques, trips to the beach, ice cream and, for many teenagers and young adults, their first jobs. What better time, then, to educate the newly employed about sound financial practices, before they’re tempted to spend all of their hard earned income having a good time?

For many Americans, the pursuit of fun is more of a priority than saving money. Just turn on the radio and you’ll hear any number of songs about frivolous consumerism. In the case of one of this summer’s ubiquitous songs, Time of My Life, the rapper Pitbull (né Armando Christian Pérez) celebrates the disastrous practice of spending money he doesn’t have:

“I knew my rent was gon' be late about a week ago
I worked my [butt] off, but I still can't pay it though
But I just got just enough
To get up in this club
Have me a good time, before my time is up
Hey, let's get it now”

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3 Answers to Common SSARS No. 21 Questions


Peyton ManningThe National Football League’s Denver Broncos will have a new head coach in the upcoming season, Gary Kubiak, a former quarterback and later assistant coach for Denver who most recently was offensive coordinator for the Baltimore Ravens. Kubiak brings a new offensive playbook featuring zone blocking schemes and play-action passing to his new team.

Broncos quarterback Peyton Manning has been playing at an All-Pro level for the vast majority of his career. Now he will need to learn Kubiak’s system – and quickly. It’s a challenge for Manning, but he knows that his new coach’s system has proven successful and can improve the Broncos’ chances of winning games.

Despite its lack of physical aggression, the accounting profession has quite a bit in common with these developments in the world of professional football. Consider this: Like Manning, you’ve been doing your job as an accountant at a high level for quite a while and you know what you’re doing when it comes to compilations and write-up work at your clients. Now Statement on Standards for Accounting and Review Services No. 21 has been issued and represents a new playbook for accountants in public practice who prepare financial statements.

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“Courteously” Connecting with IRS Service Needs

Phone cut offWords have no power to impress the mind without the exquisite horror of their reality.

                        —Edgar Allan Poe

Courtesy disconnect. You may have heard about it. The telephone hold times during this past filing season were so long that the IRS hung up on callers when the hold time reached two hours. Callers were warned they were about to be dropped — hence the courtesy disconnect. 

We heard from so many members about IRS service issues that we conducted a survey of all AICPA members to find out what exactly was going on  correctly — and to give everyone an opportunity to be heard. The survey, conducted right after busy season, included a question about courtesy disconnects. Ten percent of respondents were courteously disconnected once; 12 percent twice; and 17 percent disconnected three or more times. Give our members credit, though. Thirty-nine percent indicated they were too busy to hold on for two hours so they courteously disconnected themselves. 

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Taking a Staycation? A Few Tips for Making the Most of It

Couple relaxing at homeFinally, a week cleared off your work schedule and you are staying put. Now you can tackle all the weeds, catch up on your reading, take the dog to the vet, repair the fence, see a movie, buy that new appliance or laptop, organize your files, clean out your car, closet or basement, get to the dentist and go visit Mom or Dad.

Easy there, tiger!  Remember the “cation” part of this? Being productive is rewarding, but a week goes by fast and a staycation warrants some rest and relaxation. I know, I just took one and I learned from the last one, which ended on a frustrating note because I felt that I tried to do too much, with only bits of fun sandwiched between the errands and organizing.

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3 Key Health Care Components Explained

Health careHealth care coverage issues are continually evolving and are extremely complex. Clients turn to their CPAs for advice when choosing a health care plan that suits their needs. With the Supreme Court’s recent ruling ensuring that the Patient Protection and Affordable Care Act is here to stay, CPAs should take this opportunity to explain three key areas of Medicare and the Affordable Care Act to help their clients avoid missteps. These areas include enrollment periods, provider networks and qualifying events.

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Risk Management: Increasingly Important and Vastly Underused

Risk managementAs the economy becomes more complex, organizations find themselves confronting an increasing array of risks that can significantly—and negatively—affect their businesses. To understand how organizations around the world manage emerging risks, the AICPA and CIMA, in conjunction with NC State University, surveyed more than 1,300 executives worldwide and released the CGMA report, Global State of Enterprise Risk Oversight: Similarities and Differences in Opportunities for Improvement.

Some of the key findings from the report highlight the need for the development of risk management leadership—particularly in light of the many types of risk an organization might face. Sixty percent of organizations acknowledge that they face an increasing number of risk issues, yet less than 35 percent have a formal enterprise risk management (ERM) program in place. In this same vein, 70 percent would not describe their risk management oversight as mature, and 40 percent or less are satisfied with risk exposure reporting to senior management.

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Baby on Board? 7 Tax Tips for Expectant (and Hoping to be Expectant) Clients

Connor 10 monthsIn simpler times, all you needed to welcome a new baby into your family was love and an empty drawer in which he or she could sleep. In 2015, babies are expensive and modern parents need a lot of gear: diapers, cribs, strollers and car seats—not to mention child care. The list can seem endless. And, it all adds up fast. When my husband and I were expecting our son Connor, now 10 months old, our first trip to Buy Buy Baby left us dazed and concerned about how we would afford all of it.

The good news is, there are more ways than ever to offset the considerable costs related to having a child. If your clients are expecting or planning to have a child, the seven tax tips below might help.

Infertility Treatments

For couples facing infertility (roughly 10 percent of the U.S. population), costs can start mounting long before the much-coveted positive pregnancy test. In fact, couples who require medical assistance to conceive often get hit with a one-two punch—the emotional pain of infertility and the fear of not being able to afford treatments.

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Fueling the Accounting Profession Pipeline: What Will it Take?

Mscpa pipelineI recently attended the AICPA’s Spring Council session in Washington, DC where I had the pleasure of going to a fascinating session on fueling the accounting profession pipeline. I’ve had some time to reflect on what I think the research means in terms of active steps that CPAs and state CPA societies should take to ensure there is a bright, talented and diverse applicant pool available for new and experienced hires.

Below are three main areas that research indicates impact an individual’s decision to commit to a career in accounting, as well as suggestions for how we can leverage these areas to help foster the greatest number of young professionals entering the accounting field.

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3 Factors to Evaluate the True Cost of Retirement

Money treeRoughly 10,000 Baby Boomers will turn 65 every day for the next 14-and-a-half years. And many of them are preparing to retire. For some, this prospect is daunting—how much money do they need to maintain their current lifestyle? Can they afford to retire? The answer, very often, is “it all depends.”

From an asset perspective, these are trying times to retire. Yields on bonds and forecasted returns for equities are low, significantly affecting the safety of a withdrawal strategy. Many financial planners note the safety of the “4% Rule,” in which a retiree withdraws 4% of his or her initial balance upon retirement and then increases the amount of each withdrawal over 30 years—while factoring in inflation. The market has shifted, however. If we use a model that better approximates our current market and incorporates forecasts, a lower initial withdrawal rate—3%, for example—would be necessary to achieve the same financial outcome.

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Wanted: Guidance for Bitcoin Tax Compliance

BitcoinOne of the most popular crypto-currencies available today is Bitcoin. Launched in 2009, this digital currency is similar to real currency in that it holds value which can be used to buy goods and services. More noticeable, however, are some of the key differences between Bitcoin and real currency:

Bitcoin operates independent of a central bank;

Bitcoin does not have legal tender status by any government; and

Bitcoins are treated as property by the IRS for tax purposes.

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6 Tips for Becoming a Thought Leader on LinkedIn

TypingWith the rising prominence of social media, becoming an influencer isn’t as hard as it once was. Social media levels the playing field, giving everyone an outlet to speak their minds.

In the past, LinkedIn had a restricted number of users permitted to publish articles to LinkedIn Pulse. These elite few were named Influencers. Recently, however, LinkedIn has opened this experience to anyone with an account, calling it Long-Form Post Publishing.

Taking advantage of long-form posting can establish you as a thought leader or influencer in your field. It gives you the opportunity to share your professional expertise without taking on the responsibilities of starting a blog or using other publishing platforms.

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