CalCPA BUZZ
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Archive for the ‘CalCPA Buzz’ Category
February 3rd, 2012
Feeling underwater? Do you need some help to scan and organize tax information? Package tax returns? Provide reception coverage or other clerical tasks? A student intern could be the right solution for your needs. No matter how small or large your firm, you can successfully utilize an intern. College students are resourceful, technologically savvy, flexible and are clamoring for some real-world experience. A student wage is affordable and will allow you to spend your time on high-level client needs during busy season.
A good place to find an appropriate intern for your needs is the accounting chair of your local college and junior college. Share the type of duties and hours you require so they can put out the word to their top students.
If you would like more information on hiring interns, please contact any of our MAP Committee members.
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February 3rd, 2012
The AICPA’s Volunteer Central is accepting applications for the 2012-13 volunteer year until May 15. Volunteers serve on the AICPA’s governing council, board of directors, committees, subcommittees, expert panels, resource panels, quality centers, boards and task forces. If you have questions regarding volunteering at the AICPA, contact the AICPA.
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February 3rd, 2012
To qualify for Head of Household filing status, the taxpayer must meet all of the following requirements:
- Was unmarried and not a registered domestic partner, or met the requirements to be considered unmarried or considered not in a registered domestic partnership as of the last day of the tax year.
- Paid more than one-half the costs of keeping up his or her home for the year.
- Their home was the main home for themselves and a qualifying person who lived with the taxpayer for more than half the year.
- The qualifying person was related to the taxpayer and met the requirements to be a qualifying child or qualifying relative.
- Was entitled to a Dependent Exemption Credit for his or her qualifying person.
- Was not a nonresident alien at any time during the year.
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February 3rd, 2012
A recently released Committee of Sponsoring Organizations of the Treadway Commission (COSO) document, entitled Enterprise Risk Management—Integrated Framework, states that organizations must embrace risk in pursuing their goals. The paper, which was created to help organizations implement enterprise risk management, also says:
- One major problem that led to the current financial crisis was that although objectives had been created, there was no articulation of risk appetite or identification of those responsible when risks were incurred.
- In a recent survey, less than half of the respondents said they had a formal process for developing and communicating risk appetite.
- Risk appetite should be descriptive enough to guide actions across the organization. Management and the board should determine whether compensation incentives are aligned with risk appetite, not only for top management but throughout the organization.
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February 3rd, 2012
The SEC is requesting public comment on financial literacy and investor disclosure issues that it is studying as part of a review mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act.
Sec. 917 of the Dodd-Frank Act directs the SEC to conduct a study of retail investors’ financial literacy and submit its findings to Congress by July 21. Consistent with the Dodd-Frank Act’s specifications for the study, the SEC is seeking comment on methods to improve the timing, content and format of disclosures to investors regarding financial intermediaries, investment products and investment services. It also requests comment on information that retail investors need to make informed financial decisions on hiring a financial intermediary or purchasing an investment product or service typically sold to retail investors, including mutual funds.
In addition, the SEC seeks comment on how to make investment expenses and conflicts of interest in investment transactions more transparent to investors.
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February 3rd, 2012
Each year, CalCPA recognizes those members who go above and beyond the call of duty by awarding the Public Service and Distinguished Service awards, as well as the Public Service Award for Firms. If you know any person or firm fitting the bill, share the news with us.
Review the qualifications and download nomination forms. The nomination deadline for all awards is March 30.
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February 3rd, 2012
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January 13th, 2012
- Final Filing Date: Since Monday, April 16, is a legal holiday in Washington, D.C. (Emancipation Day), California will accept returns and payments as timely if received on or before Tuesday, April 17.
- Dependent Exemptions Credit: The dependent exemption credit increased from $99 to $315 per dependent.
- Child and Dependent Care Expenses Credit: The Child and Dependent Care Expense Credit is now nonrefundable.
- Estimated Use Tax Table: Personal income taxpayers may use the Estimated Use Tax Table in the 2011 California 540, 540A, and 540 2EZ Tax booklets to report the use tax due on individual non-business items purchased for less than $1,000 each, instead of using the Use Tax Worksheet.
Learn more.
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January 13th, 2012
The IRS released new proposed guidelines designed to provide relief to more innocent spouses requesting equitable relief from income tax liability. The proposal revises the threshold requirements for requesting equitable relief and revises the factors used by the IRS in evaluating these requests. The IRS invites public comment on the proposals to be sent in before Feb. 21.
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January 13th, 2012
The FTB disclosed that one of it’s top audit issues continues to be like-kind exchanges, also known as 1031 exchanges. Under IRC Sec. 1031 and conforming California laws—if certain conditions are met—taxpayers may defer gain from the sale of property, either in part or full. There are three general requirements:
- There must be an exchange, as opposed to a separate sale and reinvestment, by the same taxpayer.
- The relinquished property and replacement property must be “like kind.”
- Both the property given up and the replacement property must be held for investment or for productive use in a trade or business. Property held for personal use or primarily for sale is generally not eligible for nonrecognition treatment.
If at any time during the exchange, the taxpayer or agent has receipt or control of any portion of the sales proceeds, this will generally result in gain recognition. Along similar lines, if the taxpayer does not reinvest the full amount of proceeds into eligible replacement property, or obtains other property in the exchange (referred to as “boot”), this may also result in gain recognition.
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