CalCPA BUZZ
Keeping CalCPA Members Connected and Informed
Archive for the ‘CalCPA Buzz’ Category
March 20th, 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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March 20th, 2012
Assembly member Alyson Huber (D-El Dorado Hills) introduced AB 1963, which would impose a sales tax on services. The bill will lower the overall sales tax rate from 6.25 percent to 4 percent, and extend the 4 percent tax rate to virtually all services. Additionally, the bill makes changes to the personal income tax by increasing the standard income tax deduction for individuals and for those filing as a head of household or as a married couple filing a joint return. The personal income tax brackets are also adjusted. Should this bill be signed into law, it will take effect beginning Jan. 1, 2013.
Additional legislation has been introduced to extend the sales tax to services by Assembly member Mike Gatto (D-Burbank). AB 2540 would apply the current level of sales tax to a select list of services designed to target high-income earners in order to offset a tax exemption for the first 20 percent of business income to a maximum of $10,000. Among the list of services is “high net-worth estate planning.”
CalCPA will be following these bills and will work with the authors and the California Legislature to address concern these bills create for the profession. Stay up to date on these bills and other legislative issues affecting California CPAs.
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March 20th, 2012
Small employers that provide health insurance coverage to employees should check out the small-business health care tax credit, which was included in the Affordable Care Act enacted two years ago. Small employers that pay at least half of the premiums for employee health insurance coverage under a qualifying arrangement may be eligible for this credit. The credit is specifically targeted to help small businesses and tax-exempt organizations provide health insurance for their employees.
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March 20th, 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.
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March 20th, 2012
Chief audit executives ranked cybersecurity as their No. 1 concern in emerging risks, according to a Grant Thornton survey. Mobile technology was their second biggest concern, followed by business interruption and social media. While 56 percent of those surveyed reported that their organization had 10 or less cybersecurity incidents in the last 12 months, nearly 31 percent said that they did not know how many incidents their company had. Other survey findings include:
- 76 percent are conducting fraud investigations, with internal audit leading more than 36 percent of fraud investigations.
- 42 percent have a portion of their internal audit scope conducted outside the United States, with 51 percent relying on domestic internal audit professionals to perform at least half of the international work.
- 56 percent view internal audit as a grooming place for future leadership roles elsewhere in their organizations.
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March 20th, 2012
The CalCPA Accounting Education Committee is accepting nominations for the 2011-12 Outstanding Accounting Educator Award. The award recognizes contributions to accounting education from demonstrated excellence in teaching and or endeavors in research over a sustained period of time.
Download nomination criteria and a nomination form, which is due May 1.
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March 20th, 2012
- GASB Basic Financial Statements for State and Local Governments: March 21, S.F. Peninsula and webcast
- Key Ratio Analysis: March 22, S.F. Peninsula and webcast
- FASB Update: March 23, San Francisco and webcast
- Accountancy Laws, Ethics, Taxes and Financial Reporting Review: March 23, O.C. North 2 hour, 4 hour and 6 hour
- Accountancy Laws, Ethics, Taxes and Financial Reporting: March 29, 2-hour webcast, 4 hour and 6 hour
- Assessing Fraud Risk and Addressing Red Flags: March 29, O.C. South
- Avoiding Problems in Conducting Single Audits: April 20, S.F. Peninsula and webcast
- Auditing for Fraud in the Government Environment: April 24, San Francisco
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March 5th, 2012
Assembly member Alyson Huber (D-El Dorado Hills) has introduced Assembly Bill 1963, which would impose a sales tax on services effective Jan. 1, 2013. The bill will lower the overall sales tax rate from 6.25 percent to 4 percent, and extend the 4 percent tax rate to services.
Historically, CalCPA has maintained that sales taxes on professional services must be applied evenly and fairly to all professions and providers of similar services to prevent any competitive advantages. AB 1963 exempts from the new 4 percent tax rate—“tax preparation and filing services”—which are just a small fraction of the compliance related services that CPAs provide. Audits, compilations and other financial services would also become taxable under this bill, driving up costs to California taxpayers and compliance costs for CPAs.
CalCPA opposes this bill and will work with the Assembly member Huber and California Legislature to its address concerns.
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March 5th, 2012
Though the the federal 2010 Tax Relief Act increased the amount of self-employment tax that may be deducted in computing federal adjusted gross income, California has not conformed to this change. For state income tax purposes, taxpayers may only deduct 50 percent of the self-employment tax paid in computing state adjusted gross income. Self-employed taxpayers who have already filed a return using the higher federal rate do not need to file an amended return. To reduce taxpayer burden, the FTB is sending a letter to a limited number of taxpayers based on available information and considering the time and effort involved to revise this deduction. Taxpayers who have already filed and are not contacted by the FTB do not need to file an amended return.
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March 5th, 2012
The CalCPA Government Accounting and Auditing Committee reviewed the Controller’s proposals on Agreed upon Procedures for the wrap-up of Redevelopment Agencies Feb. 9 and determined that CPAs would be in jeopardy if they agreed to perform those procedures. The procedures were in some instances unclear and in others called upon CPAs to certify things beyond the scope of the CPA profession. The Controller’s Office, Department of Finance and county auditors from throughout California developed the proposed procedures. Controller’s Office representatives met with committee members and agreed to consider suggestions to improve the procedures. The revisions were then incorporated into a new document that was the subject of a Feb. 24 meeting with representatives of the CPA profession, county auditors, the Department of Finance and the Controller’s Office. Additional clarifying amendments were provided at that meeting.
A revised suggested minimum procedures package will be posted on the State Controllers website very shortly. This is a big win for CalCPA’s advocacy efforts on behalf of the CPA profession in California. A copy of the new procedures are posted online.
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