Features for the online CalCPA catalog include:

  • View in book format or as single pages;
  • Quick access table of contents;
  • Improved zooming capabilities;
  • Choose individual pages to print; and
  • Easy social sharing with more channel options.

This year’s catalog highlights new offerings, in the “What’s New” section on page 2.

Also, don’t forget to renew your membership if you haven’t already.

SMLLCs in California That Need to File

Did you know every single member limited liability company (SMLLC) organized, registered or doing business in California needs to file Form 568, Limited Liability Company Return of Income—unless the business entity has elected to be taxed as a corporation. In those cases, the business entity would need to file using a Form 100, 100W or 100S.

When it comes to California, SMLLCs are required to file and pay taxes, the type of taxes (annual/franchise) and fees they are required to pay will depend on whether or not a federal “Check-The-Box” election was made.

SMLLCs that are a “disregarded entity” are required to look to when its owners/members are required to file to determine when its Form 568 needs to be filed (due date or extended due date).

What CPAs Should Know About Trademarks

An accounting firm’s name serves as its brand identity and, generally, the first thing clients see when they arrive at your office. The firm name is also what clients use when talking to colleagues and sending referral business.

But if firms aren’t protecting their name with a federally registered trademark, that brand identity and stellar reputation could be at risk. Read more about what CPAs and accounting firm managers need to know when tackling the process of registering for federal trademark protection.

Amendments to Market-based Sourcing Rules

A second round of amendments to market-based sourcing rules set forth in California Code of Regs. Sec. 25136-2 addresses, among other issues:

  • The reintroduction of asset management fee examples;
  • Issues in connection with the benefit of the services received, including the assignment of services performed on tangible personal property and the assignment of long-term government and research and development contracts;
  • Issues in connection with the sale of intangible property, including interest and dividends; and
  • Issues in connection with reasonable approximation.

A second interested parties meeting is scheduled for June 16. The FTB anticipates that at that meeting, stakeholders will furnish additional feedback on the more controversial issues. This feedback will provide the basis for draft language of those more controversial issues, to be presented at a third interested parties meeting.

IRS Updates Employment Tax Exam and Appeal Rights Info

The IRS published an update to Publication 5146, Employment Tax Returns: Examinations and Appeal Rights, explaining the procedures IRS auditors use to conduct employment tax examinations and an employer’s rights and responsibilities during and after the examination process.

Employment tax audits typically occur thanks to the IRS’s computer selection programs, which pick out employers based on criteria that are seen by the agency as risk areas or red flags, or because of employers’ previous results on IRS compliance programs.

Can Auditors Trust Clients and Be Skeptical Too?

Could the concerns about mandatory rotations of audit firms or engagement partners be unwarranted?

Mandatory auditor rotation is rooted in the belief that auditors and clients should avoid the buildup of a trusting relationship lest it compromise the professional skepticism so necessary for audits.

While there are mandatory rotation requirements for audit engagement partners in the United States, no such rules exist for mandatory rotation of audit firms. But a team of European researchers believes they have upended mandatory rotation concerns, saying that trust and professional skepticism aren’t contrary issues at all.