IRS Reminder: Register Now for E-services
All e-Services users must re-register through a more rigorous identity proofing and two-factor authentication process called Secure Access. This registration is now underway. If you have not already registered through Secure Access, please plan to upgrade your account now. To get started, please take the following actions immediately:

  • Review important information about your e-Services Account and Secure Access: How to Register for Certain Online Self-Help Tools. The IRS also has FAQs about e-Services and Secure Access. These pages will help you successfully register online.
  • Access your account by going to your normal login page and entering your e-Services username. You will receive a prompt that will direct you through the new registration process.
  • If you’re an existing e-Services user who cannot register online via Secure Access and need exception processing, call the e-help desk at 1-888-841-4648 (select your language, then prompt 1 and remain on the line until an assistor picks up) 7:30 a.m. to 7 p.m. EST. You must have access to your email account and your tax return information, including related information documents.

Start Your Year Off Right and Be Heard: CPA Day at the Capitol Jan. 17
All it takes is one individual—like you—and less than one day to make a difference at CPA Day at the Capitol.

Meet with California legislators to discuss issues that impact you, the public and the profession, such as preventing sales tax on services and promoting financial literacy. Once you register, we’ll handle the logistics of scheduling the appointments and providing you with talking points.

Make your voice—and the voice of the profession—heard at CPA Day at the Capitol.

PCAOB Guidance: Implementing Changes to Auditor’s Report
The Public Company Accounting Oversight Board has published staff guidance that describes changes to the auditor’s report that become effective for audits for fiscal years ending on or after Dec. 15, 2017.

The guidance addresses key changes to the auditor’s report required, such as the form of the auditor’s report, disclosure of auditor tenure, a statement on auditor independence and a required explanatory paragraph on Internal Control Over Financial Reporting in certain circumstances.

The guidance also provides a high-level overview of the requirements regarding Critical Audit Matters (CAMs). Auditor communication of CAMs is permissible on a voluntary basis but will not be required until audits of fiscal years ending on or after June 30, 2019 (for audits of large accelerated filers) or Dec. 15, 2020 (for audits of all other companies to which the requirements apply).

State Committees: Taking Applications
Want to use your talents at the statewide level? Your opportunity awaits—the application period is open through Jan. 19 to serve on our statewide committees for 2018-19. From estate planning to technology, and from personal financial planning to taxation, there’s a committee meeting your interests and expertise.

Please note: If you serve on a state committee and would like to continue, reapplication is necessary.

Serving on state committees allows you to work with your peers on projects that increase members’ technical knowledge, enhance the profession’s image and draw the best and brightest into accounting—all while you build leadership skills and make valuable contacts.

Committee appointments will be made in March/April 2018 and the committee term is May 1–April 30. Apply today.

ELCP: Unleash the Leader Within You
Be inspired with CalCPA Emerging Leaders Certificate Program Jan. 8 in Los Angeles or Jan. 9 in San Francisco. This two-day program will help you in your career as you develop your leadership capabilities and diversify your professional community. The program starts with a regional conference and is followed by a chapter-based workshop designed to evolve your soft skills into success skills. 

Study: Shares Drop When Companies File Late 
Investors pummel companies for tardiness in filing 10-Ks and 10-Qs, even when they affirm that they will meet deadline extensions, according to a new study.

Based on analysis of a sample of 2,115 first-time late filers from 2000 through 2008, the study found “a significantly negative stock price reaction” to both Form NT (“non-timely”) 10-Q and 10-K filings. In the five-day period following the filings, share prices dropped 2.93 percent for late quarterly reports and 1.96 percent for late annual reports. 

Among other findings:

  • Accounting problems are the most often cited reason for filing delays. 
  • The average delay for both 10-Qs and 10-Ks is more than three times longer when accounting reasons are cited than when corporate events such as employee turnover are the explanation. 
  • Management is also more than twice as likely to miss the grace period deadline for late 10-Qs (51 percent of the time) than for late 10-Ks (25 percent of the time).