The National Public Accountant

A number of provisions providing penalty relief for taxpayers are included in the IRS restructuring bill. These provisions include the setting of a net interest rate of zero on equivalent amounts of income tax overpayment and underpayment existing for any period and elimination of the penalty for those who fail to pay their taxes during an installment agreement. Other provisions are the mitigation of failure to deposit penalty, requirement for a computation of the penalty for every notice of ...

Accounting firm Web sites: what are the benefits?

Accounting firms are developing their own World Wide Web sites mainly to keep up with technology and attract new clients. This was gleaned from an electronic mail survey of 56 small and mid-sized accounting firms, aimed at determining the benefits and costs of maintaining a Web site. Other benefits cited include enhancement of service, recruitment of new employees, reduction of postage and printing costs and improvement of communications with clients and colleagues. On the costs of developing...

Cleaning up environmental accounting.

Includes related article on the Superfund remediation process The growing concern over pollution has made it imperative for accountants to recognize, measure and handle potential environmental liabilities. These potential liabilities have possible financial consequences, since companies have to shoulder cleanup costs as well as face the possibility of paying enormous awards in lawsuits. Several stages of remediation are used as benchmarks when assessing the probability of liability. An asset relating to potential, probable recoveries from insurance clai...

Dealing with the IRS: appeals & collections.

Part 2 of a three-part series Accountants are expected to assist and represent their clients in the appeals and collections processes involved when taxpayers are assessed additional taxes or are subject to IRS actions for the collection of previously assessed taxes. Taxpayers may go to the appeals office for consideration of tax assessments. If the matter is not resolved at the appellate level, an appeal may be made to the federal courts. Accountants should prepare protests carefully to avoid jeopardizing the taxpayer's c...

Microcomputers present a new internal control challenge.

The increasing adoption of microcomputers in accounting firms often leads to internal control problems. Among the internal control issues commonly faced by accounting firms are the lack of delineation of duties, unauthorized access to hardware and software, and the unregulated development of computer application programs. Proper internal control procedures need to be instituted to prevent errors and losses, and make microcomputers and minicomputers highly reliable tools for accounting.

Testimony of Roger Harris, vice chair, Federal Taxation Committee, National Society of Accountants.

Complex tax law changes in 1997 have largely made the 1998 tax filing season a challenging one for taxpayers and accountants. In his testimony before the House Committee on Ways and Means, Subcommittee on Oversight, on Mar 31, 1998, Roger Harris, Vice Chair of the National Society of Accountants' Federal Taxation Committee, avers, however, that the efficient filing season can be attributed to the IRS' successful efforts to enhance taxpayer service. Harris also testified that the IRS' budget r...

The practice manager.

Accountants managing a practice should view clients' perception as reality, as the latter's perspective is more unbiased and truthful. A walk through the office would reveal a number of fresh insights. Colors should be bright and cheerful, carpets should be clean and the furniture bright. Background music, instead of conversations, should be heard inside the office. Employees should be friendly and ready with a greeting for clients. Phone calls should be answered by pleasant and enthusiastic ...

Will Social Security reform remain the third rail in American politics?

Lawmakers have started to toy with the idea of Social Security reform, believing that the political climate has changed sufficiently to introduce changes to Social Security. Such renewed interest apparently stems from the fact that the federal budget is likely to achieve balance for the first time in almost 30 years. Reps Bill Archer and Sen Daniel Patrick Moynihan have both introduced legislation on the Social Security system. The National Dialogue on Social Security Act of 1998 proposes to ...

Working Web sites ... how one company redefined its business using an extranet.

Extranets, or networks using Internet technology to connect businesses and suppliers, customers or other businesses, have allowed Schmidt & Peterson of Minneapolis, MN, to link up with its clients, even those outside of its area. For Schmidt & Peterson, the key is a Web site that allows it to communicate and exchange financial data, reports and tax forms with clients. The accounting firm has also been able to handle more clients without hiring additional employees. Its success has inspired th...