The National Public Accountant

The new tax classification the IRS has adopted since Jan 1, 1997 does not anymore use the four-factor test in determining partnership, LLC or LLP entities. The new regulation mandates that a single member eligible entity with two members or more can be either taxed as a corporation or a partnership depending on their filed classification whereas single member legible entity can opt to become a corporation or a sole proprietorship. On the other hand, corporations are not given any other tax op...

1998 courts cases & rulings.

A number of 1998 court cases regarding tax exemptions and tax payments are presented together with their rulings. One example is the case involving a professional musician who claimed for $695.11 tax exemptions based on clothing expenses he incurred in buying costumes worn on tour. The court did not grant him this amount and had only awarded a $200-tax exemption as the musician had included the expense for buying underwear in his claim, which the court sees as a non-business expense.

Accounting for small business environmental issues.

Environmental Reporting and Disclosure, part 2 American Institute of Certified Public Accountants formulated the Statement of Position 96-1 Environmental Remediation Liabilities to assist practicing accountants in preparing their clients' environmental reporting and disclosure statements. Through this, accountants are guided to producing environmental and disclosure reports that are adequate for creditors, investors and other financial statement users.

Auditor's responsibilities for detection of fraud.

Part 1 The Auditing Standards Board issued nine Statements on Auditing Standards (SAS) in Apr 1988 and added SAS No 82 in Feb 1997 to particularly deal with the issue of fraud detection. This SAS entitled Consideration of Fraud in a Financial Statement Audit provides auditors more guidance in performing their responsibilities in an audit of financial statements. They are advised to practice professional skepticism and the concept of 'reasonable assurance' in their work.

Confronting the challenges.

National Society of Accountants Pres. Douglas C, Burnette's speech - Transcript Douglas C. Burnette steps down from his post as president of the National Society of Accountants (NSA) in 1998. While being NSA's interim president, Burnett encountered many challenges but was able to easily cope with them through the help of the Board, committees, and individual members. The proposed Uniform Accountancy Act is, however, what he considers the biggest challenge during his tenure as NSA head. Burnett's rising concern is based on the bill's proposal to bring the compilation unde...

IRS reform ... the morning after.

The House-Senate Conference Committee, which is sponsoring the IRS Restructuring and Reform Act, reported that the bill is nearing completion as of summer of 1998. The House of Representatives and Senate just needs to reconcile some differences they have in their versions of this IRS reform bill. Expected stipulation in this new tax law is the institution of special ethical conduct rules and conflict-of-interest rules for the IRS Oversight Board.

Multistate voluntary disclosures: clearing up state tax liabilities.

Multistate Tax Commission's National Nexus Program The Multistate Tax Commission National Nexus Program has formulated a perfect solution for the clearing-up-state-liability problem common to companies operating in numerous states. It has formed a voluntary disclosure program that allows business enterprises to deal with their potential state sales/use tax or income/franchise tax liabilities simultaneously and in advance. As a result, businesses avoid state tax disputes that may result in tax penalties or interest.

Taxes: the time to reform is at hand.

House Democratic Leader Richard A. Gephardt's speech - Includes Gephardt's tax plan House Democratic Leader Richard A. Gephardt discussed his stand in the looming tax reform issue in his speech delivered at the Commonwealth Club of America. He expressed his relentless support for radical changes in the taxation policy as he observes that the existing tax code has been heavily squeezing money out of middle-class Americans instead of the wealthy. He believes that cutting the taxes by 62% is fair for both the government and American taxpayers.

Testimony of Leslie Shapiro.

National Society of Accountants General Counsel - Transcript National Society of Accountants (NSA) General Counsel Leslie Shapiro testified before the Subcommittee on Taxation, Finance and Exports Committee on Small Business regarding the issue of IRS accountability to small business and self-employed taxpayers. In behalf of NSA, Shapiro expressed a strong support for the tax reform bill as he has seen how unfair the current tax code is to small business owners and taxpayers. With the passing of the IRS Restructuring and Reform Act, NSA sees the transi...

Why QAR?

Part 1 - Quality assurance review Quality assurance review (QAR)/Peer Review is a process that business enterprises resort to in evaluating their financial statements before being submitted to the State Boards of Accountancy and the American Institute of Certified Public Accountants. QAR is a means of checking the conformity of financial statements to professional standards that include the Generally Accepted Accounting Principles, Other Comprehensive Basis of Accounting and Generally Accepted Tax Accounting Principles.