No More 83(b) Attachments to Tax Returns

The IRS issued proposed regulations which eliminate the requirement that taxpayers must submit a copy of a Code Sec. 83(b) election with their tax returns. The proposed regulations, if finalized, will apply as of January 1, 2016; however, taxpayers may rely on them for property transferred on or after January 1, 2015. Under an 83(b) …

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Life expectancy: best and worst states to live in

If I am preparing a report on lost earnings in a wrongful death litigation matter, I will need to know what the expected remaining life would have been for the deceased subject involved with the lost earnings claim. I will use authoritative tables from government and private research sources to make the life expectancy determination. …

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FASB’s Employee Benefit Plan Reporting Simplification

On July 31, 2015, the Financial Accounting Standards Board (“FASB”) issued ASU 2015-12, Plan Accounting: Defined Benefit Pension Plans (Topic 960), Defined Contribution Pension Plans (Topic 962), Health and Welfare Benefit Plans (Topic 965): (Part I) Fully Benefit-Responsive Investment Contracts, (Part II) Plan Investment Disclosures, (Part III) Measurement Date Practical Expedient. The ASU was in …

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Using QuickBooks? Did you review payables before the last check?

Newer versions of QuickBooks will open a dialogue box “Open Bills Exist” and older versions may tell if you have a payable due to a vendor when you are in the check writing window but this is easily overlooked. If you ignore the question and opt to select the “Continue Writing Check” button or you …

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California Begins Employee Business Expense Audits

California is known for its aggressive audit programs and in August 2015, California Franchise Tax Board (FTB) began a new audit program for taxpayers who deducted unreimbursed employee business expenses on their tax return. The audits will begin with the 2011 and 2012 tax years. FTB said it was taking this action because it has noticed …

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Arizona Manufacturers and Use Tax

Understanding and comprehending tax law is often a difficult task in general. It can be even more so if you are looking towards specific applications of tax law in particular industries. Take manufacturing, for example. I have had quite a bit of questions relating to manufacturers and the applicability of use tax for them. Before …

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Cash Basis Taxpayer Gets Stiffed!

I often have cash basis service providers tell me they want to “write off” amounts that they never collected for services provided. For example, a consultant does work for a client and sends an invoice for $5,000. The client never pays; the consultant wants to “write off” the $5,000. Since the consultant is on the …

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Accounting for debt issuance costs

In 2015, the FASB changed the requirements for presentation of issuance costs associated with debt. These updates were made as part of FASB’s initiative to reduce complexity in accounting standards and went into effect in 2016. Debt issuance costs consist of brokerage, legal and other professional fees incurred in connection with issuance of long-term debt. …

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AZ Amnesty for Penalties and Interest Expires November 2

The Arizona Tax Recovery Program began this month and will soon end on November 2, 2015. It’s the creation of Senate Bill 1471, passed earlier this year. All taxpayers who meet the application requirements will be eligible to have the interest and civil penalties waived for tax liabilities associated with annual tax years ending through …

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Looking for a Tax Career with a Public Accounting Firm?

Recently, I was honored to be part of a five person panel for the masters of accountancy and masters in taxation students at Arizona State University (ASU). Included on the panel were representatives from an international CPA firm, a national CPA firm, a regional CPA firm and a large corporate entity. And me, of course, …

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