AccountingWEB Weekly News Wrap-Up - Issue 126
December 28, 2001
NEWS FOR ACCOUNTINGWEB MEMBERS
1. Countdown to Decision on Proposed Global Credential
2. IRS Announces Rapid TIN Service
3. UC Hopes to Lead Class Action Against Andersen, Enron
4. SEC's Pitt to Auditors: "You Will Pay"
5. IRS Announces Amnesty Plan on Tax Shelters
6. KPMG Reports Record Revenues for 2001
7. AccTrak21 Offers Free Accounting Software
8. IRS OKs Payment by Debit Card
9. SEC to Examine Fortune 500 Annual Reports
10.Comments Released on Computerization of CPA Exam
HAPPY NEW YEAR FROM THE ACCOUNTINGWEB STAFF
Don’t forget, December 28 is the last day to cast your vote on the IISBP.
From Cognitor to XYZ to IISBP, for the past year, AccountingWEB has followed the story of the AICPA's proposed global business credential. Finally, next Thursday, the AICPA will announce the results of the membership ballot on the future of the credential. AccountingWEB will be your source for up-to-the-minute news on this topic, sending a special e-mail alert with the results of the vote.
All registered members of AccountingWEB will receive this alert on Thursday morning, January 3. If you received this newswire in your e-mail inbox, you are registered to receive the special alert next Thursday. If you know of anyone who may not be registered to receive AccountingWEB news and who might be interested in the alert about the proposed global credential, please refer those people to our registration page today:
NEWS FOR ACCOUNTINGWEB MEMBERS
On Thursday, January 3, 2002, at 10:00 a.m. EST, the American Institute of CPAs (AICPA) will conduct a telephone media briefing announcing the results of the membership ballot on the proposed global business credential, Strategic Business Professional.
Taxpayers can now obtain a taxpayer identification number almost instantaneously using the IRS's toll-free telephone number. The telephone service will operate Monday through Friday from 7:30 a.m. to 5:30 p.m. local time. Faxed requests currently take 48 hours to fill.
The University of California (UC), the nation's largest university system, has announced plans to join a class action suit against 29 senior executives of the failed Enron Corp. and Big Five accounting firm Andersen. The University claims it lost $145 million in Enron's collapse and seeks to be the lead plaintiff in the class action suit that is forming.
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AICPA - Global Business Credential, AuditWatch, Knowledge Concepts, Inc., Lambers CPA Review, Sommella Market Strategies and Up Your Cash Flow. Visit http://www.accountingweb.com/members/index.html today for more information on these organizations.
The Securities & Exchange Commission has launched a formal investigation into the recent collapse of energy giant Enron Corp. and has subpoenaed records from Big Five firm Andersen in relation to that investigation. SEC Chairman Harvey Pitt plans to follow a hard line when it comes to auditors who are responsible for problems with published financial statements.
The IRS hopes to encourage taxpayers to disclose tax shelters and other questionable items that may have resulted in an underpayment of tax by waiving certain accuracy-related penalties that might apply to the transactions. A taxpayer is not required to agree that the disclosed tax shelter or item resulted in an underpayment of taxes in order to avoid penalties.
KPMG International, the global professional services organization, has reported record revenues of $11.7 billion for the fiscal year ended September 30, 2001. "We've made tremendous progress in managing our business on a regional basis," said Mr. Butler, who noted that KPMG recorded growth across all of its geographic regions.
THIS YEAR, OFFER TAX TIPS ON YOUR WEB SITE
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AccountingWEB will build, host and maintain your customized tax tips ticker that can be displayed on your Web site during the upcoming tax season. This unique ticker will deliver daily tax tips provided by the IRS. Bring value to your clients and staff and dynamic content to your Web site with this easy-to-use ticker.
Be the first on your block to get one of the 50,000 free copies of AccTrak21 Perform Accounting & Business Intelligence software. The offer, free with a one-time registration fee of $25, is available to CPAs only.
The IRS has adopted final regulations authorizing the payment of internal revenue taxes by credit card or debit card. The regulations also limit the use and disclosure of information relating to the payment of taxes by credit card and debit card. The final rules apply to payments of taxes made on or after December 14, 2001.
IF YOU'RE READING THIS – YOUR CUSTOMERS AND PROSPECTS ARE TOO!
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In light of the recent collapse of energy giant Enron, the corporation finance division of the Securities and Exchange Commission will review the annual reports of the nation's Fortune 500 companies in an attempt to seek out accounting red flags.
Last March, the American Institute of Certified Public Accountants' and the National Association of State Boards of Accounting's joint Computerization Implementation Committee issued its paper on computerizing the national Unified CPA Examination. Comments were requested on the paper, and those comments have now been made public. Read what your colleagues have to say about this major change that will affect tomorrow's accountants.
ACCOUNTINGWEB Q&A FORUM
Visit our Q&A Forum to post your questions and share your ideas with the members of AccountingWEB! Simply click on the "Add Comments" option at the bottom of any question to add your response and comments.
Here is a sample of the questions that have been posted this week. Check out all the questions at our Q&A Forum and see if you can lend a hand.
1. Interest paid to the IRS for late payment of income taxes is not deductible for individuals, and IRS penalties are not deductible for any entity. But, can corporations deduct interest paid to the IRS for late payment of income taxes?
2. Does anyone know of a generic audit program to help analyze spec homes as part of an audit of a construction contractor that builds both custom and spec homes?
3. Which asset class should be used for construction of a 250 foot cell phone tower? A cell phone tower is not specifically listed on the B-1 Table of class lives. The closest listing seems to be class 00.3 or 48.14 on B-2.
4. Facts: X Corp. is a C-corporation with NOL loss carryforward of $500K, August 31 2001 year end. Y Corp. is an S-corporation with profit of $400K, December 31, 2001 year-end. Y Corp. buys all the assets of X Corp. in a statutory merger under section 361 on September 1, 2001. Question: Can Y Corp. take the NOL losses of the acquired X Corp.?
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