AccountingWEB Weekly News Wrap-Up - Issue 126

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

EDITORIAL

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:
http://www.accountingweb.com/register

Gail Perry
Managing Editor

NEWS FOR ACCOUNTINGWEB MEMBERS

1. Countdown to Decision on Proposed Global Credential

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.

2. IRS Announces Rapid TIN Service

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.

3. UC Hopes to Lead Class Action Against Andersen, Enron

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.

THIS WEEKLY NEWSWIRE IS SPONSORED IN PART

BY THE ACCOUNTINGWEB STOREFRONT MEMBERS.

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.

4. SEC's Pitt to Auditors: "You Will Pay"

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.

5. IRS Announces Amnesty Plan on Tax Shelters

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.

6. KPMG Reports Record Revenues for 2001

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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7. AccTrak21 Offers Free Accounting Software

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.

8. IRS OKs Payment by Debit Card

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!

This weekly AccountingWEB newswire is read by over 42,000 accounting and finance professionals who have opted in to this free service to get information, ideas, and to keep up-to-date on the trends shaping our profession. Shouldn’t your organization be featured here? Contact our sales team at sales@accountingweb.com or call 317-876-7525 and let us help you meet your marketing goals.

9. SEC to Examine Fortune 500 Annual Reports

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.

10. Comments Released on Computerization of CPA Exam

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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AccountingWEB Inc.

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