Tax & Accounting Replace – The CPA Magazine
Tax & Accounting Replace is supplied via Thomson Reuters and according to subject matter revealed on Checkpoint, its on-line information and analysis platform. The Replace is a quick-reference information to probably the most urgent problems coming down the regulatory and administrative pipeline. Consult with https://tax.thomsonreuters.com/checkpoint-news/ for additional data and day-to-day updates.
Contents
- 1 Tax Information
- 2 IRS opens compliance assurance procedure to new company candidates.
- 3 IRS: Aid to be had for positive former electorate.
- 4 FASB Information
- 5 FASB votes to finalize proposal simplifying source of revenue tax accounting laws.
- 6 AICPA Information
- 7 Proposal would incorporate audit reporting adjustments to specialised monetary statements.
Tax Information
IRS opens compliance assurance procedure to new company candidates.
For the primary time in 4 years, the IRS is accepting new company candidates for the Compliance Assurance Procedure (CAP). The IRS introduced CAP in 2005 to make stronger federal tax compliance via huge company taxpayers. In CAP, the IRS and the taxpayer paintings in combination to reach tax compliance earlier than the taxpayer information its go back. In keeping with the IRS, CAP lets in it to considerably shorten the period of a postfiling exam, as many problems are labored out earlier than the taxpayer information its go back. To be eligible for CAP, new candidates will have to have property of $10 million or extra; be a U.S. publicly traded company with a felony requirement to arrange and post SEC Bureaucracy 10-Ok, 10-Q, and 8-Ok; now not be below investigation via, or in litigation with, any executive company that may prohibit the IRS’s get right of entry to to present tax information; and, if recently below exam, now not have a couple of filed go back and one unfiled go back open at the first day of the applicant’s CAP yr. The appliance duration runs from September 16 to October 31, 2019. Candidates will obtain realize of whether or not they’ve been authorised into this system round January 31, 2020.
IRS: Aid to be had for positive former electorate.
The IRS has introduced new procedures below which individuals who’ve relinquished (or who intend to relinquish) their U.S. citizenship, have now not filed U.S. tax returns as U.S. electorate or citizens, and feature somewhat small quantities of unpaid tax legal responsibility would possibly come into compliance with their U.S. submitting tasks and obtain aid for again taxes. Beneath what the IRS is looking Aid Procedures for Positive Former Electorate, individuals who meet the standards described beneath can be deemed compliant with their U.S. tax and submitting tasks, is probably not “lined expatriates” below Interior Income Code phase 877A, and can obtain aid for prior-year tax liabilities. The IRS will host a webinar within the close to long term offering more information and sensible pointers for creating a submission below those procedures.
FASB Information
FASB votes to finalize proposal simplifying source of revenue tax accounting laws.
On September 4, FASB voted unanimously to finalize its proposed laws that may simplify source of revenue tax accounting necessities in roughly 12 unrelated spaces that businesses had mentioned have been pricey and sophisticated. The adjustments can be efficient for public corporations’ fiscal years starting on or after December 15, 2020; for all different corporations, they’ll be efficient on or after December 15, 2021. Early adoption can be accepted. The verdict method Proposed Accounting Requirements Replace (ASU) 2019-700, Source of revenue Taxes (Matter 740): Simplifying the Accounting for Source of revenue Taxes, which was once issued in Would possibly, can be finalized with some slim clarifications. The board mentioned it gained 24 remark letter responses at the proposed adjustments, 10 of which got here from auditors. Respondents usually agreed the adjustments would simplify Matter 740 whilst keeping up or making improvements to the usefulness of knowledge equipped to monetary observation customers, FASB team of workers accountants mentioned. Maximum respondents mentioned the adjustments could be operable and auditable and would now not impose vital prices.
AICPA Information
Proposal would incorporate audit reporting adjustments to specialised monetary statements.
On August 28, the AICPA’s Auditing Requirements Board (ASB) issued an offer that may incorporate fresh auditor reporting adjustments to audits of positive varieties of monetary statements, comparable to the ones ready in keeping with a monetary reporting framework that doesn’t use GAAP. The proposal is a part of the ASB’s effort to converge its requirements with the ones issued via the Global Auditing and Assurance Requirements Board (IAASB). “As we proceed to fortify the transparency of auditor reporting, we’ve got prolonged the provisions of SAS No. 134 as they relate to offering perception into the foundation for the auditor’s opinion,” AICPA Leader Auditor Robert Dohrer mentioned in a observation. “Disclosure of the duties of each entity control and auditors in those distinctive reporting cases could also be essential.” Feedback are due via October 28.
Supply Via https://www.cpajournal.com/2019/11/25/tax-accounting-update-37/
