Copyright 2010 ProQuest Information and LearningAll Rights ReservedCopyright 2010 California Society of Certified Public Accountants California CPA
NEWS & TRENDS; Pg. 4 Vol. 78 No. 9 ISSN: 1530-4035
Helping Tax Refunds Go To Charity
CalCPA is sponsoring Checkoff California and is actively involved in its media campaign, which encourages taxpayers to donate their California tax refund to 15 charities and also helps promote the role of CPAs as financial advisers.
The check-off line item appears under “contributions” on the California tax return. Since 1 984, California’s tax check-off program has raised more than $89 million and provided critical funding to public health, social service and environmental protection programs.
Learn more at www.checkoffcalifornia.org.
Four-hour Ethics Self-Study Courses; New Regs Updates
Check out these new Education Foundation offerings you can do online-on your own time:
* 2010 Professional Conduct and Ethics: www.calcpa.org/C&Eonline
* Ethics and Professionalism for GPAs in Public Practice: www.calcpa.org/E&Ponline
* Accountancy Laws, Ethics, Taxes and Financial Reporting Review: www.calcpa.org/Regsonline
New Mandatory Self-Reporting with Penalties for Real Property Change in Ownership or Change in Control
California has put some teeth into existing rules that require owners of real property to proactively evaluate every transaction involving entities owning real estate in California to determine whether a notice need be filed with the California Board of Equalization.
The main change in the law is that the 10 percent penalty will automatically be applied, whereas in die past, the BOE would apply the penalty upon failure to respond to a notice.
Learn more at www.calcpa.org/ RPchange.
President Signs HIRE Act; Creates New Tax Incentives
President Obama recently signed the Hiring Incentives to Restore Employment Act, which brings with it some business tax changes:
* Extension of enhanced small-business expensing (Sec. 179) retaining the $250,000 expensing election.
* Payroll tax holiday eliminating the current 6.2 percent employer Social Security tax for eligible new hires.
* Up-to-$1,000 business tax credit for keeping eligible employees for at least 52 consecutive weeks.
The HIRE Act does not extend the “bonus depreciation” tax break that was also available for business equipment purchases in 2009
Learn more at www.calcpa.org/HIRE.
Practice Alert: Auditor Considerations of Significant Unusual Transactions
A new Public Company Accounting Oversight Board practice alert reminds auditors of public companies about their responsibilities to assess and respond to the risk of material misstatement of the financial statements due to error or fraud posed by significant unusual transactions.
Auditor Considerations Regarding Significant Unusual Transactions compiles relevant requirements from existing PCAOB auditing standards regarding significant unusual transactions to assist the auditor in reviews of interim financial information and audits of financial statements.
Check out the practice alert at www.calcpa.org/ Alert5.
Tax Credit for Small Businesses for Providing Health Insurance Coverage
The IRS has updated its website to provide information to small employers regaiding the new tax credit for providing health coverage. The new features include:
* A graphic to help employers quickly determine if they qualify for the credit;
* Scenarios that explain how much certain businesses and exempt organizations would benefit from the credit; and
* Tax rips on taking the credit. Check it out at www.irs.gov/health.
Conceptual Framework for Financial Reporting
FASB and the International Accounting Standards Board published for public comment Conceptual Framework for Financial Reporting: The Reporting Entity. The exposure draft discusses what constitutes a reporting entity, which in different situations could be a group of entities, a single entity or only a portion of an entity.
Learn more at www.calcpa.org/ ReportingEntity.
California Enacts Mortgage Forgiveness Debt Relief
A new state law (SB 401) allows most taxpayers to exclude canceled mortgage debt income of up to $500,000 on their principal residence. The limit is $250,000 for married/ registered domestic partner individuals filing separately. It applies to debt forgiveness in 2009 through 2012 resulting from a foreclosure, “short sale” or loan modification of a taxpayer’s qualified personal residence.
The law largely brings California into conformity with the federal Mortgage Forgiveness Debt Relief Act for discharges that occurred in tax years 2007 through 2012. However. California’s limits of qualifying principal residence indebtedness differ from federal limits.
Learn more at www.calcpa.org/ftbMFDR. SIDEBAR
Want to know what your colleagues are talking about? Stop by and join in the discussion at www.calcpa.org/Lldiscussion.
June 1, 2010