AICPA News Update - July 27, 2012 

    AICPA Comments on Tax Issues 
    Published July 27, 2012

    AICPA
           
      AICPA
    AICPA News Update
    A Weekly Email Newsletter on Issues & Events Surrounding the CPA Profession
     
     
      In This Update: July 27, 2012 - Volume 15 No. 30  
     
    Comments Submitted to IRS on Accounting Method for Income from Gift Card Receipts
    AICPA Signals Support for Fraudulent Tax Preparer Fraud Penalties to House Tax Committee
    Remember to Renew Your Membership by July 31
    Health Care Expert Panel Develops TPA on Accounting for Costs Incurred During ICD-10 Implementation
    Accounting and Auditing Technical Hotline Develops TPA on Lender Comfort Letters
           
     
    Comments Submitted to IRS on Accounting Method for Income from Gift Card Receipts
     

    On July 18, the AICPA submitted a comment letter to the Internal Revenue Service regarding recommendations for modification of Revenue Procedure 2011-18 concerning the accounting method for income from gift card receipts. The letter addresses an interpretive issue the AICPA identified in the application of Rev. Proc. 2011-18, and provides one potential suggestion for how the revenue procedure could be modified to avoid an unintended result.

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    AICPA Signals Support for Fraudulent Tax Preparer Fraud Penalties to House Tax Committee
     

    The AICPA has submitted comments to the House Committee on Ways and Means backing a bill that would impose stricter penalties against a tax return preparer who provides the IRS with a fraudulent understatement of a taxpayer’s liability and keeps all or a portion of the refund. The comment letter focuses on the AICPA’s strong support for efforts to combat such extreme unethical behavior that can create an administrative burden on unsuspecting taxpayers. The letter expands on the AICPA’s support of these stricter policies.

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    Remember to Renew Your Membership by July 31
     

    To be sure there is no lapse in your AICPA membership, renew by July 31 when the membership year ends. Visit aicpa.org/myaccount and continue to take advantage of the AICPA’s diverse resources, including the Journal of Accountancy, CPA Letter Daily, AICPA News Update and the new Journal of Accountancy News App for iPad®. The AICPA also provides a wealth of services that benefit your career, promote firm growth and support the public interest. Renew now.

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    Health Care Expert Panel Develops TPA on Accounting for Costs Incurred During ICD-10 Implementation
     

    The U.S. health care system is scheduled to transition from the International Classification of Diseases, 9th Edition, to the ICD, 10th Edition, by Oct. 1, 2013. Developed by the AICPA Health Care Expert Panel, Technical Question and Answer 6400.48 has been issued to provide nonauthoritative guidance regarding how a health care entity should account for costs incurred in connection with the implementation of ICD-10. The TPA also includes factors to consider in the assessment of whether modifications to an entity’s existing software system result in additional functionality, as described in Financial Accounting Standards Board Accounting Standards Codification 350-40, Internal Use Software, beyond the original software’s capabilities and qualify as an upgrade or enhancement.

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    Accounting and Auditing Technical Hotline Develops TPA on Lender Comfort Letters
     

    No-documentation or low-documentation loans remain popular options within the lending community, especially in lending to the self-employed. The information a prospective borrower is asked to furnish in connection with such loans is limited; however, lenders or brokers still attempt to assess a borrower’s creditworthiness and verify the accuracy of information provided to them by the borrower. Developed by the AICPA Accounting and Auditing Technical Hotline, TPA 9110.19 has been issued to provide nonauthoritative guidance regarding how an accountant may respond to a request from a client, lender, or loan broker to confirm client information in connection with a pending loan application.

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    “The CPA profession, embodied by the AICPA, furthers the ethical pursuit of capitalism, protects investors and stakeholders, informs critical business decisions, and keeps people honest.  I am so proud to call myself a CPA and AICPA member.”

    Eric W. Sanders, CPA
     



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