PRACTICE MANAGEMENT
Assisting Troubled Business Clients: A Midsize Dilemma for CPAs
by William Y. Culbertson
When a midsize business is in financial distress, CPAs are often the most qualified
experts to step in and assist with a turnaround.
For CPAs who advise privately held businesses

TAX
Voluntary Disclosure to the IRS: A Viable Option
by Stephen G. Huggard
The IRS can deal leniently with taxpayers who volunteer information against
themselves about unpaid taxes. Knowing when and how to make such disclosures, however, is crucial.
For CPA tax practitioners

ARTICLES

BUSINESS VALUATION / BUSINESS & INDUSTRY
Are Your ESO Values on Target?
by Keith Sellers, Yingping Huang and Brett A. King
Several issues are unique to the valuation of employee stock options for closely held companies. The authors demonstrate that even well-designed option valuation models will yield incorrect values if they are not modified to address these unique issues.
For financial managers, auditors and valuation experts for privately held companies

BUSINESS VALUATION
Allocating Value Among Different Classes of Equity
by Andrew C. Smith and Jason C. Laurent
Companies are being financed with hybrid forms of capital that go well beyond plain-vanilla common equity and interest-bearing debt. This requires valuation analysts to tailor option pricing models to the unique equity structure of each company.
For financial managers, auditors and valuation experts

BUSINESS & INDUSTRY
Take Your New Team to the Top
by Patti J. Gillenwater
A seasoned financial staffing consultant shares proven methods for an incoming manager to motivate the accounting and finance team to add value to an organization.
For CPAs in business and industry

CORNER OFFICE CONVERSATIONS
Building Value in People
In the first installment in an occasional series of personal talks with high-level leaders in accounting and finance, Barry Salzberg, CEO of Deloitte & Touche USA LLP, discusses the road to partnership, mining the skills of younger workers and how he learned the value of transparency the hard way.
For all CPAs

HIGHLIGHTS
Recent developments in the accounting profession

NEWS DIGEST
Auditing…Banking…Employee Benefits…Financial Reporting…Government…International…Investing…Securities…FYI

WASHINGTON REPORT
2007 in Review: Congressional Impact on CPA Profession

AT A GLANCE: CHARTS AND GRAPHICS
Firms Grow Through Referrals
Securities Class Action Filings by Industry
Cities Added to IRS Small Business Resolution Program
Self-Employed Taxpayers Look for Help

IN THIS ISSUE
Subject index

TOP LINE
News, people, trends and other noteworthy items

CHECKLIST
Implementing Enterprise Risk Management

TECHNOLOGY
Smart Stops on the Web

TAX PRACTICE CORNER
A 401(k) Tax Break That’s Often No Break

TAX MATTERS
Environmental Cleanup, Price-Fixing Settlement Not Claims of Right
A Hard Night at the Casino
Dunn Does It Again
Economic Substance Prevails Against Another Son of BOSS
Pitt Falls in FICA Case
Line Items

FROM THE TAX ADVISER
Partnership Incorporation Provides Planning Opportunities

TECHNOLOGY Q&A
by Stanley Zarowin
Avoid getting shocked by a thunderstorm… Send personalized e-mails using Word’s Mail Merge tool…Eliminate Outlook’s second guessing when typing an e-mail address…Make Vista’s interface look like XP’s—with no loss of functionality…A better way to display several files on your screen

BOOKSHELF REVIEW
Recommended Reading From the JofA: Life Cycle Planning for the CPA Practice: Practical Strategies and Forms; At the Crossroads: The Remarkable CPA Firm That Nearly Crashed, Then Soared; Make More, Worry Less: Secrets From 18 Extraordinary People Who Created a Bigger Income and a Better Life; and 100 Million Unnecessary Returns: A Simple, Fair, and Competitive Tax Plan for the United States

THE LAST WORD
A closer look at some of the intriguing, inspiring and imaginative folks who are the heart of the AICPA