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June 11, 2013 |  BY Chris Baysden |  Article

The AICPA released an exposure draft of a Proposed Statement on Standards in Personal Financial Planning Services on Tuesday as part of an initiative that’s expected to help boost the profile of CPA personal financial planning (PFP) practitioners. The proposal outlines members’ responsibilities in PFP engagements. These responsibilities include: General professional responsibilities; Responsibilities of members in PFP engagements; Planning the PFP engagement; Obtaining and analyzing information; Developing and communicating recommendations; Monitoring and updating engagements; Working with other service providers; and Using advice provided by other service providers

May 16, 2013 |  BY Sally P. Schreiber, J.D. |  Article

To help taxpayers plan for the upcoming furlough dates on which the IRS will be closed (see “IRS Decides to Shut Down Completely on Furlough Dates”), the IRS issued a news release detailing how the shutdown days, the first of which is May 24, will affect operations (IR-2013-51).

May 1, 2013 |  BY Karl L. Fava, CPA |  Article

The deductibility of a charitable donation for a conservation easement or restriction on a real property interest is provided for under Sec. 170(h). Even with almost 13 pages of regulations (Regs. Sec. 1.170A-14), this provision is not straightforward, as evidenced by the number of taxpayers challenged by the IRS.

April 1, 2013 |  BY Ray A. Knight, CPA, J.D. and Lee G. Knight, Ph.D. |  Article

The emotional aspects of a divorce often interfere with planning for the efficient distribution of the marital estate. The shock and ill feelings may create a barrier between spouses that prevents even discussing issues. Tax practitioners need to know how to explain to a divorcing client the tax realities, to avoid any post-divorce tax surprises.

April 1, 2013 |  BY Kim T. Mollberg, CPA, CGMA, CMA, MBT |  Article

Sec. 408(d)(1) ordinarily requires a pro rata allocation between taxable and nontaxable amounts (using the Sec. 72 annuity rules) when reporting distributions received from an individual retirement plan (an individual retirement account or annuity (IRA)). The practical effect is that a taxpayer must recover any nontaxable amount (basis) ratably as distributions are received, by tracking basis on Form 8606, Nondeductible IRAs.

February 1, 2013 |  BY Paul Bonner and Alistair M. Nevius |  Article

Pulling back from the “fiscal cliff” at the 13th hour, Congress on New Year’s Day preserved most of the George W. Bush-era tax cuts and extended many other lapsed tax provisions. The new law brings a multitude of changes affecting both 2012 returns and, for the new year, tax planning, withholding, and estimated tax payments, prompting many considerations for CPAs and their clients concerning implementation of the new measures.

February 1, 2013 |  BY Alistair M. Nevius |  Article

One technique for converting otherwise passive activities to nonpassive is grouping them and treating them collectively as a single activity, thereby combining the participation hours and improving a taxpayer’s ability to achieve the necessary hours for material participation. Regs. Sec. 1.469-4 provides general rules and limitations for grouping activities and applies a facts-and-circumstances test to determine the appropriateness of a particular grouping.

January 15, 2013 |  BY Sally P. Schreiber, J.D. |  Article

On Tuesday, the IRS released Rev. Proc. 2013-13, which gives taxpayers an optional safe-harbor method to calculate the amount of the deduction for expenses for business use of a residence during the tax year under Sec. 280A, beginning with the current tax year. Individual taxpayers who elect this method can deduct an amount determined by multiplying the allowable square footage by $5.

January 8, 2013 |  BY Alistair M. Nevius |  Article

The IRS announced on Tuesday that it plans to open the 2013 filing season and begin processing many individual income tax returns on Jan. 30 (IR-2013-2). However, not all taxpayers will be able to start filing tax returns on that date. The IRS says it will be able to begin accepting tax returns on Jan.

January 1, 2013 |  Article

The Journal of Accountancy is dedicated to ensuring CPAs stay well informed about the tax issues. This page gathers together news stories and articles from AICPA magazines and newsletters discussing the many aspects of the fiscal cliff that loomed at the end of 2012. The fiscal cliff had many different aspects, all of which centered around one thing: The myriad tax and other fiscal changes that were scheduled to take effect in 2013.