Extended Maintenance Work on Paving Job Not Eligible for Tax Percentage of Completion Treatment

The issue of whether a taxpayer that entered into contract with the state of New Mexico to build a highway and then insure that highway met minimum standards for years in the future could use the percentage of completion method for the entire term was the question before the Tenth Circuit Court of Appeals in [...]

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CPA/CEOs Honored

Rufus Glasper, CPA, Ph.D., and Don Brandt, CPA, are being honored as two of the most admired CEOs by The Phoenix Business Journal. You can register to attend the event at:  http://tinyurl.com/2eq65cv As many of you know, Rufus is Chancellor of Maricopa Community College District, the largest community college district in the United States. He’s [...]

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Big Changes: Arizona Payroll Tax Withholding Percentages

Jeff Geisler, CPA, CPP, the Payroll Manager at Ping, let us know that Arizona employers will soon receive instruction packets about the new payroll withholding percentages and forms. Employers can visit www.azdor.gov/business/withholdingtax.aspx to learn more.  Employers can direct employees to www.azdor.gov/forms/withholding.aspx to use the new fillable A-4 form and also use an online calculator to help [...]

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Government Launches New Consumer Fraud Website

In November of 2009 President Obama established the Financial Fraud Task Force to investigate and punish individuals responsible for the nation’s current financial crisis, and to put the regulations in place to prevent another financial crisis in the future. On Friday, April 16th President Obama’s Financial Fraud Task Force announced the launch of a new [...]

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Mortgage on Property Prevented Conservation Easement from Qualifying for a Deduction

In the published decision of Kaufman v. Commissioner, the Tax Court indicated that the existence of a pre-existing mortgage that had a superior right to proceeds of a condemnation, or from insurance for a casualty, meant that the conservation easement granted could not qualify for a deduction.

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The CPA’s Guide to the iPad

Introduction The Apple iPad debuted to a lot of fanfare early in April when many of us were a bit preoccupied with tax matters.  However there may actually be a business case for making use of the device in accounting, both in public firms and in industry. I will describe here some of the uses [...]

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Deference to Plan Administrator’s Interpretation Required Even if Administrator’s Previous Interpretation Found to Be Unreasonble

The Supreme Court, in a 5-3 decision in the case of Conkright v. Frommert, reversed the Second Circuit’s holding that if a Court finds that a plan administrator had abused its discretion in interpreting a plan document, the Court is not required to grant deference to the plan administrator’s revised interpretation of the plan document.  [...]

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Arizona Legislature Passes Income Tax Bill, Does Not Conform to Many Federal Changes

In HR 2156, the Arizona legislature passed the annual conformity bill, but specifically chose not to conform to a number of federal law changes.  At the time this was written the bill was still to be transmitted to the governor for signature, but it appears that she will sign the bill and that this will [...]

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Accountants Failure to List Proper Tax Due on Form 7004 Held Willful Act, Triggers Treble Damages to Client

In the First Circuit case of Haddad Motor Group v. Karp, Ackerman, an accounting firm found that even though it was found not liable for the major claim of damages against it, its actions were enough to trigger an award of treble damages under Massachusetts law and, as well, a complete award of attorney fees [...]

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Form 8109B Going the Way of the Dodo

Small businesses that have not yet transitioned to making federal tax deposits using electronic methods are going to need to get moving on the transition to electronic form.  Form 8109B, the old federal tax deposit coupon, is being eliminated by the U.S. Treasury.

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