Printer Friendly VersionTax Services Advisory - IRS Issues Proposed Regulations on Electronic Filing of Various Taxes
August 30, 2010
The IRS on August 19 issued proposed regulations for the system that must be used beginning January 1, 2011 for the electronic filing of various deposits of taxes, including certain unemployment, corporate income and estimated taxes. The change will eliminate the paper coupon filing of federal tax deposits and will impact almost all businesses.
Public Company Advisory - PCAOB Adopts New Auditing Standards Related to Risk Assessment
August 27, 2010
The Public Company Accounting Oversight Board (PCAOB), on August 5 adopted eight auditing standards related to an auditor's assessment of, and response to, the risk of material misstatement in an audit.
In a news release, the PCAOB said that the new Auditing Standards (No. 8 through No. 15) set forth “requirements that enhance the effectiveness of the auditor's assessment of, and response to, the risks of material misstatement in the financial statements.”
Public Company Advisory - FASB and IASB Issue Proposed Standard for Revenue Recognition
August 13, 2010
The Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) have issued a draft statement for their proposed new standard for revenue recognition, as part of their pending convergence of U.S. and international accounting standards.
The FASB and the IASB issued the proposal on June 24. On the second page of the proposal, the FASB explains the process under which it is accepting comments through October 22, 2010.
Financial Institutions Services Advisory - FASB Requires More Disclosures on Receivables and Allowance for Credit Losses
July 30, 2010
The Financial Accounting Standards Board (FASB) on July 21 issued Accounting Standards Update No. 2010-20. Disclosures about the Credit Quality of Financing Receivables and the Allowance for Credit Losses. Changes in those disclosures would be required starting in late 2010 for some companies.
Financial Institutions Services Advisory - Financial Services Bill Has Major Changes for Community Banks
July 27, 2010
President Obama on July 21 signed the financial services bill that includes several significant changes and new regulatory requirements for community banks and other financial institutions in Florida and other states.
Congress on July 15 approved the Dodd-Frank Wall Street Reform and Consumer Protection Act, HR 4173. Most provisions of the new law will become effective one day after the signing by the president.
Public Company Advisory - Financial Bill Exempts Smaller Reporting Companies from SOX 404(b)
July 23, 2010
Congress on July 15 approved the widely anticipated 2010 financial services bill that includes a permanent exemption for non-accelerated filers from the Section 404(b) provisions of the 2002 Sarbanes-Oxley Act (SOX).
Under that exemption, companies with market capitalization of less than $75 million are not subject to Section 404(b). That section of SOX requires larger public companies to have an annual audit that reports on the effectiveness of internal controls over financial reporting.
Automotive Dealerships Advisory - Dealer Fee and Pre-Delivery Charges Must be included in Advertised Price
July 23, 2010
It is the responsibility of Compliance Officers of the Florida Department of Safety and Motor Vehicles DMV) to monitor deceptive advertising under the Florida Deceptive and Unfair Trade Practices Act.
DMV Compliance Officers visit dealerships and may issue fines for deceptive advertising if they find dealerships that have failed to have the dealer fee or other pre-delivery charges included in the advertised price of motor vehicles.
Litigation & Valuation Report - July/August 2010 Edition
July 20, 2010
MBAF is pleased to present the July/August 2010 issue of the Litigation & Valuation Report. We encourage you to read through it for ideas about how to keep current with the latest relevant court decisions and better understand the valuation process.
In this issue we discuss:
- A court case that offers guidance on e-discovery, and another in which a single price quote supported a large lost profits award.
- What business contingencies are and why they must be factored into many appraisals, and
- Recent developments in valuing pass-through entities vs. C corporations.
President Obama signed into law the “Homebuyers Assistance and Improvement Act of 2010” (H.R. 5623) on July 2, 2010, which extends the date by which qualified purchasers must have closed on a home to be eligible for the homebuyer tax credit.
Sports & Entertainment Advisory - For the Love of the Game AND the Money - Lebron James could be a double winner
July 8, 2010
As LeBron James juggles all his options among the Knicks and the Nets, the Bulls and the Cavaliers, the Heat comes up as a slam dunk.
Clearly, the attraction of Wade-Bosh-LeBron on the same team is very powerful.
But Miami can beat out New York, New Jersey, Cleveland and Chicago hands down on…taxes.
Public Company Advisory - Supreme Court Orders a Change for PCAOB, but Upholds Sarbanes-Oxley
July 8, 2010
In a decision it issued on June 28, 2010, the U.S. Supreme Court held that the Securities and Exchange Commission (SEC) must change its system for removing board members from the Public Company Accounting Oversight Board (PCAOB). But the Supreme Court’ 5-4 decision rejected the plaintiffs’ argument that the PCAOB is unconstitutional, and it left intact the remainder of the 2002 Sarbanes-Oxley Act that created the PCAOB.
Tax Services Advisory - Taxpayers Should Begin Planning for 2011 Tax Increases
July 7, 2010
In addition to taking well-deserved vacations, taxpayers should be spending part of this summer preparing for tax increases and other significant changes that are scheduled to take place in tax years beginning in 2011.
Income tax rates will rise for higher-income taxpayers during 2011 including a return of the highest rate to 39.6 percent. That rate is 35 percent for 2010. The capital gains tax rate will increase from 15 percent to 20 percent for many taxpayers (tax rates on collectibles would remain at 28 percent). Dividends will be taxed at individual income tax rates, rather than at capital gains rates. These changes will occur if Congress and President Obama can’t agree on an alternative. In addition, the estate tax could return at its pre-2003 rates if Congress and the president do not reach an agreement.
Despite the financing difficulties most industries are experiencing, banks are still lending to medical practices. As long as there is a good credit history (e.g., no bankruptcies), adequate cash flow and/or collateral, and reliable financial reporting, banks still view medical practices as having minimal lending risk. That being said, to maximize the likelihood of having your credit approved, it is important to present not only financial information to your lender, but also a qualitative assessment of your practice.
MAS Advisory - Recent Environmental Disaster: April 2010 Gulf of Mexico Oil Spill
July 6, 2010
April 2010 will long be remembered by those who experienced tragic economic losses from the ongoing oil spill in the Gulf of Mexico. The ecological disaster harmed, among others, individuals, privately-owned businesses, small and medium sized companies, financial institutions, and municipalities. We have received numerous requests for advice on how to recover from these devastating and overwhelming losses and, as business advisors, we would like to share our initial insights as to how to address such an economic tragedy. While we acknowledge the difficult environment that the oil spill victims are facing, taking proactive actions affords the best options to lay the foundations for possible recovery from this disaster.
Tax Services Advisory - New Florida Tax Amnesty Program Extends from July 1 Through September 30
July 6, 2010
A new Florida law that took effect on July 1 establishes an amnesty program on most state taxes for a three-month period through September 30, 2010. If you qualify for the amnesty program, there will be no criminal prosecution and no penalties need to be paid. Only payment of tax and interest has to be made. In addition, interest due can be reduced by up to 50 percent.
The tax amnesty provisions are part of CH/HB 5801 which the Florida Legislature passed and Gov. Charlie Crist signed this year.
Tax Services Advisory - Higher Capital Gains Tax Has Implications for Sales of Businesses
June 25, 2010
In 2011, the capital gains tax rate will increase from 15 percent to 20 percent for U.S. taxpayers whose ordinary income tax rates are 28 percent or higher.
This pending change will impact many business owners as well as individuals because it applies to sales of certain specified assets, such as privately held businesses, and to marketable securities that have been held for more than one year.
Financial Institutions Services Advisory - Proposal Would Make HUD Foreclosures Eligible as CRA Investments
June 21, 2010
The federal bank and thrift regulatory agencies on June 17 issued a proposed rule that would make investments in certain abandoned and foreclosed properties eligible for consideration under the Community Reinvestment Act (CRA).
The proposed rule would expand CRA consideration for commercial banks and savings banks to include loans and investments to support services of the Neighborhood Stabilization Program (NSP), which is administered by the U.S. Department of Housing and Urban Development (HUD). Under the NSP, HUD provides funds to state and local governments and to non-profit organizations for the purchase and redevelopment of abandoned and foreclosed properties.
Tax Services Advisory - IRS Considering Joint Country Audits of Multinational Corporations
June 21, 2010
The IRS and tax regulators in other countries are preparing for joint country audits of multinational corporations, IRS Commissioner Douglas H. Shulman said on June 8.
In an speech at a Washington, D.C. meeting of the Organization for Economic Development and Cooperation (OECD), Shulman said the IRS “is developing a protocol for joint audits with other countries.”
Tax Services Advisory IRS Announces New Exam Process for Large and Mid-Sized Businesses
June 17, 2010
In an announcement on June 10, the IRS said it is implementing a new Quality Examination Process (QEP) for its tax examinations of large and mid-sized businesses. The IRS Large and Mid-Size Business (LMSB) Division serves corporations, subchapter S corporations and partnerships with assets greater than $10 million.
New Law Provides Amnesty on State Taxes Through September 30
June 8, 2010
A new Florida law that takes effect on July 1, 2010 establishes an amnesty program on most state taxes for a 3-month period through September 30, 2010. If you qualify for the amnesty program, there will be no criminal prosecution no penalties need to be paid; only payment of tax and interest has to be made. The amnesty provisions are part of CH/HB 5801, which the Legislature passed this year.
Public Company Advisory - FASB and IASB Set Revised Target Dates for Convergence
June 8, 2010
On June 2, the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) announced that they have established the second half of 2011 as a new target date for completing certain major projects related to the convergence of US GAAP and International Financial Reporting Standards (IFRS).
Financial Institutions Services Advisory - FASB Proposes Fair Value Reporting of Financial Instruments
May 28, 2010
The Financial Accounting Standards Board issued a Proposed Accounting Standards Update that would require banks and other entities to measure most loans and other financial instruments at fair value in their statements of financial position for each reporting period.
Financial Institutions Services Advisory - Losses Down, Problem Loans Remain High at Florida-Based Banks
May 21, 2010
Banks based in Florida reduced their composite loss but experienced another increase in their overall non-current loans ratio during this year’s first quarter, according to data the Federal Deposit Insurance Corporation (FDIC), released on May 20. In its Quarterly Banking Profile the FDIC also reported an increase in profits but a rise in non-current loans for the country’s banking industry, for this year’s first quarter compared with 2009’s first quarter.
Tax Impact - May/June 2010 Edition
In it, we discuss:
- Tax and estate planning considerations in deciding whether to convert to a Roth IRA,
- How the estate tax repeal also modifies carryover basis rules,
- The risk that multiple states will attempt to tax the same income, and Brief items regarding the impact of the estate tax repeal on estate plans; whether LLCs can offset business losses against active income; and restructuring loans.
Litigation & Valuation Report - May/June 2010 Edition
In it, we discuss:
- How a struggling economy presents business valuation challenges
- Digging for the truth in alter-ego cases
- One court’s dismissal of an excessive jury award in a patent-infringement case
- Recent American Society of Appraisers guidance regarding the valuation of partial interests.
Tax Services Advisory - Health Insurance Credit for Business with Fewer than 25 Employees
May 17, 2010
If a business or a tax-exempt organization has fewer than 25 full-time equivalent (FTE) employees and its average annual compensation level does not exceed $50,000, it may be eligible for a new tax credit if it provides health insurance to its employees.
Accounting Services Advisory - New Standards for Compilation and Review of Financial Statements
May 17, 2010
Businesses should be aware that beginning with financial statements for periods ending on or after December 15, 2010, accounting firms and their clients will be required to make significant changes in the compilation and review procedures for these statements.
Financial Institutions Services Advisory - FIBA Panel Discusses Best Practices on Credit Administration
May 12, 2010
Frank Gonzalez, CPA/CFF, the MBAF partner who leads the firm’s financial institutions and SEC practice, was a panelist at a May 6 seminar on credit administration. The seminar in Miami was sponsored by the Florida International Bankers Association (FIBA).
Financial Institutions Services Advisory - Guidance on Correspondent Bank's Concentration Risks
May 5, 2010
Federal banking regulators on April 29 issued a final guidance that addresses the risks associated with funding and credit concentrations arising from correspondent banking relationships.
Financial Institutions Services Advisory - FDIC Proposals on TAG, Insurance Assessments
April 16, 2010
The Federal Deposit Insurance Corporation on April 13 issued a proposed interim rule that would extend its Transaction Account Guarantee (TAG) program through December 31, 2010.
Tax Advisory Services - IRS Releases Details on Hiring Unemployed Under New Law
April 9, 2010
On April 7, the IRS released details on how employers can obtain recently adopted tax incentives for hiring workers who have been unemployed for at least 60 days.
The IRS's information package contains the new Form W-11 that each eligible employee must complete. The one-page Form W-11 also lists instructions to employers.
Tax Services Advisory - New Tax Reporting Requirements on Foreign Financial Assets
March 25, 2010
The Hiring Incentives to Restore Employment Act (HIRE), which President Obama signed on March 18, contains several important new offshore anti-abuse provisions that the government intends to use to raise revenue to offset the Act’s domestic tax cuts.
Public Company Advisory - SEC Issues Temporary Guidance on Venezuela
March 25, 2010
The Securities and Exchange Commission (SEC) Staff on March 18 issued an announcement in response to inquiries received regarding foreign currency issues on investments in Venezuela.
The announcement provides guidance where the parent’s reporting currency is the U.S. dollar with a Venezuelan subsidiary, with the Bolivar Fuerte as its functional currency with certain balances denominated in U.S. dollars.
Healthcare Services Advisory - Health Care Reform Legislation - A Look at the Tax Provisions
March 24, 2010
The Patient Protection and Affordable Care Act (H.R. 3590), passed by Congress on Sunday, contains numerous tax provisions.
The Reconciliation Act of 2010 (H.R. 4872), which also passed the House on Sunday, contains many other tax items, including extending the general exclusion for reimbursements for medical care expenses under an employer-provided accident or health plan to any child of an employee who has not attained age 27 as of the end of the tax year and codifying the economic substance doctrine. The reconciliation bill has not yet passed the Senate.
Tax Services Advisory - HIRE - New Tax Incentives for Hiring Workers Previously Unemployed and Foreign Account Tax Compliance
March 19, 2010
President Obama on Thursday signed the Hiring Incentives to Restore Employment Act (HIRE), which provides tax benefits for businesses that hire workers who have been unemployed for 60 or more days.
The new law, H.R. 2847, gives employers an exemption from Social Security Payroll taxes through the end of 2010 for each eligible worker they hire after February 3, 2010 and before January 1, 2011. Employers would obtain an additional $1,000 income tax credit for every new employee they retain for at least 52 weeks.
Public Company Advisory - AICPA Determines Venezuela "Highly Inflationary"
March 17, 2010
The American Institute of Certified Public Accountants' Center for Audit Quality (CAQ) has issued an Alert indicating that U.S. companies should consider Venezuela's economy as "highly inflationary" and account for operations of subsidiaries there as if the country's functional currency were the reporting currency for periods beginning on or after December 1, 2009.
Tax Impact - March/April 2010 Edition
March 12, 2010
In this issue we discuss:
- How to avoid losing out on rental real estate losses
- How joint home purchases can reduce estate taxes
- When its possible to write off bad business debts
- Discuss the net operating loss carryback period
Tax Services Advisory - IRS Extends Comment Period on Reporting of Uncertain Tax Positions
March 11, 2010
The IRS on March 5 announced a two-month extension of the comment period on its proposed schedule that would require certain corporate business taxpayers to report their uncertain tax positions on tax returns, with what it calls "a concise description of those positions" and their associated dollar amounts.
Financial Institutions Advisory - IRS Suspends FBAR Filing Requirements for Non-U.S. Persons
March 11, 2010
On February 26 The Internal Revenue Service issued an announcement that suspends the requirement for certain non-U.S. persons to file a Report on Foreign Bank and Financial Accounts (FBAR) for 2009 and earlier calendar years. The IRS suspended the requirement for filing Form TD F 90-22-1 (FBAR) for taxpayers that are not U.S. citizens, U.S. residents or domestic entities (corporations, partnerships, trusts, or estates).
Public Company Advisory - SEC Encourages Adoption of Global Accounting Standards
March 11, 2010
On February 24, 2010 the Securities and Exchange Commission (SEC) issued a statement that supports the adoption of what it calls “high quality globally accepted accounting standards” for U.S. public companies, adding that it believes such standards would benefit investors.
Litigation & Valuation Report - March/April 2010 Edition
March 11, 2010
In this issue we discuss:
- The tax return as an investigative tool
- Distinction between lost profits and lost business value
- Appraisers relying less on empirical study averages
- Putting a price on technnology
Bank Advisory - FDIC Reports Lower Losses, Continued Loan Problems for Florida Banks
February 26, 2010
Banks based in Florida lost a combined $2.0 billion in 2009, compared with a loss of 2.8 billion in 2008, according to data released on February 23 by the Federal Deposit Insurance Corporation. The smaller losses were attributable partly to declines in interest expense and in non-interest expense.
Bank Advisory - FinCEN Warns of Fraud in Mortgage Modification and International Trade
February 26, 2010
The Financial Crimes Enforcement Network (FinCEN) on February 18 issued a report with details on suspicious activities it has found prevalent in loan modification and foreclosure rescue frauds. FinCEN Director James H. Freis announced the release of the report that day during the Florida International Bankers Association’s annual Anti Money Laundering Compliance Conference in Miami.
Tax Advisory - Tax Tips for 2009 and 2010
February 24, 2010
February is an important month for preparing your tax returns and for planning early for your 2010 taxes. These are some items for your consideration. As always, it is important to consult with a tax expert.
Bank Advisory - Regulators' Statement on Small Business
February 11, 2010
The federal financial institutions regulators and the Conference of State Bank Supervisors on February 5 issued an interagency statement that restates and elaborates their views on prudent lending to creditworthy small business borrowers. They emphasized that banks should adhere to prudent standards, but not become overly cautious in lending to small businesses.
Public Company Advisory - SEC Issues Guidance for Disclosures Related to Climate Change
February 11, 2010
The Securities and Exchange Commission on February 2 issued an interpretive Guidance on its existing requirements for public companies on disclosure of how business or legal developments related to climate change could impact their operations. The SEC released the guidance amid the recent increase in laws and regulations regarding climate change that are impacting businesses.
Public Company Advisory - SEC Interpretations on Circumstances that Require a Filing of Form 8-K
February 11, 2010
The Securities and Exchange Commission on January 15 issued an update to a series of interpretations for public companies to determine when they should file a Form 8-K. In the updated interpretations the SEC answered several Frequently Asked Questions about circumstances under which issuance of earnings releases require filing of a Form 8-K.
Tax Advisory - President Obama's Proposed Budget Includes Tax Changes for Businesses, Individuals
February 08, 2010
President Obama on February 1 issued his proposed budget for Fiscal Year 2011, which begins on October 1, 2010. In a news release the U.S. Department of the Treasury has a summary of the budget’s proposed tax changes, including those for businesses.
Tax Advisory - U.S. and Chile Conclude Negotiations of Income Tax Treaty
February 03, 2010
The U.S. Department of the Treasury announced on January 26 that it has concluded its negotiation of a comprehensive bilateral income tax treaty with Chile. Although a draft of the new treaty is not yet available, the Treasury Department announced that the new tax treaty provides for reductions in source-country taxation of cross-border payments of dividends, interest and royalties.
Tax Advisory - IRS Considers New Reporting of Uncertain Tax Positions
February 02, 2010
The IRS on January 26 announced that it is considering a schedule that would require certain corporate business taxpayers to report their uncertain tax positions on their tax returns, with what it calls “a concise description of those positions” and their associated dollar amounts. However, it is anticipated that these rules will also apply to other business entities
Dealership Services Advisory - All Dealers Face Potential Liability on Sales of Recalled Toyotas
February 01, 2010
Toyota’s recall of eight models because of accelerator problems and its suspension of sales of those vehicles are not confined to Toyota dealerships. All Toyota and non-Toyota auto dealers may not have liability coverage on sales of a new or used vehicle, if they know that the vehicle is subject to Toyota’s recall.
Tax Impact - January/February 2010 Edition
January 29, 2010
Litigation & Valuation Report - January/February 2010 Edition
January 29, 2010
In this issue we discuss:
- How a valuation expert can help you
- Role of contingent losses and contingent gains in determining fair market value
- Tax Issues early in litigation
Tax Advisory - High-Income Earners Now Eligible for Roth IRA Conversions
January 28, 2010
All traditional IRA account holders now have the opportunity to participate in conversions to Roth IRAs regardless of income. Until 2010, only taxpayers with adjusted gross income under $100,000 were allowed that conversion.
Tax Advisory - Congress Permits 2009 Deductions on Haiti Contributions
January 26, 2010
The U.S. House and U.S. Senate on January 21 unanimously passed legislation that allows taxpayers to claim deductions on their 2009 tax returns for charitable contributions to aid victims of the devastating earthquake in Haiti. President Obama signed the new bill, H.R.4462, into law on January 2, 2010.
Dealership Services Advisory - IRS Gives Final Chance to Comply with Deferred Compensation Rules
January 23, 2010
The IRS on January 5, 2010 issued a notice that gives auto dealerships and other businesses a final chance to comply with rules for nonqualified deferred compensation plans, and thus avoid tax penalties for themselves and recipients of that compensation.
Public Company Advisory - SEC Rule on Disclosure about Risk, Compensation and Corporate Governance
January 20, 2010
The Securities and Exchange Commission on December 16 issued a final rule that requires public companies to provide additional information about compensation, risk and corporate governance in their proxy statements and other financial reports.
Accounting Services Advisory - Florida Businesses Face Deadline to File Annual Report to State
January 20, 2010
To maintain “active status,” each Florida business must file an Annual Report with the Florida Department of State. Failure to file an Annual Report will result in the administrative dissolution or revocation of the business entity on the Department of State’s records. A late fee of $400 may be imposed if the annual report filing is not submitted on or before May 1.
Dealership Services Advisory - New Year is Perfect Time for Short-Term and Long-Term Planning
January 07, 2010
With the arrival of the New Year, it’s a great time for dealerships and other businesses to make new resolutions to ensure success. It’s a time to look at your business from a perspective of short-term, mid-range and long-term goals for 2010, and to analyze cash flow from anoperating and from a compliance perspective based on loan covenants.
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MBAF is independently ranked as the largest Florida-based CPA firm in the state and one of the top 50 in the nation.
MBAF's hallmark is the hands-on service approach of its professional team of CPAs and consultants based on ample business experience, broad industry knowledge and latest technical expertise.
MBAF provides a full range of services in audit, tax & accounting, litigation support & business valuation, and technology consulting .
Clients served include private and public corporate entities, entrepreneurs, nonprofit organizations and wealthy individuals and families.
