CPAs and Advisors with Your Growth in Mind

AICPA Issues Technical Guidance for IRS Audits of Partnerships

A recent Technical Question & Answer (“TQA”) document from the American Institute of Certified Public Accountants provides guidance on complying with the Internal Revenue Service’s (“IRS”) new approach to auditing partnerships for income taxes. TQA 7200.09, Partnerships Tax Accounting Considerations Under Partnership Audit Regime , clarifies whether a previous year’s underpayment signifies an income tax liability of the partnership or the individual partners. Per the guidance, Financial Accounting Standards Board Accounting Standards Codification (“FASB ASC”) 740, Income Taxes  FASB ASC 740-10-55-226, Income Taxes — Overall — Implementation Guidance and Illustrations — Attribution of Income Taxes to the Entity or Its Owners, through FASB ASC 740-10-55-229, Financial Statements of a Group. Read More.

Topics: , , , ,

FASB Working to Fix Inconsistencies of U.S. GAAP

The Financial Accounting Standards Board (“FASB”) has released a proposed Accounting Standards Update to eliminate inconsistencies in parts of the U.S. Generally Accepted Accounting Principles (“U.S. GAAP”). Impacting various areas in the FASB Accounting Standards Codification, the proposed changes will apply to all reporting entities within the scope of the related accounting guidance.  Some of the amendments under Proposed Accounting Standards Update No. 2017-320 Codification Improvements, impact: Subtopic 718-740, Compensation—Stock Compensation—Income Taxes: The FASB proposes clarifying that an entity must disclose excess tax benefits (or tax deficiencies) in the reporting period when the tax deduction for compensation expense is taken on its. Read More.

Topics: , , , , , , , ,

FASB to Delay Amended Income Tax Guidance

The Financial Accounting Standards Board (“FASB”) is taking a wait-and-see approach before finalizing its income tax disclosure guidance. An FASB spokesperson said the board wants to await the outcome of Congress and the Trump administration’s income tax reform legislation prior to approving Proposed Accounting Standards Update No. 2016-270, Income Taxes (Topic 740): Disclosure Framework — Changes to the Disclosure Requirements for Income Taxes. The move is to ensure the FASB’s proposed amendments to income tax disclosures stay relevant. The FASB also plans to hold off on making additional changes to the guidance under Topic 740, Income Taxes. The FASB spokesperson. Read More.

Topics: , , , , ,