Treasury Report Questions FASB’s Credit Loss Standard
A June 12 report by Department of Treasury has recommended overhauling the U.S. financial regulatory system. While most of the overhaul focuses on easing bank requirements such as those from the Dodd-Frank Act, it also questions the need for the Financial Accounting Standards Board’s (“FASB”) credit loss standard. In response to the 2008 global financial crisis, the FASB issued Accounting Standards Update No. 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The standard addresses delayed disclosure of problematic loans that appeared healthy on banks’ balance sheets, but their loan portfolios became more troubling.. Read More.
Topics: 2008 Financial Crisis, Accounting Standards Update "ASU", FASB, FASB credit loss standard, Financial Accounting Standards Board "FASB", Financial Instruments - Credit Losses (Topic 326), Financial Regulatory System, U.S. Department of Treasury
Tax Debt Growing Among Tax-Exempt Groups
Based on an audit by the U.S. Department of Treasury’s inspector general for tax administration, debt among 64,000 tax-exempt groups was estimated at $875 million for 2012. While the organizations do not pay income taxes, many are in the hole over payroll tax liabilities. Additionally, despite most groups reporting a small amount that they owe, 25 groups with the biggest tax liabilities received $148 million over a three-year period from the government. For the full story on tax-exempt groups’ debt, visit The Hill’s website. Also check out our Education and Nonprofit pages to learn more about the Firm’s industry services.
IRS Updates Form 5472 Regulations to Eliminate Anachronistic “Duplicate Filing” Requirement
Back in 2011, the Internal Revenue Service (“IRS”) proposed regulations to eliminate the need for duplicate filing of Form 5472 regardless if the filer submits a paper or an electronic income tax return. As a result, the regulations’ only remaining provision for filing Form 5472 separately from the filer’s income tax return applies to cases in which the filer’s return is not timely filed. The 2011 regulations are now finalized without substantive change. The IRS and U.S. Department of Treasury are also proposing the removal of §1.6038A-2(e), which provides for a filer to timely file Form 5472 separately from the. Read More.